What is MSME,define MSME,as per MSMED act 2006 and 2018.problems to MSME sector,COVIDpendemic effect
MSME stands for Micro, Small and Medium Enterprises. It was introduced by the Govt. of India in agreement with the Micro, Small and Medium Enterprises Development (MSMED) act of 2006.As per this act, MSMEs are the enterprises involved in the production, processing and or preservation of goods and commodities.
As per act 2006 :-
Micro enterprises engaged in manufacturing are those in which original investment in plant and machinery is Rs 25 lac, small enterprises have investment Rs 25 lac to Rs 5 crore and Medium enterprises have investment Rs. 5 crore to Rs 10 crore.
Micro enterprises engaged in services are those in which original investment is Rs 10 lac, small enterprises have investment R 10 lac to Rs 2 crore and Medium enterprises have investment Rs 2 crore to Rs 5 crore.
Thereafter ,there was amendment in this act in 2018, known as The Micro,Small and Medium Enterprises Development (Amendment )Bill 2018,with amended definition based on investment and turnover as under :-
Micro enterprises have investment Rs. 1 crore and turnover upto Rs 5 crore, Small enterprises have investment upto Rs 10 crore and turnover upto Rs 50 crore, the Medium enterprises have investment upto
Rs 50 crore and turnover upto Rs 250 crore.
The new MSME scheme 2020 provides loans upto Rs 10 lac to non corporate and non farm small or micro enterprises. These loans are classified as MUDRA (MICRO UNITS DEVELOPMENT AND REFINANCE AGENCY LTD.) lo and under PMMY. PMMY stands for Pradhanmantri Mudra yojna.
There was bad effect in last five years on these MSME enterprises, like Demonetisation, GST roll out and Pendemic. About five lac such units were closed in last five years, 64000being in North alone.
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