The amendment in the definition of MSME was proposed by hon. Finance Minister in her declaration of economic package on 14th may 2020. As it now stands once again amended by the central cabinet of ministers during the meeting held on 1st June 2020 & the necessary notification no 1532 dated 01.06.2020 is also issued by the Ministry of MSME signed by the secretary, Ministry of MSME effective from 1st July 2020.
We recognize & appreciate that the long pending & discussed matter is now arriving at some conclusion. It is moment of pride for Laghu Udyog Bharati, that the government have incorporated “Laghu Udyog Bharati’s” demand for retaining the basic definition criteria to be “Investment in Plant & Machinery “and tagged with “Annual Turnover of Sale during the financial year”.
While we agree this progress, we take a bit of liberty to mention that the government shall also include some more provisions by way of notification ensuring-
- enterprises with Indian ownership shall qualify to register as MSME.
- to promote the micro, small & medium manufacturing industry under make in India, it is important that the definition is distinctly defined to separate services, trading & Professional enterprises.
- to deliver the benefits of being an MSME, such as priority financial lending & reservation in
The procurement by PSUs & government departments, the principle of apportioned proportionate distribution amongst micro, small & medium units based on the annual report of ministry of MSME. As per the 2018-19 report the segment-al distribution is micro 89%, small 10.5% & medium 0.5%.
Laghu Udyog Bharati is very much optimistic that the government will address & accept our suggestions to be included in the definition notification, so that the “atma nirbhar swavalambi bharat” vision of hon prime minister will become reality for the MSME sector.
Laghu Udyog Bharati
3rd June 2020