Multiple choice

The definition of Micro, Small and Medium Enterprises (MSMEs) in India is based on

  1. total sales of unit

  2. investment in machines and equipments

  3. market coverage

  4. export turnover
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B Correct answer
Explanation

An industrial unit can be categorised as a small-scale unit if it fulfills the capital investment limit fixed by the Government of India for the small-scale sector. The Central Government has classified in the case of the enterprises engaged in the manufacture or production of goods, a small enterprise, where the investment in plant and machinery is more than twenty-five lac rupees, but does not exceed five crore rupees; in the case of the enterprises engaged in providing or rendering of services, a small enterprise, where the investment in equipment is more than ten lac rupees, but does not exceed two crore rupees.

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