Q. What is the primary basis for defining a small-scale industry in India? (UPSC Prelims 1992)
Answer: Investment in plant and machinery
Notes: The MSME Development Act, 2006 defines small-scale industry based on investment in plant and machinery for manufacturing or equipment for services. The 2020 revision set the small enterprise limit at investment up to ₹10 crore and turnover up to ₹50 crore. Prior to this, only investment criteria were used in statutory definitions, excluding factors like sales or product lists.
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