| MSME is an abbreviation for Micro, Small, and Medium Enterprises, governed under the Ministry of Micro, Small, and Medium Enterprises by the Micro, Small and Medium Enterprises Development Act (MSMED Act) of 2006. The legislature enacted the Act to address the issues related to the MSME Sector. In this Sector, the industries are divided based on turnover. The Micro Enterprises have a turnover of not more than Rs. 5 crores; the Small Enterprises have a turnover of not more than Rs. Fifty crores and Medium Enterprises have a turnover of less than Rs. 250 crores. These enterprises operate with limited capital and on a smaller scale. As this Sector is labour-intensive and significantly contributes to our country's economy, the Government focuses on its growth.
There are more institutions, apart from the Ministry of Micro, Small and Medium Enterprises, that deal with the development of the MSME Sector: The Khadi and Village Industries (KVI) Commission, Coir Board, and National Small Industries Corporation Limited (NSIC).
In India, Udyam Registration is done for MSME Registration and is a must for all MSMEs before establishing and starting their Business. The Ministry of Micro, Small, and Medium Enterprises grants the Udyam Registration. Earlier, this Registration was done by UAM and EM II systems, but the Udyam Registration has replaced both of them. |
