Apart from the credit announcement for MSME in the budget session held on 1st February 2022, FM announced a major step towards development of MSME section soon.

Consolidating the database on MSME from information to credit access.

Finance minister announced the interlinking of portals such as Udyam, e-Shram, National Career Service [NCS] and Atmanirbhar Skilled Employee – Employer Mapping [ASEEM]. MSME sector will play a vital role in future employment generation and reduce dependency on MNEs of foreign capital. For the nation to be resilient, dependency on foreign capital to be reduced and make capital available for eligible businesses.

The main problem with MSME in India is not that the government is not interested towards development the sector, however they are not sure on how to execute the proposals to get desired results. The solution might not be available with the Bureaucrats framing the policies but adoption of technology by the government. Massive data collection about individual business, creation of profile on financial health, performance, employment etc. can help the government fund the right MSME to generate employment and trade surplus.

I believe this announcement of focus on database optimization can provide greater benefit to the economy in the long term along with the credit facility extended to MSME.

Are you a business owner falling under the category of MSME? Are you building a digital product and not sure whether you fall under the definition of MSME?

MSME does not differentiate between a service sector and product-based businesses at the basic level, all businesses will be seen at par. Therefore, all businesses will be eligible to be recognised as a MSME.

As a business owner ensure you have started working on the creation of digital profile of your business such as registration with government portals, timely updation of information in the portals, ensure timeliness in return filings with GST, Income Tax etc. to create positive information on the business when a credit appraiser intends to evaluate business. 

Below businesses fall under revised MSME definition

If you have any queries on MSME registration, business compliance review you can write to us on elangovan@enaca.in