Civil Services Examination · Question 71
Consider the following statements with reference to India: 1. According to the 'Micro, Small and Medium Enterprises Development (MSMED) Act, 2006', the 'medium enterprises' are those with investments in plant and machinery between ₹15 crore and ₹25 crore. 2. All bank loans to the Micro, Small and Medium Enterprises qualify under the priority sector. Which of the statements given above is/are correct?
Show answer & explanation
Answer: (D) Neither 1 nor 2
Explanation
Medium enterprises (2020 criteria) have investment up to ₹50 crore and turnover up to ₹250 crore; the original 2006 Act said ₹5–10 crore. Not all MSME loans qualify as priority sector (only micro/small fully; medium with conditions).