MSME

Ministry of Micro, Small & Medium Enterprises (MSME)

MSME stands for Micro small and medium enterprises.They are small sized entities defined in terms of their investment. They perform a critical role in the economy by providing employment to large number of people who can be unskilled and semi skilled.Thereby contributing to exports, raising manufacturing sector production and extending support to bigger industries by supplying raw material, basic goods, finished parts and components, etc.

What are the benefits of MSME registration?

  • The policy of reservation: In order to make sure that the Micro Small and medium enterprises are not that affected by the stiff competition of the market, the government has come up with the policy of reservation. The gist of this policy is that there are certain products that only these enterprises can manufacture. There are about 300 such products.
  • Entrepreneurial Memorandum Policy: This policy dictates that when it comes to money lending, the reserve bank of India is going take the sectors like agriculture, Micro, and small enterprises as the priority borrowers.
  • Collateral free loan: For micro and small enterprises, there is also an option to avail a collateral free loan up to INR 50 lakhs.
  • Technological up-gradation aid: In order to ensure that the MSME are able to keep up with the current and sophisticated technology, a technological up-gradation scheme is implemented. Through this implementation, the MSME can get proper equipment’s to aid their organization.
  • Exclusive customers: There are some products that the government shall only buy from these MSME. Such exclusive customers make sure that the MSME can get elevated from its status with time.

Importance of MSME registration

  • Benefits from State Governments
    • Provision of training facilities
    • Hire-purchase of machinery for use in MSME
    • Assistance in marketing, both within the country and outside (exports)
    • Extended credit facilities
    • Industrial extension support and services
    • Availability of developed sites for warehouse construction
  • Tax Benefits
  • Benefits from Banks