What is the full form of MSME
MSME: Ministry of Micro, Small and Medium Enterprises
MSME stands for Ministry of Micro, Small and Medium Enterprises. It is a branch of Govt. of India that deals with the formulation and administration of rules, regulations, and laws related to micro, small and medium enterprises in India.
Sustainable development of globally competitive micro, small, and medium enterprises as the major contributors to the Indian economy.
To promote the development of micro, small and medium enterprises, including khadi, village and coir industries to create new enterprises and generate more employment
Long Term Goal:
To promote manufacturing base in the country by improving the performance of MSME through skill and entrepreneurship development.
- Assistance and credit flow to MSMEs
- Make MSME competitive
- Improve manufacturing base through latest technology
- Promote MSMEs through cluster bases approach
- Marketing support to MSMEs
- Skill development and entrepreneurship development training
- Set up new microenterprises through the Prime Minister's Employment Generation Program (PMEGP)
- To promote Khadi and Village Industries (KVI) sector and Coir Industry
Different countries use different criteria to define the micro, small, and medium enterprise. In India, the micro, small, and medium enterprises are defined under the section 7 of the Micro, Small, and Medium Enterprises Development (MSMED) Act 2006 and on the basis of capital invested in plant and machinery except the investment made in land and building.
Criteria for Manufacturing Enterprises:
- The Manufacturing Enterprises, where investment in the plant and machinery doesn't exceed Rupees 25 lakh, are termed as Micro Enterprises.
- The Manufacturing Enterprises, where investment in the plant and machinery is more than Rs. 25 lakhs but less than Rs. 5 crore Rupees, ( 25 lakh to 5 crores ) are termed as Small Enterprises.
- The Manufacturing Enterprises, where investment in the plant and machinery ranges from Rs. 5 crores to Rs. 10 crores are specified as Medium Enterprises.
Criteria for Service Enterprises:
- In the case of Service Enterprises, if the investment in equipment does not exceed Rs. 10 lakh, the enterprise is specified as Micro Enterprise.
- If the investment ranges from Rs. 10 lakh to Rs. 2 crores, the enterprise is specified as Small Enterprise.
- If the investment ranges from Rs. 2 crores to Rs. 5 crores, the enterprise is specified as Medium Enterprise.
See the table for better understanding:
||Investment less than Rs. 25 lakh
||Investment from Rs. 25 lakh to Rs. 5 crores
||Investment from Rs. 5 crores to Rs. 10 crores
||Investment less than Rs. 10 lakh
||Investment from Rs. 10 lakh to Rs. 2 crores
||Investment from Rs. 2 crores to Rs. 5 crores