UPSC Previous Year Question | Prelims GS | 2023

Consider the following statements with reference to India: 1. According to the 'Micro, Small and Medium Enterprises Development (MSMED) Act, 2006', the 'medium enterprises' are those with investments in plant and machinery between ₹15 crore and ₹25 crore. 2. All bank loans to the Micro, Small and Medium Enterprises qualify under the priority sector. Which of the statements given above is/are correct?

  1. 1 only
  2. 2 only
  3. Both 1 and 2
  4. Neither 1 nor 2

Answer

Correct Answer

2 only

Explanation

All bank loans to MSMEs qualify under priority sector lending norms (statement 2 true). However, the investment threshold for 'medium enterprises' under the revised MSMED classification is not correctly stated as between ₹15 crore and ₹25 crore, making statement 1 incorrect.

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