The Perks Of Being A Registered MSME In India

Micro, Small and Medium Enterprises ('MSME') play a crucial role in a developing country like India. MSME industries are in fact the backbone of the economy as has been quoted by many economists. The MSME sector contributes to roughly 45% of India's total industrial employment, approximately 50% of India's total exports and almost 95% of all industrial units of the country and around 6000 types of products are manufactured in these industries¹ . With the growth of MSMEs, the country's economy grows as a whole and prospers. Whether the company is in manufacturing or services, registrations or applications thereof are governed by the Micro Small and Medium Enterprises Development Act, 2006 ('MSMED Act'). The MSMED Act came into force on 02nd October 2006. It was established to promote, facilitate and develop MSMEs.