MSME Policy>Definitions

Definitions of Micro, Small & Medium Enterprises

In accordance with the provisions of Micro, Small & Medium Enterprises Development (MSMED) Act, 2006, the Micro, Small and Medium Enterprises (MSME) are classified into two Classes:
 
(a) Manufacturing Enterprises: The enterprises engaged in the manufacture or production of goods pertaining to any industry specified in the first schedule to the industries (Development and regulation) Act, 1951). The Manufacturing Enterprise are defined in terms of investment in Plant & Machinery.
(b) Service Enterprises: The enterprises engaged in providing or rendering of services defined in terms of investment and are in equipment.

The limit for investment in plant and machinery / equipment for manufacturing / service enterprises, as notified, vide S.O. 1642(E) dtd.29-09-2006 are as under:

Manufacturing Sector
Enterprises Investment in Plant & Machinery
Micro Enterprises Does not exceed twenty five lakh rupees.
Small Enterprises More than twenty five lakh rupees but does not exceed five crore rupees.
Medium Enterprises More than five crore rupees but does not exceed ten  crore rupees.
Service Sector
Enterprises Investment in Equipments
Micro Enterprises Does not exceed ten lakh rupees.
Small Enterprises More than  ten lakh rupees but does not exceed two crore rupees.
Medium Enterprises More than two crore rupees but does not exceed five core rupees.