The Union Cabinet chaired by the Prime Minister Shri Narendra Modi has approved change in the basis of classifying Micro, Small and Medium enterprises from ‘investment in plant & machinery/equipment’ to ‘annual turnover’ under Micro Small and Medium Enterprises Development Act, 2006 for classifying MSMEs .
Key Points:Micro Small and Medium Enterprises Development Act 2006
- The purpose of amendment to Section 7 of MSMED Act, 2006 is to encourage ease of doing business, make the norms of classification growth oriented and align them to the new tax regime revolving around GST (Goods & Services Tax).
- MSME is second largest employment generating sector after agriculture sector. It provides 80% of jobs in industry with just 20% of investment.
- At present Section 7 of MSMED Act classifies MSMEs on the basis of investment in plant and machinery for manufacturing units and investment in equipment for service enterprises.
- The Significance of New Classification Criteria is that the turnover criteria can be pegged with reliable available figures e.g. in GST Network (GSTN) that will help in having non-discretionary, transparent and objective criteria.
- The amendment will provide flexibility to the Government to fine-tune the classification of MSMEs in response to changing economic scenario without resorting to the amendment of MSMED (Micro, Small & Medium Enterprises Development) Act.
What is The Micro, Small and Medium Enterprises Development Act, 2006?
- An act for facilitating the promotion and development and enhancing the competitiveness of micro, small and medium enterprises and for matters connected there with .The Act which was published in gazette of India on June 16, 2006, came into force from 2nd October 2006 also the birth-date of the father of the nation.
What is a Micro, Small and Medium Enterprise?
- An enterprise that is engaged in providing or rendering of services is said to be (a) a micro enterprise, where the investment in equipment does not exceed Rs.10 lakhs (b) a small enterprise, where the investment in equipment is more than Rs.10 lakhs but does not exceed Rs.2 crore (c) a medium enterprise, where the investment in equipment is more than Rs.2 crore but does not exceed Rs.5 crore.
King Salman bin Abdulaziz in presence of External Affairs Minister Sushma Swaraj inaugurated 32nd edition of Saudi Arabia’s the prestigious National Heritage and Culture Festival in Janadriyah village, Riyadh. This year India is guest of honor country.
Key Points: National Heritage and Culture Festival
- External Affairs Minister Sushma Swaraj met Saudi King Salman bin Abdulaziz, who inaugurated the prestigious National Heritage and Culture Festival ‘Janadriyah. The festival falls during the month of February or March. The activities in this festival includes camel race, horse race, sports, dance and traditional arts and crafts.
- Janadriyah is cultural and heritage festival of Saudi Arabia.It is held annually at Janadriyah village near Riyadh. It is organised every year by National Guard. It was held for first time in 1985 .
- Sushma Swaraj added that the festival provides an opportunity to showcase and Janadriyah is cultural and heritage festival of Saudi Arabia. She further added that India’s flagship programmes including ‘Make in India’ and ‘Digital India’ complement well with ‘Vision 2030’ launched by Saudi Arabia and invited Saudi investments in India.
- The important discussions between the two great leaders focused on enhancing trade and investment, energy, defence and security, culture and people-to-people ties.
- Saudi Arabia is India’s fourth largest trade partner after China, US and UAE. It is major source of India’s energy security requirement as it accounts for almost one-fifth of India’s crude oil requirement.It is home to more than 3 million Indian people.
- It is a cultural and heritage festival held in Jenadriyah near Riyadh in Saudi Arabia annually lasting for two weeks.
- It is organised by the National Guard, and the first was held in 1985. Activities included are camel race, performance of local music and dancing of the Ardah and the Mizmar.
- The festival which draws more than one million visitors every year.
- The festival normally falls during the month of February or March.
Janadriyah was also known as ‘Rowdhat Souwais‘ and was mentioned by numerous historians and writers.