The Cabinet Committee on Economic Affairs (CCEA) on June 1, 2020 approved the upward revision of MSME definition.
New Definition of MSME
The Central Government also approved for provisioning of Rs 20,000 crore as subordinate debt to provide equity support to the stressed MSMEs. This will benefit 2 lakh stressed MSMEs.
About MSME
- Micro, small and Medium Enterprises (MSMEs) popularly called as MSMEs are the backbone of Indian economy. Silently operating in different areas across the country, more than 6 crore MSMEs have a crucial role to play in building a stronger and self-reliant India.
- These small economic engines have a huge impact on the country’s GDP-making a contribution of 29 percent.
- They contribute to almost half of exports from the country.
- Additionally, more than 11 crore people are employed in the MSME sector.
