{"id":27235,"date":"2024-02-15T06:46:47","date_gmt":"2024-02-15T06:46:47","guid":{"rendered":"https:\/\/edukemy.com\/blog\/?p=27235"},"modified":"2024-02-15T06:46:50","modified_gmt":"2024-02-15T06:46:50","slug":"upsc-prelims-2023-question-71","status":"publish","type":"post","link":"https:\/\/edukemy.com\/blog\/upsc-prelims-2023-question-71\/","title":{"rendered":"UPSC Prelims 2023 &#8211; Question 71"},"content":{"rendered":"\n<figure class=\"wp-block-image size-full is-resized\"><a href=\"https:\/\/edukemy.com\/upsc\/upsc-prelims-test-series?utm_source=Blog&amp;utm_medium=Blog&amp;utm_campaign=Blog-%20PTS\" target=\"_blank\" rel=\"noreferrer noopener\"><img fetchpriority=\"high\" decoding=\"async\" src=\"https:\/\/edukemy.com\/blog\/wp-content\/uploads\/2024\/02\/Prelims-Test-Series-eng-and-hindi-1280\u00d7330.svg\" alt=\"UPSC Prelims Mock Test - ECONOMY 2\" class=\"wp-image-24924\" width=\"779\" height=\"199\"\/><\/a><\/figure>\n\n\n\n<div id=\"ez-toc-container\" class=\"ez-toc-v2_0_85 counter-hierarchy ez-toc-counter ez-toc-grey ez-toc-container-direction\">\n<label for=\"ez-toc-cssicon-toggle-item-6a51efbf908fd\" class=\"ez-toc-cssicon-toggle-label\"><p class=\"ez-toc-title\" style=\"cursor:inherit\">Table of Contents<\/p>\n<span class=\"ez-toc-cssicon\"><span class=\"eztoc-hide\" style=\"display:none;\">Toggle<\/span><span class=\"ez-toc-icon-toggle-span\"><svg style=\"fill: #999;color:#999\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" class=\"list-377408\" width=\"20px\" height=\"20px\" viewBox=\"0 0 24 24\" fill=\"none\"><path d=\"M6 6H4v2h2V6zm14 0H8v2h12V6zM4 11h2v2H4v-2zm16 0H8v2h12v-2zM4 16h2v2H4v-2zm16 0H8v2h12v-2z\" fill=\"currentColor\"><\/path><\/svg><svg style=\"fill: #999;color:#999\" class=\"arrow-unsorted-368013\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" width=\"10px\" height=\"10px\" viewBox=\"0 0 24 24\" version=\"1.2\" baseProfile=\"tiny\"><path d=\"M18.2 9.3l-6.2-6.3-6.2 6.3c-.2.2-.3.4-.3.7s.1.5.3.7c.2.2.4.3.7.3h11c.3 0 .5-.1.7-.3.2-.2.3-.5.3-.7s-.1-.5-.3-.7zM5.8 14.7l6.2 6.3 6.2-6.3c.2-.2.3-.5.3-.7s-.1-.5-.3-.7c-.2-.2-.4-.3-.7-.3h-11c-.3 0-.5.1-.7.3-.2.2-.3.5-.3.7s.1.5.3.7z\"\/><\/svg><\/span><\/span><\/label><input type=\"checkbox\"  id=\"ez-toc-cssicon-toggle-item-6a51efbf908fd\"  \/><nav><ul class='ez-toc-list ez-toc-list-level-1 ' ><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-1\" href=\"https:\/\/edukemy.com\/blog\/upsc-prelims-2023-question-71\/#Q71_Consider_the_with_reference_to_the_India\" >Q71. Consider the with reference to the India:\u00a0<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-2\" href=\"https:\/\/edukemy.com\/blog\/upsc-prelims-2023-question-71\/#Correct_Answer_Option_b\" >Correct Answer: Option (b)&nbsp;<\/a><\/li><\/ul><\/nav><\/div>\n<h3 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Q71_Consider_the_with_reference_to_the_India\"><\/span>Q71. Consider the with reference to the India:\u00a0<span class=\"ez-toc-section-end\"><\/span><\/h3>\n\n\n\n<ol class=\"wp-block-list\"><li>According to the &#8216;Micro, Small and Medium Enterprises Development (MSMED) Act, 2006&#8217;, the &#8216;medium enterprises&#8217; are those with investments in plant and machinery between Rs 15 crore and Rs 25 crore.\u00a0<\/li><li>All bank loans to the Micro, Small and Medium Enterprises qualify under the priority sector.\u00a0<\/li><\/ol>\n\n\n\n<p>Which of the statements given above is\/are correct?