In the context of Micro, Small and Medium Enterprises (MSME) sector in India, which among the following is/are the correct criteria for declaring an enterprise "Micro"?
- The investment in plant and machinery does not exceed Rs. 25 lakhs
- The enterprise should fall in the category of manufacturing sector and not in service sector.
Select the correct answer using the codes given below :
- 1 only
- 2 only
- Both 1 and 2
- Neither 1 nor 2
- Explanation:
An enterprise engaged in providing or rendering of services may also be classified as "Micro", if the investment in equipment does not exceed ten lakh rupees.