Government raises MSMEs turnover limit

Government raises MSMEs turnover limit

Part of: GS-Prelims and GS-III – Economy

In News:

• Several decisions were taken up by the Government recently which aimed at helping the MSMEs (Micro, Small and Medium Enterprises). 

Key takeaways 

• The definition of MSMEs has further been revised. 
• Those enterprises with investment upto 50 crore rupees and turnover of upto 250 crore rupees will now be able to avail the benefits of MSME sector. 
• All export turnovers of such enterprises will also remain exempted from the total turnover.
• It will lead to inclusion of many industrial units. 
• Distressed MSME fund of 20,000 crore has also been approved to help the enterprises in distress. 
• This decision will benefit over 2 lakh units in the country.
• Fund of Funds with initial outlay of 50,000 crore rupees will also be created.
• The amount will be infused in the MSME sector through equity route.
• This will provide an opportunity to get listed in stock exchanges.