{"id":29186,"date":"2026-09-04T17:28:55","date_gmt":"2026-09-04T11:58:55","guid":{"rendered":"https:\/\/vajiramandravi.com\/upsc-exam\/?p=29186"},"modified":"2026-09-04T17:28:55","modified_gmt":"2026-09-04T11:58:55","slug":"msme","status":"publish","type":"post","link":"https:\/\/vajiramandravi.com\/upsc-exam\/msme\/","title":{"rendered":"MSME, Full Form, Definition, Classification, Importance, Schemes"},"content":{"rendered":"<p><span style=\"font-weight: 400\">The MSME sector is a vital pillar of India\u2019s economy, contributing 31.1% of GDP, 35.4% of manufacturing output, and 48.58% of exports. It provides livelihoods to around 38.9 crore people, making it the second-largest source of employment after agriculture, while more than 7.47 crore enterprises operate across manufacturing, services and trade. The sector promotes entrepreneurship, supports rural and semi-urban economies, strengthens domestic supply chains, and facilitates India\u2019s integration into global value chains.<\/span><\/p>\r\n<p><span style=\"font-weight: 400\">MSMEs have also witnessed rapid formalisation, with registrations through the Udyam Registration Portal and Udyam Assist Platform crossing 8.7 crore by June 2026. Strengthening their access to finance, technology, skills, markets and infrastructure is crucial for inclusive and sustainable growth.<\/span><\/p>\r\n<h2><span style=\"font-weight: 400\">MSME Full Form<\/span><\/h2>\r\n<p><span style=\"font-weight: 400\">The full form of MSME is <\/span><b>Micro, Small, and Medium Enterprises<\/b><span style=\"font-weight: 400\">. Over the past fifty years, the Indian economy's Micro, Small, and Medium-Sized Enterprises (MSME) sector has grown to be a very active and dynamic one.<\/span><\/p>\r\n<ul>\r\n\t<li style=\"font-weight: 400\"><span style=\"font-weight: 400\">They also aid in the industrialisation of rural and underdeveloped areas, which lessens regional disparities and ensures a more equitable distribution of national wealth and income.<\/span><\/li>\r\n<\/ul>\r\n<h2><span style=\"font-weight: 400\">MSME Definition<\/span><\/h2>\r\n<p><span style=\"font-weight: 400\">Micro, Small, and Medium Enterprises can be defined as smaller-scale business entities engaged in the production, manufacturing, processing, or servicing of goods and commodities.<\/span><\/p>\r\n<ul>\r\n\t<li style=\"font-weight: 400\"><span style=\"font-weight: 400\">MSMEs range from small manufacturing units, artisans and food-processing enterprises to technology companies, engineering firms and service providers.<\/span><\/li>\r\n\t<li style=\"font-weight: 400\"><span style=\"font-weight: 400\">The Micro, Small, and Medium Enterprise sector also serves as an important link between large industries and local economies, as many MSMEs operate as suppliers, vendors, and ancillary units for larger companies.<\/span><\/li>\r\n<\/ul>\r\n<h2><span style=\"font-weight: 400\">MSME Classification<\/span><\/h2>\r\n<p><span style=\"font-weight: 400\">Micro, Small, and Medium Enterprise categorisation is based on a dual-parameter system using investment in plant and machinery\/equipment (excluding land and building) and annual turnover. Following the updates effective April 1, 2025, the criteria apply uniformly to both manufacturing and service sectors. Revised classification criteria are<\/span><\/p>\r\n<ul>\r\n\t<li><b>Micro Enterprise<\/b>\r\n<ul>\r\n\t<li><span style=\"font-weight: 400\">Investment: Not more than \u20b92.5 crore<\/span><\/li>\r\n\t<li><span style=\"font-weight: 400\">Turnover: Not more than \u20b910 crore<\/span><\/li>\r\n<\/ul>\r\n<\/li>\r\n\t<li><b>Small Enterprise<\/b>\r\n<ul>\r\n\t<li><span style=\"font-weight: 400\">Investment: Not more than \u20b925 crore<\/span><\/li>\r\n\t<li><span style=\"font-weight: 400\">Turnover: Not more than \u20b9100 crore<\/span><\/li>\r\n<\/ul>\r\n<\/li>\r\n\t<li><b>Medium Enterprise<\/b>\r\n<ul>\r\n\t<li><span style=\"font-weight: 400\">Investment: Not more than \u20b9125 crore<\/span><\/li>\r\n\t<li><span style=\"font-weight: 400\">Turnover: Not more than \u20b9500 crore.