Industry not in favour of govt plan to have a single definition for MSMEs

No major stakeholder consultations held so far, wary industry urges government to abandon one-tag-fits-all approach

Industry bodies representing micro, small and medium enterprises (MSMEs) had vociferously backed the government's decision to update the definition of small businesses, last month. But with the Centre now increasingly making it clear that the new definition would be a single one for the entire sector, the excitement and cheer within the industry have died down.

MSME minister Nitin Gadkari had announced on August 23, that the government would be working to forge a new definition for MSMEs through an amendment to the MSME Act, 2006. Saddled by low capacity, battling a liquidity crisis and slowing domestic and export demand,