Udayavni Special

Enhancement of MSME’s turnover limit to help exporters


PTI, Jun 1, 2020, 8:57 PM IST

New Delhi: The government’s decision to increase the turnover limit for medium units from Rs 100 crore to Rs 250 crore will help infuse technology and promote automation in certain sectors and boost outbound shipments, according to exporters.

Federation of Indian Export Organisations (FIEO) President Sharad Kumar Saraf said that exclusion of exports turnover from total turnover will help in the internationalisation of MSMEs and will bring their focus on exports.

“This will also benefit a lot of gems and jewellery companies, who would have breached the MSME criteria due to sheer cost of their inputs,” he said in a statement.

The cabinet on Monday approved further increasing the limit for medium manufacturing and service units to Rs 50 crore of investment and Rs 250 crore of turnover. The turnover with respect to exports will not be counted in the limits of turnover for any category of MSME units whether micro, small or medium.

“The move is most pragmatic and will also infuse technology as in certain sectors margins are so low that enhancement in investment in plant and machinery would not have been of much use unless accompanied by an increase in the turnover limit to Rs 250 crore.

Such a move will also bring automation of certain processes which are required for competitive manufacturing,” he added.

Hailing the decisions on MSME sector, financial advisory firm Findoc Group MD Hemant Sood said that MSMEs are the backbone of the Indian economy and the highest employer of skilled labour.

“The decision by the government to allow the listing of MSMEs will help them in longer-term and become a growth engine for their revival,” Sood said.

Apparel Export Promotion Council (AEPC) Chairman A Sakthivel also said that as the exporters’ turnover depends upon the foreign exchange rates and since rupee value has continuously weakened for the last 10 years, the council had requested the government to remove the turnover criterion for defining MSMEs in the exports sector.

“Today’s decision will propel India’s exports and strengthen the MSME sector, which is the key to India becoming self-reliant. Further, the decisions to allow MSMEs get listed and the provision of distressed asset fund for MSMEs will give a major stimulus to the sector, job generation and revival of the economy,” Sakthivel said.

Top News

Heavy rains continue in Mumbai; low-lying areas waterlogged

Trasi-Maravanthe beach turns out hub for illegal activities amid COVID-19

IAF ramping up deployment in key bases along border with China

Akshay Kumar’s air trip to Nashik amid lockdown sparks controversy

Bengaluru: 50-year-old woman dies after 12 hospitals deny admission

PM extends greetings on ‘Guru Purnima’

India records 24,850 COVID-19 cases in single day





Related Articles More

Heavy rains continue in Mumbai; low-lying areas waterlogged

CRPF personnel injured in IED blast in J&K’s Pulwama

IAF ramping up deployment in key bases along border with China

Akshay Kumar’s air trip to Nashik amid lockdown sparks controversy

Delhi LG Anil Baijal inaugurates world’s ‘largest’ COVID care centre



MUST WATCH

Sunday Lockdown: Most of Udyavara, Katapadi shut

Bantwal: Sunday Lockdown strictly followed

Trasi’s Maravanthe beach – Negligence galore

People leaving Bengaluru for fear of COVID-19

COVID-19 patient waits in ambulance for hospitalisation; MLA U T Khader intervenes


Latest Additions

Heavy rains continue in Mumbai; low-lying areas waterlogged

Feeling yet to sink in but my life hasn’t changed at all: Cummins on IPL big bucks

CRPF personnel injured in IED blast in J&K’s Pulwama

US startup plans to take tourists on balloon trips to ‘edge of space’

Trasi-Maravanthe beach turns out hub for illegal activities amid COVID-19

Thanks for visiting Udayavani

You seem to have an Ad Blocker on.
To continue reading, please turn it off or whitelist Udayavani.