EDP
ENTREPRENEURSHIPDEVELOPMENT PROGRAM
Introduction
The Micro Small andMedium Enterprises (MSMEs) sector is a major contributor to the socio-economicdevelopment of the country. In India, the sector has gained significantimportance due to its contribution to Gross Domestic Product (GDP) of thecountry and exports. The sector has also contributed immensely with respect toentrepreneurship development especially in semi-urban and rural areas of India.
According to theprovisions of Micro, Small & Medium Enterprises Development (MSMED) Act,2006 the Micro, Small and Medium Enterprises (MSME) are classified in twoclasses i.e. Manufacturing Enterprises and Service Enterprises.
The enterprises arefurther categorized based on investment in equipment and annual turnover.
| Criteria | Manufacturing | Service | ||
| Turnover | Investment | Turnover | Investment | |
| Micro | Rs. 5 crore (US$ 0.6 million) | Less than Rs. 25 lakh (US$ 0.03 million) | Rs. 5 crore (US$ 0.6 million) | Less than Rs. 10 lakh (US$ 0.01 million) |
| Small | Rs. 50 crore (US$ 6.8 million) | More than Rs. 25 lakh (US$ 0.03 million) but less than Rs. 5 crore (US$ 0.6 million) | Rs. 50 crore (US$ 6.8 million) | More than Rs. 10 lakh (US$ 0.01 million) but less than Rs. 2 crore (US$ 0.3 million) |
| Medium | Rs. 250 crore (US$ 34 million) | More than Rs. 5 crore (US$ 0.6 million), but less than Rs. 10 crore (US$ 1.4 million) | Rs. 250 crore (US$ 34 million) | More than Rs. 2 crore (US$ 0.3 million) but does not exceed Rs. 5 crore (US$ 0.6 million) |