Maxim of the fish: New MSME norms may not be a blessing for small business

Enhancing the investment and turnover limits for MSMEs was overdue, but the smaller units will have serious reservations

The government has made significant changes in the way it defines the micro, small and medium enterprises (MSMEs) operating in the country. The new definition will essentially mean that almost 99 per cent of India’s registered companies and almost 70 per cent of all listed entities in the country would be able to enjoy the many benefits that the government has announced for the MSME sector. 

The sweep of the MSME sector after the revised definition will be huge. The earlier definition had given the MSME units a share of 25 per cent in India’s gross domestic product (GDP). These