The Ministry of Tourism recently hosted a webinar as a part of its Dekho Apna Desh series alongside Ministry of MSME and its benefit in the travel and tourism sector.
The Ministry of Tourism recently highlighted how the reclassification of MSMEs by the Government of India is going to support and benefit the tourism industry.
The webinar titled, ‘Atmanirbhar Bharat – Issues Confronting Tourism & Travel’, discussed how the travel and tourism sector stands to profit an upward amendment in investment and revenue for the Micro, Small & Medium Enterprises MSME sector.
The centre while announcing the Atmanirbhar Bharat package twice during the last two months had made revisions within the definition of MSME supported investments and turnover criteria with a transparent, understanding there will not be any distinction between Manufacturing and the Service sector.
The following announcement made during May:
|Investments||Investments < Rs. 1. cr.||Investments < Rs. 10. cr.||Investments < Rs. 20. cr.|
|Turnover||Turnover < Rs. 5 cr.||Turnover < Rs. 50 cr.||Turnover < Rs. 100 cr.|
This was further revised upward for Medium Enterprises effective 01 July 2020
|Investments||Investments < Rs. 1. cr.||Investments < Rs. 10. cr.||Investments < Rs. 50. cr.|
|Turnover||Turnover < Rs. 5 cr.||Turnover < Rs. 50 cr.||Turnover < Rs. 250 cr.|
The new definition could pave the way for consolidation and the growth of MSMEs. Rupinder Brar, Additional Director General, Ministry of Tourism, acknowledged the efforts of MSME in recognising the service sector. He, also indicated it will help to profit the travel, tourism and hospitality businesses in the country and receive the extra Rs. 3 lakh crore collateral-free liquidity support for the MSME businesses.
In a boost to self-reliant India, the Government of India has decided to extend the benefit of allowing only Indian companies to apply or bid for tenders up to Rs. 200 crores.
The discussion also highlighted the Pradhan Mantri Mudra Yojana and the steps taken to supply refinancing options for lending to micro businesses/units (medium and little entrepreneurs).