MSME refers to Micro, Small and Medium Enterprises. Such classification of small-scale enterprises assists the government in the formulation and implementation of varied policies for the development of the MSME Sector. The Union Ministry of Micro, Small and Medium Enterprises have been entrusted with the development of the MSMEs and the formulation of new policies in this regard.
The Government of India has introduced MSME or Micro, Small, and Medium Enterprises in agreement with Micro, Small and Medium Enterprises Development (MSMED) Act of 2006. These enterprises are primarily engaged in the production, manufacturing, processing, or preservation of goods and commodities. In general the classification of an enterprise under the Micro, Small or Medium category depends on the fulfillment of either of the Investment criteria or the Turnover criteria. The Ministry of Micro, Small & Medium Enterprises (MSMED) vide Gazette Id No. CG-DL-E- 26062020-220191 & S.O. 2119 (E) dated 26th June’20 has officially notified criteria for Calculation of Investment and Turnover under MSME. A new composite criterion has also been inserted. (www.caclubindia.com/articles/msme-investment-turnover-calculation-criteria-notified-42007.asp)