The Government’s decision to increase the turnover limit for medium units from Rs 100 crore to Rs 250 crore will help infuse technology and promote automation in certain sectors and boost outbound shipments, according to exporters.
Federation of Indian Export Organisations President Sharad Kumar Saraf said that exclusion of exports turnover from total turnover will help in internationalisation of MSMEs and will bring their focus on exports. “This will also benefit a lot of gems and jewellery companies, who would have breached the MSME criteria due to sheer cost of their inputs,” he said in a statement. The cabinet on Monday approved further increasing the limit for medium manufacturing and service units to Rs 50 crore of investment and Rs 250 crore of turnover. The turnover with respect to exports will not be counted in the limits of turnover for any category of MSME units whether micro, small or medium.
“The move is most pragmatic and will also infuse technology as in certain sectors margins are so low.