aatma nirbhar bharat for msmes

Important Highlights of Aatma Nirbhar Bharat for MSMEs

On 12th May 2020, PM Narendra Modi surprised everyone by giving a special economic and comprehensive package of Rs. 20 Lakh crore which is equivalent to 10% of India’s GDP. He also stated that this package is catered towards MSMEs apart from other sectors which will be part of the Self-Reliant India Movement AKA Aatma Nirbhar Bharat for MSMEs.

This was great news indeed to celebrate amidst the pandemic especially for us MSMEs who have been affected due to COVID-19 but still fighting through this situation as positively as ever. So, take a second to pat on your back, because you deserve it. In this article, we will take you through the vision and the key highlights that were released by FM Nirmala Sitharaman.

The 5 pillars of Self-Reliant India or Atmanirbhar Bharat are:

Economy, Infrastructure, System, Vibrant Demography, Demand

Key Highlights of Atmanirbhar Bharat:

  1.  Rs. 3 lakh crore collateral-free automatic loans for business including MSMEs
  2. Rs. 20,000 crores subordinated debt for stressed MSMEs
  3. 2 lakh MSMEs are likely to benefit
  4. Functioning MSMEs who are non-performing assets or are stressed will be eligible
  5. The government will provide a support of Rs. 4,000 crores to Credit Guarantee Funds Trust for Micro and Small Enterprises (CGTMSE)
  6. Founders/Promoters of MSME will be given debt by banks which will then be infused by them as equity in the unit
  7. Rs. 50,000 crores equity infusion for MSMEs through Fund of Funds (FOF)
  8. FOF with a corpus of Rs. 10,000 crores will be set up
  9. The definition of MSMEs will be revised
  10. Please find below the table which consists of the existing and revised definition of MSMEs


Criteria: Investment in Plant & Machinery or Equipment

Classification Micro Small Medium
Mfg. Enterprises Investment < Rs. 25 lac Investment < Rs. 5 cr. Investment < Rs. 10 cr.
Services Enterprise Investment < Rs. 10 lac Investment < Rs. 2 cr. Investment <Rs. 5 cr.


Composite Criteria: Investment and Annual turnover

Classification Micro Small Medium
Manufacturing & Services Investment< Rs. 1 cr. And Turnover <Rs. 5 cr. Investment <Rs. 10 cr. And Turnover< Rs. 50 cr. Investment< Rs. 20 cr. And Turnover <Rs. 100 cr.
  1. Indian MSMEs have often faced unfair competition from foreign companies. Therefore, global tenders will be disallowed in government procurement tenders upto Rs. 200 crores.
  2. E-market linkage for MSMEs to be promoted to act as a replacement for trade fairs and exhibitions.
  3. MSME receivables from government and Central Public Sector Undertakings (CPSEs) to be released in 45 days

So, keep the faith as good things are on the horizon. You can approach your bank in order to understand the complete scheme and how you can avail the benefits.

Onsurity truly believes that tough times never last but tough people do, and we are a group of tough fighters who will come out of this situation stronger than ever! We are always in full support of MSMEs and are working towards building a wall of wellness in startups and MSMEs.

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