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Naina Kapoor

Apr 11, 2019•others

What is MSME and what are its Benefits in India?

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Mayank Gupta

@mayankgupta5585•Apr 11, 2019
MSME stands for Micro, Small and Medium enterprises. The status of these enterprises differ in accordance with their investment in the fixed assets. An enterprises is considered to be micro, if it's investment in the fixed assets donot exceed ₹25 lakhs. An enterprise is small if the investment in the fixed assets doesn't exceed exceeds ₹25 lakhs but does not exceed ₹2 crore. Similarly an enterprise is said to be medium enterprise if it's investment in the fixed asset exceeds ₹2 crore but does not exceed ₹5 crore.




These MSMEs are considered to be the growth engine of the economy. Most of the manufacturing in the country comes from the MSME sector. Thus these enterprises are very crucial in running the growth engine of the country. And the various benefits to an economy from the MSMEs are as follow:

1. MSMEs are the major contributor to the growth and the development of the country. These contribute heavily in the production and manufacturing into the economy.

2. MSMEs provide jobs to the most of the population in the country. Nearly 1.5 crore jobs are created by MSMEs.

3. The manufacturing by these enterprises are done in huge numbers and thereby increasing the exports of the country and making the BOP surplus.

4. These enterprises helo in reducing the disparity in income and the concentration of power in the hands of few industrialists and businessmen.

5. These enterprises help in improving the living standard of the people. And thus aid in keeping the consumption cycle into movement.



Thus these enterprises must be given various incentives like subsidies, tax reliefs etc to flourish these enterprises and help in the country's development.
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