<\/span><\/li>\r\n<\/ul>\r\n<\/li>\r\n<\/ul>\r\n<p><img decoding=\"async\" class=\"alignnone  wp-image-29191\" src=\"https:\/\/vajiramias.sgp1.cdn.digitaloceanspaces.com\/wp\/upsc-exam\/2026\/09\/03173955\/MSME-CLASSIFICATION.png\" alt=\"MSME\" width=\"814\" height=\"499\" srcset=\"https:\/\/vajiramias.sgp1.cdn.digitaloceanspaces.com\/wp\/upsc-exam\/2026\/09\/03173955\/MSME-CLASSIFICATION.png 1601w, https:\/\/vajiramias.sgp1.cdn.digitaloceanspaces.com\/wp\/upsc-exam\/2026\/09\/03173955\/MSME-CLASSIFICATION-768x471.png 768w, https:\/\/vajiramias.sgp1.cdn.digitaloceanspaces.com\/wp\/upsc-exam\/2026\/09\/03173955\/MSME-CLASSIFICATION-1536x942.png 1536w\" sizes=\"(max-width: 814px) 100vw, 814px\" \/><\/p>\r\n<h2><span style=\"font-weight: 400\">MSME Importance<\/span><\/h2>\r\n<p><span style=\"font-weight: 400\">The importance of Micro, Small, and Medium Enterprises in India extends beyond employment generation to strengthening manufacturing, increasing exports, promoting entrepreneurship, supporting formalisation, and ensuring inclusive and balanced economic growth.<\/span><\/p>\r\n<ul>\r\n\t<li style=\"font-weight: 400\"><b>The Foundation of the Indian Economy:<\/b><span style=\"font-weight: 400\"> The Micro, Small, and Medium Enterprise industry is a major force behind economic growth and industrial development, accounting for almost <\/span><b>one-third of the nation's <a href=\"https:\/\/vajiramandravi.com\/upsc-exam\/gross-domestic-product-gdp\/\" target=\"_blank\">GDP<\/a><\/b><span style=\"font-weight: 400\">.<\/span>\r\n<ul>\r\n\t<li style=\"font-weight: 400\"><span style=\"font-weight: 400\">It contributes roughly<\/span> <span style=\"font-weight: 400\">35.4% of the nation's manufacturing and 48.58% of its exports.<\/span><\/li>\r\n<\/ul>\r\n<\/li>\r\n\t<li style=\"font-weight: 400\"><b>Creation of Jobs:<\/b><span style=\"font-weight: 400\"> The capacity of Micro, Small, and Medium Enterprises to create a huge number of jobs is one of their greatest advantages. Through more than <\/span><b>8.7 crore registered <\/b><span style=\"font-weight: 400\">businesses, the industry offers livelihood prospects to nearly <\/span><b>38.9 crore <\/b><b>individuals.<\/b><\/li>\r\n\t<li style=\"font-weight: 400\"><b>Economy Formalisation:<\/b><span style=\"font-weight: 400\"> The formalisation of Micro, Small, and Medium Enterprises has advanced because of government programmes like Udyam Registration and the Udyam Assist Portal. There are over <\/span><b>8.7 crore<\/b><span style=\"font-weight: 400\"> registered businesses as of June 2026, up from about <\/span><b>2.5 crore in March 2024.<\/b><\/li>\r\n\t<li style=\"font-weight: 400\"><b>Encouraging Inclusive and Regional Development:<\/b><span style=\"font-weight: 400\"> By encouraging industrial activity outside of major cities, Micro, Small, and Medium Enterprises are essential in lowering regional economic inequities. They support rural development, better infrastructure, and increased economic inclusion.