What is MSMED Act 2006? Explain it with diagram of capital comparison.
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The Micro Small & Medium Enterprises (MSMEs) are defined in India under the MSMED Act 2006 on the basis of capital investment made in plant and machinery, excluding investments in land and building.
[As per 2006 definition, Manufacturing units having investment below Rs 25 lakh (Rs 2.5 mn) were termed Micro, those between Rs 25 lakh and Rs 5 crore (Rs 50 mn) termed as Small and from Rs 5 crore to Rs 10 crore (Rs 100 mn) as Medium. Similarly, for Service units, corresponding investment thresholds were upto Rs 10 lakh (Rs 1 mn) Micro, between Rs 10 lakh to Rs 2 crore (Rs 20 mn) Small and between Rs 2 crore to Rs 5 crore (Rs 50 mn) Medium
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