The Government’s decision to increase the turnover limit for medium units from Rs 100 crore to Rs 250 crore will help infuse technology and promote automation in certain sectors and boost outbound shipments, according to exporters.
Well, the movie will certainly be going to increase the MSME’s bandwidth at the upper limit and it is expected that a major chunk of large-sized businesses who were at the bottom of the large segment will be able to enter into the MSME category. But, on the other hand many Micro-sized businesses which were registering a turnover of less than 5 Cr or their investments are also low, will be able to rethink on their business outlook.
Federation of Indian Export Organisations President Sharad Kumar Saraf said that exclusion of exports turnover from total turnover will help in the internationalisation of MSMEs and will bring their focus on exports. “This will also benefit a lot of gems and jewellery companies, who would have breached the MSME criteria due to sheer cost of their inputs,” he said in a statement. The cabinet on Monday approved further increasing the limit for medium manufacturing and service units to Rs 50 crore of investment and Rs 250 crore of turnover. The turnover with respect to exports will not be counted in the limits of turnover for any category of MSME units whether micro, small or medium. In other words, Mr. Saraf indicated that as per the Government’s vision, this new definition will energise the MSME sector from the perspective of growth-oriented development.
“The move is most pragmatic and will also infuse technology as in certain sectors margins are so low.” Mr. Saraf added.