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    Question

    An enterprise with an investment of up to ₹1 crore in

    plant and machinery and turnover up to ₹5 crore will be classified as:
    A Nano enterprise Correct Answer Incorrect Answer
    B Small enterprise Correct Answer Incorrect Answer
    C Micro enterprise Correct Answer Incorrect Answer
    D Medium enterprise Correct Answer Incorrect Answer
    E Tiny enterprise Correct Answer Incorrect Answer

    Solution

    Under the MSMED Act’s revised criteria, a micro enterprise is one with an investment in plant and machinery or equipment not exceeding ₹1 crore and a turnover not exceeding ₹5 crore. This category is significant because micro enterprises form the bulk of India’s MSME sector, often operating in informal and rural settings. Government policies such as Mudra Loans, PMEGP, and priority sector lending primarily target this segment to promote inclusive economic growth, self-employment, and innovation at the grassroots level.

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