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 Rs. 15 crore and Rs. 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?

Statement 1: Incorrect. Under the MSMED Act, 2006, a medium manufacturing enterprise was defined by investment in plant and machinery above Rs. 10 crore and up to Rs. 50 crore; Rs. 15–Rs. 25 crore is not the statutory range.

Statement 2: Incorrect. Under RBI Priority Sector Lending norms, only certain categories/limits of MSME credit qualify; it is not correct to say all bank loans to MSMEs automatically qualify under Priority Sector.

Therefore, neither statement 1 nor statement 2 is correct.