India has been the land of the fastest growth and development over the past few decades. We have witnessed the glory of technology, businesses and developing regions nationwide. One of the key reasons for India's economic growth is the Micro, Small and Medium Enterprises. According to a recent report, on September 16, 2022, Minister Narayan Rane said that MSMEs have contributed one-third to India's gross domestic product and have the potential to grow further.

The government and financial institutions in the country are encouraging people to start businesses. By doing so, you will contribute to the country's overall growth and push India further up the ladder globally.

Top Successful MSME Businesses in India

Before we take a look at the different MSME businesses in India, let's take a look at the criteria in terms of investment and annual turnover for a business to fall under the MSME sector:

So, if your business investment and turnover fall within this range, you are part of the benefits, schemes and other provisions for MSME in India.

The MSME sector is mainly divided into two categories: manufacturing and service. Let's take a look:

1. Manufacturing Sector
   According to a recent report, MSMEs in India's GDP is expected to grow 100% by 2025. Businesses in the manufacturing sector mainly produce goods. The investment in plant and machinery and annual turnover also play a vital role in categorizing SME businesses under this category.

    

   Here are some of the thriving manufacturing businesses under MSME in India:

    

   Machinery	Construction Materials	Biotechnology
   Oil, Gas, Coal	Electronic and Electrical Goods	Industrial Supplies
   Industrial Engineering	Renewables and Environment	Food Processing
   Packaging Material and Supplies	Agriculture and Farming	Medical and Healthcare Products
   Automobile Parts and Spares	Chemicals	Khadi Products

    

   MSME businesses in these manufacturing industries have shown extreme potential and growth in India. Regarding the Khadi and Food processing industries, the Government of India has undertaken various initiatives to support and encourage SME businesses. The Ministry of MSME introduced the Scheme Fund for Regeneration of Traditional Industries (SFURTI) and the Prime Minister's Employment Generation Programme (PMEGP) to help and support MSME businesses flourish in the non-agriculture sector.

    

   Government supports the business ideas and initiatives of the MSME sector. According to a report, the MSME Ministry also launched A Scheme for Promotion of Innovation, Rural Industry and Entrepreneurship (ASPIRE) to foster innovation and the creation of new businesses, including those engaged in food processing. By providing them with support for selling their products through Khadi & Village Industries Commission (KVIC) sales outlets, the Ministry of MSME is also helping micro industries market their agriculturally based products like papad, masala, jam, jelly, etc.

    

   Some of the products the government has exclusively marked for manufacturing by the MSME industry are:

    

   1. Food and Allied Industries

      • Pickles

      • Bread

      • Groundnut Oil (except solvent extracted)

      • Chutneys

      • Mustard Oil (except solvent extracted)

        
        
        

   2. Chemical and Chemical Products

      • Laundry Soap

      • Wax Candles

      • Fire Works

      • Safety Matches

      • Agarbattis

        
        
        

   3. Glass and Ceramics

      • Glass Bangles

        
        
        

   4. Mechanical Products, excluding Transport Equipment

      • Steel almirah

      • Rolling shutters

      • Steel chairs-All types

      • Steel tables-All other types

      • Steel furniture-All other types

      • Padlocks

      • Stainless steel utensils

      • Domestic utensils-Aluminium

        
        
        

   5. Wood and Wooden Furniture

      • Wooden Furniture and Fixtures

        
        
        

2. Services Sector

   According to a recent report, the Service sector contributes to 58% of India's GDP. The MSME industry makes up most of the service sector offerings. Some of the best business ideas to take inspiration from are in the services sector! Some of the popular SME services in India are:

    

   Food Catering	Small Restaurants	Appliances Stores
   Beauty Parlour	Cloud Kitchens	Electronic Surveillance and Security
   Food Vans	Crèches	Energy Efficient Pumps
   Engineering and Fabrication	Furniture	IT Solution Provider
   Laundry and Dry Cleaning	Multi Channels Dish Cable Antenna	Photo Studio
   Phonebooths	Photocopying	Printing Services
   Consultancy Services	Rental and Leasing of equipment	Servicing of Agricultural Farm Equipment
   Tailoring	Grocery Stores	Boutiques
   Testing Labs for industries	Training and Educational Institution	Diagnostic Centers
   Medical Clinics	Apparel Stores	Electronic Accessories
   Repair and Restoration Work	Accounts	Fitness Centres

