{"id":26175,"date":"2021-02-18T12:43:38","date_gmt":"2021-02-18T07:13:38","guid":{"rendered":"https:\/\/corpbiz.io\/learning\/?p=26175"},"modified":"2025-01-02T18:25:28","modified_gmt":"2025-01-02T12:55:28","slug":"is-msme-and-ssi-the-same-an-overview","status":"publish","type":"post","link":"https:\/\/corpbiz.io\/learning\/is-msme-and-ssi-the-same-an-overview\/","title":{"rendered":"Is MSME and SSI the Same: An Overview"},"content":{"rendered":"\n<p class=\"has-drop-cap\">Small Scale Industries (SSIs) are the entities that are concerned with the production, manufacturing and products services on the small and micro scale. The maximum investment by Small Scale Industries cannot exceed Rs. 1 crore in plants &amp; industries and machinery. MSME and SSI are enterprises working under the guiding principle of Government of India. <\/p>\n\n\n\n<div id=\"ez-toc-container\" class=\"ez-toc-v2_0_82_2 counter-hierarchy ez-toc-counter ez-toc-grey ez-toc-container-direction\">\n<div class=\"ez-toc-title-container\">\n<p class=\"ez-toc-title ez-toc-toggle\" style=\"cursor:pointer\">Page Contents<\/p>\n<span class=\"ez-toc-title-toggle\"><a href=\"#\" class=\"ez-toc-pull-right ez-toc-btn ez-toc-btn-xs ez-toc-btn-default ez-toc-toggle\" aria-label=\"Toggle Table of Content\"><span class=\"ez-toc-js-icon-con\"><span class=\"\"><span class=\"eztoc-hide\" style=\"display:none;\">Toggle<\/span><span class=\"ez-toc-icon-toggle-span\"><svg style=\"fill: #999;color:#999\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" class=\"list-377408\" width=\"20px\" height=\"20px\" viewBox=\"0 0 24 24\" fill=\"none\"><path d=\"M6 6H4v2h2V6zm14 0H8v2h12V6zM4 11h2v2H4v-2zm16 0H8v2h12v-2zM4 16h2v2H4v-2zm16 0H8v2h12v-2z\" fill=\"currentColor\"><\/path><\/svg><svg style=\"fill: #999;color:#999\" class=\"arrow-unsorted-368013\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" width=\"10px\" height=\"10px\" viewBox=\"0 0 24 24\" version=\"1.2\" baseProfile=\"tiny\"><path d=\"M18.2 9.3l-6.2-6.3-6.2 6.3c-.2.2-.3.4-.3.7s.1.5.3.7c.2.2.4.3.7.3h11c.3 0 .5-.1.7-.3.2-.2.3-.5.3-.7s-.1-.5-.3-.7zM5.8 14.7l6.2 6.3 6.2-6.3c.2-.2.3-.5.3-.7s-.1-.5-.3-.7c-.2-.2-.4-.3-.7-.3h-11c-.3 0-.5.1-.7.3-.2.2-.3.5-.3.7s.1.5.3.7z\"\/><\/svg><\/span><\/span><\/span><\/a><\/span><\/div>\n<nav><ul class='ez-toc-list ez-toc-list-level-1 eztoc-toggle-hide-by-default' ><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-1\" href=\"https:\/\/corpbiz.io\/learning\/is-msme-and-ssi-the-same-an-overview\/#What_are_MSME_and_SSI\" >What are MSME and SSI?<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-2\" href=\"https:\/\/corpbiz.io\/learning\/is-msme-and-ssi-the-same-an-overview\/#What_is_the_Similarity_between_MSME_and_SSI\" >What is the Similarity between MSME and SSI?<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-3\" href=\"https:\/\/corpbiz.io\/learning\/is-msme-and-ssi-the-same-an-overview\/#The_Investment_Limit_of_MSME\" >The Investment Limit of MSME<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-4\" href=\"https:\/\/corpbiz.io\/learning\/is-msme-and-ssi-the-same-an-overview\/#Conclusion\" >Conclusion<\/a><\/li><\/ul><\/nav><\/div>\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"What_are_MSME_and_SSI\"><\/span>What are MSME and SSI?<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p>Small\nScale Industries are the one of the main reason behind the growth of the nation\nso it is also considered as the backbone of Indian economy. SSI facilitates in\nthe improvement of employment and generates more job opportunities as because\nmaximum of the SSIs involve labours.