“MORE
REFORMS IS ON THE WAY WHICH WILL WORK FOR SMALL BUSINESSES:
MSME REFORMS BY
DECEMBER,2025”
PMO, Finance, and MSME ministries working on cluster-to-national reform roadmap with focus on jobs, cost control, legal ease, and innovation in small business sector.
WHAT
REFORMS HAVE ALREADY BEEN ANNOUNCED FOR MSME ?
Several major policy changes are already in motion:
REVISED
DEFINITION
The definitions of micro, small and medium enterprises have been
significantly revised, meaning more firms qualify for MSME status and its
benefits (for example, higher investment/turnover thresholds).
EXPANDED
SCOPE OF CREDIT-GUARANTEE SUPPORT
The government has expanded the scope of credit-guarantee support: for
instance, guarantee cover for micro & small enterprises increased from ₹5
crore to ₹10 crore.
CUSTOMISED
CREDIT-CARD FACILITY
Introduction of new financial instruments for MSMEs: e.g., a customized
credit-card facility for micro enterprises, special term loans for first-time
women, SC/ST entrepreneurs.
CHANGES
IN GST THRESHOLDS
Some reform suggestions are being circulated for further legal and
regulatory ease — faster dispute resolution for MSMEs, changes in GST
thresholds for small businesses, etc.
WHAT’S
PLANNED FOR “BY DECEMBER,2025”
A
SOLE MEDIATOR/ARBITRATOR FOR MSME
Amendments to the Micro, Small & Medium Enterprises Development Act,
2006 (MSMED Act) to introduce e-adjudication and a sole mediator/arbitrator for
MSME payment disputes, possibly by December.
INCREASE
IN GST EXEMPTION LIMITS
Increase in GST exemption limits (for goods/services) for smaller
businesses by March 2026, with intermediate steps by end of calendar year.
REDUCTION
IN TAX AND COMPLIANCE BURDEN
BOOSTING
PRODUCTIVITY
IMPROVED
COST COMPETITIVENESS
LEVERAGING
AI AND TECH INNOVATION TO STRENGTHEN MANUFACTURING
FINAL
THOUGHTS
Thus, while some changes are already in effect or being rolled out,
others are earmarked for later in the year (or into early the next fiscal
year).
R V SECKAR FCS, LLB 79047 19295
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