As we all are aware of India's transformation, the youth is moving towards Start-ups. As a result, the Government of India is introducing good schemes to foster the growth of...
Micro, Small and Medium Enterprises or MSME is a backbone of the economic growth in many developed or developing countries in the world. It often called “the engine of growth” for India. MSME registration process always played a prominent role in the development of the country in terms of creating employment opportunities at the same time.
According to the recent survey MSME has employed 50 million people so far, scaling manufacturing capabilities, regional disparities, balancing the distribution of wealth and contributing to the GDP- MSME sector forms by 8%.
Although, it is a harsh reality that the Indian economy is still facing the infrastructural problems, lack of proper market linkages and challenges in terms of the flow of Institutional credit. This sector has always a survivor amongst all the threats that are emerging out of the competition from both the domestic and international market.
Hence, the advantages of this sector are that it requires less investment and much appreciated by the government through various means. But, the story doesn’t end here of MSME Registration Process.
Let’s lift out the curtains from the advantages of MSME Registration/ SSI Registration in India-
Advantages of MSME Registration Process/SSI registration in India
- Reservation Policy
Reservation Policy is one of the most vital benefits that is offered to the enterprise in the form of a policy under the MSME. To avoid the stiff competition in the market for the MSME the central government has given exclusive rights to the manufacturer of certain products in this sector. Into the bargain, the Government Stores Purchase Program, 300 products are exclusively reserved for this sector by the Central Government.
Products like wooden furniture and fixtures, pickles, bangles, bread, groundnut oil, mustard oil, jute, brakes, and clutches for automobiles corporations.
- Entrepreneurial Memorandum Policy
It is mandatory for enterprises that are engaged in the manufacturing process to file and Entrepreneurial Memorandum Policy whereas it is optional for enterprises that are into rendering services. The Reserve Bank of India has directed the banks to allocate a certain percentage of their lending to priority sectors like Agriculture.
- Credit Guarantee Fund Trust for Micro and Small Sized Enterprises
A Micro and Small sized enterprise are eligible for Collateral free loan of up to 50 lakhs under the scheme. Since these companies are run by the weaker section of the society that is why the Reserve Bank of India has to sanction collateral-free loans to MSME/SSI.
- Capital Aid for Technological up gradation for MSME
Some MSMEs may not be able to use their resources to the full extent due to the lack of the upgraded technology. The government under the Capital Aid for technology up gradation schemes helps the enterprise upgrade their equipments through latest technology by helping them get a low-interest loan from banks.
- MSME market development assistance for Micro and Small enterprises:
Apart from the listed product, the government has also promised to buy from these MSMEs many other products; they are given marketing assistance even to those products, manufactured by them which do not fall under the purview of Reservation Policy.
Hence, there are ample numbers of benefits that are not framed in the article but they are! It is wise to get MSME Registration/SSI Registration in India.