MSME stands for Micro, Small and Medium Enterprises. MSME plays a pivotal role in the growth of Indian economy which is majorly dependent upon agriculture and small business. MSME being the backbone of the economy is highly supported by the government. The government of India provides various subsidies, schemes & incentives to MSME’s through Micro, Small & Medium Enterprises Development (MSMED) Act.

To avail various benefits, incentives, schemes, and subsidies granted by the government to MSME, entrepreneurs need to register themselves as MSME under MSMED Act. The registration is called MSME/SSI/Udyog Aadhar Registration.

MSME are classified into 2 classes- Manufacturing and Service Enterprises. The limit for investment in plant and machinery / equipment for manufacturing / service enterprises are as under:

Type of Enterprises	Investment in and Turnover	Limit
A Micro Enterprises	Investment in plant and machinery or equipment; AND	does not exceed one crore rupees (<Rs. 1 crore)
	Turnover	does not exceed five crore rupees (<Rs. 5 crore)
A Small Enterprise	Investment in plant and machinery or equipment; AND	does not exceed one crore rupees (<Rs. 10 crore)
	Turnover	does not exceed five crore rupees (<Rs. 50 crore)
A Medium Enterprise	Investment in plant and machinery or equipment; AND	does not exceed one crore rupees (<Rs. 50 crore)
	Turnover	does not exceed five crore rupees (<Rs. 250 crore)

Benefits of MSME Registration

• Easy access to credit
• Cheaper bank loans
• Tax Exemptions
• Opportunities to participate in exhibitions abroad
• Capital Investment subsidies
• Power tariff subsidies
• Priority sector lending