The MSMEs are well-known for contributing to the country's economy through various manufacturing and industrial expansions. Despite the multiple challenges, this sector plays a crucial role in the GDP, job creation, and employment. 

So, coming to the MSMEs, the classification under the MSMED Act 2006, Micro-enterprises are small businesses with investments in equipment up to 1 crore and turnover of up to 5 crores. Small enterprises have assets of up to 10 crores and turnover of up to 50 crores. Medium enterprises invest up to 50 crores with turnover up to 250 crores.

Are you trying to keep yourself updated on the threshold?

Well, here is the threshold limit of MSME raised by the Government of India. 

MSME Contribution to the Indian Economy 

MSME's contribution to India's GDP varied from 30.5% in 2019-20 to 27.2% in 2020-21, rising to 29.2% in 2021-22. In manufacturing, it stayed steady at around 36%. However, MSME exports decreased from 49.4% in 2020-21 to 43.6% in 2022-23. Despite fluctuations, MSMEs employed a substantial 12,36,15,681 people since August 2, 2023.

DefiningThreshold Limits of MSME?

Have you ever asked yourself the definition of threshold limits of MSME?

If not, read this! 

Threshold limits in MSME (Micro, Small, and Medium Enterprises) in India refer to the maximum investment or turnover levels that define the size of businesses. These limits help categorise enterprises as micro, small, or medium, influencing their access to benefits and support from the Government. As the year progresses, the thresholds change to achieve the specific goal. 

Previous Threshold Limit of MSME 

As of the Atmanibhir Bharat Special Economic & Comprehensive relief package of Rs. 20 lakh crores, the Government of India has defined the threshold limits of MSME. 

So, the threshold limits for Micro, Small, and Medium Enterprises (MSMEs) are based on their investment in plant and machinery or equipment and turnover. The previous year's limits are:

• Micro Enterprises: Investment up to one crore rupees and turnover up to five crore rupees.
• Small Enterprises: Investment up to ten crore rupees and turnover to fifty crore rupees.
• Medium Enterprises: Investment up to fifty crore rupees and turnover up to two hundred and fifty crore rupees.

The Threshold Limit of MSME from the Year 2023-2024

Hon'ble Prime Minister Narendra Modi is strongly emphasising the self-efficiency of our country through the "Make in India" programme. 

The Finance Minister, Nirmala Sitharaman, is taking various measures to achieve it by strengthening the MSME sector. 

1. General Allocation for MSMEs

In the 2023 budget, the Finance Minister plans to spend around ₹22,138 crore to help MSMEs create growth and employment in India.

2. Credit Guarantee Fund Trust for Micro and Small Enterprises Credit Guarantee Scheme Funding 

The Government also announces spending about ₹9,000 crore on a fund to guarantee loans for MSMEs. It is to provide ₹2 lakh crore in loans without any collateral, making it easier for small and medium-sized businesses to get the money they need. Also, it reduced interest rates on such loans by 1%.

3. Changes In Presumptive Taxation Rules

The rules for how small and medium-sized businesses are being taxed are changing. The turnover limit, or the amount of money they make, has increased for some companies. Also, if they choose a more straightforward way of calculating taxes, they won't have to keep detailed account books.

To ensure small businesses get paid on time, the Government announced that buyers can only claim certain deductions if they pay the MSMEs first. Sounds good.

Well, it is to encourage timely payments and clear any money owed to small businesses by buyers.

4. Vivad Se Vishwas to helps resolve tax disputes

For MSMEs that couldn't fulfil contracts during the pandemic, the Government will return 95% of their forfeited money. It's part of a program called Vivad Se Vishwas, which helps resolve tax disputes between the ties and the Government of India or government undertakings, applying to all domestic contractual disputes.

There's also a plan to settle disputes between the Government and businesses more efficiently. The Government will fund about 100 infrastructure projects, including transportation, with private companies also contributing.

5. PM Vishwakarma Kaushal Samman to support artisans

Small cities will receive ₹10,000 crore to improve their infrastructure, making them cleaner and more sustainable. Traditional artisans will get support, too, with a package named PM Vishwakarma Kaushal Samman, offering financial aid and training.

6. DigiLocker for MSMEs and Skilling

The Government is introducing an online storage system called DigiLocker to make things easier for businesses. It is a digital platform to provide skill training and access to entrepreneurship schemes.

In support of green energy, the Government increased the budget for electric vehicles and reduced customs duties on lithium-ion batteries to encourage manufacturing in India. However, there's still a need for a long-term plan.

How is MVIKAS India's First 5 PLs Helping the MSMEs Sector in India?

Despite the MSME's challenges, MVIKAS India's First 5 PL is making a name in the B2B market platform, providing the best services for sellers and buyers.

Here's how MVIKAS is changing for both MSME and startup businesses across India  

• Bringing change to how industrial goods are marketed.
• Enhances small and medium-sized enterprises by providing a platform to sell and buy industrially.
• Ensure the products you sell and provide are of the best quality and at the best rate.
• Provide fast and on-time delivery across India and Internationally.
• It helps to boost your presence in the market to gain good revenues. 
• Allow you to be exposed to a broader market.
• It provides the chance to operate your business at an efficient price.

Conclusion 

In conclusion, the Government's increased threshold limits for MSMEs for 2023-2024 signifies a commitment to their vital role in India's economy. Along with the Government's initiatives for MSME and startups in India, MVIKAS's India's First 5 PL Company is changing through their B2B platform, promising growth, efficiency, and broader market exposure for small businesses, fostering a resilient and self-sufficient entrepreneurial landscape. 

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