New Delhi: Four years after excluding it from the micro, small and medium enterprises, the government on Friday returns retail and wholesale trade in categories, making entities qualify for the funding of the priority sector and the specific liquidity scheme of the Bank.
That step, said Minister of MSME Nitin Gadkari will benefit 2.5 Crore companies, coming after months of inter-ministers, who saw several government wings pass each other, and even the Bank of India reserves refused to play balls until the government worked on the rules.
In fact, at one point in time, government institutions argue that retail and wholesale trade is not “service”, even though they are categorized as in the bracket globally and in India.
This regardless of the government including retail trading companies and wholesalers in the MSME development law, until it was imposed on the committee’s recommendations in 2017.
The problem was revealed after the government worked on last year’s turnline and new electronic registration process began using the GST account number and permanently.
While retailers and wholesalers who have registered until 2017 are qualified below the previous system, the new system will block it.
Explain the Step Center as “Path Breaking”, the Industrial Agency on Friday said the decision would help in formalizing this sector.
Regardless of access to priority sector loans from banks, retail and wholesale trading companies can take advantage of other schemes for MSMEs.
Under the new rules, commercial banks must extend 40% of customized non-bank loans or equivalent amounts of exposure to off-balance sheets (which are higher) for agriculture, MSMEs, and weaker parts.
Of the total, 7.5% must go to small businesses.
The government carries retail, wholesale trade under MSMEs
