MSME ministry said that an MSME in the country will now (from 1st July 2020) be known as ‘Udyam’ since the term comes closer to the meaning of an enterprise.
Micro, Small and Medium Enterprises. MSME stands for Micro, Small and Medium enterprises and SSI Stands for Small Scale Industries, categorized based on the annual revenue in business. These entities possess MSME registration certificate, registered with MSME Department of the Central Government under MSME Development Act, 2006. The Act was enacted for the promotion and growth of the businesses operating at small or medium scale.
The Ministry of Micro, Small and Medium Enterprises, a branch of the Government of India, is the apex executive body for policy making and administering laws relating to micro, small and medium enterprises in India.
Based on investment and turnover criteria a business falls in one of the three categories of Micro, Small or Medium.
Micro Enterprise: Manufacturing and services enterprises with investments up to Rs 1 crore and turnover up to Rs 5 crore will be classified as micro enterprises.
Small Enterprise: For small enterprises, the investment criteria and the turnover criteria has been revised upwards to Rs 10 crore and Rs 50 crore respectively.
Medium Enterprise: The enterprises which have investment up to Rs 20 crore and turnover up to Rs 100 crore will be termed as medium enterprises.
Small scale industries (SSI): Such as bakeries, beauty parlours, and leather bag manufacturing units, are those that manufacture and render services by making a limited investment.