Schemes for MSMEs in India

Promoting manufacturing in india

Overview of Govt. Initiatives on MSMEs

Under the Chairmanship of Hon’ble Prime Minister Shri Narendra Modi, the Ministry of Micro, Small and Medium Enterprises (MSME) implements various programmes/ MSME schemes for the development and promotion of MSMEs across the country.

Moreover, the Government of India has been really proactive to ensure that all the benefit of these MSME schemes reaches to the MSMEs in time. To provide immediate relief to the MSME sector, various announcements (in addition to the various MSME schemes) have been made under the Atmanirbahar Bharat Package. The most important ones also included:

INR 3 lakh crore collateral-free automatic loans for MSMEs to buy raw material, meet operational liabilities and restart businesses
Revision of MSME definition to extend maximum benefits to the sector
Disallowing global tenders in procurements upto INR 200 cr to create attractive opportunities for domestic players
Clearing of MSME dues by the Government and Public Sector Units (PSUs) within 45 days

“Every tomorrow of India is better than today, and India is rolling out the red carpet to welcome investors to its shores. Invest India will be your trusted partner at every step throughout your investment journey in India.”

Shri Deepak Bagla
MD & CEO, Invest India

Revised Classification applicable w.e.f 1 July 2020

Composite Criteria: Investment in Plant & Machinery/equipment and Annual Turnover

CLASSIFY
Manufacturing Enterprises and Enterprises rendering Services
MICRO
Investment in Plant and Machinery or Equipment: Not more than INR 1 cr and Annual Turnover; not more than INR 5 cr
SMALL
Investment in Plant and Machinery or Equipment: Not more than INR 10 cr and Annual Turnover; not more than INR 50 cr
MEDIUM
Investment in Plant and Machinery or Equipment: Not more than INR 50 cr and Annual Turnover; not more than INR 250 cr