FISME invites suggestions on change of MSME definition

New Delhi, Aug 16 (KNN) Federation of Indian Micro and Small & Medium Enterprises (FISME) has called for suggestions and comments on alteration of Micro, Small and Medium Enterprises (MSME) definition.

After two years of substantial modification in the definition of MSME the Union Ministry of MSME is contemplating a review of criteria on which MSMEs definitions are based.

The changes gave a dual criteria for MSME definition based on investment in plant and machinery and annual turnover.

The issues under review are criteria of MSME definition and matters related to Udyam registration, said the MSME Association.

Government is likely to amend the criterion of Turnover & Investment for the enterprise having Huge Asset & Inventories. 

It is also considering a rollover clause to provide succor of few years to units graduating from different thresholds of MSME and issue of treatment of deemed exports in MSME definition is also under review.

A number of anomalies have come to light with current definition as there are sectors where investment in plant and machinery is very but turnover low such as high tech sectors, read the circular send to all members and associations by FISME for consultations.

Whereas there are sectors where investment is low but turnover high such as gems and jewelry. In either case it is found difficult to accommodate them in the existing definition.

Further, due to steep rise in raw material prices, many small enterprises have crossed the threshold of small enterprises and graduated to medium. They become ineligible to access public procurement reserved for Micro and Small Enterprises.  

Associations and stakeholders can share their views by August 21, 2022 to mayank@fisme.org.in.

(KNN Bureau)