The Micro, small and medium enterprises are playing very important role in Indian economic model, creating large numbers of employments. MSME sector is backbone of Indian economy, therefore Indian government always support and promote MSMEs. Government provides various kind of subsidiaries, exemptions, privileges to MSME sector. Micro, Small and Medium sized enterprises in both the manufacturing and service sector can obtain MSME Registration under the MSMED Act. MSME Registration is a certification which is issued by respective state government department to avail to benefits under the MSME Act. It is also called as Udhyog Aadhar Registration.
The Credit Guarantee Fund Scheme for Micro and Small Enterprises (CGS) was launched by the Government of India to make available collateral-free credit to the micro and small enterprise sector.
The rate of Interest for enterprise that has MSME registration are lower as compare to other enterprises. Certain targets are set for banks’ lending to the Micro and Small Enterprises.
Enterprises that have MSME Registration have preference in procuring government tenders. Special treatment is given to MSME Registered organization while making application for government tenders
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