The Micro, Small and Enterprises Development Act, 2006 empowers the Central Government to constitute an advisory committee and seeks its recommendations before classifying any class or classes of enterprises on what cons

Section 7(2) of the Micro Small and Medium Enterprise Development Act, 2006 empowers the Central Government to constitute an Advisory Committee. The Advisory Committee communicates its recommendations or advice to the Central Government or, State Government or the Board after considering the following: The level of employment in a class or classes of enterprises; The level of investments in plant and machinery or equipment in a class or classes of enterprises; The need of higher investment in plant and machinery or equipment for technological upgradation, employment generation and enhanced competitiveness of the class or classes of enterprises; The possibility of promoting and diffusing entrepreneurship in a micro, small or medium enterprise; and The international standards for classification of small and medium enterprises.