Introduction of MSMEs (Manufacturing enterprises)
The full name of MSMEs is Micro, small & medium Enterprises, It is like the strongest channel in India with 60% of people from all over India investing. Under this, more than 5000 products are made, and through these products, our entire work is done in India as 50% of the people all over India get employment from MSMEs that they run their lives, today the Government of India has encouraged MSMEs. Because half of the people of our country live their lives by this. Today, 10% of our GDP in India runs from MSMEs, and even the smallest products made in India are made from factories within MSMEs. Within this, MSMEs account for 50% of all the goods we export to any other country.
Factories that fall within the MSMEs?
(1) milk product company
(2) Animal husbandry
(5) vegetable’s producer
(6) Elastic Producer
(8) Food maker
(10) Cloth Shop
(11) Car shops
(12) Copy & Book’s Shop ETC.
There are many small companies which have been brought under the purview of MSME, which employs half the population of the whole of India.
Companies within MSMEs in India are divided into 3 parts.
(a) Micro Company:- Any person who invests 1 crore rupees to start his company is placed inside the micro-industry within MSMEs. The TAX RATE depends on company Activities
(b) Small Company:- Any person who invests 10 crore rupees to start his company is placed inside the small industry within MSMEs. The TAX RATE depends on company Activities
(c) Medium Company:- Any person who invests 20 crore rupees to start his company is placed inside the medium industry within MSMEs. The TAX RATE is 15%
Benefits under MSME?
(1) When a company registers itself in MSMEs, it gets a loan from any bank at a lower rate.
(2) Under MSMEs, any bank gives easy loans to a company because the bank also knows that the company lives by it.
(3) Most of the exports from India are done by MSMEs.
(4) It employs all
(5) This makes the production level of any item in India very high.
(6) With the help of MSMEs, raw materials are supplied to all the big companies in India.