Complete List of Businesses That Fall Under MSME Sector

The Micro, Small, and Medium Enterprises (MSMEs) sector accounts for over 40% of the country’s GDP as well as exports. Being so integral to the country’s economy and the generation of employment, there are plenty of government schemes for MSMEs that encourage their growth through benefits such as tax breaks, easier access to financial products, and more. 

However, to qualify for these benefits for MSMEs, it is essential to know which businesses come under the MSME sector. 

This article includes a comprehensive MSME business list that is government-approved, along with the industry categories under MSME. 

Before moving on to the list of MSME businesses, let us see how MSME businesses are classified into Micro, Small and Medium categories:

Which Sectors Fall Under MSME?

As per the Ministry of MSMEs, MSMEs are broadly classified as those engaged in 2 main sectors - manufacturing and services. This is provided the businesses meet their investment and turnover criteria. 

Manufacturing Sector

MSME-registered businesses in the manufacturing sector produce tangible finished goods from raw materials. These may range from small-scale artisan workshops to food processing units and textile production. They might manufacture products, assemble components and process raw materials to create finished goods.

The MSME sector contributes a substantial 45% of the total manufacturing output in the country along with 40% of total exports. The popularity of the “Made in India” campaign has added significantly to these numbers.

Some examples of manufacturing businesses are:

• Food processing
• Textile and garments
• Leather products
• Engineering and fabrication
• Pharmaceuticals and chemicals, etc

Service Sector:

MSME businesses in the service sector provide intangible services to other companies, organisations and individuals. They make up a larger share when compared to the manufacturing sector. There are around 8.65 lakh enterprises registered in the service sector and 5.37 lakh enterprises in the manufacturing sector, as per the UDYAM portal. 

Some examples of service-based businesses are:

• Educational institutions
• Consulting firms
• Tourism and hospitality
• Retail and wholesale trade
• Security services

Other Sectors:

Some other sectors that come under the list of MSME businesses are:

• Agriculture and Other Allied Activities: Examples are organic and poultry farming.
• Transportation and Logistics: Businesses like local delivery services and small trucking companies also come under the list of MSME enterprises.
• Construction and Real Estate: Small construction firms and local properties are included in the MSME businesses list too.

But it is to be noted that, this is not an exclusive catalogue of MSME businesses. The MSME companies list is constantly changing and growing, owing to innovative ventures emerging in the country every day. As long as it meets the investment and turnover criteria, your enterprise could be one of the qualifying businesses for MSME. 

Government-Approved List of MSME Businesses

Below is a comprehensive, government-approved MSME business list: 

1. Leather products
2. Ayurvedic items and active pharmaceutical components
3. Products made from Khadi and Hosiery
4. Contact centres
5. Products made of rubber
6. IT services
7. Educational training institutes
8. Energy-saving pump manufacturers
9. Maintenance of farm machinery for agriculture
10. Back-office operations
11. Local and international calling booths
12. Low-capital retail trade enterprises
13. Dish cable TVs with multiple channels using a dish antenna
14. Dry cleaning and laundry 
15. Hardened metal ware
16. Electronic components for automobiles
17. Electronic monitoring and security
18. Moulding of items
19. Testing laboratories for industries
20. Automobile companies
21. Ceramics and glass products
22. Retail operations
23. Products associated with natural fragrances, and tastes
24. Consulting, management and placement services
25. Engineering mechanics
26. Engineering and manufacturing
27. VCRs, recorders, radios, transformers, motors and watches
28. Plants’ micronutrients
29. Businesses involved in crafting activities
30. Paper printing and other paper-based products
31. Coir products
32. Furniture goods
33. Farming of poultry
34. Bicycle components
35. Crèches and beauty salons
36. Garages and auto repair services
37. X-ray machine manufacturers
38. Items of stationery
39. Photocopying agencies/centres
40. Rental and leasing equipment
41. Photographic labs

List of Non-MSME Businesses

The MSMED (Micro, Small and Medium Enterprises Development) Act of 2006 specifically excludes certain types of businesses from the MSME definition. These businesses generally do not involve the production or provision of commodities or services that directly contribute to economic development.

The following ventures are excluded from the list of businesses under MSMEs:

1. Gambling companies and betting ventures
2. Forestry and timber harvesting
3. Fishing and aquaculture businesses
4. Activities of households employing domestic personnel
5. Activities of extraterritorial organisations and bodies
6. Goods and services produced by private households for personal use
7. Motorcycle trade and repair
8. Retail trade (excluding vehicles and motorcycles)

Conclusion

Businesses that qualify as MSMEs have ample support from the Indian government via benefits, subsidies and schemes. If your business meets the MSME eligibility criteria, you can visit the Udyam portal and follow the MSME registration guidelines.

If you’re looking to expand your MSME operations or meet working capital requirements, SMFG India Credit provides tailored business loans. You can get a collateral-free loan up to INR 75 lakhs* at competitive interest rates. The loan tenure goes up to 48 months for convenient repayments. Check your business loan eligibility today and apply online.