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| MSME Definition |
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| In accordance with the provision of Micro, Small & Medium Enterprises Development (MSMED) Act, 2006 the Micro, Small and Medium Enterprises (MSME) are classified in two Classes: |
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| (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 Enterprises are defined in terms of investment in Plant & Machinery. |
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| (b) Service Enterprises: The enterprises engaged in providing or rendering of services and are defined in terms of investment in equipment. |
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| Manufacturing Sector |
| Enterprises |
Investment in plant & machinery |
| Micro |
Investment in plant and machinery less than Rs 25 lac |
| Small |
Investment in plant and machinery over Rs 25 lac but not exceeding Rs 5 Cr |
| Medium |
Investment in plant and machinery over Rs 5 Crores but less than Rs 10 Cr |
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| Service Sector |
| Enterprises |
Investment in equipments |
| Micro |
Does not exceed ten lakh rupees: |
| Small |
IMore than ten lakh rupees but does not exceed two crore rupees |
| Medium |
More than two crore rupees but does not exceed five core rupees |
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