<\/span><\/li>\r\n\t<li style=\"font-weight: 400\"><b>Boosting Supply Chains and Manufacturing:<\/b><span style=\"font-weight: 400\"> Providing larger companies with raw materials, intermediate goods, and specialised services, the Micro, Small, and Medium Enterprise sector plays a crucial role in India's industrial ecosystem.\u00a0<\/span><\/li>\r\n\t<li style=\"font-weight: 400\"><b>Transformation to Digital:<\/b><span style=\"font-weight: 400\"> Micro, Small, and Medium Enterprises are adopting digital technology at a significantly higher rate. Nearly <\/span><b>90% of businesses<\/b><span style=\"font-weight: 400\"> accept digital payments, and <\/span><b>18% <\/b><span style=\"font-weight: 400\">have previously used digital lending systems, according to the report.<\/span><\/li>\r\n<\/ul>\r\n<p><img decoding=\"async\" class=\"alignnone  wp-image-29192\" src=\"https:\/\/vajiramias.sgp1.cdn.digitaloceanspaces.com\/wp\/upsc-exam\/2026\/09\/03174132\/MSME-IMPACT.png\" alt=\"MSME\" width=\"794\" height=\"452\" srcset=\"https:\/\/vajiramias.sgp1.cdn.digitaloceanspaces.com\/wp\/upsc-exam\/2026\/09\/03174132\/MSME-IMPACT.png 1662w, https:\/\/vajiramias.sgp1.cdn.digitaloceanspaces.com\/wp\/upsc-exam\/2026\/09\/03174132\/MSME-IMPACT-768x437.png 768w, https:\/\/vajiramias.sgp1.cdn.digitaloceanspaces.com\/wp\/upsc-exam\/2026\/09\/03174132\/MSME-IMPACT-1536x874.png 1536w\" sizes=\"(max-width: 794px) 100vw, 794px\" \/><\/p>\r\n<h2><span style=\"font-weight: 400\">MSME Challenges<\/span><\/h2>\r\n<p><span style=\"font-weight: 400\">The Micro, Small, and Medium Enterprise sector faces several critical challenges, including limited access to affordable credit, delayed payments from large corporate buyers, and an inability to adopt modern technology.<\/span><\/p>\r\n<ul>\r\n\t<li style=\"font-weight: 400\"><b>Inadequate Formalisation<\/b><span style=\"font-weight: 400\">: Formalisation is difficult, especially for micro-enterprises, even if the number of registered businesses has greatly increased.<\/span>\r\n<ul>\r\n\t<li style=\"font-weight: 400\"><span style=\"font-weight: 400\">Due to a lack of knowledge about the advantages of registration and worries about regulatory monitoring, around <\/span><b>35% of microbusinesses<\/b><span style=\"font-weight: 400\"> are still unregistered.<\/span><\/li>\r\n<\/ul>\r\n<\/li>\r\n\t<li style=\"font-weight: 400\"><b>Limited Availability of Reasonably Priced Credit:<\/b><span style=\"font-weight: 400\"> One of the biggest obstacles for this sector is still getting timely and sufficient financing.<\/span>\r\n<ul>\r\n\t<li style=\"font-weight: 400\"><span style=\"font-weight: 400\">Although small and medium-sized businesses' reliance on unofficial borrowing has decreased, <\/span><b>12% of microbusinesses<\/b><span style=\"font-weight: 400\"> still rely on unofficial credit sources, indicating ongoing financing shortfalls.<\/span><\/li>\r\n<\/ul>\r\n<\/li>\r\n\t<li style=\"font-weight: 400\"><b>Limited Financial Literacy and Management Skills:<\/b><span style=\"font-weight: 400\"> Many Micro, Small, and Medium Enterprise owners lack the skills to manage their cash flow and inventory, resulting in operational difficulties. The lack of financial skills also hampers their debt management, as they are unable to negotiate for a better interest rate or terms for credit.<\/span><\/li>\r\n\t<li style=\"font-weight: 400\"><b>Women-Owned Enterprises Credit Gap: <\/b><span style=\"font-weight: 400\">Compared to the sector as a whole, women-led Micro, Small, and Medium Enterprises are more financially constrained.