Question

What is the criteria for determining micro scale manufacturing enterprises under the MSMED Act 2006?

Answer 1

The following factors classify a business as micro scale enterprise as per MSMED Act, 2006:

1. Annual turnover not exceeding 5 crores
2. Investment on plant, machinery and equipment not exceeding 1 crores.

N.B: These values are revised as of July, 2020.

Also read:

• Role and Importance of Small Scale Industries
• Small Scale Industries
• Administrative Setup for Small Scale Agro and Rural Industries
• Large Scale Industries

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