Micro, Small and Medium Enterprises (MSME)
The Micro, Small and Medium Enterprises Development (MSMED) Act, 2006 defines the sizes of the micro, small and medium enterprises in India, in Section 7 of the Act. As per the Act, the enterprises which produce or manufacture goods concerned with any industry that is specified in the First Schedule of the Industries (Development and Regulation) Act, 1951 can be defined as:
- A micro enterprise if the investment in plant & machinery is under Rs.25 lakhs
- A small enterprise if the machinery and plant investment is between Rs.25 lakhs and Rs. 5 crores
- A medium enterprise if the said investment is between Rs.5 crores and Rs.10 crores.
The chief responsibility in promoting this industry lies with the state government. This sector employs about 60 million people in the country.