The investment limit in plant & machinery of small enterprises does not exceed:

10 Cr

The correct answer is option 2- 10 Cr.

The definition used by the Government of India to describe MSME is based on the 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. The investment limit for the small scale enterprise is 10 crore.