Finance
Pranay Veer NMIMS Hyderabad PGDM 2011-13 Micro, Small and Medium Enterprises – The Growth Drivers
Micro, Small & Medium Enterprises (MSMEs) are the pillars for economic growth in most developing countries and India is no different. They contribute to 8% of India’s GDP, 40% of the total exports and most importantly constitute 45% of manufactured output and 95% of all Industrial units. MSMEs contribute to 45% of India’s total Industrial Employment. Definition of MSME: Micro, Small & Medium Enterprises Development (MSMED) Act, 2006 defined MSMEs and classified them into 2 classes: i. Manufacturing Enterprises; and ii. Service Enterprises The definition is based on the limit for investment in Plant & Machinery/ Equipment for Manufacturing/ Service Enterprises.
Investment Ceiling for Plant, Machinary* or Equipment@ Manufacturing Enterprises Upto Rs. 25 lakhs Above Rs. 25 lakhs & Upto Rs. 5 Crores Above Rs. 5 crores & Upto Rs. 10 Crores Services Enterprises Upto Rs. 10 lakhs Above Rs. 10 lakhs & Upto Rs. 2 Crores Above Rs. 2 crores & Upto Rs. 5 Crores
Data Source: Ministry of MSME
It has made changes to the then existing definition (before 2006) by enhancing the investment ceiling of Small Enterprises from INR 1 crore to INR 5 crores to encourage more investment. The primary reason for enactment of MSME Development Act, 2006 wa ?????????????????????????????%????????????????????????????????%????????????????????????????????????????????????????????? ????????Q???????????%?????5M5?
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