What is the primary objective of the Micro, Small, and Medium Enterprises Development (MSMED) Act of 2006 in India?
Show answer & explanation
Correct answer: D
Explanation
The correct answer is option 4 i.e. To promote and facilitate the development of MSMEs.
- The primary objective of the Micro, Small, and Medium Enterprises Development (MSMED) Act of 2006 is to promote, develop, and enhance the competitiveness of micro, small, and medium enterprises (MSMEs) in India.
- The Act provides a legal framework for classifying enterprises based on their investment in plant, machinery, or equipment, and turnover.
- It aims to facilitate credit flow, offer incentives, and support the development of MSMEs. Additionally, the Act helps address issues such as delayed payments and provides market access to MSMEs.