MSME Industries List: Which Sectors Are Included Under MSMEs

In India, the MSME sector is often considered the backbone of the country’s economy. MSMEs (micro, small, and medium enterprises) not only have a significant contribution to the country’s total GDP but also generate plenty of employment opportunities. Recognised for its immense potential, the MSME sector is slowly becoming synonymous with growth and development in the country.

Table Of Content

• What are MSMEs?
• List of MSME Businesses

Here is a detailed explanation of MSMEs and also a list of which businesses come under the MSME category:

What are MSMEs?

The Indian government has certain criteria for classifying a business as an MSME. For this classification, both the total investment amount of a business and annual turnover are taken into consideration. Enterprises with an investment of less than Rs. 1 Crore and a yearly turnover of less than Rs. 5 Crore fall under the micro category. Those with investments ranging between Rs. 1 to 5 Crore and an annual turnover of more than Rs. 50 Crore are called small enterprises. Similarly, businesses with an investment of Rs. 5 to 10 crore and an annual turnover of over Rs. 250 crore are medium enterprises.

List of MSME Businesses

MSMEs can be divided into two major categories, depending on the nature of the business:

Manufacturing MSMEs

These businesses are a part of the manufacturing industry. They produce finished goods from raw materials and supply them to end users. Here is a list of MSME industries in the manufacturing sector:

• Textiles and garments: From traditional handloom setups to modern garment factories, every business is included in this category.
• Food Processing: These businesses can be related to the preservation of food items or the preparation of any kind of culinary delights.
• Leather Products: These businesses can manufacture anything ranging from leather bags and wallets to shoes and belts.
• Engineering and Fabrication: This category mainly includes businesses that create a wide range of metal and plastic products. From small workshops to medium-sized factories, the size of manufacturing units can vary.
• Pharmaceuticals and Chemicals: These businesses manufacture different kinds of medicines and chemicals that are essential for not just healthcare but various other industries as well.

Service MSMEs

The service sector comprises a larger proportion of Indian MSMEs, as compared to the manufacturing sector. As the name implies, these businesses mainly focus on providing services and do not have any product as their offering. Here is a list of MSMEs included in the service sector:

Information Technology and Software: From mobile apps to websites and software, these businesses provide all kinds of IT solutions.

Tourism and Hospitality: These businesses are a part of the tourism industry and can be a small homestay, a local travel agency or tour guide providers.

Education and Healthcare: Any business offering essential education and healthcare services to customers falls under this category.

Retail and Wholesale: From small grocery shops to fashion boutiques, all businesses offering retail or wholesale offerings are included in this category.

Professional Services: These businesses offer valuable expertise to customers depending on their requirements. From financial advice to legal consultation, these professional services can be related to any field.

Suggested Read: Step-by-Step Process to Apply for an MSME Loan for Startups

Apart from these, there are a few business activities that don’t fall under any of these two MSME categories. These include:

• Agriculture and Allied Activities: It can include various activities related to the agriculture sector, such as organic farming, poultry business, etc.
• Transportation and Logistics: Small businesses in the transportation and logistics industry can also be included in the MSME sector.
• Construction and Real Estate: Small construction firms and local property developers are also a part of the MSME sector.

In the last few years, the Indian MSME sector has witnessed immense growth. In fact, you will be surprised to know how many MSMEs in India are currently operational. The figure has crossed the mark of 65 million!

Are you also in the process of starting your own business and not sure how to arrange the required funds? This is when the concept of obtaining an MSME loan comes into the picture. At Muthoot Finance, we offer quick and hassle-free MSME loans at highly competitive interest rates. You can explore all the loan schemes and choose the one that suits you the best. Or, you can also visit your nearest Muthoot Finance branch for more information.