Chamber of Indian Micro Small & Medium Enterprises (CIMSME)
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Definition of MSME

Definition of Micro, Small & Medium Enterprises
In accordance with the provision of Micro, Small & Medium Enterprises Development MSMED) Act, 2006 the Micro, Small and Medium Enterprises (MSME) are classified in two Classes:
(a) Manufacturing Enterprises- The enterprises engaged in the manufacture or production of goods pertaining to any industry specified in the first schedule to the industries (Development and regulation) Act, 1951). The Manufacturing Enterprise are defined in terms of investment in Plant & Machinery.
(b) Service Enterprises : The enterprises engaged in providing or rendering of services and are defined in terms of investment in equipment.
The limit for investment in plant and machinery / equipment for manufacturing / service enterprises, as notified, vide S.O. 1642(E) dtd.29-09-2006 are as under:
 
Manufacturing Sector

Enterprises

 Investment in plant & machinery

Micro Enterprises

Does not exceed twenty five lakh rupees

Small Enterprises

More than twenty five lakh rupees but does not exceed five crore rupees

Medium Enterprises

More than five crore rupees but does not exceed ten  crore rupees

Service Sector

Enterprises

 Investment in equipments

Micro Enterprises

 Does not exceed ten lakh rupees:

Small Enterprises

More than  ten lakh rupees but does not exceed two crore rupees

Medium Enterprises

More than two crore rupees but does not exceed five core rupees