The concept of Micro, Small and Medium Enterprises (MSME) was first introduced in India in the year 2006. The MSME Sector has seen drastic growth in past five decades. The MSMEs are a crucial part of the economy and plays a vital role in the supply chain. MSME Sector generates employment and foster the entrepreneurship thereby, contributes to the develop of economy. The domain of MSMEs is getting wider as they’re meeting the demand of their products and services in domestic as well as global markets. It contributes a major portion in the GDP of India. Government of India is taking various initiatives to develop and grow the MSME sector. MSME is classified into 3 categories: micro, small and medium enterprises on the basis of their investment in plant & machinery or equipment and turnover limit.
|Classification||Investment in Plant & Machinery or Equipment||Turnover|
|Micro||Up to one Crore Rupees||Up to Five Crore Rupees|
|Small||Up to Ten Crore Rupees||Up to Fifty Crore Rupees|
|Medium||Up to Fifty Crore Rupees||Up to Two Hundred and Fifty Crore Rupees|
An entity which qualifies the above criteria can apply for MSME Registration. The registration can be obtained through online application on the Udyam Portal. The MSME Registration is called Udyam Registration. It is not mandatory for an entity to obtain Udyam Registration; however, it’s advisable to obtain the registration. The registration process is simple and there is no fee applicable.
Micro, Small and Medium Enterprises (MSME) have a significant role in our economy due to its endeavors to expand entrepreneurship through business innovations. It is widening its range day by day, by producing various products and services to meet the demands of domestic as well as global markets. As per the statistics of Central Statistics Office (CSO), Ministry of Statistics and Programme Implementation, the contribution of MSME sector in country’s GDP for the year 2018-19 was 30.27%.