Q.6.  What is the Micro, Small and Medium Enterprises Development Act, 2006?

Dear student, 

MSMED Act 2006 differentiates between types of enterprises on the basis of investment in plant and machinery. 

For manufacturing enterprises:

• Micro enterprises- Less than Rs 25 lakhs
• Small enterprises- between Rs 25 lakhs and 5 crore
• Medium enterprises- Between Rs 5 crore to rs 10 crore

For services enterprises:

• Micro enterprises- Less than Rs 10 lakhs
• Small enterprises- between Rs 10 lakhs and 2 crore
• Medium enterprises- Between Rs 2 crore to Rs 5 crore
•