Consider the following statements with reference to India: 1. According to the 'Micro, Small and Medium Enterprises Development (MSMED) Act, 2006', the 'medium enterprises' are those with investments in plant and machinery between ₹ 15 crore and ₹ 25 crore. 2. All bank loans to the Micro, Small and Medium Enterprises qualify under the priority sector. Which of the statements given above is/are correct?

Let's analyze the given statements:

1. According to the 'Micro, Small and Medium Enterprises Development (MSMED) Act, 2006', the 'medium enterprises' are those with investments in plant and machinery between ₹ 15 crore and ₹ 25 crore. This statement is incorrect. Under the original MSMED Act, 2006, 'medium enterprises' (manufacturing) were defined as those with investment in plant and machinery exceeding ₹10 crore but not exceeding ₹50 crore. For service enterprises, it was exceeding ₹5 crore but not exceeding ₹10 crore. The definition was revised in 2020, unifying manufacturing and service sectors and basing it on both investment and turnover. Under the revised criteria, a medium enterprise is one with an investment of up to ₹50 crore AND a turnover of up to ₹250 crore. Neither of these definitions aligns with the ₹15 crore to ₹25 crore range mentioned in the statement.

2. All bank loans to the Micro, Small and Medium Enterprises qualify under the priority sector. This statement is correct. As per the Reserve Bank of India (RBI) guidelines on Priority Sector Lending (PSL), advances to Micro, Small and Medium Enterprises (MSMEs) are a crucial component of the priority sector. This ensures that a specified portion of bank credit is directed towards these vital sectors of the economy, promoting their growth and financial inclusion.

Therefore, only statement 2 is correct.