Rural Self-Reliant Strategies (Kurukshetra August 2020)

Rural Self-Reliant Strategies

Changed MSMEs Definition
UnitCriterionOld DefinitionNew Definition
MicroInvestment₹ 25 lakh₹ 1crore
Turnover₹ 10 lakh₹ 5 crore
SmallInvestment₹ 5 crore₹ 10 crore
Turnover₹ 2 crore₹ 50 crore
MediumInvestment₹ 10 crore₹ 50 crore
Turnover₹ 5 crore₹ 250 crore

Overview

  • Amended essential commodities act – reduce interference by removing cereals, pulses, oilseeds, onion and potato from essential commodities – attract more investment (but in extraordinary situation of disaster or war – regulation will be imposed)
  • Free food grain and cash to women and senior citizens
  • Minor forest produce now under Scheme for Formalization of Micro Food Processing Enterprises for unorganized sector
  • Farming Produce Trade & Ordinance 2020 – farmers and trader have freedom to choice of sale and purchase of agro-produce and barrier free trade
  • The Farmers (Empowerment and Protection) Agreement on Price Assurance and Farm Services Ordinance, 2020, which advocates farmers engagement with processors, wholesales, aggregators, large retailers and exporters. If properly implemented by removing intermediaries, this initiative would reduce the market risk and the cost of marketing; and will provide for the farmers access to modern technology, better inputs, and higher incomes.
  • Jal Jeevan Mission- tap water to every household
  • In EU – Small & Medium enterprise has less than 250 people, turnover of 50 million euro – much larger than Indian MSMEs
  • Education – e-Vidya, Manodarpan (mental health) , national foundational literacy and numeracy mission

Examrace Team at Aug 20, 2021