MSME stands for Micro, Small and Medium Enterprises. These enterprises are defined in terms of their investment in plant and machinery or equipment. MSMEs are considered to be the backbone of the Indian economy, silently operating in different areas across the country. The Ministry of Micro, Small & Medium Enterprises is responsible for promoting the growth and development of the MSME sector, including Khadi, Village and Coir Industries, in cooperation with concerned Ministries/Departments, State Governments and other Stakeholders.

MSME registration is important because it provides several benefits to enterprises that are registered under the MSME Act. These benefits include priority sector lending, power tariff subsidies, capital investment subsidies, and excise and direct tax exemptions. MSME registration also provides protection against delayed payments, and makes it easier for enterprises to access credit. Additionally, registered MSMEs are eligible for various schemes and incentives offered by the government to promote the growth and development of the MSME sector.