Two years of demonetisation: Growth back on track, but leaves out MSMEs

PM Narendra Modi announced a 12-point package to ease cash flow and business procedures for the MSME sector. It remains to be seen if the measures bear fruit

The economy seems to be back on track two years after demonetisation. However, micro, small and medium enterprises (MSMEs) — hit hard by the note ban — are yet to recover; their woes compounded by the maze of goods and services tax (GST) procedures, together with the liquidity issues of the financial sector.

Companies with up to Rs2.5 billion of annual turnover are clubbed under MSMEs. Those with up to Rs50 million are micro enterprises. Those with over Rs50 million and up to Rs750 million are small, and the ones with over Rs750 million to Rs2.5 billion are called medium