Being the most vibrant sector contributing significantly to GDP and exports, MSME sector was given a new definition under Atmanirbhar Bharat Abhiyan. Under the new definition, manufacturing and services enterprises with investments up to Rs 1 crore and turnover up to Rs 5 crore will be classified as micro enterprises. For small enterprises, the investment criteria has been revised upwards to Rs 10 crore, with the turnover criteria of Rs 50 crore added to the mix. Enterprises with investment up to Rs 20 crore and turnover up to Rs 100 crore will be termed medium enterprises. This measure will widen the net of benefits associated with classification as an MSME to more enterprises.

Collateral-free automatic loans for MSMEs- To restart businesses, MSMEs to be given emergency credit line of up to 20 percent of entire outstanding credit as on 29 February 2020. Borrowers with up to Rs 25 crore outstanding and Rs 100 crore turnover eligible for the loan. Subordinate debt for stressed MSMEs- Centre will facilitate the provision of Rs 20,000 crore as subordinate debt, likely to benefit two lakh MSMEs. Functioning MSMEs, including NPAs and stressed businesses will be eligible for debt. The government will also provide support of Rs 4,000 crore to Credit Guarantee Fund Trust for Micro and Small Enterprises (GTMSE). The collateral-free automatic credit line and the subordinate debt to MSMEs may prove to be a good boost for the MSME Sector if they find difficult to get credit support from banks and other financial institutions.

With a view to promote the various incentives announced by the Govt. for MSME Sector, the Chamber, on its own, would make utmost efforts promoting the middle and small enterprises in their business enterprises and will be circulating all relevant information on govt regulations and guidelines on the subject.