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Definitions of Micro, Small & Medium Enterprises

Published on Wednesday, December 24, 2014
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:

1 Manufacturing Enterprises
The enterprises engaged in the manufacture or production of goods pertaining to any industry or employing plant and machinery in the process of value addition to the final product having a distinct name or character or use. The Manufacturing Enterprise are defined in terms of investment in Plant & Machinery

2. Service Enterprises
The enterprises engaged in providing or rendering of services and are defined in terms of investment in equipment.

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 twenty Ten lakh rupees
Small Enterprises More than twenty Ten lakh rupees but does not exceed 2 crore rupees
Medium Enterprises More than Two crore rupees but does not exceed Five crore rupees


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