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MSME definition to be modified, FISME calls for suggestions -Ananya Upadhyaya

-Financial Express

Due to the steep rise in raw material prices, many small enterprises have crossed the threshold of small enterprises and graduated to medium, making them ineligible for government subsidies.

Federation of Indian Micro and Small & Medium Enterprises (FISME) is calling for suggestions to put before the central government as they seek to revise the definition of Micro, Small and Medium Enterprises (MSMEs) in the country. The criteria for Udyam registration eligibility might also be reviewed. 

The last drastic modification to the definition of Micro, Small and Medium Enterprises (MSME) occurred two years back in 2020 when the investment and turnover figures were increased to accommodate medium enterprises. 

The recent rise in the raw material prices has increased the turnover of many small enterprises as a result of which they have crossed the threshold of small enterprises and graduated to medium. On the other hand, due to covid, turnover of many medium enterprises got affected and they became small businesses. 

In both the cases, the transition made them ineligible to access subsidies and public procurement that are reserved exclusively for micro and small enterprises.   

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