Know More About SMEs In India

 

Know More About SMEs In India

The number of micros, small and medium enterprises in India (MSMEs) is the largest in the world after China. This sector is home to many companies that manufacture more than 6,000 products ranging from ordinary to high-tech.

With the Union government's "Make in India" initiative and its efforts to attract foreign direct investment, India's MSME sector is expected to grow rapidly and become part of the significant global value chains.

According to official estimates, the country has about 6.305 million micro-enterprises, 330,000 small and medium enterprises (MSMEs) and about 5,000 medium enterprises (SMEs).

Uttar Pradesh has the highest number of estimated SME types, accounting for 14.20 per cent of the total number of SMEs in the country. West Bengal comes second with 14%, followed by Tamil Nadu and Maharashtra with 8%.

The deployment of COVID-19 in India and the resulting lock-in has put a strain on the country's financial development and put economic pressure on businesses. For this reason, the Union government has changed the classification of MSMEs.

Benefits of SMEs

The federal government of India has introduced various programs and measures to make it easier for small and medium enterprises in India to raise funds, modernise them.

These include quality assurance programs, especially for exports, professional development, incubation, capital subsidy through credit linkages and UID related programs to facilitate subsidies.

The following are the various incentives available small medium enterprise examples:

     Unsecured bank loans

     50% grant for patent registration.

     Waiver of 1% interest on overdraft.

     Privileges on electricity bills.

     Eligibility for an industrial development grant.

     Provision of deferred financing; and

     Reimbursement of ISO certification fees.

How to register as an MSME in India?

To facilitate registration of small and medium enterprises in India, the Ministry of MSMEs has notified a simple one-page registration process called "Udyog Aadhaar Memorandum".

MSME entrepreneurs can fill the form online and get their new Udyog Aadhaar Number (UAN) immediately. The required information includes primary data such as Aadhar number, company name, company address and current account details.

Companies should be aware that HRM cases must be amortised.

     The funding limit is increased above the legal limit; or

     The registered business begins to manufacture new goods or products for which a legal license is required, such as an industrial license.

Bottom Line

Accurate data for small medium enterprise examples is essential that act as the backbone for the Indian economy. DataGuru is a world leader in providing authentic and genuine data of various types.

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