GST boost to MSMEs

The definitional changes made for MSMEs would address the problem of "dwarfism"

The growth of the micro, small and medium enterprises (MSMEs) has been an integral part of our growth story. The Indian economy grew at an average rate of over 6.5 per cent during the period 1980-2010. The growth story has spluttered in recent times with two important engines of growth — private investments and exports — not firing.

The MSME sector plays a critical role in boosting both these engines and MSMEs’ relatively poor performance has contributed to tepid private investments. Outstanding bank credit to MSMEs remained constant for three fiscal years from 2015-16 to 2018-19. Consequently, lending from NBFCs