Page 18 - IMDR MSME BOOK 2021

Managing Finance in Micro, Small & Medium Enterprises
into a solitary Ministry, to be specic, "Service of Micro,
Small and Medium Enterprises". The Second Schedule of
the Government of India (Allocation of Business) Rules
1961 shows the business dispensed to the Ministry of
Micro, Small and Medium Enterprises. The extension
and inclusion of the MSME area has been expanded
fundamentally under the MSMED Act, 2006, which
perceived the idea of "big business" and incorporate both
assembling and administrations division, other than
characterizing the medium ventures under MSME part.
Subsequently the whole non-farming area of the Indian
economy has been brought under the inclusion of MSME
division subject to the reconsidered criteria endorsed for
characterizing MSMEs, independently for assembling
and administrations segments.

The MSMED Act, 2006 has broadly classied
enterprise into two categories:
A.Manufacturing
B.Services.

Both categories of enterprises have been further
classied into micro, small and medium enterprises
based on their investment in plant and machinery or on
equipment.