<\/p>\n\n\n\n<p><a href=\"https:\/\/corpbiz.io\/msme-registration\" title=\"MSME Registration\"><strong>MSME<\/strong><\/a> stands for Micro, Small and Medium Enterprises. The Government of India with Micro, Small and Medium Enterprises Development (MSMED) Act of 2006 has initiated with&nbsp;MSME or Micro, Small, and Medium Enterprises. These enterprises are mainly involved in the manufacturing, producing, in preserving or processing the goods and commodities.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"What_is_the_Similarity_between_MSME_and_SSI\"><\/span>What is the Similarity between MSME and SSI?<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p>There is no such\ndifference between&nbsp;the MSME and SSI and earlier MSME was termed as SSI. Basically, SSI or Small Scale Industries was started to expand the\nSmall scale industries with the emergence of MSMED (Micro Small and Medium\nEnterprise Development Act, 2006. <\/p>\n\n\n\n<p>Small Scale\nIndustries (SSI) are industries where the production of goods and its\nmanufacturing process and the services provided are everything done on a micro\nscale or a small scale. But in the Micro, Small and Medium Enterprises (MSMEs),\nthe Government gives loans to the people willing to start or invest in their\nbusinesses and are in the service and manufacturing sector. <\/p>\n\n\n\n<p>Therefore, both MSME and SSI are involved in the service and manufacturing sector, but the only small difference lies that the manufacturing of goods or providing services by the SSIs are done with the help of comparatively smaller number of machines and workers.<\/p>\n\n\n\n<p class=\"text-left\"><b>Read our article<\/b>:<mark style=\"background: #fffd03 !important;\"><a href=\"https:\/\/corpbiz.io\/learning\/msme-registration-essentials-and-upcoming-benefits-for-business\/\">MSME Registration: Essentials and Upcoming Benefits for Business <\/a><\/mark><\/p>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"The_Investment_Limit_of_MSME\"><\/span>The Investment Limit of MSME<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p>The MSMEs by the\nMicro, Small and Medium Enterprises Development (Amendment) Bill, 2018, has\nclassified the manufacturing or service-providing enterprises which are based on\ntheir annual turnover. Then on\n13th May, 2020 Government of India announced some major relief to the MSMEs by\nrevising the definition of the MSME as whole. <\/p>\n\n\n\n<p>The MSME\nand SSI industries make a\none-time investment in machinery, plants, and industries which does not exceed\nRs 1 Crore. <\/p>\n\n\n\n<p><strong>Earlier the MSME and SSI investment limit was divided into two:-<\/strong><\/p>\n\n\n\n<ul>\n<li><strong>Manufacturing enterprise<\/strong>: Investment in Plant &amp; Machinery (Excluding lands &amp; buildings)<\/li>\n<\/ul>\n\n\n\n<table class=\"table table-bordered\"><tbody><tr><td>\n  Micro Enterprise\n  <\/td><td>\n  Investment of up\n  to Rs.25 lakhs\n  <\/td><\/tr><tr><td>\n  Small Enterprise\n  <\/td><td>\n  Investment of up\n  to Rs.5 crores\n  <\/td><\/tr><tr><td>\n  Medium\n  Enterprise\n  <\/td><td>\n  Investment of up\n  to Rs.10 crores\n  <\/td><\/tr><\/tbody><\/table>\n\n\n\n<ul>\n<li><strong>Service enterprise<\/strong>: Investment in Plant &amp; Machinery (Excluding lands &amp; buildings)<\/li>\n<\/ul>\n\n\n\n<table class=\"table table-bordered\"><tbody><tr><td>\n  Micro Enterprise\n  <\/td><td>\n  Investment of less than Rs 10 lakhs in equipment\n  <\/td><\/tr><tr><td>\n  Small Enterprise\n  <\/td><td>\n  Investment of less than Rs.2 crores in equipment\n  <\/td><\/tr><tr><td>\n  Medium\n  Enterprise\n  <\/td><td>\n  Investment of less than Rs.5 crores in equipment\n  <\/td><\/tr><\/tbody><\/table>\n\n\n\n<h3 class=\"wp-block-heading\">Revised MSME and SSI for Aatma Nirbhar Bharat on 13th May,\n2020<\/h3>\n\n\n\n<table class=\"table table-bordered\">\n<tbody>\n<tr>\n<td width=\"243\">\n<p><strong>Classifications<\/strong><\/p>\n<\/td>\n<td colspan=\"2\" width=\"444\">\n<p><strong>Manufacturing &amp; Service Sector<\/strong><\/p>\n<\/td>\n<\/tr>\n<tr>\n<td width=\"243\">\n<p>&nbsp;<\/p>\n<\/td>\n<td width=\"222\">\n<p>Investment<\/p>\n<\/td>\n<td width=\"222\">\n<p>Turnover<\/p>\n<\/td>\n<\/tr>\n<tr>\n<td width=\"243\">\n<p>Micro-Enterprise<\/p>\n<\/td>\n<td width=\"222\">\n<p>1 Crore<\/p>\n<\/td>\n<td width=\"222\">\n<p>5 Crore<\/p>\n<\/td>\n<\/tr>\n<tr>\n<td width=\"243\">\n<p>Small Enterprise<\/p>\n<\/td>\n<td width=\"222\">\n<p>Over&nbsp;&nbsp;1 Crore but less than&nbsp;&nbsp;10 crore<\/p>\n<\/td>\n<td width=\"222\">\n<p>Over&nbsp;&nbsp;5 Crore but less than&nbsp;&nbsp;50 crore<\/p>\n<\/td>\n<\/tr>\n<tr>\n<td width=\"243\">\n<p>Medium Enterprise<\/p>\n<\/td>\n<td width=\"222\">\n<p>Over&nbsp;&nbsp;10 Crore but less than&nbsp;&nbsp;50 crore<\/p>\n<\/td>\n<td width=\"222\">\n<p>Over&nbsp;50 Crore but less than&nbsp;&nbsp;250 crore<\/p>\n<\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n\n\n\n<h3 class=\"wp-block-heading\">What are the Benefits of Registering MSME and SSI?<\/h3>\n\n\n\n<p>Both MSME and SSI are under <em><strong>Government of India<\/strong><\/em><sup><a href=\"https:\/\/en.wikipedia.org\/wiki\/Government_of_India\"><em><strong>[1]<\/strong><\/em><\/a><\/sup> and it provides various benefits. Any enterprise whether it is the Small scale industries or Micro, Small and Medium Enterprises (MSME) can register under the MSMED Act to avail the benefits of the schemes and subsidies offered by the Government.<\/p>\n\n\n\n<p>The\nvarious advantages comprises of capital investment subsidies, priority sector\nlending, and subsidies on power tariff, excise and direct tax exemptions.<\/p>\n\n\n\n<ul>\n<li>Easily get government tenders. <\/li>\n\n\n\n<li>Easily get various licenses and permits for business. <\/li>\n\n\n\n<li>Import subsidy of 15 % on fully automatic machinery in case of a bank loan.<\/li>\n\n\n\n<li>Avail <a href=\"https:\/\/corpbiz.io\/iso-registration\" title=\"ISO Certification\"><strong>ISO Certification<\/strong><\/a> compensation. <\/li>\n\n\n\n<li>There is no need for filing returns. <\/li>\n\n\n\n<li>There are subsidies on electricity bills. <\/li>\n\n\n\n<li>These are the priority sector lending. <\/li>\n\n\n\n<li>Subsidies will be provided under excise laws and direct tax laws. <\/li>\n\n\n\n<li>Beneficial interest rates.<\/li>\n\n\n\n<li>50% Subsidy on <a href=\"https:\/\/corpbiz.io\/patent-registration\" title=\"Patent Registration\"><strong>Patent Registration<\/strong><\/a>.<\/li>\n<\/ul>\n\n\n\n<h3 class=\"wp-block-heading\">Documents Required for Filing MSME and SSI Registration?