: Government is working on a mechanism to define Micro, Small And Medium Enterprises based on turnover, employees and investment instead of the current practice of only capital infusion, a top official said today.
"We are thinking on a mechanism on how can we take micro, small and medium enterprises forward. As of today, definition of a MSME is based on capital infused. We are thinking of defining it on the basis of employees, total revenue and capital", Department of Micro, Small and Medium Enterprises, Secretary K K Jalan said here.
"We need to learn from the United States and China for propping up the SME industry (in India)", he said.
Jalan was here to take part in a conference on 'Role of MSMEs in Enhancing Indo-US Trade,' organised by Indo-American Chamber of Commerce and Federation of Indian Export Organisations.
Noting that states play a large role in encouraging MSMEs, he said Government had asked states to hold SME conventions to encourage entrepreneurs share knowledge and ideas.
"We have asked the States to hold SME conventions. In fact Madhya Pradesh has become the first State to do an SME Convention", he said.
Stating that the MSME sector yet to improve on various issues like skill development and use of technology, Jalan said the government was aware that regulatory compliance was the 'same' whether it was a bigger manufacturing company or a small firm engaged in the MSME sector.
"Regulatory compliance for a company with revenues of Rs 1,000 crore engaged in manufacturing sector is the same to a company which reports revenues of Rs one or two crore. We are fully aware of the issue. It will be looked into", he said.
Disclaimer: No Business Standard Journalist was involved in creation of this content
