Bikky Khosla | 05 Jan, 2021
The year 2020 witnessed manifold
effects of a tumultuous pandemic -- massive loss of human lives, collapse
of economies, industrial doom and job losses. But it led governments across the
world to go for some never-seen-before measures to revive their economy and
industrial sectors. In India also, among other sectors, the MSME sector, was
injected with massive stimulus packages, and we also witnessed several significant reforms for which the sector would otherwise have to
wait for years.
One among such path-breaking reforms
include change in definition of MSMEs, according to which these units are now
defined based on a composite criteria of
investment in plant & machinery/equipment and turnover. After 14
years since the MSME Development Act came into existence, the revised
definition was announced. Also, the Centre accepted the demand of the export
sector for excluding revenue collected through exports from the turnover limits
fixed for MSME.
Another significant development was in
terms of delayed payment. As part of the Atma Nirbhar Bharat
package, it was announced that MSME dues should be paid in 45 days, following which
regular follow-up and concerted efforts were made for payment of dues to the
sector. Also, the MSME Ministry launched the SAMADHAAN
portal to enable MSEs to directly register their cases relating to delayed
payments by Central Ministries or Departments or CPSEs or State Government
and other buyers.
Several other positive steps,
including financial support mechanism through Fund of
Funds, introduction of IT based Champions, encouragement
for entrepreneurship amongst khadi & village industries and to promote
self-employment, launch of Udyam Registration Portal,
organising of different skill development programmes throughout the country,
etc. helped the sector a lot. No doubt, the
pains of 2020 are still very much with us, but
the days ahead will definitely be better.
I invite your opinions.