Economics · Industrial Sector and MSME
Analyze the following statements concerning the Micro, Small, and Medium Enterprises (MSME) Sector in the Indian economy and select the correct option: Statement I: The MSME sector is statutorily defined under the MSMED Act, 2006, based on a composite criteria of Investment in Plant & Machinery/Equipment and Annual Turnover. Statement II: A manufacturing or service enterprise qualifies as a Micro Enterprise if its investment in plant and machinery does not exceed ₹1 Crore and its annual turnover does not exceed ₹5 Crore. Statement III: The MSME sector's contribution to India's total Merchandise Exports is disproportionately low, typically remaining below 5 percent. Statement IV: The Public Procurement Policy mandates that Central Ministries/Departments/PSUs must procure a minimum of 25 percent of their total annual procurement from MSEs.
Verified Solution4 OptionsUpdated: October 2026👁️1 View
Share:
- 1Statements I and III are correct.
- 2Statements I and IV are correct.
- 3Statements I, II, and IV are correct.✓
- 4Statement I, II, III, and IV are all correct.
Correct answer
Statements I, II, and IV are correct.
Download Single Question PDF
Save this question and verified answer as a clean study sheet with live clickable link.
👥
Share with Friends & Study Groups
Challenge your peer aspirants on WhatsApp or Telegram to solve this question!
Online Test Series
Start Free Mock Test →Preparing for Economics?
Practice full-length mock tests with real exam timers, instant score analysis, and all-India ranking.
Chapter Practice
Practice Industrial Sector and MSME MCQs →Want more practice questions on Industrial Sector and MSME?
Solve complete topic-wise tests with detailed solutions on GkGet.
Related Practice Questions
Recommended practice questions in Economics · Industrial Sector and MSME