Wholesale, retail trade now categorised as MSMEs

Government of India has recognised wholesale businesses and retail trades into the fold of MSMEs.

Photo by Alin Andersen on Unsplash

The government has included retail and wholesale trade under MSMEs categorisation, a move would benefit 25 million traders across retail and wholesale segments. 

Both of these sectors will be eligible for priority sector lending under the norms of RBI. 

Union Minister of MSMEs, road transport and highways, Nitin Gadkari announced the measures on Friday. 

The minister tweeted the development on how they are committed to strengthening MSMEs and making them engines of growth. 

He said, “The revised guidelines will benefit 2.5 crore retail and wholesale traders. Retail and wholesale trade were left out of the ambit of MSME. Now under the revised guidelines, retail and wholesale trade will also get benefit of priority sector lending under RBI guidelines,” 

The move will not cover large retailers and wholesale businesses will not be covered as they will not be able to meet eligibility criteria for MSMEs. 

Eligible retail and wholesale businesses will now be able to register on Udayam portal, which is a self-declaration and cost-free platform for SMEs entrepreneurs to get their enterprise registered.