Page 20 - IMDR MSME BOOK 2021

Managing Finance in Micro, Small & Medium Enterprises
Ÿ A Small Enterprise, where the investment in Plant and
Machinery or Equipment does not exceed ten crore
rupees and turnover does not exceed fty crore
rupees.
Ÿ A Medium Enterprise, where the investment in Plant
and Machinery or Equipment does not exceed fty
crore rupees and turnover does not exceed two
hundred and fty crore rupees.

Role of MSME in Indian Economy

MSMEs are playing the pivotal role in the Indian
economy. The sector has prepared dynamic and vibrant.
The MSMEs in India are playing a crucial role by
providing large employment opportunities at compara-
tively lower capital cost than large industries as well as
through industrialization of rural & backward areas,
inter alia, reducing regional imbalances, assuring more
equitable distribution of national income and wealth.
The Micro, Small & Medium Enterprises (MSMEs) have
been contributing signicantly to the expansion of
entrepreneurial endeavours through business innova-
tions. As per the data available with Central Statistics
Ofce (CSO), Ministry of Statistics and Programme
Implementation, the contribution of MSME Sector in
country’s Gross Value Added (GVA)1 & Gross Domestic
Product (GDP) 2, at current prices for the last ve years is
as below: