India’s MSME sector is the backbone of the country’s economy, employing more than 45% of all domestic industrial workers. Micro, Small, and Medium Enterprises is referred to by the abbreviation MSME. Companies in a country include manufacturing companies, service companies, and business organisations. The government hasn’t, however, considered making all firms MSMEs.
Micro, Small, and Medium-Sized Enterprises, or MSME, are businesses with annual revenues under Rs. 250 crores and funding for machinery and plant that does not exceed Rs. 50 crores. The Ministry of Micro, Small, and Medium Enterprises is one of the government of India’s Ministries. The Ministry is responsible for enforcing the laws, rules, and regulations that apply to these MSMEs.
Business Types Included in MSME
In MSME, two types are present, namely:
- Enterprises engaged in the manufacture of goods are referred to as manufacturing enterprises. The investment made in the equipment and the annual turnover are used to further classify them.
- Enterprises providing services: These companies are further divided into several categories based on the amount of money they spend on equipment and their yearly revenue.
List of MSME Businesses
- Active Pharmaceutical Ingredients
- Automobile garages
- Automobile Parts Components
- Automotive Electronic Component products
- Ayurvedic Products
- Back Office Operation in connection with Computerized Data
- Beauty Parlor
- Bicycle parts
- Call center
- Ceramics products
- Coir Industry
- Electronic Surveillance and Security
- Energy Efficient Pumps
- Engineering and Fabrication
- Glass products
- Handicraft activities
- Hosiery Products
- IT Solution Provider
- Khadi Products
- Laundry and Dry Cleaning
- Leather products
- Mechanical Engineering
- Micronutrients For Plants
- Multi Channels Dish cable Antenna
- Natural Fragrance and Flavors
- Photographic lab
- Phone booths
- Placement and Management Services
- Poultry Farm
- Recorders, VCRs, Radios
- Rental and Leasing of equipment
- Retail Trade with low Capital
- Rubber Products
- Servicing of Agricultural Farm Equipment
- Stationery Items
- Testing Labs for industries
- Toughened Metallic Ware
- Training and Educational Institution
- Transformer, Motors,
- Wooden Furniture
- X-Ray Clinics
Why is the MSME list missing some companies from it?
According to the government’s notification from June 2017, businesses who don’t engage in manufacturing or provide services won’t be categorised as MSME. This is so because the main objective of MSME is to benefit and support emerging enterprises.
On the other hand, trading enterprises work as a middleman between a manufacturer and a customer. As a result, it is not subject to this programme. A trader who creates and sells goods that are distinctive in some way, however, is eligible to register.
One such person who can apply for MSME certification is a trader who sells a product but also offers supplemental services for it. As an illustration, suppose the dealer sells a certain brand of television and also offers repair services. He may register under the MSME business category if he is a service provider. Do you still have reservations or inquiries regarding MSME, the businesses covered by it, the documentation required for MSME registration, or the procedure for acquiring an MSME certificate?
Business experts at Udyam Registration Private Consulting are available to help you right now. Through the Udyam platform, which brings together business professionals from various specialisations, entrepreneurs and MSMEs may get professional assistance. All that’s left to do is make an appointment with Udyam Experts and begin implementing your entrepreneurial goals and aspirations.
What are the Schemes Available for MSME Financing?
The available MSME financings are:
1. MSME Loan
The Small Industries Development Bank of India (SIDBI) launched it, and the loan will be sanctioned in 59 minutes. An amount below 10 crores can be borrowed from 5 authorized Nationalized(PSU) Banks.
2. MUDRA Scheme for MSMEs
Under the Micro Units Development & Refinance Agency scheme, the public sector or Government banks provide up to Rs.10,00,000 as loans.
MUDRA provides 3 Main types of loans based on the phase of the startup:
- Shishu Plan: Under this scheme, the new MSMEs and Startups can avail of loans up to Rs.50,000
- Kishor plan: Under this scheme, the mid-range MSMEs and Startups avail of loans up to Rs.5,00,000.
- Tarun plan: Under this scheme, the established MSMEs and Startups avail of loans up to Rs.10,00,000
Launched by MSME and SIDB, Credit Guarantee Fund Scheme for Micro and Small Enterprises Scheme lends loans to small enterprises and businesses up to Rs.10 Lakhs without collateral. However, for loans over Rs.10,00,000 and up to Rs.1,00,00,000 the loan is provided by giving a mortgage of land and building associated with the business.
4. Credit Facilitation Through Bank by NSIC
Launched by MSME, the loan facilities under the scheme are given by the National Small Industries Corporation.
NSIC has signed MoU with Private and Government banks to facilitate quick and special purpose loans for MSMEs and also aids in completing the documentation and legal formalities.
5. CLCSS for Technology Upgradation
Under the Credit Link Capital Subsidy Scheme, the government of India and MSME provide loans and credit facilities to upgrade their technologies. Loans up to Rs.15 Lakhs are provided under this scheme.