Classification of MSMEs: As per the MSMED Act 2006, the Micro, Small and Medium Enterprises are divided into two classes: 1.        Manufacturing Enterprises: The enterprises which are engaged in the manufacture or production of goods pertaining to any industry (as per the list appended as Annexure I), or employing plant and machinery in the process of value addition to the final product having a distinct name or character or use. 2.        Service Enterprises: The enterprises engaged in providing or rendering of services (Industry classified as per the list appended as Annexure I). Annexure I: List of Industries The limit for investment in plant and machinery / equipment for manufacturing / service enterprises for MSMEs is as below: Debt Funding for MSMEs: Every business, Micro or Small or Medium or Large, requires funds at different stages of the business cycle, to grow or to continue ope...

By Kaustubh Jadhav In the past six decades, MSMEs in India have grown at a rapid rate. The contribution of the sector to the economy has also increased significantly, year after year. In the last few years, the Government and the RBI have introduced structural reforms to make the sector a catalyst for the growth of the economy. Union Budget 2018-19 was another concrete step in that direction. Increased budgetary allocation under various schemes, multiple policy level reforms (helping the sector), revision in the corporate tax rate, and extension of tax exemption for start-ups are some of the key reforms that are aimed at benefiting the MSME sector. The MSME industries: MSME industries are divided into two sectors - manufacturing and service. It is important to know what industry falls under which sector to find the applicable Government schemes and subsidies. List of industries under Manufacturing and Service (detailed list available here ) MSMEs are eligible ...