&nbsp;<\/p>\n\n\n\n<ol class=\"wp-block-list\"><li>1 only&nbsp;<\/li><\/ol>\n\n\n\n<ol class=\"wp-block-list\" start=\"2\"><li>2 only&nbsp;<\/li><\/ol>\n\n\n\n<ol class=\"wp-block-list\" start=\"3\"><li>Both 1 and 2&nbsp;<\/li><\/ol>\n\n\n\n<ol class=\"wp-block-list\" start=\"4\"><li>Neither 1 nor 2&nbsp;<\/li><\/ol>\n\n\n\n<h3 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Correct_Answer_Option_b\"><\/span>Correct Answer: Option (b)&nbsp;<span class=\"ez-toc-section-end\"><\/span><\/h3>\n\n\n\n<ul class=\"wp-block-list\"><li>As per the new definition and criterion of MSMEs which came into effect from 1st July 2020.\u00a0<\/li><li>The definition of Micromanufacturing and services units has been increased to Rs. 1 Crore of investment and Rs. 5 Crore of turnover.\u00a0<\/li><li>The limit of small units has been increased to Rs. 10 Crore of investment and Rs 50 Crore of turnover.\u00a0<\/li><li>The limit for medium Enterprises has been changed to Rs. 50 Crore of investment and Rs. 250 Crore of turnover.\u00a0<\/li><li>Hence, <strong>statement 1 is not correct<\/strong>.\u00a0<\/li><li>In terms of Master Direction on \u2018Priority Sector Lending (PSL) \u2013 Targets and Classification\u2019 dated September 4, 2020, all bank loans to MSMEs conforming to the conditions prescribed therein qualify for classification under priority sector lending. Bank loans to Micro, Small, and Medium Enterprises (for both manufacturing and service sectors) engaged in providing or rendering of services and defined in terms of investment in equipment under the MSMED Act, 2006, irrespective of loan limits, are eligible for classification under priority sector, w.e.f. March 1, 2018. Hence, <strong>statement 2 is correct<\/strong>.\u00a0<\/li><\/ul>\n\n\n\n<figure class=\"wp-block-image size-full is-resized\"><a href=\"https:\/\/edukemy.com\/upsc\/upsc-essay?utm_source=Blog&amp;utm_medium=Banner&amp;utm_campaign=Essay\" target=\"_blank\" rel=\"noreferrer noopener\"><img decoding=\"async\" data-src=\"https:\/\/edukemy.com\/blog\/wp-content\/uploads\/2024\/06\/UPSC-Essay-Course-1280\u00d7300-1-3.svg\" alt=\"\" class=\"wp-image-42688 lazyload\" width=\"781\" height=\"182\" src=\"data:image\/gif;base64,R0lGODlhAQABAAAAACH5BAEKAAEALAAAAAABAAEAAAICTAEAOw==\" style=\"--smush-placeholder-width: 781px; --smush-placeholder-aspect-ratio: 781\/182;\" \/><\/a><\/figure>\n\n\n\n<p>For UPSC Prelims Resources,&nbsp;<a href=\"https:\/\/edukemy.com\/upsc-cse-prelims-resource-centre\" target=\"_blank\" rel=\"noreferrer noopener\">Click here<\/a><\/p>\n\n\n\n<p>For Daily Updates and Study Material:<\/p>\n\n\n\n<p>Join our Telegram Channel \u2013&nbsp;<a href=\"https:\/\/t.me\/WithEdukemy4IAS\" target=\"_blank\" rel=\"noreferrer noopener\">Edukemy for IAS<\/a><\/p>\n\n\n\n<ul class=\"wp-block-list\"><li>1. 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Consider the with reference to India: <\/p>\n<p>According to the &#8216;Micro, Small and Medium Enterprises Development (MSMED) Act, 2006&#8217;<\/p>\n","protected":false},"author":17,"featured_media":27239,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_eb_attr":"","om_disable_all_campaigns":false,"_monsterinsights_skip_tracking":false,"_monsterinsights_sitenote_active":false,"_monsterinsights_sitenote_note":"","_monsterinsights_sitenote_category":0,"_uf_show_specific_survey":0,"_uf_disable_surveys":false,"_lmt_disableupdate":"","_lmt_disable":"","footnotes":"","_members_access_role":[],"_members_access_error":""},"categories":[1644],"tags":[232,515,231],"class_list":["post-27235","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-upsc-prelims","tag-upsc","tag-upsc-cse","tag-upsc-prelims"],"aioseo_notices":[],"aioseo_head":"\n\t\t<!-- All in One SEO 4.9.9 - aioseo.com -->\n\t<meta name=\"description\" content=\"Q71. 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