An MSME (Micro, Small and Medium Enterprise) is defined by RBI/GOI differently for the Manufacturing and the Services

Sector, as follows: Manufacturing Sector Manufacturing sector refers to enterprises engaged in manufacture or production, processing or preservation of goods. The definition of Micro, Small and Medium Enterprises under the manufacturing sector is based on the Investment in plant and machinery [original cost excluding land and building]

Services Sector Services sector refers to enterprises engaged in providing or rendering of services. These will include small road & water transport operators (owning a fleet of vehicles not exceeding ten vehicles), small business (whose original cost price of the equipment used for the purpose of business does not exceed Rs.20 lakh) and professional & self employed persons (whose borrowing limits do not exceed Rs.10 lakh of which not more than Rs.2 lakh should be for working capital requirements except in case of professionally qualified medical practitioners setting up of practice in semi-urban and rural areas, the borrowing limits should not exceed Rs.15 lakh with a sub-ceiling of Rs.3 lakh for working capital requirements).

SMEs are the Engine of Growth

SMEs are Essential for a Competitive and Efficient Market SMEs are Critical for Poverty Reduction SMEs Play a Particularly Important Role in Developing Countries SME sector is the largest provider of employment in most countries, especially of new jobs SMEs are a major source of technological innovation and new products

Production:The small-scale industries sector plays a vital role in the growth of the country. It contributes almost 40% of the gross industrial value added in the Indian economy.
Employment: SSI Sector in India creates largest employment opportunities for the Indian population, next only to Agriculture. It has been estimated that 100,000 rupees of investment in fixed assets in the small-scale sector generates employment for four persons.

Export:SSI Sector plays a major role in India's present export performance. 45%-50% of the Indian Exports is contributed by SSI Sector