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Economy2023
Consider the following statements with reference to India:
  1. According to the Micro, Small and Medium Enterprises
  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?

Explanation

The correct answer is "2 only". The statement regarding medium enterprises under the MSMED Act, 2006, is incorrect because medium enterprises are defined as those with investments in plant and machinery between ₹5 crore and ₹10 crore, not ₹15 crore to ₹25 crore. However, the second statement is accurate; all bank loans extended to Micro, Small, and Medium Enterprises (MSMEs) are categorized under the priority sector lending framework of the Reserve Bank of India, promoting financial inclusion and entrepreneurship in this crucial sector of the economy. This aligns with the government's initiatives to bolster the MSME sector, which plays a vital role in employment and economic development.

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