The Cabinet has approved the revision in the definition of MSMEs. The Investment limit for units to be classified as Medium sized Enterprises have been enhanced from Rs. 20 to Rs. 50 Crores. The Turnover limit for Medium Enterprises have also been increased from Rs 100 crores to Rs 250 crores. “The enhancement in the Investment and Turnover limits for Medium Enterprises is a very positive step taken by the Government,” said Dr. K.V. Srinivasan, Chairman of The Cotton Textiles Export Promotion Council (TEXPROCIL).
MSMEs play a significant role in the Indian Economy. It contributes towards 29% of the GDP and 48% to the Country’s exports.
The Cabinet has also decided to exclude export turnover from the turnover limits for Small, Micro and Medium Enterprises. According to Dr. Srinivasan, this is a very welcome decision as a large number of exporters in the textiles sector can now be classified as MSMEs under the new criteria as and will be eligible to get all the benefits extended to the MSMEs including 5% Interest Equalization scheme.
The Chairman, TEXPROCIL expressed his confidence that these decisions will lead to an increase in exports of textiles by making them more competitive which in turn will lead to employment generation.
Dr. K.V. Srinivasan extended his thanks to Shri Nitin Gadkari, Hon’ble Union Minister for Road Transport and Highways and MSMEs and Smt Smriti Zubin Irani, Hon’ble Union Textiles Minister for these decisions which has come as huge relief to the exporters who are passing through unprecedented times on account of COVID-19.