    

   The MSMEs have played a successful role in making life more convenient and products accessible to everyone. They have also been crucial in developing rural and semi-urban areas by providing employment opportunities and utilizing people's skills and raw resources. However, service sector MSMEs do face some challenges. One of the major challenges is the availability of working capital. To aid this situation, SMEs should move toward flexible and safe business loan options like Loan against Property. It provides many benefits, including longer repayment tenure and low interest rates.

    

   Pro-Tip: Going for a loan against property will help you get faster loans, lower interest rates and long repayment tenure than any other loan options.

    

   Government Schemes for MSMEs in India

    

   Scheme	Description
   Credit Guarantee Trust Fund for Micro & Small Enterprises (CGTMSE)	Established by the Ministry of MSME and Small Industries Development Bank of India (SIDBI) only for Micro and Small Enterprises
   Prime Minister Employment Generation Programme (PMEGP)	Under this scheme, any new project in the manufacturing sector worth up to ₹ 25 lakhs and a new business/service sector worth up to ₹ 10 lakhs will get financial assistance.
   Interest Subsidy Eligibility Certificate (ISEC)	For the promotion of Khadi and Village Industry products
   Market Promotion & Development Scheme (MPDA)	For the promotion of Khadi and Village Crafts
   Revamped Scheme of Fund for Regeneration of Traditional Industries (SFURTI)	This was established to improve traditional industries, emphasizing traditional skills, and ensuring long-term sustainable income for rural artisans
   ZED Certification	Stands for Zero Defect and Zero Effect (ZED). It aims at reducing waste and improving productivity. All MSMEs with Udyog Aadhar are eligible
   National Manufacturing Competitiveness Programme (NMCP)	To enhance competitiveness in the MSME sector to promote growth.
   Entrepreneurship and Skill Development Programme (ESDP) Scheme	Encouraging entrepreneurship and growth of MSMEs in India

    

   The government has also introduced positive reforms for the MSME industry under Atma Nirbhar Abhiyan. Let's take a look:

    

   • Availability of Rs 3 lakh crore collateral-free and automatic loans

   • MSMEs can now enjoy Rs 20 crore subordinate debt

   • An infusion of Rs 50,000 crore was done through the MSME Fund of Funds

    

   What are Other Loan Options Available?

   A loan against property is not just a wonderful business loan option but also a smart one. Let's take a look at why a loan against property is the best option for SMEs:

    

   • You will get your loan processed faster

   • Loan against property interest rates is low

   • You can get up to 80% of your property value as a loan amount

   • You get a long repayment tenure

   • You can continue to use the property you have hypothecated for the loan

   • It's a secure loan option

Conclusion
Starting a business doesn't have to be a dream anymore! Take inspiration from the endless opportunities we have listed for you in the MSME industry. With a business loan like a loan against property, you can make your business dreams come true! Know more about the nitty-gritty of loan against property and the different types of loans available.

Godrej Capital, through its subsidiaries, Godrej Housing Finance and Godrej Finance, offers products such as Home Loans, Loans Against Property, Balance Transfers, and many more. To know more about our offering, click here

Disclaimer: The names used in this article are fictitious and are used for representational purposes only.

The contents of this article is for information purpose only & not a financial advisory. For more details, please refer to the product or service document and/ or connect with our customer representative prior to making any financial decision. The information is subject to update, completion, revision and amendment and may change materially. The information is not intended for distribution or use by any person in any jurisdiction where such distribution or use would be contrary to law or regulation or would subject Godrej Capital or its affiliates to any requirements. Godrej Capital or its affiliates shall not be responsible for any direct/indirect loss or liability incurred by the reader for taking any financial decisions based on the contents and information mentioned. Please consult your financial advisor before making any financial decision.