Complete List of Businesses That Fall Under MSME Sector

Have you heard of the term MSME? Are you curious to know what it is? Well, it is basically a category of business enterprises that get special monetary benefits from the government and financial institutions to help the business owners keep their enterprises running and eventually grow in the extremely competitive Indian business market.

 

MSMEs get this special treatment because they contribute significantly to the country's employment rates. According to certain reports, MSMEs make up about 96% of the Indian market, which contributes to about 30% of the country's GDP(Gross Domestic Product), 45% of the manufacturing output, and about 48% of the country's exports.

 

It is no surprise that, with such incredible contributions, the MSMEs are considered to be the backbone of the Indian economy.

 

What is an MSME?

 

MSME stands for Micro, Small, and Medium Enterprises. These enterprises are often smaller in scale than big corporations and are classified based on their investment and annual turnover.

 

Category	Investment Limit	Turnover Limit
Micro	1 Crore	5 Crore
Small	10 Crore	50 Crore
Medium	50 Crore	250 Crore

 

Which business enterprises fall under MSME sector?

 

As per the Government of India circular, all business enterprises in the manufacturing and services sectors fall under the MSME sector, provided they meet the investment and turnover criteria. However, there can be a few exceptions to this.

 

MSME businesses broadly fall under two categories – Manufacturing and Services.

 

Manufacturing sector businesses

The enterprises in the manufacturing sector, that is, those that make finished goods from raw materials, contribute to about 45% of India's total manufacturing output and about 40% of the exported manufactured products.

 

With the government's ‘Made in India' initiative, more MSMEs are emerging in the manufacturing sector, and their contribution to the economy is increasing.

 

Service sector businesses

 

As per the UDYAM portal, the number of MSMEs involved in the service business is higher than that in the manufacturing sector. Although the benefits of UDYAM MSME registrations apply to MSMEs in both sectors, about 8.65 Lakh Indian MSME business owners have registered their businesses in the service sector, compared to only 5.37 Lakhs registered in the manufacturing category.

 

Which businesses fall under the MSME category?

 

Here is a full MSME companies list that fall under this category per the definition of MSME.

 

• Manufacturers of leather products
• Manufacturers of plastic toys, combs, umbrellas, etc
• Manufacturers of pharmaceutical ingredients
• Automobile garages
• Manufacturers of automotive, electronic products and components
• Manufacturers of Ayurveda products
• Backoffice operations service providers relating to computerised data
• Manufacturers of ceramic products
• Manufacturers of bicycle parts
• Call centre
• Coir industry
• Manufacturers of electronics, surveillance and security-related products and components
• Manufacturers of energy-efficient water pumps
• Business that are into engineering and fabrication services
• Furniture makers
• Manufacturers of glass products
• Manufacturers of handicraft items
• IT (Information Technology) solution providing services
• Manufacturers of Khadi products
• Laundry and dry-cleaning services providers
• Manufacturers of micronutrients for plants
• Multimedia and dish cable channels service providers
• Manufacturers of natural flavours and fragrances
• Photographic studios
• Photocopying business
• Poultry farming business
• Placement and management service providers
• Rental and leasing of equipment services
• Manufacturers of agricultural farm equipment
• Manufacturers of stationery items
• X-ray clinic and pathology laboratory services

 

List of businesses that do not fall under MSME category

 

As mentioned earlier, there are some exceptions to certain businesses that do not fall under the MSME category, even though they may meet the investment and turnover criteria. The MSMEs aim for the prosperity of their own business and the nation at large. Therefore, some businesses may not be eligible to be registered as MSMEs. These businesses include –

 

• Businesses that are into gambling and betting activities
• Forestry and logging businesses as they can be harmful to the nature, and the government does not encourage such businesses
• Businesses that have transactions with international bodies and organisations as MSME sector, are for the development of local enterprises
• Fishing and agriculture businesses, as they don't come under the manufacturing or services sector
• Activities of household help as this cannot be considered a business

 

MSMEs have proven to be a major boon for economies around the world. These businesses not only play a vital role in generating employment opportunities for local citizens but also contribute to the GDP and the progress of the nation.

 

Grow your business with MSME Loan

 

If you are a business owner, and your enterprise falls under the MSME sector, you can avail of an MSME loan from reputed lenders like Udyog Plus, which is part of Aditya Birla Finance Limited and avail of the funds you need to meet your business-related expenses and take it to the next level.

 

The simple digital application process, immediate approval, affordable rate of interest, and minimal documentation ensure that you have a hassle-free borrowing experience!