<\/span>\r\n<ul>\r\n\t<li style=\"font-weight: 400\"><span style=\"font-weight: 400\">The projected<\/span><b> 35% credit gap for women-owned<\/b><span style=\"font-weight: 400\"> businesses highlights the need for more institutional assistance and focused financial inclusion initiatives.<\/span><\/li>\r\n<\/ul>\r\n<\/li>\r\n\t<li style=\"font-weight: 400\"><b>Incapacity to Access Financial Markets:<\/b><span style=\"font-weight: 400\"> Micro, Small, and Medium Enterprises are unable to access capital markets due to their size, type of business, and compliance with legal requirements for disclosures and transparency.<\/span><\/li>\r\n\t<li style=\"font-weight: 400\"><b>Lack of Skills:<\/b><span style=\"font-weight: 400\"> For many Micro, Small, and Medium Enterprises, the availability of trained labour continues to be a serious challenge. Productivity, product quality, and the uptake of contemporary technologies are all impacted by a lack of skilled labour.<\/span><\/li>\r\n<\/ul>\r\n<h2><span style=\"font-weight: 400\">MSME Government Schemes<\/span><\/h2>\r\n<p><span style=\"font-weight: 400\">The Government of India has launched a range of targeted initiatives to enhance credit access, encourage entrepreneurship, and improve the competitiveness of MSMEs. These schemes aim to foster sustainable growth while addressing the sector's key financing and capacity-building needs.<\/span><\/p>\r\n<p><img decoding=\"async\" class=\"alignnone  wp-image-29193\" src=\"https:\/\/vajiramias.sgp1.cdn.digitaloceanspaces.com\/wp\/upsc-exam\/2026\/09\/03174336\/MSME-GOVERNMENT-INITIATIVES.png\" alt=\"MSME\" width=\"872\" height=\"520\" srcset=\"https:\/\/vajiramias.sgp1.cdn.digitaloceanspaces.com\/wp\/upsc-exam\/2026\/09\/03174336\/MSME-GOVERNMENT-INITIATIVES.png 1624w, https:\/\/vajiramias.sgp1.cdn.digitaloceanspaces.com\/wp\/upsc-exam\/2026\/09\/03174336\/MSME-GOVERNMENT-INITIATIVES-768x458.png 768w, https:\/\/vajiramias.sgp1.cdn.digitaloceanspaces.com\/wp\/upsc-exam\/2026\/09\/03174336\/MSME-GOVERNMENT-INITIATIVES-1536x916.png 1536w\" sizes=\"(max-width: 872px) 100vw, 872px\" \/><\/p>\r\n<ul>\r\n\t<li><a href=\"https:\/\/vajiramandravi.com\/upsc-exam\/pradhan-mantri-mudra-yojana\/\" target=\"_blank\"><b>Pradhan Mantri MUDRA Yojana<\/b><\/a><b>: <\/b><span style=\"font-weight: 400\">By offering loans of up to <\/span><b>\u20b910 lakh,<\/b><span style=\"font-weight: 400\"> PMMY has been instrumental in strengthening small and micro businesses that are not corporate or agricultural.<\/span>\r\n<ul>\r\n\t<li><span style=\"font-weight: 400\">During the Union Budget<\/span> <span style=\"font-weight: 400\">2024-25 on July 23, 2024, the finance minister proposed an increase in the loan cap<\/span><b> to \u20b920 lakh <\/b><span style=\"font-weight: 400\">in order to bolster support for prospective entrepreneurs. This new cap was implemented on <\/span><b>October 24, 2024<\/b><span style=\"font-weight: 400\">.<\/span><\/li>\r\n<\/ul>\r\n<\/li>\r\n\t<li><b>PM Vishwakarma Program:<\/b><span style=\"font-weight: 400\"> Honours and encourages traditional handicrafts and artisans. It offers marketing support, financial aid (up to a \u20b93 lakh loan)<\/span><b>,<\/b><span style=\"font-weight: 400\"> and talent development.<\/span><\/li>\r\n\t<li><b>Credit Guarantee Scheme for Micro and Small Enterprises (CGTMSE)<\/b>\r\n<ul>\r\n\t<li style=\"font-weight: 400\"><b>Objective:<\/b><span style=\"font-weight: 400\"> Government\u2013SIDBI initiative providing collateral-free credit to eligible micro and small enterprises through credit guarantees.