MSME full form is Micro, Small, and Medium Enterprises. The industries that have a particular investment, staff, and turnover limit fall under the category of MSME.
Currently, in India, MSMEs divide on the basis of investment but there are some countries where MSMEs divided over the number of employees and there are some countries where MSMEs divided on the basis of turnover.
Bill processing is going on in India for now. If this bill passed then in India also MSME will divide on the basis of turnover. It can take under MSME whose annual turnover will be less than 250 crores.
MSME is the backbone of India’s economy. MSME has a share of around 29% in GDP and aims to increase it to 50% in the future. It is very much in discussion these days as MSME Day celebrated on 27 June 2019.
MSME contributes 50 percent of India’s total exports, which is targeted to be increased to 75% in the coming time. There is no single industry in MSME but many large industries fall under the category of MSME.
For any MSME to register itself There is no imperative if an MSME registers itself within the MSME then it is provided special support by the government and that company gets the loan easily and at a lower rate of interest, the company also exempted from tax.
MSME Types in India
1. Service Enterprises: Enterprises providing services are hotels and hospitals etc.
2. Manufacturing Enterprises: In manufacturing enterprises, the raw material used and made as a final product for example vehicle industries.
Types of Industries in MSME?
In 2006, the Act passed called the Micro Small and Medium Enterprises Development Act 2006. Earlier MSME called as small scale industries.
Under the MSME Act 2006, the Manufacturing industry divided into three parts.
Micro Enterprises: The enterprises which invest up to a maximum of 25 lakhs called micro-enterprises or micro industries.
Small Enterprises: Enterprises that invest from 25 lakh to 5 crores called small enterprises or small industries.
Medium Enterprises: The industry which has been invested from 5 crores to 10 crores is called Medium Enterprises and Medium Industries.
And in which more than 10 crore capital invested, known as large-scale enterprises. The Servicing industry also divided into three lessons under ACT 2006
Micro Enterprises: The enterprises which invest up to a maximum of 10 lakhs called micro-enterprises or micro industries.
Small Enterprises: Enterprises that invest from 10 lakh to 2crores known as small enterprises or small industries.
Medium Enterprises: The industry invested from 2 crores to 5 crores called Medium Enterprises and Medium Industries.
The enterprises, in which more than 5 crores invested called large service enterprises.
Industries with MSME registration get collateral loans from the bank. This means that those industrialists will not have to give any guarantee to take a loan, it is an unsecured loan.
Those who have MSME registration are eligible for industrial promotion subsidy.MSME registered industries can get up to 50% subsidy for patent registration by writing an application.
They gave a 1% discount on the interest rate for an overdraft. This depends on the bank to the bank.
Protection against delayed payment from buyers.
Reimbursement ISO certificate charges.
The concession is also available in the electricity bill.
Technology and quality up-gradation support provided to MSME.