As per the Micro, Small and Medium Enterprises Development [MSMED] Act 2006 the definitions are as under:

 1.   Manufacturing Enterprises:

Enterprises engaged in the manufacture or production, processing or preservation of goods.  It is further classified as under based on the original investment in plant & machinery [original cost excluding land and building and the items specified by the Ministry of Small Scale Industries vide its notification No.S.O.1722(E) dated October 5, 2006]. 

1. A Micro Enterprise [Manufacturing] is an enterprise where investment in plant & machinery does not exceed Rs.25.00 lacs. 

2. A Small Enterprise [Manufacturing] is an enterprise where the investment in plant and machinery is more than Rs.25.00 lacs but does not exceed Rs.5.00 crores. 

3. A Medium Enterprise [Manufacturing] is an enterprise where the investment in plant and machinery is more than Rs.5.00 crores but does not exceed Rs.10.00 crores. 

2.   Services Enterprises:

Enterprises engaged in providing or rendering of services. It is further classified as under based on the investment in equipment [original cost excluding land and building and furniture, fittings and other items not directly related to the service rendered or as may be notified under the MSMED Act, 2006].   

1. A Micro Enterprise [Services] is an enterprise where the investment in equipment does not exceed Rs.10.00 lacs. 

2. A Small Enterprise [Services] is an enterprise where the investment in equipment is more than Rs.10.00 lacs but does not exceed             Rs.2.00 crores.  

3. A Medium Enterprise [Services] is an enterprise where the investment in equipment is more than Rs.2.00 crores but does not exceed       Rs.5.00 crores.