<\/h3>\n\n\n\n<p><em><strong>The few important documents required for the MSME and SSI registration are given below:<\/strong><\/em><\/p>\n\n\n<div class=\"wp-block-image\">\n<figure class=\"aligncenter is-resized\"><img decoding=\"async\" src=\"https:\/\/corpbiz.io\/learning\/wp-content\/uploads\/2021\/02\/Documents-Required-for-Filing-MSME-and-SSI-Registration.png\" alt=\"Documents Required for Filing MSME and SSI Registration\" class=\"wp-image-26201\" width=\"507\" height=\"440\" srcset=\"https:\/\/corpbiz.io\/learning\/wp-content\/uploads\/2021\/02\/Documents-Required-for-Filing-MSME-and-SSI-Registration.png 900w, https:\/\/corpbiz.io\/learning\/wp-content\/uploads\/2021\/02\/Documents-Required-for-Filing-MSME-and-SSI-Registration-300x261.png 300w, https:\/\/corpbiz.io\/learning\/wp-content\/uploads\/2021\/02\/Documents-Required-for-Filing-MSME-and-SSI-Registration-768x667.png 768w\" sizes=\"(max-width: 507px) 100vw, 507px\" \/><\/figure><\/div>\n\n\n<h3 class=\"wp-block-heading\">What are the Objectives of MSME and SSI?<\/h3>\n\n\n\n<ul>\n<li>MSME and SSI assists with counting and keeps a list of the small businesses.<\/li>\n\n\n\n<li>Provide a certificate declaring that the registration under MSME and SSI will empower the enterprises to gain profit of the legal advantages essentially they will have the long term protection. <\/li>\n\n\n\n<li>Fulfils the purpose of the statistics collection.<\/li>\n\n\n\n<li>MSME and SSI registration can be used as identification for businesses to open a bank account and also for registration of GST. <\/li>\n\n\n\n<li>MSME and SSI facilitate the growth and development of socio-economic status of our country.<\/li>\n<\/ul>\n\n\n\n<h3 class=\"wp-block-heading\">Role of MSME and SSI in Indian economy<\/h3>\n\n\n\n<p><strong><em>There are specific roles that MSME and SSI plays in the Indian Economy, which are as follows:-<\/em><\/strong><\/p>\n\n\n\n<h3 class=\"wp-block-heading\">Employment<\/h3>\n\n\n\n<p>They are the major source of generating\nemployment for developing countries like India. Because of the availability of\nlabour and manpower it has helped in development of the production even after\nhaving an inadequate availability of technology and resource.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\">Total\nProduction<\/h3>\n\n\n\n<p>These enterprises are the backbone of\nIndia. They give 40% of the total production of goods and services in India.\nThese enterprises are one of the main reasons for the expansion and growth of\nthe Indian economy.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\">Make\nin India<\/h3>\n\n\n\n<p>MSME and SSI have always aimed in\nsupporting the Make in India initiative. Their major focus is to accomplish the\nmission for manufacturing products in India and selling them worldwide. This\nhelps in maximum export and also keeps on creating more demands from over the\nworld all around.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\">Export\nContribution<\/h3>\n\n\n\n<p>MSME and SSI products are in demand\nbecause of which the India\u2019s export industry is dependent on this micro, small\nand medium enterprises. Almost half of the goods produced or manufactured in\nIndia are exported to various different countries which is the reason for the\ndevelopment and growth of Indian economy. <\/p>\n\n\n\n<h3 class=\"wp-block-heading\">Public\nWelfare<\/h3>\n\n\n\n<p>These enterprises give an opportunity\nto the nation to earn capital and generate employment. MSME and SSI is also significant\nfor the soci0-economic growth and development of our nation.