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A well-oiled SME (small and medium eration, according to the entrepreneurs The NDA Government announced
sector) is a pre-requisite for the overall were dilly dallied. Hence, the schemes to revise the definition of MSME when
industrial development of an econo- though alive on papers turned redun- it assumed power in 2014. An MSME in
my. The SME sector has undergone an dant for the eligible entities. India is defined as an enterprise with
ordeal post demonetization and GST an investment of Rs 5 cr in plant and
(Goods and Service Tax) rollout. Cost- machinery. This definition was last re-
cuttings, lay-offs, repayment of debt vised in 2006. According to MSMEs, the
and stringent credit norms by banking A well-oiled SME investment limit should be scaled up
sector have pushed the SME sector into factoring in the inflation. In 2018, Union
shambles. (small and medium Cabinet approved to redefine MSME
The small entrepreneurs on the unit from the benchmark of turnover
condition of anonymity told that SMEs sector) is a pre- instead of plant and machinery. But it
have been denied of subsidies during requisite for the was not implemented.
the last two years earmarked for them. According to Rajiv Chawla, a senior
These were not rolled back but at the overall industrial member of Faridabad Industry Asso-
same time unavailable. Schemes like development of an ciation told that expectations of MSMEs
Lean Manufacturing (80 per cent cost are extremely high. The disruptions in
of implementing lean tools and tech- economy. The SME the form of demonetization and GST se-
niques are borne by Ministry of Micro, sector has undergone verely undermined the mall businesses.
Small and medium Enterprises, while They now expect the government:
remaining 20 per cent is funded by an ordeal post (i) To revise the definition of MS-
the unit), CLCSS (Credit Linked Capi- demonetization MEs either on the basis of turn-
tal Subsidy Scheme for Technology over or plant and machinery.
Up gradation, Technology and Quality and GST (Goods and (ii) Revive all subsidy schemes.
Up gradation Support to MSMEs and Service Tax) rollout (iii) Facilitation of bank credit flow
MSME Scheme for International Coop- to MSME sector

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