Enactment of Micro, Small and Medium Enterprises Development Act, 2005 (MSME Act) under which classification of micro, small and medium enterprises (MSME) was dependent on two factors: (i) investment in plant and machinery; and (ii) turnover of the enterprise. Earlier, the MSMEs were defined on the basis of investments put in, now the revised definitions will also include turnover of the company. The redefinition of the definition of MSMEs was done in a bid to support entrepreneurs and to boost the economy.
Cite this article:
Mervin Felix Caleb. Effects of Revising the Definition of MSME on Indian Economy. Asian Journal of Management. 2021; 12(1):28-34. doi: 10.5958/2321-5763.2021.00005.6
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