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Micro, Small and Medium Enterprises (MSMEs) play a significant role in the economic development of India, especially in rural and semi-urban areas. These enterprises contribute to employment generation, industrial production, exports, and balanced regional development. In order to promote and support these enterprises effectively, the Government of India introduced a revised classification of MSMEs so that businesses could be categorized based on their scale and capacity. The revised classification was announced by the Government of India under the guidelines of the Ministry of Micro, Small and Medium Enterprises and came into effect from 1 July 2020. This classification replaced the earlier system which was based only on investment in plant and machinery or equipment. According to the revised classification, both manufacturing and service enterprises are treated equally and are categorized based on two criteria: investment in plant and machinery or equipment and annual turnover. Under this revised system, a micro enterprise is defined as an enterprise where the investment in plant and machinery or equipment does not exceed ₹1 crore and the annual turnover does not exceed ₹5 crore. A small enterprise is defined as one where the investment does not exceed ₹10 crore and the annual turnover does not exceed ₹50 crore. A medium enterprise is defined as an enterprise where the investment does not exceed ₹50 crore and the annual turnover does not exceed ₹250 crore. This unified classification has simplified the earlier system and _____ _________ ________ _____ ________ _____ ____ __________ ____.
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