Dear Vaishnavi ji, with due respect to Shri. Bhaskar ji, I would like to correct that there is no criterion regarding the number of employees in micro, small, and medium categories, whether it is a manufacturing or service-providing industry.
Micro, Small, and Medium Enterprises Development (MSMED) Act, 2006
The Government of India has enacted the Micro, Small, and Medium Enterprises Development (MSMED) Act, 2006, which defines micro, small, and medium enterprises as follows:
(a) Enterprises engaged in the manufacture, production, processing, or preservation of goods:
(i) A micro-enterprise is an enterprise where the investment in plant and machinery does not exceed Rs. 25 lakh.
(ii) A small enterprise is an enterprise where the investment in plant and machinery is more than Rs. 25 lakh but does not exceed Rs. 5 crore.
(iii) A medium enterprise is an enterprise where the investment in plant and machinery is more than Rs. 5 crore but does not exceed Rs. 10 crore.
For the above enterprises, investment in plant and machinery refers to the original cost, excluding land and building, and the items specified by the Ministry of Small Scale Industries as per notification No. S.O.1722(E) dated October 5, 2006.
(b) Enterprises engaged in providing or rendering services:
(i) A micro-enterprise is an enterprise where the investment in equipment does not exceed Rs. 10 lakh.
(ii) A small enterprise is an enterprise where the investment in equipment is more than Rs. 10 lakh but does not exceed Rs. 2 crore.
(iii) A medium enterprise is an enterprise where the investment in equipment is more than Rs. 2 crore but does not exceed Rs. 5 crore.
I hope your doubt is cleared.
Thanks and regards,
Keshav Korgaonkar
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