MSME stands for Micro, Small, and Medium Enterprises. These are businesses that fall within certain size criteria in terms of investment in plant and machinery or equipment, and in annual turnover. In India, MSMEs play a crucial role in the economy, contributing significantly to GDP, industrial output, exports, and job creation.

The criteria for classification of MSMEs in India were revised in 2020 to incorporate higher thresholds for investment and turnover, thereby expanding the scope of businesses covered under the MSME category and providing them with various benefits and support from the government.

·     Here's a breakdown of the different categories within MSME:

1.   Micro Enterprises: These are the smallest entities, typically run by individuals or small teams. Micro enterprises have lower investment not more than Rs.1 crore and Annual Turnover not more than Rs. 5 crores.

2.   Small Enterprises: Small enterprises are slightly larger than micro enterprises but still relatively small in size. They have investment not more than Rs 10 crore and Annual Turnover not more than Rs 50 crores.

3.    Medium Enterprises: Medium enterprises are larger than both micro and small enterprises but still smaller than large corporations. They have higher investment not more than Rs 50 crore and Annual Turnover not more than Rs 250 crores.

    The MSME sector is considered as the backbone of the Indian economy due to its significant contribution to employment generation, industrial output, and exports. The government provides various incentives, subsidies, and support schemes specifically tailored to promote the growth and development of MSMEs, recognizing their importance in fostering economic growth, entrepreneurship, and innovation.

·        Basic Documents Requirement for Msme Udyam Registration

1.    Aadhaar Card

2.    Pan Card

3.    Bank Details

4.    Trade License/Business Details