{"id":2657,"date":"2020-05-14T17:47:21","date_gmt":"2020-05-14T12:17:21","guid":{"rendered":"https:\/\/razorpay.com\/learn\/?p=2657"},"modified":"2025-02-25T17:39:02","modified_gmt":"2025-02-25T12:09:02","slug":"highlights-atma-nirbhar-bharat-abhiyaan-economic-package","status":"publish","type":"post","link":"https:\/\/razorpay.com\/learn\/highlights-atma-nirbhar-bharat-abhiyaan-economic-package\/","title":{"rendered":"Highlights from Atma-nirbhar Bharat Abhiyaan Economic Package"},"content":{"rendered":"

Atma-nirbhar Bharat Abhiyaan<\/b> has made headlines across the globe and has come as part of a major economic relief package to assuage India\u2019s economic predicament amidst the pandemic. Combined with all previous economic stimulus efforts, the total amount of the relief package comes to a whopping Rs. 20 lakh crore.\u00a0<\/span><\/p>\n

The package involves fiscal policy and relief measures for various industries as the economic ramifications of the pandemic have left no sector untouched. With great emphasis on MSME revival, tax relief measures and EPF support, the Finance Minister is expected to elaborate on the relief measures in the days to come.<\/span><\/p>\n

Here\u2019s a rundown of the relief measures, and what they mean for the economy.<\/span><\/p>\n

New MSME Definition\u00a0<\/span><\/h2>\n

As a part of the relief measures under Atma-nirbhar Bharat Abhiyaan, the definition of Micro, Small and Medium Enterprises has been altered with the aim of providing them greater support and benefits. The earlier definition of <\/span>MSMEs<\/b><\/a> was based on investments in plants and machineries or equipment. In contrast, MSMEs will now be defined in a composite manner, taking both investment and turnover into account.<\/span><\/p>\n\n\n\n\n\n
\n

Revised MSME Classification<\/b><\/p>\n<\/td>\n<\/tr>\n

Classification\u00a0<\/b><\/td>\nMicro<\/b><\/td>\nSmall\u00a0<\/b><\/td>\nMedium<\/b><\/td>\n<\/tr>\n
Investments<\/span><\/p>\n

and\u00a0<\/span><\/p>\n

Turnover\u00a0<\/span><\/td>\n

< Rs.1 crore<\/span><\/p>\n

and<\/span><\/p>\n

< Rs.5 crore<\/span><\/td>\n

< Rs.10 crore<\/span><\/p>\n

and<\/span><\/p>\n

< Rs.50 crore<\/span><\/td>\n

< Rs.50 crore<\/span><\/p>\n

and<\/span><\/p>\n

< Rs.250 crore<\/span><\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n

 <\/p>\n

Read more about the change in this <\/span>article<\/span><\/a>.\u00a0<\/span><\/p>\n

Emergency Credit Line for MSMEs<\/span><\/h2>\n

In order to provide additional funding to kickstart operations once again, the government has decided to provide Rs. 3 lakh crores in collateral-free automatic loans to MSMEs.\u00a0<\/span><\/p>\n