Laghu Udyog Bharati opposes move to amend MSME definition

Government urged to increase investment limit

Laghu Udyog Bharati, which has MSMEs across the country as its members, has opposed the move by the Union Government to amend the definition for Micro, Small, and Medium-scale Enterprises (MSMEs).

State president of Laghu Udyog Bharati, S. Surulivel, said in a press statement that if the Government makes changes in the definition, which is proposed to be based on the turnover of each unit, several micro or medium-scale units can be classified as a small-scale unit and larger industries will come under the medium category. This will lead to higher competition for micro and small-scale units. The handholding and benefits extended by the Government will benefit the larger and medium-scale units rather than the micro and small-scale ones.

The Government should instead increase the investment limit. The classification should not be based on turnover of each unit.

The capital investment limit can be increased to ₹50 lakh for micro units and ₹10 crore for small-scale industries. The Government should treat the MSMEs on a par with the agriculture sector and make it a priority sector. The change in definition as proposed by the Government will affect the competitiveness of the micro and small-scale units, he said in the press release on Thursday.

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