The Micro, Small and Medium Enterprises (MSME) (generally called SSI) are classified in two Classes as per the MSMED Act, 2006.

  1. Manufacturing Enterprises:

The enterprises engaged in the manufacture or production of goods pertaining to any industry specified in the first schedule to the industries (Development and regulation) Act, 1951 or employing plant and machinery in the process of value addition to the final product having a distinct name or character or use. The Manufacturing Enterprise is defined in terms of investment in Plant & Machinery.

  1. Service Enterprises:

The enterprises engaged in providing or rendering of services and are defined in terms of investment in equipment.

The limit for investment in plant and machinery / equipment for manufacturing / service enterprises, as notified are as under

Manufacturing Sector Enterprises


Investment in plant & machinery

 Micro Enterprises

 Does not exceed Rs. 20 lakhs

 Small Enterprises

 More than Rs. 25 lakhs but does not exceed Rs. 5 crores

 Medium Enterprises

 More than Rs. 5 crores but does not exceed Rs. 10 crores

Service Sector Enterprises


Investment in equipment

 Micro Enterprises

 Does not exceed Rs.10 lakhs

 Small Enterprises

 More than  Rs. 10 lakhs but does not exceed Rs. 2 crores

 Medium Enterprises

 More than Rs. 2 crores but does not exceed Rs.  5 crores



  • Collateral Free loans from banks
  • Reservation policies to manufacturing / production sector
  • Very easy to get Licenses, approvals and registrations
  • Special consideration on international trade fairs
  • Octroi benefits
  • Waiver of Stamp Duty and Registration Fees
  • Exemption under Direct Tax Laws
  • Bar Code registration subsidy
  • Subsidy on NSIC Performance and Credit ratings
  • Eligible for IPS subsidy
  • Counter Guarantee from Government of India through CGSTI
  • Protection against delay in payment
  • Reduction in rate of Interest from banks
  • 15% CLCSS subsidy to purchase fully
  • Waiver in Security Deposit in Government
  • Concession in electricity bills
  • Reimbursement of ISO Certification
  • Excise Exemption Scheme
  • Preference in procuring Government
  • P15% weightage in price Preference
  • 1% exemption on interest rate on OD
  • 50% subsidy for patent registration


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