<\/span><\/li>\r\n\t<li style=\"font-weight: 400\"><b>Mechanism:<\/b><span style=\"font-weight: 400\"> CGTMSE does not lend directly; it guarantees eligible term loans and working-capital facilities provided by member lending institutions.<\/span><\/li>\r\n\t<li style=\"font-weight: 400\"><b>Coverage:<\/b><span style=\"font-weight: 400\"> Generally 75%\u201385% of the eligible defaulted amount, depending on the beneficiary category.<\/span><\/li>\r\n<\/ul>\r\n<\/li>\r\n\t<li style=\"font-weight: 400\"><b>Prime Minister\u2019s Employment Generation Programme (PMEGP):<\/b><span style=\"font-weight: 400\"> A credit-linked microbusiness startup assistance programme.<\/span>\r\n<ul>\r\n\t<li style=\"font-weight: 400\"><span style=\"font-weight: 400\">Subsidy \u2013 <\/span><b>15\u201335%<\/b><span style=\"font-weight: 400\"> of the project's total cost (up to \u20b920 lakh for services and \u20b950 lakh for manufacturing). Beneficiaries in special categories (SC, ST, women, and ex-servicemen) receive more subsidies.<\/span><\/li>\r\n<\/ul>\r\n<\/li>\r\n\t<li style=\"font-weight: 400\"><b>MSME Champions Program<\/b><span style=\"font-weight: 400\">: By enhancing their operations, reducing inefficiencies, boosting competitiveness, and fostering their expansion to attain excellence in both local and foreign markets, the MSME Champions Scheme seeks to identify and promote a small number of businesses.<\/span><\/li>\r\n\t<li style=\"font-weight: 400\"><b>Stand Up India:<\/b><span style=\"font-weight: 400\"> The Stand Up India (SUPI) Scheme helps women and SC\/ST business owners establish greenfield ventures by providing bank credit.<\/span><\/li>\r\n<\/ul>\r\n<p><img decoding=\"async\" class=\"alignnone  wp-image-29195\" src=\"https:\/\/vajiramias.sgp1.cdn.digitaloceanspaces.com\/wp\/upsc-exam\/2026\/09\/03174456\/MSME-CHAMPIONS-SCHEME.png\" alt=\"MSME\" width=\"874\" height=\"529\" srcset=\"https:\/\/vajiramias.sgp1.cdn.digitaloceanspaces.com\/wp\/upsc-exam\/2026\/09\/03174456\/MSME-CHAMPIONS-SCHEME.png 1612w, https:\/\/vajiramias.sgp1.cdn.digitaloceanspaces.com\/wp\/upsc-exam\/2026\/09\/03174456\/MSME-CHAMPIONS-SCHEME-768x465.png 768w, https:\/\/vajiramias.sgp1.cdn.digitaloceanspaces.com\/wp\/upsc-exam\/2026\/09\/03174456\/MSME-CHAMPIONS-SCHEME-1536x930.png 1536w\" sizes=\"(max-width: 874px) 100vw, 874px\" \/><\/p>\r\n<h2><span style=\"font-weight: 400\">MSME Budget 2026\u201327<\/span><\/h2>\r\n<p><span style=\"font-weight: 400\">A comprehensive series of changes aimed at bolstering the Micro, Small, and Medium Enterprises (MSME) sector is introduced in the Union Budget 2026\u20132027. Enhancing financial access, promoting innovation, streamlining compliance, and increasing market opportunities are the main priorities. These policies are intended to boost MSMEs' competitiveness and encourage their sustained contribution to India's economic expansion.<\/span><\/p>\r\n<p><img decoding=\"async\" class=\"alignnone  wp-image-29196\" src=\"https:\/\/vajiramias.sgp1.cdn.digitaloceanspaces.com\/wp\/upsc-exam\/2026\/09\/03174627\/MSME-Budget.png\" alt=\"MSME\" width=\"886\" height=\"791\" srcset=\"https:\/\/vajiramias.sgp1.cdn.digitaloceanspaces.com\/wp\/upsc-exam\/2026\/09\/03174627\/MSME-Budget.png 1327w, https:\/\/vajiramias.sgp1.cdn.digitaloceanspaces.com\/wp\/upsc-exam\/2026\/09\/03174627\/MSME-Budget-768x686.png 768w\" sizes=\"(max-width: 886px) 100vw, 886px\" \/><\/p>\r\n<ul>\r\n\t<li style=\"font-weight: 400\"><b>A Three-Pronged Approach to Developing MSME Champions:<\/b><span style=\"font-weight: 400\"> Through equity support, liquidity augmentation, and professional assistance, the Budget takes a three-pronged approach to assist MSMEs in becoming globally competitive businesses.<\/span><\/li>\r\n\t<li style=\"font-weight: 400\"><b>Equity Assistance for MSME Development:<\/b><span style=\"font-weight: 400\"> The government has announced a <\/span><b>\u20b910,000 crore <\/b><span style=\"font-weight: 400\">SME Growth Fund to increase access to growth funding. By offering qualified businesses equity-based financial support, the fund seeks to assist high-potential MSMEs.<\/span><\/li>\r\n\t<li style=\"font-weight: 400\"><span style=\"font-weight: 400\">Furthermore, an extra <\/span><b>\u20b92,000 crore<\/b><span style=\"font-weight: 400\"> would be given to the <\/span><b>Self-Reliant India (SRI) <\/b><span style=\"font-weight: 400\">Fund, which was established in 2021, to bolster assistance for micro and small businesses.<\/span><\/li>\r\n\t<li style=\"font-weight: 400\"><b>Support for Liquidity via TReDS:<\/b><span style=\"font-weight: 400\"> The Trade Receivables Discounting System (TReDS) is strengthened by the budget to increase MSMEs' access to working capital. Through the platform, more than <\/span><b>\u20b97 lakh crore<\/b><span style=\"font-weight: 400\"> has already been liberated.<\/span><\/li>\r\n\t<li style=\"font-weight: 400\"><b>Expert Assistance via \"Corporate Mitras\":<\/b><span style=\"font-weight: 400\"> The government will work with professional organisations like ICAI, ICSI, and ICMAI<\/span> <span style=\"font-weight: 400\">to create short-term, useful training programmes in recognition of the difficulties small firms confront with compliance.<\/span><\/li>\r\n\t<li><b>Boost in E-Commerce Exports:<\/b><span style=\"font-weight: 400\"> The budget suggests lifting the current courier export cap of \u20b910 lakh per shipment to assist MSMEs in growing their market share abroad.<\/span><\/li>\r\n<\/ul>\r\n<h2><span style=\"font-weight: 400\">MSME Way Forward<\/span><\/h2>\r\n<ul>\r\n\t<li style=\"font-weight: 400\"><b>Accelerate the Formalisation of Micro-enterprises:<\/b><span style=\"font-weight: 400\"> Wider formalisation and better access to government assistance can be promoted by raising awareness, streamlining registration processes, and fostering trust among business owners.<\/span><\/li>\r\n\t<li style=\"font-weight: 400\"><b>Expand Timely and Reasonably Priced Credit Access:<\/b><span style=\"font-weight: 400\"> MSMEs can acquire sufficient and timely financing by strengthening institutional lending, extending credit guarantee systems, streamlining loan procedures, and encouraging digital lending.<\/span><\/li>\r\n\t<li style=\"font-weight: 400\"><b>Implement Sector-Specific Financing Techniqu<\/b><span style=\"font-weight: 400\">es: Credit accessibility and company growth can be enhanced by customised credit products and regulatory interventions for industries like food processing, grocery retail, ready-made clothing, and <\/span><b>IT\/ITeS.<\/b><\/li>\r\n\t<li style=\"font-weight: 400\"><b>Improve the Digital Financial System:<\/b><span style=\"font-weight: 400\"> Utilising digital transaction data helps boost MSMEs' financial inclusion, expedite processing, and enhance credit evaluation.<\/span><\/li>\r\n\t<li style=\"font-weight: 400\"><b>Reduce the Credit Divide for Women-Owned Businesses:<\/b><span style=\"font-weight: 400\"> Increased institutional assistance, better access to formal financing, and targeted financial solutions can all help close the larger credit gap that women-led MSMEs confront and promote inclusive entrepreneurship.