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Conclusion\"><\/span>Conclusion<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p>The\nMSME and SSI are both under Government of India. Earlier it was only SSI but\nthen Government decided to include micro and medium enterprises into it and\ntherefore the name is MSME now. The Indian MSME and SSI enterprises sector\nprovides quiet a support to the national economy and by protecting it acts as a\ndefense in case of recession, global economic shock and any other unprecedented\nadversities. Hence, it can be said that India through a silent revolution is growing\nforward towards a strong and powerful global economy powered by MSMEs.<\/p>\n\n\n\n<p>Therefore, both MSME and SSI aim for the socio-economic development and growth of the Indian economy and works for the same cause.<\/p>\n\n\n\n<p class=\"text-left\"><b>Read our article<\/b>:<mark style=\"background: #fffd03 !important;\"><a href=\"https:\/\/corpbiz.io\/learning\/new-structure-of-msme-classification\/\">An Outlook on the New Structure of MSME Classification <\/a><\/mark><\/p>\n","protected":false},"excerpt":{"rendered":"<p>Small Scale Industries (SSIs) are the entities that are concerned with the production, manufacturing and products services on the small and micro scale. The maximum investment by Small Scale Industries cannot exceed Rs. 1 crore in plants &amp; industries and machinery. MSME and SSI are enterprises working under the guiding principle of Government of India. [&hellip;]<\/p>\n","protected":false},"author":33,"featured_media":26199,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":[],"categories":[176],"tags":[1544],"acf":{"service_id":"71"},"authorName":"Kandarp Vanita","authorImageUrl":"https:\/\/corpbiz.io\/learning\/wp-content\/uploads\/2021\/02\/image_2021_02_01T09_09_44_024Z.png","authorDescription":"Kandarp Vanita has done masters in Corporate and Commercial Law from WB National University of Juridical Sciences. She has 3 yrs of experience in drafting legal documents &amp; dissertations. Being a curious reader, she is also passionately into providing legal backups and comprehensive understandings in every aspect of Law to the firms.","postViews":10636,"readingTime":4,"_links":{"self":[{"href":"https:\/\/corpbiz.io\/learning\/wp-json\/wp\/v2\/posts\/26175"}],"collection":[{"href":"https:\/\/corpbiz.io\/learning\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/corpbiz.io\/learning\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/corpbiz.io\/learning\/wp-json\/wp\/v2\/users\/33"}],"replies":[{"embeddable":true,"href":"https:\/\/corpbiz.io\/learning\/wp-json\/wp\/v2\/comments?post=26175"}],"version-history":[{"count":17,"href":"https:\/\/corpbiz.io\/learning\/wp-json\/wp\/v2\/posts\/26175\/revisions"}],"predecessor-version":[{"id":68137,"href":"https:\/\/corpbiz.io\/learning\/wp-json\/wp\/v2\/posts\/26175\/revisions\/68137"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/corpbiz.io\/learning\/wp-json\/wp\/v2\/media\/26199"}],"wp:attachment":[{"href":"https:\/\/corpbiz.io\/learning\/wp-json\/wp\/v2\/media?parent=26175"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/corpbiz.io\/learning\/wp-json\/wp\/v2\/categories?post=26175"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/corpbiz.io\/learning\/wp-json\/wp\/v2\/tags?post=26175"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}