Atmanirbhar Bharat Package — Policy Reforms

Entry	Year	Description	Impact
N/A (Policy Change)	2020	Revision of MSME Definition: Investment and turnover thresholds for Micro, Small, and Medium Enterprises were significantly increased, and the distinction between manufacturing and services MSMEs was removed. For example, a Micro enterprise was redefined as one with investment up to ₹1 crore and turnover up to ₹5 crore.	Expanded the eligibility of businesses for various government schemes, priority sector lending, and procurement benefits, bringing more enterprises under the MSME support umbrella and simplifying classification.
N/A (Ordinance/Act)	2020	Insolvency and Bankruptcy Code (IBC) Amendments/Suspension: The minimum threshold for initiating insolvency proceedings was raised from ₹1 lakh to ₹1 crore. Additionally, Sections 7, 9, and 10 of the IBC were suspended for defaults arising on or after March 25, 2020, for a period of up to one year.	Provided crucial relief to businesses facing financial distress due to the pandemic, preventing a wave of bankruptcies and allowing companies time to recover without immediate insolvency threats. Eased the burden on the NCLT system.
N/A (Policy Change)	2020	Decriminalization of Companies Act Defaults: Several minor technical and procedural defaults under the Companies Act, 2013, were decriminalized, converting them into civil offenses.	Reduced the compliance burden and fear of criminal prosecution for businesses, promoting ease of doing business and encouraging a more conducive environment for corporate activity and investment.
N/A (Ordinance/Act)	2020	Amendments to Essential Commodities Act, 1955: The government promulgated an ordinance to amend the Act, deregulating agricultural foodstuffs like cereals, pulses, oilseeds, edible oils, onions, and potatoes, removing stock limits except under extraordinary circumstances.	Aimed to liberalize agricultural markets, attract private investment in cold storage and supply chains, and ensure better price realization for farmers. However, this reform faced significant farmer protests and was subsequently repealed in 2021.