Economics · Economy
The MSME Development Act, 2006, provides the statutory framework for the sector in India. Which of the following is the primary purpose of classifying the sector into Micro, Small, and Medium Enterprises?
Verified Solution4 OptionsUpdated: October 2026👁️1 View
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- 1To impose different tax rates for each category of enterprise by the Ministry of Finance.
- 2To provide a legal framework for facilitating the promotion, development, and enhancing the competitiveness of MSMEs through policy support and focused credit.✓
- 3To regulate the export and import activities of the enterprises under the Foreign Trade Act.
- 4To mandate compulsory listing of Medium Enterprises on the BSE and NSE for public fundraising.
Correct answer
To provide a legal framework for facilitating the promotion, development, and enhancing the competitiveness of MSMEs through policy support and focused credit.
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