With 3.6 crore units spread across the country, that employ 8.05 crore people, Micro, Small and Medium Enterprises (MSME) have a contribution of 37.5 per cent to the country’s GDP. The sector has huge potential for helping address structural problems like unemployment, regional imbalances, unequal distribution of national income and wealth across the country. Due to comparatively low capital costs and their forward-backward linkages with other sectors, MSMEs will play a crucial role in the success of the Make in India initiative.
Medium Industries: The industry whose investment is more than Rs.5 crores but less than Rs.10 crores in manufacturing units is called medium industry. This limit is Rs.2 crores to Rs.5 crores in service enterprises.
Small Industries: The industry in which the investment is more than Rs.25 lakhs but less than Rs.5 crores in manufacturing units is known as small industry. This limit is Rs.10 lakhs to Rs.2 crores in service organisations.
Micro Industries: The industry whose investment is less than Rs.25 lakhs in manufacturing units is called micro industry. This limit is Rs.10 lakhs in service enterprises.