Definition of MSMEs in India

Currently, MSMEs are defined under the Micro, Small and Medium Enterprises Development Act, 2006. The Act classifies them as micro, small and medium enterprises based on: (i) investment in plant and machinery for enterprises engaged in manufacturing or production of goods, and (ii) investment in equipment for enterprises providing services.  As per the Cabinet approval, the investment limits will be revised upwards and annual turnover of the enterprise will be used as additional criteria for the classification of MSMEs (Table 1). 



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Contribution of the Micro, Small and Medium Enterprises in the Indian economy

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What are MSMEs?

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Micro Small and medium enterprises (MSMEs) are organizations that look after revenue, resources, or various workers under a specific limit. Every nation has its own meaning of what establishes a micro small and medium enterprise (MSME). Certain size standards should be met and every so often the business in which the organization works is considered also.  In spite of the fact that little in size, micro small and medium enterprises (MSMEs) has a significant part in the economy. They outnumber huge firms impressively, utilize immense number of individuals for employment, and are usually entrepreneurial in nature, assisting with forming innovation.
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Analysis of CSR practices in MSMEs sector

At one extreme CSR activities by MSMEs has been considered as an additional profit-making activities and, at the other extreme, involvement in CSR with community stakeholders, has been comprehended as an entirely altruistic activity. But the criticism is outweighed as it drives the people towards growth and development. But the lessons and strategies of CSR cannot be completely switched to MSMEs. Many of the problems underlying calls for CSR do not pertain to MSMEs, which lack the power dictate standards, or move across national boundaries. At the same time, many MSMEs already exercise some sort of ‘silent social responsibility’. MSMEs can play a big role in helping the society by boosting their CSR initiatives. CSR helps to build and expand entrepreneurial foundation of the nation by aiding the enterprises through supply of raw materials and a range of factors required for production or manufacturing. CSR activities help in the development and expansion of MSMEs in India. Thus
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