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    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"?

    1. The investment in plant and machinery does not exceed Rs. 25 lakhs
    2. 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.