What is SME in India
The full form of SME is “Small and Medium Enterprises”. The SME definition in India as per Section 7 of Micro, Small & Medium Enterprises Development Act, 2006 is based on the investment amount as per the sectors these cater to.
What is the SME classification?
Govt of India notifies vide Notification No. S.O. 2119(E) dated 26.06.2020 certain criteria for classifying the enterprises as micro small and medium enterprises (MSME),
With effect from the 1st day of July 2020, namely:--
Classification of enterprises.-An enterprise shall be classified as a micro, small or medium enterprise on the basis of the following criteria, namely:--
(i)a micro-enterprise, where the investment in plant and machinery or equipment does not exceed one crore rupees and turnover does not exceed five crore rupees;
(ii) a small enterprise, where the investment in plant and machinery or equipment does not exceed ten crore rupees and turnover does not exceed fifty crore rupees; and
(iii) a medium enterprise, where the investment in plant and machinery or equipment does not exceed fifty crore rupees and turnover does not exceed two hundred and fifty crore rupees.
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