What are the new Quality Control Orders for MSMEs?

The government has introduced relaxations and exemptions for MSMEs regarding Quality Control Orders (QCOs) to avoid disrupting domestic production.

How does the Bureau of Indian Standards support MSMEs?

BIS offers financial incentives like reduced marking fees and technical relaxations, such as making in-house labs optional for MSMEs.

What measures has RBI taken for MSME loans?

RBI has advised banks to link MSME loans to an external benchmark, reducing the reset clause to three months and offering switchover options.

Home / Business and Economy / MSMEs Get QCO Relief: Govt Eases Rules for Small Businesses

MSMEs Get QCO Relief: Govt Eases Rules for Small Businesses

14 Dec

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Summary

MSMEs receive extended deadlines for Quality Control Orders compliance.
Financial and technical concessions are provided by the Bureau of Indian Standards.
Banks urged to link MSME loans to an external benchmark for better transmission.

MSMEs Get QCO Relief: Govt Eases Rules for Small Businesses

The Union Minister Shobha Karandlaje announced significant Quality Control Order (QCO) relaxations for Micro, Small, and Medium Enterprises (MSMEs) to support domestic production. These measures include extended compliance periods for micro and small enterprises, and exemptions for import of materials used in export-oriented products or for research and development. Financial and technical concessions are also being offered by the Bureau of Indian Standards (BIS), such as reduced marking fees and optional in-house laboratory requirements for MSMEs.

The government is also focusing on improving credit flow to the MSME sector. Banks have been advised by the Reserve Bank of India to link loans to MSMEs to an external benchmark, with a reduced reset clause for interest rates. The Mutual Credit Guarantee Scheme (MCGS-MSME) has been introduced to facilitate MSME access to loans for business growth.