As Government has announced the relief of 20 Lakh Crore on the 13th of May for the MSME Sectors, it had boosted their Economy to a greater extent.

But now the Cabinet Committee of Economic Affairs … by Hon’ble Prime Minister Mr. Narendra Modi has revised the classification criteria of the MSME Sector. In the meeting of CEA, the committee has discussed its strategy to reduce the importing capacity in the major field, enhancing the production capacity.

Now as per the new norms, a unit of 50 crore Investment and 250 crore of Turnover will fall under the Medium Inter Price category and manufacturing service unit with 1 crore of Investment and 5 crore Turnover will be classified as Micro and a unit enhancing 10 crore of Investment and 50 crore of Turnover will be categorized as Small Enterprise.

Now with the new norms, there will be no difference between the Manufacturing and Service sector.

An official statement has been released stating that- “This is expected to exponentially add to exports from the Country leading to more growth and economic activity that will directly boost the Creation of Jobs.”

This new categorization will come into effect from July 1st. The existing criteria of categorization are based on the MSMED Act 2006.

PM has strictly ordered the officials to cut down the import of AC, especially split AC. The report has shown that 60-70% of the compressor of these AC’s are being imported from the other Countries. So boosting the production of these compressors will enhance the Economic pace.