MSME is an acronym for Micro, Small and Medium Enterprises. MSMEs are basically small-sized businesses defined in terms of their investment. Considering the economic importance of this sector, Government of India has enacted a separate Act- Micro, Small & Medium Enterprises Development Act, 2006 (MSMED) on June 16, 2006, which was notified on October 2, 2006.
MSME registration is required to avail the benefits from the Central Government, state governments and financial institutions.
MSMEs can avail of easy loan sanctions, lower interest rates, power subsidy, tax holidays & subsidy, etc. But there are many more benefits available for MSMEs under The MSMED Act.