New Delhi: The Union cabinet has approved further changes to the definition of micro, small and medium enterprises, a Rs 20,000-crore fund to provide equity support to stressed entities in the sector, and equity infusion of Rs 50,000 crore into MSMEs through a fund of funds.

As per the new definition, a company with up to Rs 50 crore investments and up to Rs 250 crore turnover is classified as a medium enterprise.

The new definition of micro, small and medium enterprises (MSMEs) will significantly help the majority of exporters in the gems and jewellery sector in these difficult times, GJEPC said on Saturday. Gem and Jewellery Export Promotion Council (GJEPC) Chairman Mr. Colin Shah said in the sector over 85% exporters constitute MSME, who deal in high-value goods. The existing MSME definition did not exclude the export turnover and hence was not helpful for the G & J sector.

Mr. Shah said, “The Council represented the issue in one of the meetings and requested Hon’ble MSME Minister Mr. Nitin Gadkari to exclude the export turnover from MSME turnover. We are glad that through the new MSME definition and exclusion of export turnover cap of Rs. 250 crore a large number of exporters of our sector will be benefited. This would also help to revive the exports in this difficult time. We thank the Govt and the pragmatic leadership for this great step forward.”

“The initiative of the government to increase the bandwidth of MSME by increasing the investment criteria and excluding exports for calculation of turnover criteria will make the MSME more updated in machinery and technology and it would enable them to grow the export business and bring valuable foreign exchange into the country. Availability of other MSME benefits like interest subvention and other related measures announced by the government will make them more competitive in the international arena”, he added.