New Classification Of MSMEs
Government of India enacted Micro, Small and Medium Enterprises Development Act, 2005 (MSME Act) under which classification of micro, small and medium enterprises (MSME) was dependent on two factors: 1) Investment in plant and machinery; and 2) Turnover of the enterprise. It is also pertinent to note that different thresholds were prescribed for being classified as an MSME based on the aforesaid factors, for enterprises engaged in manufacturing and services sector.
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