Talk:Small and medium-sized enterprises/Archives/2021
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History
In India, before the enactment of MSMED Act in 2006, there was no official definition for medium scale enterprises. Consequently, there was no official definition for small and medium scale enterprises [SME's] as well as for what was commonly called then as large and medium scale enterprises [LME's]. What was officially defined was a small-scale industry (SSIs) and by definition what was not a small-scale unit, becomes automatically a large &medium scale enterprise or a non-SSI unit. As per the latest classification followed till the enactment of MSMED Act in 2006, a small-scale unit was defined as one with an investment up to Rs 1 crore in plant and machinery, provided it is not owned by or controlled by a subsidiary of any other industrial undertaking. This condition was set to prevent big firms from grabbing the benefits extended to small-scale industries by setting up their subsidiaries as small-scale undertakings. In addition, it was intended to discourage the misuse of incentives by establishing more than one SSI[2] unit by the same person. The various definitions of SSI over the years are given in the Table below. Ankit Dare (talk) 04:58, 27 March 2021 (UTC)