<\/span><\/li>\r\n<\/ul>\r\n<h2><span style=\"font-weight: 400\">MSME UPSC PYQs<\/span><\/h2>\r\n<p><b>Q1.<\/b><span style=\"font-weight: 400\"> Faster economic growth requires an increased share of the manufacturing sector in GDP, particularly of MSMEs. Comment on the present policies of the Government in this regard. <\/span><b>(UPSC Mains, 2023)<\/b><\/p>\r\n<p><b>Q2.<\/b><span style=\"font-weight: 400\"> MSME sector is referred to as the growth engine of the Indian economy. In the light of this statement discuss the challenges and solutions pertaining to the MSME sector in India. <\/span><b>(UPSC Mains, 2020)<\/b><\/p>\r\n<p><b>Q3.<\/b><span style=\"font-weight: 400\"> Consider the following statements with reference to India (UPSC<\/span><b> Prelims 2023)<\/b><\/p>\r\n<ol>\r\n\t<li><span style=\"font-weight: 400\"> According to the 'Micro, Small and Medium Enterprises Development (MSMED) Act, 2006', the 'medium enterprises' are those with investments in plant and machinery between \u20b9 15 crore and \u20b9 25 crore.<\/span><\/li>\r\n\t<li><span style=\"font-weight: 400\"> All bank loans to the Micro, Small and Medium Enterprises qualify under the priority sector.<\/span><\/li>\r\n<\/ol>\r\n<p><span style=\"font-weight: 400\">Which of the statements given above is\/are correct?<\/span><\/p>\r\n<p><span style=\"font-weight: 400\">a) 1 only<\/span><\/p>\r\n<p><span style=\"font-weight: 400\">b) 2 only<\/span><\/p>\r\n<p><span style=\"font-weight: 400\">c) Both 1 and 2<\/span><\/p>\r\n<p><span style=\"font-weight: 400\">d) Neither 1 nor 2<\/span><\/p>\r\n<p><b>Ans: (b)<\/b><\/p>","protected":false},"excerpt":{"rendered":"<p>MSME stands for Micro, Small and Medium Enterprises, which form a crucial part of India&#8217;s industrial and economic structure. Check more about its definition, classification and schemes.<\/p>\n","protected":false},"author":35,"featured_media":29280,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"footnotes":""},"categories":[38,30],"tags":[1980,40,1033],"class_list":["post-29186","post","type-post","status-publish","format-standard","has-post-thumbnail","category-upsc-notes","category-upsc-economy-notes","tag-msme","tag-quest","tag-upsc-economy-notes"],"acf":[],"_links":{"self":[{"href":"https:\/\/vajiramandravi.com\/upsc-exam\/wp-json\/wp\/v2\/posts\/29186","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/vajiramandravi.com\/upsc-exam\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/vajiramandravi.com\/upsc-exam\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/vajiramandravi.com\/upsc-exam\/wp-json\/wp\/v2\/users\/35"}],"replies":[{"embeddable":true,"href":"https:\/\/vajiramandravi.com\/upsc-exam\/wp-json\/wp\/v2\/comments?post=29186"}],"version-history":[{"count":4,"href":"https:\/\/vajiramandravi.com\/upsc-exam\/wp-json\/wp\/v2\/posts\/29186\/revisions"}],"predecessor-version":[{"id":29293,"href":"https:\/\/vajiramandravi.com\/upsc-exam\/wp-json\/wp\/v2\/posts\/29186\/revisions\/29293"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/vajiramandravi.com\/upsc-exam\/wp-json\/wp\/v2\/media\/29280"}],"wp:attachment":[{"href":"https:\/\/vajiramandravi.com\/upsc-exam\/wp-json\/wp\/v2\/media?parent=29186"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/vajiramandravi.com\/upsc-exam\/wp-json\/wp\/v2\/categories?post=29186"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/vajiramandravi.com\/upsc-exam\/wp-json\/wp\/v2\/tags?post=29186"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}