MSME - #SectorUpdates
The ministry of MSME has notified that in case of an upward change in terms of investment in plant and machinery or equipment or turnover or both, and consequent re-classification, an enterprise shall continue to avail of all non-tax benefits of the category it was in before the re-classification, for a period of three years from the date of the such upward change. Earlier an enterprise was allowed to avail of non-tax benefits for one year from the date of reclassification. Non-tax benefits include benefits of various schemes of the Government, including public procurement policy, delayed payments, etc. India has 7.9 million registered Micro, Small and Medium Enterprises (MSMEs) and Government benefits are available to MSMEs in the form of subsidies, financial support, and access to skill and technological development. It is important to bring the MSME sector under the umbrella of financial inclusion in India. Sustainable growth of this sector can be ensured to a large extent if they have access to affordable credit.