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5) Recently, the union cabinet took a decision to change the basis of classification of the Micro, Small and Medium Enterprises (MSMEs). Examine on what basis classification of MSMEs will be done and how would this classification impact industries such as defence.

Topic: Changes in industrial policy and their effects on industrial growth; indigenization of technology and developing new technology

5) Recently, the union cabinet took a decision to change the basis of classification of the Micro, Small and Medium Enterprises (MSMEs). Examine on what basis classification of MSMEs will be done and how would this classification impact industries such as defence. (250 Words)

IDSA

 

Why this question?

Updates you on this important issue and its impacts, especially on defence sector. Question combines two topics from GS-3 paper.  

Key demand of the question:

Examine the basis on which MSMEs are going to classified and how such classification would affect industries, especially defence.   

Directive Word:

Examine:  Just present facts from the article. 

Structure of Answer:

In the introduction write 1-2 lines on the central role MSMEs are playing (share in GDP and employment) and how new classification was overdue. Write a line that it would boost defence sector which is in dire straits.  

Define MSME (present definition)

In the body, in TWO main parts address demand of the question. First, in point format write basis of new classification and how it’s different from the old. 

In the Second part, write likely impact on defence sector. Categorise into make in India, cost of production, investment etc. 

In the conclusion, write about the need for complimenting this effort with other reforms and industrial policies. 

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