Definition of Micro, Small and Medium Enterprise (MSME) in India

There are lots of benefits, rebates, concessions, and subsidies given to MSMEs in India. But for this, we must be able to check whether our business unit is either micro or small or medium enterprise as per definition given in the MSMED Act or not.

Lets see how MSMED Act defines Micro, Small and Medium Enterprises:

Case/Type 1: In case of Manufacturing Units
1. Micro Enterprise:
Those enterprises, in which investment in plant and machinery is less than Rs. 25 Lacs are called Micro Enterprises.
2. Small Enterprise:
Those enterprises, in which investment in plant and machinery is in between Rs. 25 Lacs and Rs. 5 Crores are called Small Enterprises.
3. Medium Enterprise

Those enterprises, in which investment in plant and machinery is in between Rs. 5 Crores and Rs. 10 Crores are called Medium Enterprises.

Case/Type 2: In case of Service Sector Units

1. Micro Enterprise:

Enterprises, in which investment in plant and machinery is less than Rs. 10 Lacs are called Micro Enterprises.

2. Small Enterprise:

Enterprises, in which investment in plant and machinery is in between Rs. 10 Lacs and Rs. 2 Crores are called Small Enterprises.

3. Medium Enterprise

Enterprises, in which investment in plant and machinery is in between Rs.2 Crores and Rs. 5 Crores are called Medium Enterprises.