Question
Under the MSMED Act, when did the Act officially come
into force?Solution
The Micro, Small and Medium Enterprises Development (MSMED) Act, 2006 was enacted by the Government of India to provide a comprehensive legal framework for the development and regulation of MSMEs. The Act officially came into effect on 16th June 2006. It aimed to address key challenges faced by MSMEs such as delayed payments, lack of formal recognition, and limited access to credit. It also introduced classifications of MSMEs based on investment and turnover, ensuring more structured support from both the government and financial institutions.
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