The MSMED Act, 2006 defines the Micro, Small and Medium Enterprises based on
- he investment in plant and machinery for those engaged in manufacturing or production, processing or preservation of goods and
- on the investment in equipment for enterprises engaged in providing or rendering of Services.
The investment in plant and machinery is the original cost excluding land and building and other items specified by the Ministry of Small Scale Industries.
The guidelines with regard to investment in plant and machinery or equipment as defined in the MSMED Act, 2006 are: