Change in MSME Definition in May2020
Further revised on 1st June 2020 as below.
MSME definition widened further to include firms with up to Rs 250 cr turnover
The earlier definition was linked to investment in plant and machinery, but the government was pushing for turnover-based classification. However, it was argued that any change in definition to only a turnover-based would mean traders and assemblers who import from China and put together a product, could benefit at the cost of local manufacturers.Hence only turnover cannot be the criteria.With the current amendment investment limit is increased but it is now capped by Turnover limit
Relevance of MSME