New MSME definition to benefit downstream textiles, boost exports: experts

Several exporters can now be classified as MSMEs and avail 5% rebate under interest equalisation scheme

The change in the definition of micro, small and medium enterprises (MSME) is set to offer major relief to the downstream sector and boost exports of textile and readymade garments, experts have said.

In the package announcement, the threshhold for micro manufacturing and services units was increased to Rs 1 crore by way of investment and Rs 5 crore by turnover. The limit for small units was raised to Rs 10 crore (investment) and Rs 50 crore (turnover). Similarly, the limit of medium units was increased to Rs 20 crore (investment) and Rs 100 crore (turnover). Earlier, these limits were significantly