Laghu Udyog Bharati, which has MSMEs across the country as its members, has opposed the move by the Union Government to amend the definition for Micro, Small, and Medium-scale Enterprises (MSMEs).
State president of Laghu Udyog Bharati, S. Surulivel, said in a press statement that if the Government makes changes in the definition, which is proposed to be based on the turnover of each unit, several micro or medium-scale units can be classified as a small-scale unit and larger industries will come under the medium category. This will lead to higher competition for micro and small-scale units. The handholding and benefits extended by the Government will benefit the larger and medium-scale units rather than the micro and small-scale ones.
The Government should instead increase the investment limit. The classification should not be based on turnover of each unit.
The capital investment limit can be increased to ₹50 lakh for micro units and ₹10 crore for small-scale industries. The Government should treat the MSMEs on a par with the agriculture sector and make it a priority sector. The change in definition as proposed by the Government will affect the competitiveness of the micro and small-scale units, he said in the press release on Thursday.
