With respect to the 'Micro, Small and Medium enterprises', consider the following statements:

  1. A manufacturing unit is considered micro enterprise if its investment in plant and machinery does not exceed Rs. 25 Lakh
  2. Handicrafts and Handloom products are reserved in India for MSME sector

Which of the above is / are correct?

Answer: [A] Only 1

The first statement is correct. The below table represents the investments in this sector: 

Second statement is incorrect because on 13th April 2015, the NDA Government has de-reserved all the products and as of today, not a single item is reserved for small industries.

This question is a part of GKToday's Integrated IAS General Studies Module