UPSC Prelims 2023 · GS Paper 1 · Q21

Economy

Medium · MSME classification and priority-sector lending

Consider the following statements:

1. Under the MSMED Act, 2006 as originally enacted, a manufacturing enterprise was classified as 'medium' if its investment in plant and machinery exceeded Rs 10 crore but did not exceed Rs 20 crore.

2. Loans extended by banks to Micro and Small Enterprises are treated as part of priority-sector lending.

Which of the statements given above is/are correct?