Govt changes Definition of MSMEs, revises investment limit; here's what is different

In a major anuncement, Finance Minister Nirmala Sitharamn on Wednesday stated that definition of Micro, Small & Medium Enterprises (MSMEs) will w be revised since ir low threshold was holding m back from growing.  While revealing that re was a long-pending demand for revision in definition of MSMEs, Sitharaman anunced that investment limit for MSMEs will be revised urds, and additional criteria of turver will also be introduced.

Along with this, distinction between manufacturing and service sector will be eliminated and necessary amendments to laws will be brought. To provide stressed MSMEs with equity support, Government will also facilitate provision of Rs. 20,000 crore as subordinate debt under which two lakh MSMEs are likely to benefit.

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