Classification of Small Industries as per MSME Development Act,2006

Enterprises have been classified under the Micro, Small and Medium    Enterprises Development Act, 2006 broadly into (i) Enterprises engaged in the manufacture production of goods pertaining to any  industry & (ii) Enterprises engaged in providing/rendering of services. The manufacturing and service enterprises have been further classified into micro, small and medium based on investment in plant and machinery and in equipments respectively. Details are as under:

The Micro, Small and Medium Enterprises Development Act, 2006 aims at facilitating the promotion and development and enhancing the competitiveness of micro, small and medium enterprises and for matters connected therewith and incidental thereto.  The Act provides for a statutory consultative mechanism at the national level with wide representation of all sections of stakeholders, particularly three classes of enterprises i.e. micro, small and medium enterprises, and with a wide range of advisory functions. The Act also contains enabling provisions for notification of schemes/programmes for micro, small and medium enterprises, progressive credit policies and practices, preference in Government procurements to products and services of the micro and small enterprises and mechanisms for mitigating the problems of delayed payments to micro and small enterprises.

This information was given by Shri Dinsha Patel, Minister of State (Independent Charge) for Micro, Small and Medium Enterprises in a written reply to a question in the Lok Sabha.