Micro Small Medium Enterprises — Prelims Questions

Which of the following statements regarding the new classification of Micro, Small and Medium Enterprises (MSMEs) in India, effective from July 1, 2020, is/are correct? 1. The distinction between manufacturing and service enterprises has been removed. 2. A Micro enterprise is defined as one with an investment of up to ₹1 crore and a turnover of up to ₹5 crore. 3. Export turnover is included in the calculation of total turnover for classification purposes. Select the correct answer using the code given below:

Consider the following statements regarding the Credit Guarantee Scheme for Micro and Small Enterprises (CGTMSE): 1. It provides collateral-free credit to Micro, Small, and Medium Enterprises. 2. The scheme is administered by the Small Industries Development Bank of India (SIDBI). 3. It covers both term loans and working capital facilities. Which of the statements given above is/are correct?

Which of the following is NOT a primary objective of the MUDRA (Micro Units Development and Refinance Agency) Scheme?

The Micro, Small and Medium Enterprises Development (MSMED) Act, 2006, contains provisions to address the issue of delayed payments to MSMEs. Which of the following is a key feature of these provisions?

Which of the following statements best describes the 'dwarfism' phenomenon observed in India's small-scale industries (SSIs) prior to the MSMED Act, 2006?