Micro, Small and Medium Enterprises

Micro, Small and Medium Enterprises

Many aspects contribute to the growth of an economy and one such factor which acts as a backbone for India's economy includes the Micro, Small and Medium Enterprises (MSMEs). This particular sector is considered as the backbone of the country's economy as it is instrumental for attaining inclusive and sustainable growth. The sector acts as a nursery for innovations and enterprises as it forms the invisible root feeding for the survival of the majority of Indians.

The MSME is the sector which includes close to 36 million units and provides employment to over 80 million individuals in India. The sector is known to produce over 6000 products and contributes around 8% of gross domestic product (GDP). Apart from this, the total manufacturing output comes up roughly at 45% and the sector contributes to export 40% of goods from India.

Benefits of MSME Registration

• • Entity can have access to collateral free loans from Banks under PM CGSTMSE Scheme. Also lending to MSME is considered as priority sector lending, hence given priority by the banks
• • As per the MSME Act 2016, non MSME are required to pay MSME registered vendors within credit period of 45 days, else pay the interest on delayed payment.
• • Entities are eligible to receive government support for participating in foreign expos to showcase their products.
• • Entities are eligible for various government Subsidies like concession on Electricity bills, Industrial Promotion Subsidy etc.