The Full form of MSME is Ministry of Micro, Small and Medium Enterprises. MSME is the apex body for the formulation and administration of rules, regulations and laws pertaining to micro, small and medium enterprises in India. MSME is a branch of the Government of India. The turnover and workforce of micro, small and medium sized enterprises vary according to the different countries.
In India, under section 7 of the Micro, Small and Medium Enterprises Development (MSMED) Act 2006, Indian government specifies the size of micro, small and medium enterprises on the basis of investment. In Case of Manufacturing Enterprises, investment in the plant and machinery doesn’t exceed 25 lakh rupees for Micro Enterprises, where investment in the plant and machinery is from 25 lakh to 5 crore rupees is specified as Small Enterprises and where investment in the plant and machinery is from 5 crore to 10 crore rupees is specified as Medium Enterprises.
Similarly in case of Service Enterprises, investment in equipment’s does not exceed 10 lakh rupees for Micro Enterprises, where investment in equipment’s is from 10 Lakh to 2 crore rupees is specified as Small Enterprises and where investment in equipment’s is from 2 crore to 5 crore rupees is specified as Medium Enterprises.