MSME · MSME · Chapter 1

Introduction to MSMEs

Chapter notes, video classes, MCQ practice tests and quick-revision one-liners for Small and Medium Enterprises in India — Certificate Course on MSME.

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One-liners from this chapter

Free sample — 8 of 65 rapid-fire Q&A cards.

Q

Which sector ranks second only to agriculture in terms of economic and social contribution in India?

A

The MSME sector ranks second only to agriculture, contributing to economic and social development through entrepreneurship and large-scale employment generation at comparatively low capital cost.

Q

What was the investment ceiling for a Small Enterprise in the manufacturing sector under the old MSME definition (prior to 1 July 2020)?

A

Above ₹25 lakh and up to ₹5 crore

Q

On what date was the MSMED Act, 2006 enacted, and when was it notified?

A

The MSMED Act, 2006 was enacted on 16 June 2006 and notified on 2 October 2006.

Q

What was the investment ceiling for a Micro Enterprise in the service sector under the old MSME definition (prior to 1 July 2020)?

A

Up to ₹10 lakh

Q

What was the investment ceiling for a Micro Enterprise in the manufacturing sector under the old definition (prior to 1 July 2020)?

A

Under the old definition, a Micro Enterprise in the manufacturing sector had an investment in plant and machinery of up to Rs.25 lakh.

Q

What was the investment ceiling for a Small Enterprise in the service sector under the old MSME definition (prior to 1 July 2020)?

A

Above ₹10 lakh and up to ₹2 crore

Q

What was the investment ceiling for a Medium Enterprise in the service sector under the old definition?

A

Under the old definition, a Medium Enterprise in the service sector had an investment in equipment above Rs.2 crore and up to Rs.5 crore.

Q

What was the investment ceiling for a Medium Enterprise in the manufacturing sector under the old MSME definition (prior to 1 July 2020)?

A

Above ₹5 crore and up to ₹10 crore

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