MICRO SMALL AND MEDIUM ENTERPRISES
Definition & Registration:-
Defined on investment in Plant and Machinery and Turnover as per notification dtd:
26.06.2020:-
Manufacturing and Services enterprise both have similar classification:-
Micro: Investment up to 1cr and Turnover not exceeding 5cr.
Small: Investment above 1cr to 10cr and Turnover above 5cr to 50cr.
Medium: Investment 10cr to 50cr and Turnover 50cr to 250cr.
Udyam Registration(UR) is introduced replacing Udyog Aadhar Memorandum(UAM).
(Website:- [Link])
Avoid paying any fake site this is the only website and UR is free of cost and paperless.
Udyam Assist Portal launched for those not having PAN card.
CONTRIBUTION OF MSME TO INDIAN ECONOMY
Share of MSME in Indian Economy
• India’s GDP: 30%
• Indias total export: 45%
• Total manufacturing output: 38.4%
• Provides employment to 11crore people
11/03/2025 2
PRIME MINISTER EMPLOYMENT GENERATION PROGRAMME (PMEGP)
The scheme aims to provide financial assistance to set up self-employment ventures and generate sustainable
employment opportunities in rural as well as urban areas.
Credit linked subsidy program for setting up new micro-enterprise in non-farm sector.
Margin Money subsidy ranges from 15% to 35% of project cost for projects up to Rs. 50 Lakh in
Manufacturing sector and Rs. 20 Lakh in the Service sector.
For beneficiaries belonging to Special categories such as SC/ST/ Women/ Minorities/ Ex-Servicemen/
Transgenders/ Aspirational districts/NER, the margin money subsidy is 35% in rural areas and 25%
in urban areas.
2nd Loan for up-gradation of the existing PMEGP/REGP/ MUDRA units
Further financial assistance scheme for expansion/ upgrade the existing PMEGP/REGP/MUDRA
units for manufacturing and Service/ Trading units from the year 2018-19
The maximum cost of the project under manufacturing sector for up-gradation is Rs.1.00 crore
and Rs. 25.00 lakhs under Service/ Trading sector.
In the year 2023-24 : 22,050 projects have been established
:Rs 900.23 Crores of subsidy extended
SCHEME OF FUND FOR REGENERATION OF
TRADITIONAL INDUSTRIES(SFURTI)
Objective: To organize the traditional industries and artisans and producers into collectives and provide them with
support in order to make quality and competitive products to ensure long-term sustainability of the sector and its
artisans.
GoI financial support:
Regular Cluster:- Rs. 2.5 Cr. for upto 500 artisans.
Major Cluster:- Rs. 5 Cr for more than 500 artisans.
This scheme focusses upon: Physical infrastructure creation, technology upgradation, training, product
development, innovation, design interventions, marketability, improved packaging and marketing infrastructure with
aim to improve artisanal income.
Scheme is applicable for: Existing artisans from traditional industries in sectors such as Handicraft, Textile, Agro-
Processing, Bamboo, Honey, Coir, Khadi, etc.
CREDIT GUARANTEE FUND SCHEME FOR MICRO
AND SMALL ENTERPRISES :-
Credit to Micro and Small Enterprises for loans up to Rs. 5 Cr. without collateral/ third party.
CGTMSE in collaboration with State Government of Assam, has launched a special guarantee
scheme ‘’Assam Credit Guarantee Scheme (ACGS)” for the MSEs situated in the State of
Assam.
Under the Scheme, 75% - 85% of the guarantee coverage for a credit facilities will be provided
by CGTMSE as hitherto depending upon the category of the borrower and balance 25% - 15%
coverage shall be provided by Government of Assam, taking the overall guarantee coverage to
100%.
The Scheme is made effective from April 01, 2023.
Slab Standard Rate (pa)*
0-10 lakh 0.37
Above 10-50 lakh 0.55
Above 50-1 crore 0.60
Above 1-2 crore 1.20
Above 2-5 crore 1.35
Some other MSME schemes
MSME Samadhan Scheme
• Helps MSMEs recover delayed payments
• Provides an online platform to file complaints
• Ensures timely resolution of disputes
• Strengthens financial security of small businesses
MSME Market Development Assistance (MDA)
• Supports MSME participation in trade fairs and exhibitions
• Provides financial assistance for marketing and brand promotion
• Helps MSMEs explore domestic and international markets
11/03/2025 6
PUBLIC PROCUREMENT POLICY FOR MICRO AND
SMALL ENTERPRISES
The Ministry of MSME, Government of India notified the Public Procurement
Policy for Micro and Small Enterprises (MSEs), Order, 2012, which mandates
25%, including 4% from MSEs owned by SC/ST and 3% from MSEs owned
by Women entrepreneurs. A total of 358 items are reserved for exclusive
procurement from MSEs.
Achievements:
• In 2023-24, Central Ministries/Departments/Central Public Sector Enterprises
(CPSEs) and departments procured a total of Rs. 82,431 crore (33.30%) from
MSEs.
• A total of 2,36,452 MSEs benefitted from this procurement.
11/03/2025 7
THANK YOU
11/03/2025 8