The small and medium enterprise sector does not have a uniform definition globally. In the Indian context, its scope has evolved over a period of time to encompass micro, small and medium-scale enterprises.

Though the title appears to be not of much relevance to Small and Medium Enterprise (SME) sector, the study of definitions over the decades will reveal and illustrate many aspects of SME sector. An attempt has been made in the article to bring in chronological order as to how the definition evolved and came to the present stage. The planners, financial institutions and regulators have considered in different manners to cover the sector through precise definition and have umpteen times modified the definition to suit the policy and growth requirements. Needless to add that the SMEs sector continues to enjoy the position of priority in the planning process and has been an important means for inclusive development.

Small Scale Industries (SSIs) have occupied a very important position in the economic development of many countries. India has always appreciated the role of SSIs as an important and powerful vehicle for country's balanced development. For decades, we have come across statistics telling that SSIs contribute 35% to 40% towards country's industrial production and 40% to 45% towards country's export. This sector provides employment to a large number of people and is only second to the agricultural sector, which employs the highest number. The figures being significant, the plans and programs of India's growth and economic development cannot ignore this sector.

Professional Banker Magazine, SME Sector, Small and Medium-scale Enterprises, Small Scale Industries, SSIs, Small and Medium Enterprise Sector, Economic Development, Industrial Production, Reserve Bank of India, RBI, World Trade Organization, WTO, Micro, Small and Medium Enterprises Development, MSMED, Small Industry Development Organization, SIDO, National Small Industries Corporation Ltd, NSIC, National Institute for Micro, Small and Medium Enterprises, NIMSME.