Everything you need to know about the MSME arena
MSME is an important sector for the Indian economy and has contributed immensely to the country’s socio-economic development. It not only generates employment opportunities but also works hand-in-hand towards the development of the nation’s backward and rural areas.
MSME is the boon for the fresh talent in India. It is the most significant driver in India contributing to the tune of 8% to GDP. Considering the contribution of MSME to manufacturing, exports, and employment, other sectors are also benefitting from it. Entrepreneurship is becoming increasingly popular so here are some frequently asked questions and answers that we’ve gathered around the MSME arena if you’re thinking of diving in!
What is MSME?
It 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, they are the enterprises involved in the production, processing or preservation of goods and commodities.
What type of business does not come under MSME?
MSME applies only to manufacturing and service industries with trading companies being excluded from the scheme, as trading companies only are the intermediary between the manufacturer and the consumer.
Is GST registration mandatory for MSME?
Having PAN & GST number is mandatory from 01.04. 2021. Those who have EM-II or UAM registration or any other registration issued by any authority under the Ministry of MSME, will have to re-register themselves. No enterprise shall file more than one Udyam Registration.
What is the MSME registration fee?
Registration is a mandatory process for any business to legally start and operate in India. The registration is free of cost and is categorized under two main categories, such as manufacturing enterprises and service enterprises.
Why the MSME sector is attracting budding entrepreneurs in India?
It has emerged as highly vibrant and dynamic sector of the economy and the major advantage of the sector is its employment potential at lower cost offering innovative solution and sustainable development to the economy as a whole. India has registered a higher economic growth (6-9%) consistently over the last decade.
What is the main objective of MSME?
Create industry friendly atmosphere and suitable policies for development of the industries. Help and coordinate between industry and other agencies & act as a facilitator. Creation of Basic Infrastructure for Industrial Development. Creation of job opportunities through Self Employment Schemes.
Why should YOU be talking about MSME?
Like we said earlier, MSMEs contribute extensively to the economy and provide a wide array of opportunities for people who are interested in getting into businesses. MSME in India has the potential to increase the share of contribution to GDP. With the increase in MSME contribution to the GDP, there is a potential to increase its contribution to employment to over 50 per cent over the next decade! In the era when start-ups and small businesses are on the rise, staying up to date with our knowledge of the MSME arena is vital especially as a writer, content creator, an influencer or someone looking to explore into different careers.
So here’s a chance for you to showcase your writing skills based on the SME business domain. Your professional opinion can help others gain much needed insights on the business front. Click here to know more and submit your entry. Winners have the opportunity to earn a certificate, Rs. 2000/- and a chance to interact with the esteemed judges!
