The Micro, Small and Medium Enterprises (MSME) in India constitute over 90% of India's total enterprises. According to statistics, the MSME's contribute towards approximately 40% of total exports and 30% of India's GDP (Gross Domestic Product). MSMEs also act as a major source of employment and employ over 110 million people across the nation1. With a view to promote the country's economy and promote local products in the market, the Indian Government has been floating several schemes which provide a further impetus to the MSME's in India. The Government has launched various beneficial schemes to enhance the growth of the MSMEs which are duly registered with the Ministry of MSME. Hence, registered MSMEs can avail benefits under the Government Schemes and also obtain licenses and approvals from respective Governmental authorities in a simplified manner.
MSME Classification in India
The new classification of the enterprises under the Micro, Small and Medium Enterprises Development (MSMED) Act 2006, is provided below for your ready reference:
Benefits available to MSMEs in India
The various benefits available to MSME's in India are enumerated below:
Funding Schemes available for MSMEs in India
In order to encourage MSMEs and support manufacturing and industries in India under the Start-Up India initiative and schemes like Atmanirbhar Bharat, wherein the Government has launched more than 100 schemes to provide funding, collateral free loans and other benefits such as technology and quality upgradation, raw material assistance, marketing assistance, working capital requirement facility, global & national tender notices, self-web development tool, centralized mail system, free mail boxes, payment gateway for membership subscription, popular products section and unlimited global trade leads amongst others. The Women Entrepreneurs and Entrepreneurs from weaker sections of the society are given added incentives in these scheme to promote involvement of all members of a society generating more employment opportunities. Some of the initiatives set up by the Government of India under Start Up India Program for funding and providing various incentives to MSMEs some of which are:
Also read India: INR 1K Crore 'Start-Up India Seed Funds' Announced
- Credit Guarantee Fund Trust for Micro and Small Enterprises (CGTMSE)
- Credit Facilitation Through Bank
- Small Industries Development Bank of India (SIDBI)
- National Manufacturing Competitiveness Programme (NMCP)
- Infomediary Services
- Raw Material Assistance Scheme
- Pradhan Mantri MUDRA Yojana (PMMY)
- Ambedkar Social Innovation Incubation Mission (ASIIM)
The abovementioned schemes are intended to take forward Government of India's 'Make in India' campaign and with emphasis on providing financial aid to smaller enterprises within the MSME sector. These schemes are expected to benefit large no of small enterprises and would also generate employment in India.
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