ANALYSIS OF MSME COMPANIES OF INDIA

Intoduction
The micro and small business (MSME) sector contributes significantly to the country's socio-
economic growth. The industry has increased in prominence in India as a result of its
contribution to the country's GDP and exports. The industry has also made a significant
contribution to the growth of entrepreneurs in The country, particularly in semi-urban and rural
regions. Micro, Small, and Medium Enterprises (MSME) are categorized into two classes under
the Micro, Small, and Medium Enterprises Development (MSMED) Act, 2006: manufacturing
enterprises and service companies.
SME expansion is largely fueled by small and medium-sized businesses (SMEs). Manufacturing,
infrastructure, the service sector, food processing, packaging, chemicals, and information
technology have been some of the most powerful and dynamic drivers of Indian economic
growth during the past decades.

MSME Industry Report India

Size of the Market
The micro and medium-sized enterprise (MSME) sector makes a significant contribution to the
country's socio-economic development. In India, the sector has grown in importance due to its
contribution to the country's gross domestic product (GDP) and exports. The sector has also
made a great contribution to entrepreneurship development, particularly in semi-urban and rural
areas of India. Under the provisions of the Micro, Small & Medium Enterprises Development
(MSMED) Act, 2006, Micro, Small and Medium Enterprises (MSME) are divided into two
classes, i.e. manufacturing companies and service companies. Companies are further categorized
based on equipment investments and annual sales.
India has approximately 6.3 billion MSMEs. According to the MSME Ministry, the Udyam
registration portal registered 5,767,734 MSMEs on November 26, 2021, replacing the previous
procedure for filing a Udyog Aadhaar Memorandum (UAM). The number of registered micro-
enterprises was 5,441,220 (94.34%), followed by small enterprises with 293,555 (5.09%) and
medium-sized enterprises with 32,959 (0.57%). On November 26, 2021, among the five state
Udyam registrations, Maharashtra recorded the maximum number of registrations with 12.18
lakh units, followed by Tamil Nadu (6.23), Gujarat (4.86), Rajasthan (4.68) and Uttar Pradesh
(4.45.). ). New online system of MSME / Udyam registration launched by the MSME ministry of
the Union, w.e.f. July 1st, 2020, successfully registered> 5.7 million MSMEs by November
2021. The Indian MSME sector contributes around 29% to GDP through its national and
international trade.MSMEs are urged to use the e-commerce platform to advertise their
products.MSMEs (Micro, Small and Medium Enterprises) in India are quickly choosing digital
payments over cash, with 72 percent of payments made via digital against 28 percent via cash.
The rise in digital usage bodes well for the sector's future growth.