MSMEs have become the pillar of the Indian economy. In recent years, around 30% of India’s GDP can be attributed to the MSME sector.
Additionally, MSMEs in India are second after agriculture in terms of their contribution to job creation. MSMEs also provide a marketplace that encourages innovation, cooperation, and partnerships and assists larger companies.
The list of MSME businesses keeps growing. Here, we have curated a list of businesses that fall under the MSME sector and those that do not.
Sectors that come under MSME
Below are the sectors that can be considered MSMEs as per the government’s rules and regulations.
Manufacturing Business Activities
The MSME sector includes all businesses that produce finished goods from raw materials. Manufacturing businesses contribute approximately 45% of the total manufacturing output and 48% of the total exports, which is expected to grow in the upcoming years.
Service Sector
MSMEs are important for the business activities of the service industry. According to recent data, MSMEs in the service sector comprise a larger portion than the manufacturing sector.
Which business comes under MSME?
Below is the list of businesses that fall under the MSME sector. The government of India has approved these businesses.
- Leather products – bags, belts, shoes, and wallets
- Xerox, lamination, binding, and other related services
- Beauty parlours, salons, spas, and other day-care services
- Back office data operations
- Information technology services – Server bank creations, application service provider, smart card customisation, etc.
- Call centre services
- Dish cable television services with dish antenna
- Mechanically engineered products – Steel cupboards, clocks, valves, wire cutter, etc
- Photographic lab
- X-Ray clinics
- Testing lab services
- Coir and Jute Products
- Active pharmaceutical and ayurvedic products
- Training and educational institutes
- Automotive repair services, welding services, and garages
- Natural fragrances and flavours
- Consultancy services for job placement and management
- STD/ISD Booth
- Security solutions, CCTV installation, Electronic Surveillance
- Production of Stationery
- Recorders, VCRs, radios, transformers
- Rubber product manufacturing
- Bicycle parts manufacturing
- Poultry farming
- Khadi and similar hosiery products
- Rubber product manufacturing
- Agricultural farm equipment – tractors, pumps, boring equipment
- Wooden furniture and other wooden products
- Handicraft activities – spinning, weaving, artisan crafts
- Printing – cards, bags, paper-based products
- Energy-efficient pump manufacturing
- Equipment and leasing services
- Metallic ware production
- Automotive electronic components
- Auto parts – horn buttons, door channels, wiper blade, battery cell tester
- Engineering and fabrication services
- Ceramics and glass products
- Micronutrients and supplements for plant growth
Businesses that do not fall under MSME
Not all businesses fall under MSME, and the Government of India has listed some of them below.
- Gambling and betting companies
- Forestry and timber harvesting
- Fishing and aquaculture business
- Motorcycle trade and repair
- Household activities, employment of domestic help
- Goods and services produced by private households for personal use
- Activities of extraterritorial organisation
Conclusion
Above, we have provided a comprehensive list of MSME businesses in India and their widespread presence; it is obvious that MSMEs are an important part of the country’s economic expansion.
The Indian government acknowledges the significance of the MSME sector and has launched several financing schemes designed to meet their needs to promote the sector’s expansion.
This sector has been given a lot of importance and funds when required. Many lenders like LoanTap provide MSME loans to help them carry out their services.
