Importance of MSME Sector in India

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In India we have so many customs and tradition, every state has their own style, there are so many different types of a small business running by small businessmen. Micro, Small, Medium Enterprise (MSME) Sector is the backbone of the Indian Economy. MSME covers all micro small and medium type of business in India. The government of India is giving so many benefits to the MSME sector so as to promote MSME sector. MSME sector is essential for every country in the world for their economic growth.MSME sector creates employment. Our government launched a policy of Make in India which supports the MSME sector and it is appreciated globally. 

 

Classification of MSME sector

MSME is classified as per the turnover over of the business and the activity in which they are involved. Basically, there are two activities in which MSMEs can involve one of which is manufacturing and production of goods and other is providing services to the public. If you are engaged in the manufacturing and production of goods your MSME status will be decided in the following manner:

1. Turnover upto 25 lakh is Micro Enterprise

2. Turnover of more than 25 lakh but less than 5 Cr. is Small Enterprise

3. Turnover of more than 5 Cr. but less than 10 Cr. is Medium Enterprise.

If you are engaged in providing services then your MSME status will be decided as follows:

1. Turnover up to 5 Cr. is Micro Enterprise

2. Turnover of more than 5 Cr but less than 75 Cr. is Small Enterprise

3. Turnover of more than 75 Cr. but less than 250 Cr. is Medium Enterprise.

Role of MSME

The Role of MSME has been rising as there are a lot of startups and small business which generate revenue in our country. They even create employment. As every enterprise or business starts as small which might in future become a big company. Also, the government also supports the MSMEs as they have simplified the certificate required for MSMEs. With an introduction to Udyog Aadhar, the government has simplified the process of obtaining the MSME Registration or certificate. The contribution of MSME sector in India is huge, it plays important role in our economy. Also, it has made startups easy and has provided a platform to small businessman to venture into new business and make profits. 

MSMEs occupya very important role in terms of output, exports,and employment. The share of MSMEs in export is approx 40% of the total exports of our country. MSME gives a chance to small business to enter into the market which results inthe inclusive growth of the Countryinclining the MSME. MSME policies are clear and aimed to bring in the growth of MSMEs from shell to end i.e.:

1. Birth of MSME like startups, new business

2. Operation and growth by simplifying the laws, registration, regulation.

3. Providing facilities under schemes to MSMEs

4. Exit from MSME 

Udyog Aadhar

Udhyog Adhar is mandatory for those who fall under MSME sector. It is the primary thing for the MSME business because without Udyog Aadhar you will not get any benefits from the Government of India. Udyog Aadhar is 12 digits unique number which is issued by the Ministry of Micro, Small, and Medium Enterprise. You can file your form online which requires no documentation. The process obtaining the Udyog Aadhar is very easy and online. One can obtain the Udyog Aadhar after login on to https://udyogaadhaar.gov.in/UA/UAM_Registration.aspx.  After entering your name and Aadhar number, you will receive OTP on your number and then you can fill in the details like category, details of entity etc. and then you have to submit the application and then you will receive an acknowledgment number for the same.

Benefits of Udyog Aadhar

After obtaining Udyog Aadhar you can avail various benefits and exemptions under government schemes. After Udyog Aadhar you will have a certification that your business is MSME and is entitled to various governmental benefits. You will be entitled toa subsidy, easy loan, and loan without guarantee or subsidized rates of interest. The Process is very simple and also entitles the business entity to various exemptions like under direct tax laws or filing patent or trademark or for government tenders. So the Udyog Aadhar Registration not only provides a unique identity to your business as MSME but also provide the entity with various exemptions and benefits under the government scheme. 

Conclusion forImportance of MSME Sector in India

As you can see that the MSME sector isgrowing and it emerged as a highly vibrant and dynamic sector of the Indian economy over the last five decades. MSME generates employment in India and the Government of India is also helping the MSME sector by giving them a loan on low-interest rates. 



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