Liquidity Measures for Medium, Small and Micro Enterprises (MSMEs)

•New Definition of MSMEs:
The definition of an MSMEs has been expanded to allow for higher investment limits and the introduction of turnover-based criteria.
•Earlier MSMEs were defined on the basis of the limit of investment in machinery or equipment.
•The ‘turnover’ is the more efficient way to identify an MSME as it allows a lot of firms, especially in the services sector like mid-sized hospitals, hotels and diagnostic centres to be eligible for benefits as an MSME.
•There will be no difference between a manufacturing MSME and a services MSMEs.