Classification Criteria of MSME

MSME stands for Micro, Small, and Medium Enterprises. It is a term used to describe businesses that are classified as small or medium-sized according to the investment in plant and machinery or equipment and annual turnover.

The definition of MSME in India is as follows:

• Micro Enterprise: Where the investment in Plant and Machinery or Equipment does not exceed one crore rupees and turnover does not exceed five crore rupees.
• Small Enterprise: Where the investment in Plant and Machinery or Equipment exceeds one crore rupees but does not exceed ten crore rupees and turnover exceeds five crore rupees but does not exceed fifty crore rupees.
• Medium Enterprise: Where the investment in Plant and Machinery or Equipment exceeds ten crore rupees but does not exceed fifty crore rupees and turnover exceeds fifty crore rupees but does not exceed two hundred and fifty crore rupees.
• The MSME sector is a major driver of economic growth in India. It accounts for about 40% of the country's GDP and employs about 60% of the workforce. The sector is also a major exporter, with exports worth over $100 billion in 2022.

The government of India provides a number of schemes and incentives to support MSMEs. These schemes include:

• Pradhan Mantri Mudra Yojana (PMMY)
• Credit Guarantee Fund Trust for Micro and Small Enterprises (CGFSME)
• National Small Industries Corporation (NSIC)
• Small Industries Development Bank of India (SIDBI)
• These schemes provide loans, guarantees, and other financial assistance to MSMEs. They also provide training and other support to help MSMEs grow and succeed.

The MSME sector is an important part of the Indian economy. It is a major driver of growth and employment, and it is a key exporter. The government of India is committed to supporting MSMEs, and the schemes and incentives that are available provide a great opportunity for MSMEs to grow and succeed.