MSME Sector

Classification of MSME 

MSME sector are classified into 2 classes with the following criteria:

1. Manufacturing or production enterprises

Enterprises	Investment in plant & machinery
Micro Enterprises	< Rs.25 lacs
Small Enterprises	> Rs.25 lacs and < Rs.5 crores
Medium Enterprises	> Rs.5 crores and < Rs.10 crores

2. Service enterprises

Enterprises	Investment in equipments
Micro Enterprises	< Rs.10 lacs
Small Enterprises	> Rs.10 lacs and < Rs.2 Crores
Medium Enterprises	> Rs.2 Crores and < Rs.5 Crores

Contribution of MSME sector to Indian Economy

• Around 40% of total exports.
• Over 8% to gross domestic product (GDP).
• Contributes around 45% of India’s manufacturing output.
• Provides employment to about 60 million persons through 26 million enterprises.

Inter-Ministerial committee to boost MSME exports in May 2013 

WHY ?  

• Revival of exports which were affected by global economic slowdown ( exports decline to USD 300 billion as against projected USD 360 billion)
• Overcoming the widening trade deficit gap as it resulted into increase in current account deficit (CAD crossed 6.7% of GDP in Q3 of fiscal year 2012-13).
• Suggest Long and short-term measures to enhance exports.

Committee Members : 

• Chairman: R S Gujral (Finance Secretary).