{"id":1148,"date":"2019-11-01T22:39:07","date_gmt":"2019-11-01T17:09:07","guid":{"rendered":"https:\/\/www.grainmart.in\/news\/?p=1148"},"modified":"2019-11-01T22:39:38","modified_gmt":"2019-11-01T17:09:38","slug":"government-to-change-definition-of-msme-nitin-gadkari","status":"publish","type":"post","link":"https:\/\/www.grainmart.in\/news\/government-to-change-definition-of-msme-nitin-gadkari\/","title":{"rendered":"Government to change definition of MSME: Nitin Gadkari"},"content":{"rendered":"\n<p>In an attempt to improve the ease of doing business, the government will soon change the definition of MSMEs. Union Minister Nitin Gadkari while speaking on the sidelines of the Luxury Symposium 2019, said that the government will soon change the definition of MSMEs.<\/p>\n\n\n\n<p>Finance\nMinister Nirmala Sitharaman, in August had said that the government would\nconsider to switch to a \u201csingle definition\u201d of MSMEs. <\/p>\n\n\n\n<p>In February last year, the Union Cabinet had approved amendments to MSMED Act. The amendments were made to change the classifying criteria of MSMEs from \u2018investment in plant and machinery\u2019 to \u2018annual turnover\u2019.<\/p>\n\n\n\n<p>This change will provide an explicit and single definition to MSMEs. The government will soon bring the changes. <a href=\"https:\/\/www.grainmart.in\/news\/to-reduce-debt-and-fund-growth-msmes-must-get-listed-gadkari\/\">Union minister<\/a> was quoted saying that &#8220;We will have one meeting and then finalise it&#8221;. <\/p>\n\n\n\n<h5 class=\"wp-block-heading\">MSMEs\nare the heart of Indian Economy<\/h5>\n\n\n\n<p>MSMEs contribute about 28% of country\u2019s GDP. Contribution includes 45% to manufacturing output and more than 40% to exports. MSMEs employ about 111 million people in India. They have a vast network of about 63.38 million enterprises hence, they contributes significantly in the growth of Indian economy.<\/p>\n\n\n\n<h5 class=\"wp-block-heading\">Current\nMethod of classification<\/h5>\n\n\n\n<p>MSMEs are currently divided into three categories based upon the money invested. For money invested in Manufacturing Enterprise the <a href=\"https:\/\/msme.gov.in\/know-about-msme\">classifications <\/a>are as follows:<\/p>\n\n\n\n<table class=\"wp-block-table\"><tbody><tr><td><strong>MSME Classification<\/strong><\/td><td><strong>Investment in INR<\/strong><\/td><\/tr><tr><td>Micro Enterprise Manufacturing<\/td><td>Up to 25 Lac<\/td><\/tr><tr><td>Small Enterprise Manufacturing<\/td><td>25 Lac &#8211; 5 Crores<\/td><\/tr><tr><td>Medium Enterprise Manufacturing<\/td><td>5 crores &#8211; 10 crores<\/td><\/tr><tr><td>Micro Enterprise Service<\/td><td>Up to 10 Lac <\/td><\/tr><tr><td>Small Enterprise Service<\/td><td>10 Lac &#8211; 2 Crores<\/td><\/tr><tr><td>Medium Enterprise Service<\/td><td>2 Crores &#8211; 5 Crores<\/td><\/tr><\/tbody><\/table>\n\n\n\n<h5 class=\"wp-block-heading\">Why government wants to change the definition?<\/h5>\n\n\n\n<p>The current method of classification of MSMEs based on\ninvestments in plant\/machinery\/equipment does not reflect the current increase\nin price index of plant and machinery\/equipment.<\/p>\n\n\n\n<p>The change of definition will improve the ease of doing business in the country. Further it will ease taxation and allure investment for MSMEs. In addition, they may create more jobs thereby helping the government to achieve the target of 5 crore jobs in 5 year.<\/p>\n","protected":false},"excerpt":{"rendered":"<p>In an attempt to improve the ease of doing business, Union Minister Nitin Gadkari announced that Govt will soon change the definition of MSMEs<\/p>\n","protected":false},"author":10,"featured_media":981,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[4],"tags":[],"class_list":["post-1148","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-news"],"yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v28.5 - https:\/\/yoast.com\/product\/yoast-seo-wordpress\/ -->\n<title>Government to change definition of MSME: Nitin Gadkari - Grainmart News<\/title>\n<meta name=\"description\" content=\"In an attempt to improve the ease of doing business, Union Minister Nitin Gadkari announced that Govt will soon change the definition of MSMEs\" \/>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/www.grainmart.in\/news\/government-to-change-definition-of-msme-nitin-gadkari\/\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"Government to change definition of MSME: Nitin Gadkari - 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