Classification of MSME
MSME sector are classified into 2 classes with the following criteria:1. Manufacturing or production enterprises
| Enterprises | Investment in plant & machinery |
| Micro Enterprises | < Rs.25 lacs |
| Small Enterprises | > Rs.25 lacs and < Rs.5 crores |
| Medium Enterprises | > Rs.5 crores and < Rs.10 crores |
| Enterprises | Investment in equipments |
| Micro Enterprises | < Rs.10 lacs |
| Small Enterprises | > Rs.10 lacs and < Rs.2 Crores |
| Medium Enterprises | > Rs.2 Crores and < Rs.5 Crores |
Contribution of MSME sector to Indian Economy
- Around 40% of total exports.
- Over 8% to gross domestic product (GDP).
- Contributes around 45% of India’s manufacturing output.
- Provides employment to about 60 million persons through 26 million enterprises.
Inter-Ministerial committee to boost MSME exports in May 2013
WHY ?- Revival of exports which were affected by global economic slowdown ( exports decline to USD 300 billion as against projected USD 360 billion)
- Overcoming the widening trade deficit gap as it resulted into increase in current account deficit (CAD crossed 6.7% of GDP in Q3 of fiscal year 2012-13).
- Suggest Long and short-term measures to enhance exports.
Committee Members :
- Chairman: R S Gujral (Finance Secretary).
