Revitalizing Trade Finance for Msmes in India Through Block Chain Technology

Abstract

M icro , small and medium e nterprises(MSMEs ) are considered as the backboneof Indian economy. In term s of thenotification dated 1" June 2020 issued bythe Ministry of Micro Small and Medium Enterprises ,micro, medium and small enterprises have been classifiedbased on dual criteria of investment in plant and machineryand turnover. If investment in plant and machinery doesnot exceed Rupees one crore and turnover does not exceedRupees five crores , the entity categorised as a microenterprise. [f investment in plant and machinery does notexceed ten crore Rupees and turnover does not exceedfifty crore Rupees , it is categorised as a small enterprise.If investment in plant and machinery does not exceedRupees fifty crores and turnover does not exceed Rupeestwo hundred and fifty crore s, it is categoris ed as a mediumenterprise. As per annual report of the Mini stry of Micro, Small and Medium Enterprises the estimated number of MSMEs stood at 325 lakhs in rural areas and 309 lakhs in urban areas .