Consider the following statements regarding Micro Small and Medium Enterprises MSME 1 Medium enterpr...........

Economic Affairs Small Scale Industries

Consider the following statements regarding Micro Small and Medium Enterprises (MSME).

1. Medium enterprises engaged in the manufacture, processing or preservation of goods with investment in plant and machinery up to only 5 crore come under priority sector lending facility.

2. MSMEs generate higher employment per capita investment than large scale units.

Select the incorrect statement/s using codes given below.

1 only

2 only

Both 1 and 2

Neither 1 nor 2

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Explanation:

Both the statements are correct.

The Government of India has enacted the Micro, Small and Medium Enterprises Development (MSMED) Act, 2006 in terms of which the definition of micro, small and medium enterprises is as under:
(a) Enterprises engaged in the manufacture or production, processing or preservation of goods as specified below:
(i) A micro enterprise is an enterprise where investment in plant and machinery does not exceed Rs. 25 lakh;
(ii) A small enterprise is an enterprise where the investment in plant and machinery is more than Rs. 25 lakh but does not exceed Rs. 5 crore; and
(iii) A medium enterprise is an enterprise where the investment in plant and machinery is more than Rs.5 crore but does not exceed Rs.10 crore.