The Government of India has introduced MSME or Micro, Small, and Medium Enterprises in agreement with Micro, Small and Medium Enterprises Development (MSMED) Act of 2006. These enterprises primarily engaged in the production, manufacturing, processing, or preservation of goods and commodities.
MSMEs are an important sector for the Indian economy and have contributed immensely to the country’s socio-economic development. MSME/Udyam Registration comes with numerous benefits and various relaxations to take away some burden from growing enterprises and all eligible enterprises should get themselves registered under MSME/Udyam.
- MSMEs work for the welfare of the workers and artisans. They help them by giving employment and by providing loans and other services
- MSMEs provide credit limit or funding support to banks
- MSME registration helps in getting early payments
- They promote the development of entrepreneurship as well as up-gradation of skills by launching specialized training centers for the same
- They support the up-grading of developmental technology, infrastructure development, and the modernization of the sector as a whole
- MSMEs are known to provide reasonable assistance for improved access to the domestic as well as export markets
- Concession in electricity bill, so that they can cut their expenses and to increase their profits