1) MSME stands for micro, small, and medium enterprises and plays an important role in India's economic development through high employment potential at low capital costs. 2) The MSMED Act of 2006 classifies enterprises based on investment in plant/machinery for manufacturing and equipment for services. 3) MSMEs are a major part of the Indian economy, with over 12.5 million units employing 30 million people and contributing approximately 50% of industrial production and 45% of exports. The government aims to support MSME development through credit, legislation, and fiscal policies.

1. Presented by
Subhasish Champatisingh

2. INTRODUCTION
MSME
• Msme stands for micro, small and medium enterprises.
• It plays a important role for economic development of our
country.
• The major advantage of the sector is its employment
potential at low capital cost. The labor intensity of the
MSME sector is much higher than that of the large
enterprises.
• it satisfies the demand of local customer.

3. Industry coming under msme
• Food Processing(kfc product,berger,pasta)
• Agricultural Inputs(Seeds, fertilizer)
• Chemicals & Pharmaceuticals(medicines)
• Engineering; Electricals, Electronics
• Electro-medical equipment
• Textiles and Garments
• Meat products
• Sports goods
• Plastics products
• Computer Software, etc.

4. MICRO, SMALL & MEDIUM
ENTERPRISES DEVELOPMENT
(MSMED) ACT,2006
• The Government of India has enacted the Micro,
Small and Medium Enterprises Development
(MSMED) Act, on June 16, 2006 .

5. Brief idea about MSME
• In India, the enterprises have been classified broadly
into two categories
1.Manufacturing
2. services.
• Both categories have been further classified into
micro, small and medium enterprises based on their
investment in plant and machinery or on equipment.

6. Classification Investment ceiling for plant, Machinery
or Equipments
Manufacturing Service
Enterprises Enterprises
Micro Upto Rs. 25 lakh Upto R. 10 lakh
Small Above Rs. 25 lakh & Above Rs. 10
upto Rs. 5 crore lakh & upto Rs. 3
crore
Medium Above Rs. 5 Crore an Above Rs. 2
upto Rs. 10 crore crore & upto Rs.
5 crore

7. CATEGORIZATION OF ACTIVITIES UNDER
Manufacturing or Services under
the MSMED Act 2006-
Manufacturing service
1. Printing 1.publishing
2.Medical Equipment 2.hospitals
3.Ayurvedic Product 3. Restaurant
3.Beedi/ Cigarette Manufacturing 4.hotels
and other tobacco products. 5.education
4. Generation of electricity 6.training
though windmill. 7.software service

8. MSME- INDIAN SCENARIO
• 12.5 million MSMEs
• Employ 30 million People
• Contribute approx. 50% of Industrial Production
• Contribute approx. 45% of Exports

9. AIM OF MSME
MSME development as a tool of state policy aims at :
• Generation of Employment
• Dispersal of Economy
• Utilization of local skills and resources
• Meet demands locally

10. Govt.role
1. Provide credit facility
2. Legislation
3. Fiscal policy