- Definition: MSMEs are Micro, Small, and Medium Enterprises.
- They are classified based on investment and turnover.
- Micro: Investment < 1 cr, Turnover < 5 cr.
- Small: Investment < 10 cr, Turnover < 50 cr.
- Medium: Investment < 50 cr, Turnover < 250 cr.
- Role in Economic Development:
- Contribute 30% to India’s output/GDP.
- Contribute 45% to manufacturing output/GDP.
- Contribute 40% to exports.
- Provide large employment opportunities at lower capital cost.
- Help in industrialization of rural & backward areas.
- Reduce regional imbalances and ensure equitable income distribution.
- Complement large industries as ancillary units.
- Play a key role in manufacturing value chains.