In accordance with the provision of Micro, Small & Medium Enterprises Development (MSMED) Act, 2006 the Micro, Small and Medium Enterprises (MSME) are classified in two Classes: a) Manufacturing Enterprises & b)Service Enterprises: The enterprises engaged in providing or rendering of services and are defined in terms of investment in equipment.

 

The limit for investment in plant and machinery / equipment for manufacturing / service enterprises, as under:

 

Manufacturing Sector

Enterprises                  Investment in plant & machinery

Micro Enterprises        Does not exceed 25 lakh rupees

Small Enterprises        More than 25 lakh rupees but do not exceed 5 crore rupees

Medium Enterprises    More than 5 crore rupees but do not exceed 10 crore rupees

 

Service Sector

Enterprises                  Investment in plant & machinery

Micro Enterprises        Does not exceed 10 lakh rupees

Small Enterprises        More than 10 lakh rupees but do not exceed 2 crore rupees

Medium Enterprises    More than 2 crore rupees but does not exceed 5 core rupees