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Government Schemes for Starting MSME

Micro, Small, and Medium Enterprises are referred to as MSME. Due to their lack of resources and technology, these sectors or businesses—which make up the foundation of our economy need aid from other major corporations as well as protection. In order to accomplish this, the government offers these businesses various programs, discounts, or counseling. The classification of MSMEs in existence was based on the requirement of investment in machinery or equipment. Therefore, in order to qualify for the MSME incentives, they must keep their investment below certain bounds, as described in this article.

Micro, Small, and Medium Enterprises

According to the MSME Act 2006,  the term microenterprise can be given to a company that has an investment within 25 lakhs; a small enterprise where the investment is between 25 lakhs and five crores. On the other hand, a  medium enterprise is a company where the investment is anywhere between five to ten crores.

These investments excluded the land and building expenditures along with other items which are clearly mentioned in the ministry of small scale industries on the serial number NO.S.O1772(E) dated October 5, 2006. This investment is only for the original cost and this is only for production or manufacturing sector.

Service Sector:-

Investment in the service sector for micro-enterprises should not be more than 10 lakhs, for smaller ones should not exceed 2 crores, taking into account the medium enterprises, it should not be more than 5 crores, but the minimum expense made should be at least 2 crores.

MSME Schemes Under Government

Udyog Aadhaar Memorandum

As it is common knowledge by now, an Aadhar card is a must for everything and to start an MSME Registration, it is mandatory. To start the MSME you would have to first and foremost start with the registration process, and for the registration, process Aadhar is a must.

The benefit of registering in this scheme will help you avail of credits, loans, and subsidies from the government. The procedure for registration can be done online as well as in the respective offices.

Zero Defect and Zero Effect

The goods that are manufactured and exported must be with the appropriate standards so that they are not rejected and sent back again. If the goods are exported, then they are eligible goods and some concession will be given.

Quality Management and Quality Technology Tools

To start the MSME, we have to register under the Udyog Aadhaar scheme which will help the micro, small and medium enterprises to understand the standards that have to be maintained as well as to adhere to the new technology. Many eye-opening sessions are conducted to make the starters understand the new technology through various seminars, campaigns, and activities.

Grievance Monitoring System

Registering under this scheme will be of great benefit to business owners as it is the platform that addresses the complaints of the owners. They can also check on the status of their complaints.


This is where we can show all our innovation through the implementation of the new design, ideas, etc.. if the idea is really innovative and effective, the project cost will be funded by the government which will cover 75 to 80 percent of the cost that is going to be incurred. So registering under this MSME scheme is very essential.

Credit Linked Capital Subsidy Scheme

Under this MSME scheme, the old and obsolete technology can be replaced by new ones and subsidies will also be given by the government to replace the old ones. These subsidies can be directly obtained from the bank itself.

Women Entrepreneurship

Last but not least, this scheme is especially for women who are willing to start their own businesses. The government provides all training as to how to move on with the work and to expand the business.

These are some of the schemes with which the government tries to improve the overture of MSMEs in India. Following all these schemes will help you run the business effectively. As government schemes are like a pillar of support for starting micro, small and medium enterprises.

Startup India Program

The Indian government has trademarked the Start-up India program. Its goal is to support entrepreneurship among the nation’s population and create a favorable business environment.

The following advantages are offered to qualified enterprises by this government program for start-ups:

  1. Compliance with the nation’s labor and environmental laws can be verified online.
  2. As part of the Start-up India program, the government would refrain from performing any inspections for five years to ensure that labor rules are being followed. 
  3. A credible complaint for any infringement, however, must be accepted by someone at least one level above the inspecting officer before an evaluation can take place. The government conducts arbitrary audits of environmental legislation.
  4. Accelerated application for new patents.


For these businesses, the government has introduced additional programs and support systems. To learn more about the MSME programs.

Vakilsearch offers enticing loans for start-ups and MSMEs if you are actively looking for capital for your firm. You can count on us for organized EMI plans, little red tape, straightforward eligibility requirements, and a variety of special advantages. View all of our available lending options here.

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