1551 MSMEs Micro, Small and Medium Enterprise : A Crucial Sector for Economy Micro, Small and Medium Enterprise (MSME) Sector is a very CA. Mukesh Mohan Gupta important sector of The author is a member of the Institute. any economy including He can be reached at
[email protected] that of Indian economy. As per Annual Report of Ministry of MSME 2017-18 there is a vast network of about 63.38 million Micro, Small and Medium Enterprises in India. The sector contributes about 45% to manufacturing output, more than 40% of exports, over 28% of the GDP while creating employment for about 111 million people. MSMEs were first defined under Both Manufacturing and Service Sectors are covered under Micro, Small and MSMED Act. They are defined under Section 7 of the MSMED Act based on the investment in the Plant and Machinery and Equipment Medium Enterprises respectively. The Micro Small and Medium Enterprises have been Development Act, 2006 defined as under: (MSMED Act) which was Description Manufacturing Sector Service Sector enacted on October 02, Classification Investment in Plant Investment in 2006. Before enactment & Machinery Equipment of MSMED Act Small Micro Enterprises Upto ` 25 Lakh Upto ` 10 Lakhs Scale Industries were ` ` covered under Industrial Small Enterprises Above 25 Lakh & Above 10 Lakhs upto ` 5 Crore & upto ` 2 Crores Development and ` ` Regulation Act, 1951. Medium Above 5 Crore & Above 2 Crores Enterprises upto ` 10 Crore & upto ` 5 Crores Read on to know more… www.icai.org THE CHARTERED ACCOUNTANT JUNE 2020 19 1552 MSMEs To support Self-Reliant The same is evident from the To support Self-Reliant India statistics that wherein as per and Make in India, global India and Make in India, recent U K Sinha Committee tenders will not be allowed global tenders will not there is vast network of about upto ` 200 crores under be allowed upto ` 200 63.38 million enterprises, government procurement, only about 96 lacs enterprises crores under government All receivables of MSMEs have obtained Udyog Aadhaar from government and procurement.