What are the different parameters used to measure the size of MSME?
Several parameters can be used to measure the size of business units. These include the number of persons employed in business, the capital invested in business, and the turnover of business.
The definition used by the Government of India to describe MSME is based specifically on investment in plant and machinery and turnover. This measure seeks to keep in view the socio-economic environment in India where capital is scarce and labour is abundant.
Explanation
The answer is derived from Section 9.2 of the provided context. It distinguishes between general parameters used to measure size (employment, capital, turnover) and the specific criteria used by the Government of India (investment in plant and machinery and turnover). The context explains that the government's choice of parameters considers the socio-economic environment of India.