SMEs in manufacturing and services now have a reason to cheer up, as the MSME Ministry has made the announcement that it will raise the capital to ease the businesses environment.
"The need for a change in definition of micro, small and medium enterprises (MSMEs) has been raised by the various stakeholders from time to time considering changes in price index and dynamic market situation," said the MSME Ministry.
"The Ministry of micro, small and medium enterprises proposes to address this issue through Micro, Small and Medium Enterprises Development Act, 2006 by way of amending the provision relating to definition of MSMEs," it added.
As per the proposal of the government, the tailor-made capital ceiling for both MSME and SME sectors will be doubled. For MSME, the number will go up from Rs 25 lakhs to Rs 50 lakhs and for SME, it will increase from Rs 5 crore to Rs 10 crore.
Besides, the government has suggested tripling the limit of medium enterprises from Rs 10 crore to to Rs 15 crore.