12 March 2021
The Micro, small and medium enterprises (MSME) sector is considered the backbone of the Indian economy that has contributed substantially to the economic development of the nation. It generates employment opportunities and works in the development of backward and rural areas.
Under MSME Development Act, 2006, the Government of India established The National Board for Micro, Small and Medium Enterprises (NBMSME) to examine the factors affecting promotion and development of MSME. This board also reviews the existing policies and suggests recommendations to the Government for the growth of the MSME sector.
Definition of MSME
MSME’s are classified as per their turnover and investments.
The new classifications as per the Aatma Nirbhar Bharat Abhiyan Scheme in 2020 is given in the table below:
|Enterprise Category||Investment in Plant & Machinery/ Equipment||Turnover|
|Micro||Does not exceed INR 1 Crore||Does not exceed INR 5 Crore|
|Small||Does not exceed INR 10 Crore||Does not exceed INR 50 Crore|
|Medium||Does not exceed INR 20 Crore||Does not exceed INR 250 Crore|
Benefits of MSME Registration
In addition, due to the following features, MSMEs are considered a viable source of income for those looking to venture into the manufacturing industry.
MSMEs are rapidly growing industry with regular support from the government to push entrepreneurs to start their own venture. Therefore, knowledge about the registration process and its benefits is an absolute must in order to give a boost to the entrepreneurial spirit of MSME founders.
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