A List Of Businesses That Come Under MSME



What is the Role of MSME in India?

It would not be an overstatement to say that the Indian MSME sector is the backbone of the Indian economy. The MSME sector has worked relentlessly to protect the country’s economy in the face of various global crises. Several potential adversities caused by external factors have been warded off due to the thriving MSME sector in our country.

The list of MSME-registered companies is set to touch 63.4 million in India soon. The businesses under MSME contribute 6.11% of the manufacturing GDP of India. Apart from that, 24.63% of GDP from the service sector and 33.4% of the manufacturing output in India comes from the MSME sector. 

The MSME sector is one of the largest sources of livelihood in our country, employing over 120 million people. As most of the MSME units exist in rural areas, this sector is a significant source of rural employment.

What is the classification of MSME?

The MSME segment consists of micro, small, and medium enterprises. There are specific parameters under which each section has been classified. Below, please find the table showing the parameters of classification:

Definition Parameters of Classification
Micro Enterprise Plant & Machinery – Rs. 1 croreAnnual Turnover up to Rs. 5 crores
Small Enterprise Plant & Machinery – Rs. 10 croresAnnual Turnover up to Rs. 50 crores
Medium Enterprise Plant & Machinery – Rs. 50 croresAnnual Turnover up to Rs. 250 crores

Which Industries fall under MSME?

Following is the list of industries that fall under the MSME category:

  1. Leather goods
  2. Moulding
  3. Natural Fragrance
  4. Placement Services
  5. Training Institutes
  6. Energy Efficient Pumps
  7. Photocopying centres
  8. Beauty Parlour
  9. Crèches
  10. Garages for auto repair
  11. X-Ray Clinics
  12. Tailoring units
  13. Equipment Rental
  14. Photo labs
  15. Repairs of agricultural machinery
  16. Computer-based data processing 
  17. STD/ISD booths
  18. Retail trading
  19. Dealers of MSO products like Dish Antenna
  20. Laundry
  21. Toughened Metallic Ware
  22. Automotive Electronic Component products
  23. Electronic Security services
  24. Manufacturing of almirahs, steel cocks
  25. Engineering and Fabrication
  26. Dealers of small white goods
  27. Micronutrients For Plants
  28. Ayurvedic products
  29. Khadi materials and products
  30. Handicrafts—spinning and weaving
  31. Printing and other products made of paper
  32. Coir Industry
  33. Manufacture furniture and wood products
  34. Poultry Farming
  35. Bicycle parts sales and service
  36. Stationery Items
  37. Call centre
  38. Rubber Products
  39. Service provider for IT-enabled service
  40. Testing Labs for industries
  41. Sales of auto parts components
  42. Sales of ceramics and glass products
  43. Retail and wholesale business

How do MSME Loans Work?

Despite being the backbone of the economy, MSME sector businesses have always been deprived of the benefits of formal banking. Due to this, these units are majorly dependent on private sources of funds whenever they require additional money. The union government identified this gap and introduced the Pradhan Mantri Mudra Yojana (PMMY) on April 8, 2015, to cater to the MSME segment. 

The PMMY is a collateral-free business loan scheme targeted at the MSME segment. Apart from PMMY, many other business loan schemes have also been introduced to boost this segment.

What is an MSME Business Loan?

As an entrepreneur, you may need additional funds to meet some business needs, such as executing a large order. Also, you may have plans for expansion or diversification, which requires money. In cases such as this, it is advisable to go for a business loan rather than diluting your own funds.

Most leading banks and non-banking financial companies offer secured and unsecured business loan packages. You may choose the scheme most suited to your needs and apply for a business loan.

One of the major factors to consider when choosing your financier is the business loan interest rates they offer. Every financial institution has its business loan packages posted on its official website. Perusing official websites will help you determine that particular financier’s business loan eligibility criteria. Also, official websites of banks have online business loan EMI calculators embedded on their websites for public consumption. This calculator can help you determine your potential quantum of monthly repayment via EMI, thus letting you better plan your finances.


With the exhaustive list of MSME companies in India and their widespread existence in India, it is very clear MSMEs form the basis of the growth of the national economy. The Government of India also realises the importance of this segment and, in order to encourage the growth of this sector, has introduced a number of convenient loan schemes specifically targeted at the MSME segment. In fact, it is time this segment is looked after well and gets enough impetus to thrive and grow. There are organisations like Flexiloans who are experts in providing loans to the MSME sector. Visit their official website and check out the various services they provide.

Frequently Asked Questions

1.    Where to look for comprehensive information on MSME Companies?

You can find relevant information on the official site of the Government of India.

2.    How do I apply for a business loan?

You may make an online application for a business loan by accessing the financial institution’s site. The eligibility criteria are clearly mentioned there; you need to follow their instructions to log in your request for a loan.

3.    Are there any business loans for women?

Yes, women’s business loans are offered by some banks. The rates of interest are lesser than normal business loan schemes.

4.    What is an EMI calculator for business loans?

EMI calculators are online tools that are available on the websites of banks. Those calculators help you ascertain the quantum of EMI you need to pay.

5.    What is a collateral-free business loan? In these cases, MSME loans are disbursed even if the entrepreneur cannot provide collateral security. Under certain schemes, MSME loan packages are offered where the government acts as the guarantor in case of default.