MSME stands for Micro, Small and Medium Enterprise. It was introduced by the Government of India in agreement with the Micro, Small and Medium Enterprises Development (MSMED) Act of 2006. As per this act, MSMEs are the enterprises involved in the production, processing or preservation of goods and commodities.
MSME sector plays a vital role in economic growth in India. In fact, The Indian MSMEs sector contributes about 29% towards the GDP through its national and international trade. Additionally, MSMEs generate more employment opportunities in rural areas where big companies haven't stepped in. India has approximately 6.3 crore MSMEs.
Features of MSME
- MSMEs work for the welfare of the workers and artisans. They provide collateral-free loans to set up and run their business.
- Provides credit limit or funding support from banks.
- Help in skill up gradation via specialized training centers.
- Supports technology up-gradation, infrastructural development, and modernization.
- Offers assistance for improved access to domestic and export markets.
- Provides the latest testing facilities and quality certification.
- Supports packaging, product development, and design intervention.