NOTES OF SHAILESH GURURANI
There is a growing recognition worldwide that small and mediumenterprises (SMEs) have an important role to play in the present contextgiven their greater resource-use efficiency, capacity for employmentgeneration, technological innovation, promoting inter-sectoral linkages,raising exports and developing entrepreneurial skills. Their locationalflexibility is an important advantage in reducing regional imbalances. Thefuture of SMEs is of major policy concern given their strategic importancein any discussion of reshaping the industrial sector. This is more so in thecase of India, which has one of the longest histories of government supportto the small-scale industrial sector since independence compared to mostdeveloping countries.
Definitions of Micro, Small & Medium Enterprises
In accordance with the provision of Micro, Small & Medium EnterprisesDevelopment (MSMED) Act, 2006 the Micro, Small and MediumEnterprises (MSME) are classified in two Classes:(a)
- The enterprises engaged in themanufacture or production of goods pertaining to any industry specified inthe first schedule to the industries (Development and regulation) Act,1951). The Manufacturing Enterprise are
defined in terms of investment inPlant & Machinery.
: The enterprises engaged in providing or renderingof services and are
defined in terms of investment in equipment