Pursuant to amendment vide Notification, Ministry of SMALL SCALE INDUSTRIES (LAGHU UDYOG MANTRALAYA) have been merged into a single Ministry namely, “MINISTRY OF MICRO, SMALL AND MEDIUM ENTERPRISES (SUKSHMA LAGHU AUR MADHYAM UDYAM MANTRALAYA)” .
In accordance with the provision of Micro, Small & Medium Enterprises Development (MSMED) Act, 2006 the Micro, Small and Medium Enterprises (MSME) are classified in two Classes:
Classification of Industries :
1. Manufacturing Industry : The enterprises engaged in the manufacture or production of goods pertaining to any industry specified in the first schedule to the industries (Development and regulation) Act, 1951). The Manufacturing Enterprise are defined in terms of investment in Plant & Machinery.
2. Service Industry : The enterprises engaged in providing or rendering of services and are defined in terms of investment in equipment.
The enterprises not fallowing in above criteria are large scale Enterprises.
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According to the Micro, Small & Medium Enterprise Development Act, 2006, the Parliament of India has further classified industries as Micro, Small & Medium scale industries based on the investment limit in Plant & Machinery and Equipment.
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