Current Affairs · Government Policies and MSME Classification
Under the composite criteria for the classification of Micro, Small, and Medium Enterprises (MSMEs) in India, which includes both investment and turnover, how would a firm be classified if it has an investment of 45 crore rupees in plant and machinery/equipment and a total annual turnover of 280 crore rupees, out of which 60 crore rupees is derived from direct exports?
Verified Solution4 OptionsUpdated: October 2026👁️1 View
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- 1It is classified as a Small Enterprise because the investment is below 50 crore and the domestic turnover is below 50 crore.
- 2It is classified as a Medium Enterprise because the investment is under 50 crore and the effective turnover for classification (excluding exports) is 220 crore.✓
- 3It is classified as a Large Enterprise because its total turnover exceeds the 250 crore threshold regardless of the source of income.
- 4It is classified as a Micro Enterprise because it is a service sector firm and the limits for services are much lower than those for manufacturing.
Correct answer
It is classified as a Medium Enterprise because the investment is under 50 crore and the effective turnover for classification (excluding exports) is 220 crore.
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