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.