What is MSME? |

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What is MSME?: MSME Stands for Micro Small and Medium Enterprises. Small business needs to be given support so that they can flourish in competition with major players. Secondly, it helps in employment generation and local sustenance. To classify the various enterprises the central government has given the rules

Central Government, at this moment, notifies the following criteria for the classification of micro, small and medium enterprises, namely:
(i) a micro enterprise, where the investment in Plant and Machinery or Equipment does not exceed one crore rupees and turnover does not exceed five crore rupees;
(ii) a small enterprise, where the investment in Plant and Machinery or Equipment does not exceed ten crore rupees and turnover does not exceed fifty crore rupees;
(iii) a medium enterprise, where the investment in Plant and Machinery or Equipment does not exceed fifty crore rupees and turnover does not exceed two hundred and fifty crore rupees.
This notification shall come into effect from 01.07.2020. Now, there will be no difference between the manufacturing and service sectors. Also, a new criterion of turnover is added.

What is the Meaning of Annual Turnover?

Annual Turnover means the total value of everything one sells in 12 months of company financial year.

Under Which Act MSME is Regulated?

Micro, Small, and Medium Enterprises Development Act, 2006. Under this act National Board for Micro, Small and Medium Enterprises is constituted. Its headquarters is in New Delhi.

How much employment generation in MSME sector?

The information is taken from PIB:

As per Udyam registration portal, the number of persons employed in the MSMEs : 131188 96 people in 2021-22

As per Udyam registration portal, the number of MSMEs which are incorporated during last 5 years are as follows:

Year	Number of MSMEs
2017-18	1246027
2018-19	1016723
2019-20	1103970
2020-21	1841253
2021-22	2078882

What are the recent initiatives taken by the government for the MSME sector?

The Government has taken a number of recent initiatives to support MSMEs in the country, which inter alia include:

Rs. 5 lakh crore Collateral Free Automatic Loans for business, including MSMEs.
Rs. 50,000 crore equity infusion through MSME Self-Reliant India Fund.
New revised criteria for classification of MSMEs.
No global tenders for procurement up to Rs. 200 crores.
“Udyam Registration” for MSMEs, for Ease of Doing Business.
Launching of an online Portal “Champions” in June, 2020 to cover many aspects of e-governance including grievance redress and handholding of MSMEs.
Inclusion of Retail and Wholesale trades as MSMEs w.e.f. 02^nd July, 2021.
Non-tax benefits extended for 3 years in case of an upward change in status of MSMEs.

What are the Union Budget 2022-23 announcements about MSME sectors?

Union Budget 2022-23 highlights the MSME sector, a critical sector that makes up for about 45% of the country’s total manufacturing output, 40% of exports, and almost 30% of the national Gross domestic product (GDP). With a focus on growth, the government announced the following welcome measures to boost the MSME economy in India.

Delivering the Union Budget 2022-23, Finance Minister announced the extension of ECLGS up to March 2023.
Credit guarantee trust for small micro-enterprises scheme (CGTMSE) will be revamped with the required infusion of funds. An additional Rs 2 lakh crore under CGTMSE will increase the number of entrepreneurs and create more job opportunities.
Udyam and three other portals : e-Shram, NCS, and ASEEM portal will be interlinked to provide live and organic databases in the Union budget 2023.
The Raising and Accelerating MSME Performance (RAMP) program will be rolled out to help MSME. Raising and Accelerating MSME Performance (RAMP) program will be rolled out with an Rs.6000 crore outlay spread over five years.
Customs duty exemption on importing steel scraps is being extended by a year to help the MSME sector.
Additional allocation of Rs 19,500 crore for PLI for manufacturing of high-efficiency modules with a priority to fully integrate manufacturing units from polysilicon to solar PV modules will be made.

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