The Government of India has now included Retail and Wholesale Trades as MSMEs from 2nd July 2021 onwards.
The Government, vide notification no. S.O. 2119 (E) dated 26.06.2020, had notified composite criteria of classification of MSMEs based on investment in plant and machinery or equipment and turnover of the enterprise.
With the introduction of the new classification of MSMEs w.e.f. 01.07.2020, a new cost-free system of online Udyam Registration which is based on self–declaration, has replaced the erstwhile filing of Udyog Aadhaar Memorandum (UAM)/ Udyam Registration is required for availing benefits of the schemes and programmes of the Ministry of MSME.
The Government has launched the Credit Guarantee Scheme (CGS) to strengthen the credit delivery system and facilitate the flow of credit to the MSE sector without the hassles of collateral and third party guarantee and under this scheme, Credit Guarantee is given to the Member Lending Institutions (MLIs) for loans upto Rs. 200 lakh.
To further strengthen the Indian economy and to provide help to upcoming entrepreneurs, recently the Government has taken several initiatives under Aatma Nirbhar Bharat Abhiyan to support the MSME sector in the country, especially in the Covid-19 pandemic. Some of them are:
- Rs. 20,000 crores Subordinate Debt for MSMEs.
- Rs.3 lakh crores Collateral free Automatic Loans for business, including MSMEs.
- Rs. 50,000 crore equity infusion through MSME Self-Reliant India Fund
- New Revised criteria of classification of MSMEs.
- New Registration of MSMEs through ‘Udyam Registration’ for Ease of Doing Business.
- No global tenders for procurement up to Rs. 200 crores.
An Online Portal “Champions” has been launched on 01.06.2020 by the Hon’ble Prime Minister, covering many aspects of e-governance including redressal of grievances and handholding of MSMEs.
RBI has also announced several measures to Reduce the Financial Stress of MSMEs.
This information was given by Minister for Micro, Small, and Medium Enterprises Shri Narayan Rane in written during the Lok Sabha today.