New MSME definitions spell more business, bigger benefits

Micro, small, and medium enterprises have new definitions that promise to open doors wider for them starting this financial year as well as improve their chances of securing delayed payments faster.

- Manas Pimpalkhare & Rituraj Baruah

The Union government, in a notification dated 21 March, amended the definitions of micro, small, and medium enterprises (MSMEs), raising limits for investments in plant and machinery as well as turnover from this fiscal year.

The new definitions will push a considerable number of medium-sized businesses into the category of small enterprises, allowing them access to the government e-marketplace (GeM), used by the government for procuring goods, and access to dispute resolution services for delayed payments.