Schemes aimed Financial assistance, technology assistance and upgradations, enhancing competitiveness and market development
MSME stands for Micro, Small and Medium Enterprise. MSME or SSI enterprises are the foundation of any economy and are an engine of economic growth, advancing impartial improvement for all. Being the backbone of an economy sector, MSME enterprises acts as an engine which helps in the growth of the economy and promoting equitable development. Therefore, to support and promote MSMEs, the Government of India through various subsidies, schemes and incentives promote MSMEs through the MSMED Act.
To utilise all the benefits which are offered under MSME act, the enterprise should be registered as MSME with the concerned department. MSME registration or SSI registration helps businesses avail multiple government subsidies and benefits MSMED act, MSME gov.
Both the manufacturing and service sector can obtain MSME Registration or SSI/Small Scale Industry Registration under the MSMED act, MSME gov. It provides a variety of benefits such as rate of interest charged would be very less, tax subsidies, capital investment subsidies and much other support from the government sector. These benefits of MSME registration include priority sector lending, power tariff subsidies, capital investment subsidies and excise and direct tax exemptions.
Benefits for MSME Registration
A business with MSME Registration gets benefits in loans from banks. The rate of interest on loans offered to MSMEs is 1-1.5% compared to typical business loan interest.
Micro, Small and Medium Enterprises
enjoy various benefits like Low Income Tax rates and also Capital Gain Tax subsidies from the government.
MSMEs are given first priority in case of government tenders and also they are multiple government tender which open only to MSMEs. Government also provides ongoing support to MSMEs.
MSMEs enjoy the benefits of separate and dedicated schemes introduced by the government. Government introduced the Mudra Loan Scheme, which provide loans to MSMEs without collateral.