CIVILSHUB IAS
67th B.P.S.C. (Re-Exam) (Pre) 2022

Which of the following partly defines the microenterprise in India?

aInvestment in plant and machinery or equipment not more than ₹ 1 crore✓ Correct
bAnnual turnover not more than ₹ 15 crore
cInvestment in plant and machinery not more than ₹1.5 crore
dAnnual turnover of more than ₹ 5 crore
eNone of the above/More than one of the above

Explanation

Fourteen years after the MSME Development Act, 2006 came into existence, on 13 May, 2020, under the Atmanirbhar Bharat Package, it was announced that the definition of MSME would be revised. As per the new definition, a micro-enterprise is an enterprise in which investment in plant and machinery or equipment does not exceed Rs. 1 crore, and its annual turnover does not exceed Rs. 5 crore. In the Union Budget, 2025–26, the investment and turnover limits related to MSME classification were increased up to 2.5 times and 2 times respectively, as given below— New investment and turnover in the MSME sector (in crore rupees) <table> <tr> <th></th> <th>Investment</th> <th></th> <th>Turnover</th> <th></th> </tr> <tr> <td>Micro enterprise</td> <td>1</td> <td>2.5</td> <td>5</td> <td>10</td> </tr> <tr> <td>Small enterprise</td> <td>10</td> <td>25</td> <td>50</td> <td>100</td> </tr> <tr> <td>Medium enterprise</td> <td>50</td> <td>125</td> <td>250</td> <td>500</td> </tr> </table>

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