The Micro small & Medium Enterprise Development Act, MSMED 2006 was launched all over the country from 2nd Oct 2006.The Act facilitates the micro, small & medium Enterprises in the following ways:

• Promoting the Enterprises

• Developing the Enterprises and

• Enhancing the competitiveness of Enterprises

The MSME Act considers “Enterprise” as the Focus area rather than the erstwhile term of ‘Industry’ which has a limited scope. The Act has been made with a holistic view to emphasize the importance of service sector enterprises in the country as:

• The service sectors are the driving force of the Indian economy

• The abundant human resources with diverse skils that India has and

• The emerging facets of the Knowledge based Economy

The term "Enterprise" denotes an industrial undertaking of service nature or any other establishment by whatever name called, engaged in the manufacture or production of goods, in any manner, pertaining to any industry specified in the first schedule to the Industries (Development and Regulation) Act 1951 or engaged in providing or rending of any service or services.

The Andaman & Nicobar Administration has recognized the importance and significance of the MSME enterprises and has provided a number of incentives and subsidies under various schemes. These measures have helped in creating the right environment for the industries to be established at different locations in the islands by tapping the specialized local talents.