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DAILY NEWS ANALYSIS

  • 07 November, 2023

  • 1 Min Read

Status of MSME in India

Status of MSME in India

  • Micro Small and Medium Enterprises (MSMEs) serve as the ‘backbone of Indian economy’ and the ‘growth engines of the country’.
  • Classification- MSMEs are classified based on the investment in plant & machinery/equipment and annual turnover.
  • It includes both manufacturing service rendering enterprises.

Classification

Micro

Small

Medium

Investment in plant & machinery

Not more than Rs.1 crore

Not more than Rs.10 crore

Not more than Rs.50 crore

Annual turnover

Not more than Rs. 5 crore

Not more than Rs. 50 crore

Not more than Rs. 250 crore

Significance

    • Contributes ~ 30% to India’s GDP
    • Employs ~ 11 crore people
    • Constitutes ~ 40% of total exports
    • More than half of them located in rural India

Source:


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