Government revises MSME guidelines to include retail and wholesale businesses
The Minister of Micro, Small and Medium Enterprises (MSME) and Road Transport and Highways Nitin Gadkari on Friday announced revised guidelines for MSMEs with the inclusion of retail and wholesale businesses as MSMEs. Gadkari said the revised guidelines would benefit retail and wholesale traders by 2.5 crore.
With the revised guidelines, retail and wholesale businesses will now be allowed to register on the Udyam registration portal.
In a tweet, the minister said: “Retail and wholesale trade has been excluded from the scope of MSMEs. Under the revised guidelines, MSMEs have issued an order to include retail and wholesale trade in as MSMEs and extend the benefit of priority sector loans to them in accordance with RBI guidelines. ”
He said that retail and wholesale was outside the purview of MSMEs and now under the revised guidelines, retail and wholesale will also benefit from priority sector loans in accordance with the guidelines of the Reserve Bank of India (RBI). “We are committed to strengthening MSMEs and making them engines of economic growth,” he added.
The current definition of MSMEs includes manufacturing and service enterprises, while retail and wholesale trade was not classified in the same category.
Earlier this week, while announcing several relief measures, Finance Minister Nirmala Sitharaman increased the limit of the Emergency Credit Lines Guarantee Program (ECLGS) by 50% to ₹4.5 lakh crore to help small businesses obtain credit at a preferential rate.
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