Key decisions announced in the Cabinet briefing today

Well, this was the first Cabinet meeting in the second year of the Modi government. Information and Broadcasting Minister Prakash Javadekar today made some historic announcements that are likely to have a major impact on farmers, street vendors and MSMEs.
 

In the press briefing, Mr Javadekar said MSMEs are the backbone of India's economy and therefore the Cabinet has made a road map for implementation of decisions for the MSME sector under the Atmanirbhar Bharat package.
 

The Cabinet has cleared definition changes for the MSME sector. So what is the new defination?
 

According to the new definitions, MSMEs with an investment of Rs one crore and turnover of Rs 5 cr will be classified as micro-units. Units with an investment of Rs 10 crore and turnover of Rs 50 crore will be recognised as small units, while those with an investment of Rs 50 crore and turnover of Rs 250 crore will be classified as medium units. Moreover, exports will not be excluded from the turnover cap.

Joining the press conference, Nitin Gadkari, minister for road transport & highways and MSMEs said that 60 million MSMEs contribute 29 per cent to India's GDP. He further said that MSMEs account for 48 per cent of the country's exports, and generate 110 million jobs. He claimed that these decisions will help strengthen the Indian economy.
 

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