According to the FM,
There always was this fear, in very successful MSMEs also, that if they outgrow the size of what is defined as an MSME, they'll lose the benefits that they get as an MSME itself. Outgrowing this definition meant outgrowing and going out of receiving benefits. Therefore MSMEs preferred to remain within the definition rather than grow. Now we are coming with a change in the definition of MSMEs so that they need not worry about growing in size; they will still be able to get quite a lot of benefits which otherwise, as an MSME, they have got.
@TheNotorious Very well summarized.
Also, a common doubt which I have seen is, whether such preferential treatment will come in way with WTO agreements?
As far as government procurement from the MSME sector is concerned, it would not attract any kind of action from other countries as the Indian government is not a signatory to the WTO agreement on public procurement.
Any other thoughts on this?
