MSME stands for Micro, Small and Medium Enterprises. The MSMEs are key contributors to the socio-economic development of the country. The MSMEs cover almost 95% of industrial units, 50% of exports and 45% of employment. Opting for MSME registration is not a statutory mandate; however, it is advisable to obtain the benefits of the Mirco, Small and Medium Enterprises Act. The initiative of MSME started functioning in 2006 to create a competitive environment and encourage small businesses to ensure speedy development and boost the economy.
The MSMEs are categorized in manufacturing sectors and service sectors. These two sectors have been further classified based on the investment. The classification has recently been reset based on investment and annual turnover to create a greater scope of growth for the MSMEs.