Explanation : Micro, Small and Medium Enterprises Development (MSMED) Act was passed in 2006. In 2018; The Union Cabinet chaired approved change in the basis of classifying Micro, Small and Medium enterprises from 'investment in plant & machinery/equipment' to 'annual turnover'. At present the MSMED Act (Section 7) classifies the Micro, Small and Medium Enterprises (MSMEs) on the basis of investment in plant and machinery for, manufacturing units, and investment in equipment for service enterprises. ....Read more