Question

Q.6. What is the Micro, Small and Medium Enterprises Development Act, 2006?

Answer 1

Dear student,

MSMED Act 2006 differentiates between types of enterprises on the basis of investment in plant and machinery.

For manufacturing enterprises:

• Micro enterprises- Less than Rs 25 lakhs
• Small enterprises- between Rs 25 lakhs and 5 crore
• Medium enterprises- Between Rs 5 crore to rs 10 crore

For services enterprises:

• Micro enterprises- Less than Rs 10 lakhs
• Small enterprises- between Rs 10 lakhs and 2 crore
• Medium enterprises- Between Rs 2 crore to Rs 5 crore