The Modi government has revised definition for micro, small and medium enterprises (MSMEs). Minister of MSME Nitin Gadkari informed that the government will now accord MSME status to retailers and wholesale traders.
The decision will benefit 2.5 crore retail and wholesale traders in the country. It means that they will be extended the benefits of sector.
“Under the leadership of PM Shri Narendra Modi Ji, we are committed to strengthening of MSME and make them engines for economic growth. The revised guidelines will benefit 2.5 Cr Retail and Wholesale Traders,” Gadkari said in a tweet.
Retail and wholesale trading activities were earlier classified as MSMEs. However, such activities were removed in 2017 from the Micro and Small enterprises sector. Its rationale was that they are neither manufacturing units nor service units. This prevented them from obtaining the Udyog Aadhaar Memorandum (which is called MSME registration).
However, with revised guidelines the retail and wholesale trades will now be able to register on the Udyam Registration Portal.