Are you a budding entrepreneur in India? There are lots of factors that largely contribute to our economics and if you already don’t know about them, start with this blog! In today’s post, let’s learn about the Indian MSME sector that has been adding to the country’s economy for a significant time being. If you are hearing about the industry for the first time, let’s gain some basic knowledge before getting into the details.
Every country’s economic abundance majorly depends upon the growth of its service and manufacturing sectors. MSME stands for Micro, Small, and Medium Enterprises that primarily help to form the backbone of our economy. India has around 6.3 crore MSMEs that take part in national and international trades every year. As a result, they hold about 29% of our GDP.
While contributing to the social and economic growth of our nation, MSMEs offer a lot when it comes to promoting local products and decreasing unemployment issues by recruiting more than 100 million people. But there come times when they also need protection and assistance in areas like technology and resources. Business owners often face challenges in multiple stages of their business operations and development. After realizing their struggles, the Indian government has come forward to provide the needy industries with some beneficial schemes, counseling, and other support they might need.
It is quite an appreciable fact that both the central and state governments have ensured their best to help the MSMEs flourish further in the long run. The business owners categorized under this industry can register for the schemes that offer multiple incentives for better performance. Here is a little overview of the most common MSME schemes:
Age criteria above 18 years
The maximum cost of the project must not exceed the set range (mentioned above)
Only start-ups can take this up
Besides individual business owners, self-help groups, institutions registered under Societies Registration Acts (1860). And charitable trusts are also eligible for this scheme
Every business must have a valid Khadi certificate
The institution must be categorized as A+, A, B, or C
The Coir industry is another rural business industry that consists of around seven lakhs artisans. Our country exports coir related products to almost 110 countries. The Coir Industry Technology Upgradation scheme supports the entrepreneurs to upgrade their existing plants or establish brand new plants.
Any newly established coir processing unit
Any unit registered with Coir Board under Coir Industry Rules
One of the largest advantages of MSMEs is that you can get collateral-free bank loans. It is a great initiative to support, promote, and motivate the country’s MSME sector.
Under the MSME registration, you can easily get the benefits of excise duty exemption. Apart from that, you will also enjoy the perks of direct tax exemption when you are in the initial growth phase of your business.
Your trademark registration will be easier with the MSME certificate. It provides you with an opportunity to have a 50% subsidy when you are paying any fees.
The MSME scheme provides lots of advanced opportunities for those women who might lack the required education, qualification, and prior entrepreneurship experience. They can receive training, enhance their skill-sets before wearing the crown of a start-up owner.
We hope you found this article helpful and gained basic knowledge of the MSME schemes. Which part of the offerings did you like the most? Also, do you wish the scheme had anything extra to offer? Let us know in the comment section below!