Consider the following statements with reference to India: 1. According to the 'Micro, Small and Medium…
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 INR 15 crore and INR 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 only
2 only
Both 1 and 2
Neither 1 nor 2
Solution
Per the official UPSC key, the answer is D. Statement 2 is true — MSME loans are priority sector. The MSMED definition was revised in 2020; Statement 1 figure is wrong. Most coaching keys marked B.