Question

are micro scale industry a small scale industry?

Answer 1

Dear Student,

Although in the provision of Micro, Small & Medium Enterprises Development (MSMED) Act, 2006 the Micro, Small and Medium Enterprises (MSME) are classified into two Classes:
1. Manufacturing Enterprises
2. Services Enterprises

Both of them differ in the quantum of Investment in plant & machinery for Manufacturing Enterprises and on Investment in equipment in Services Enterprises :

1. For Manufacturing Enterprises

Micro Enterprises	Investment in plant & machinery does not exceed twenty-five lakh rupees
Small Enterprises	Investment in plant & machinery is more than twenty-five lakh rupees but does not exceed five crore rupees

2. For Services Enterprises

Micro Enterprises	Investment in equipment does not exceed ten lakh rupees:
Small Enterprises	Investment in equipment is more than ten lakh rupees but does not exceed two crore rupees

Regards.