Question
Which of the following crit eria is/are used to d efine
and categorise MSME s as per MSME D Act, 2006 ? ÂSolution
A composite criterion of investment and turnover shall apply to the classification of an enterprise as micro, small or medium. Â
The definition of micro, small and medium enterprises is as under as per MSMED Act 2006 (amendment 2020): Â
- A micro enterprise is an enterprise where the investment in plant and machinery or equipment does not exceed ₹1 crore, and turnover does not exceed ₹5 crore; Â
- A small enterprise is an enterprise where the investment in plant and machinery or equipment does not exceed ₹10 crore, and turnover does not exceed ₹50 crore; and Â
- A medium enterprise is an enterprise where the investment in plant and machinery or equipment does not exceed ₹50 crore, and turnover does not exceed ₹250 crore Â
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