Apr 06, 2022 • 5 min read

A First-Timer’s Guide to MSME Schemes & the Benefits

Are you a budding entrepreneur in India? There are lots of factors that largely contribute to our economics and if you already don’t know about them, start with this blog! In today’s post, let’s learn about the Indian MSME sector that has been adding to the country’s economy for a significant time being. If you are hearing about the industry for the first time, let’s gain some basic knowledge before getting into the details. 

A Brief on MSME

Every country’s economic abundance majorly depends upon the growth of its service and manufacturing sectors. MSME stands for Micro, Small, and Medium Enterprises that primarily help to form the backbone of our economy. India has around 6.3 crore MSMEs that take part in national and international trades every year. As a result, they hold about 29% of our GDP. 

While contributing to the social and economic growth of our nation, MSMEs offer a lot when it comes to promoting local products and decreasing unemployment issues by recruiting more than 100 million people. But there come times when they also need protection and assistance in areas like technology and resources. Business owners often face challenges in multiple stages of their business operations and development. After realizing their struggles, the Indian government has come forward to provide the needy industries with some beneficial schemes, counseling, and other support they might need. 

MSME Schemes for Enterprises and Corporates

 It is quite an appreciable fact that both the central and state governments have ensured their best to help the MSMEs flourish further in the long run. The business owners categorized under this industry can register for the schemes that offer multiple incentives for better performance. Here is a little overview of the most common MSME schemes:

1. PMEGP (Prime Minister Employment Generation Programme)

The good news is that India’s education rate is increasing every year but unfortunately, the unemployment issue is also rising high. The PMEGP scheme aims to open doors to brand new businesses by offering financial support and creating vacancies for deserving candidates. This scheme covers any new service/business sector worth up to 10 lakhs and one in the manufacturing sector worth up to 25 lakhs. Eligibility Criteria

  • Age criteria above 18 years  

  • The maximum cost of the project must not exceed the set range (mentioned above)

  • Only start-ups can take this up

  • Besides individual business owners, self-help groups, institutions registered under Societies Registration Acts (1860). And charitable trusts are also eligible for this scheme

2. MPDA (Market Promotion & Development Scheme)

The MPDA scheme aims to make way for rural products and crafts so that they can also be a part of the growing economy. Just like any other industries, village and khadi crafts also need some marketing strategy to earn their potential revenues. The Indian government developed the MPDA scheme to promote crafts and increase the income of the artisans.

Eligibility Criteria

  • Every business must have a valid Khadi certificate 

  • The institution must be categorized as A+, A, B, or C

3. CVY (Coir Vikas Yojana)

The Coir industry is another rural business industry that consists of around seven lakhs artisans. Our country exports coir related products to almost 110 countries. The Coir Industry Technology Upgradation scheme supports the entrepreneurs to upgrade their existing plants or establish brand new plants.

Eligibility Criteria

  • Any newly established coir processing unit

  • Any unit registered with Coir Board under Coir Industry Rules

The Perks of MSME Registration & Schemes

  • Get Collateral Free Loans

    One of the largest advantages of MSMEs is that you can get collateral-free bank loans. It is a great initiative to support, promote, and motivate the country’s MSME sector.

  • Tax Benefits

    Under the MSME registration, you can easily get the benefits of excise duty exemption. Apart from that, you will also enjoy the perks of direct tax exemption when you are in the initial growth phase of your business.

  • A Reduced Fees for Trademark Registration

    Your trademark registration will be easier with the MSME certificate. It provides you with an opportunity to have a 50% subsidy when you are paying any fees.

  • The Rise of Women Entrepreneurship

    The MSME scheme provides lots of advanced opportunities for those women who might lack the required education, qualification, and prior entrepreneurship experience. They can receive training, enhance their skill-sets before wearing the crown of a start-up owner.

Wrapping It Up

We hope you found this article helpful and gained basic knowledge of the MSME schemes. Which part of the offerings did you like the most? Also, do you wish the scheme had anything extra to offer? Let us know in the comment section below!