The Micro, Small & Medium Enterprises (MSMEs) are defined under the MSMED Act 2006. For manufacturing units, the classification is based on investment in plant and machinery.
Micro enterprise - Investment upto Rs 25 lakh; Small- Exceeding Rs 25 lakh upto Rs 5 crore; Medium- Exceeding Rs 5 crore upto Rs 10 crore.
However the Union cabinet reclassified MSME on the basis of ‘annual turnover’ for both manufacturing and services sectors.
Micro enterprise - annual turnover upto Rs 5 crore; Small- Exceeding Rs 5 crore upto Rs 75 crore; Medium – Exceeding Rs 75 crore upto Rs 250 crore.