Pursuant to PM Modi's announcement for the need of
developing India into a 'self-reliant' country, Finance
Minister Nirmala Sitharaman made a slew of announcements on 13 May
2020.
While announcements ranged from the real estate sector,
provident fund regulations, NBFCs, DISCOMs, and direct tax
measures, a major focus of the reforms was on MSMEs. The MSMEs have
been considered to be the backbone for the government's
'self-reliant' project.
Some of the key measures announced are briefly highlighted
hereunder:
| MSME |
- Expansion of the scope of the definition of MSMEs under Micro,
Small and Medium Enterprises Development Act, 2006 (MSMED, 2006),
thereby enabling more enterprises (be it company, LLP,
partnership/proprietorship firm, etc.) to be eligible for such
benefits. A brief comparison of the maximum threshold limits under
the existing and proposed definition is given hereunder:
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