|Type of Enterprise||Investment||Turnover|
|Micro||Rs. 1 Crore||Rs. 5 Crore|
|Small||Rs. 10 Crore||Rs. 50 Crore|
|Medium||Rs. 50 Crore||Rs. 250 Crore|
- Benefits from Banks: All banks and other financial institutions recognise MSMEs and have created special schemes for them. This usually includes priority sector lending, which means that the likelihood of your business being sanctioned a loan is high, and lower bank interest rates. There may also be preferential treatment in case of delay in repayment.
- Tax Benefits: Depending on your business, you may enjoy an excise exemption scheme as well as exemption from certain direct taxes in the initial years of your business.
- Benefits from State Governments: Most states offer those who’ve registered under the MSMED Act subsidies on power, taxes and entry to state-run industrial estates. In particular, there is a sales tax exemption in most states and purchase preference on goods produced.
- Benefits from Central Government: The central government, from time to time, announces schemes to benefit MSMEs, such as the credit guarantee scheme:
- Credit Guarantee Scheme (CGTMSE) One of the major struggles that the small scale industries face is credit and input of income from various sources to support them.