List of Businesses that Fall under the MSME Sector
Published on : April 19, 2024

MSMEs have become the pillar of the Indian economy. In recent years, around 30% of India’s GDP can be attributed to the MSME sector.

Additionally, MSMEs in India are second after agriculture in terms of their contribution to job creation. MSMEs also provide a marketplace that encourages innovation, cooperation, and partnerships and assists larger companies.

The list of MSME businesses keeps growing. Here, we have curated a list of businesses that fall under the MSME sector and those that do not.

Sectors that come under MSME

Below are the sectors that can be considered MSMEs as per the government’s rules and regulations.

Manufacturing Business Activities

The MSME sector includes all businesses that produce finished goods from raw materials. Manufacturing businesses contribute approximately 45% of the total manufacturing output and 48% of the total exports, which is expected to grow in the upcoming years.

Service Sector

MSMEs are important for the business activities of the service industry. According to recent data, MSMEs in the service sector comprise a larger portion than the manufacturing sector.

Which business comes under MSME?

Below is the list of businesses that fall under the MSME sector. The government of India has approved these businesses.

  1. Leather products – bags, belts, shoes, and wallets
  2. Xerox, lamination, binding, and other related services
  3. Beauty parlours, salons, spas, and other day-care services
  4. Back office data operations
  5. Information technology services – Server bank creations, application service provider, smart card customisation, etc.
  6. Call centre services
  7. Dish cable television services with dish antenna
  8. Mechanically engineered products – Steel cupboards, clocks, valves, wire cutter, etc
  9. Photographic lab
  10. X-Ray clinics
  11. Testing lab services
  12. Coir and Jute Products
  13. Active pharmaceutical and ayurvedic products
  14. Training and educational institutes
  15. Automotive repair services, welding services, and garages
  16. Natural fragrances and flavours
  17. Consultancy services for job placement and management
  18. STD/ISD Booth
  19. Security solutions, CCTV installation, Electronic Surveillance
  20. Production of Stationery
  21. Recorders, VCRs, radios, transformers
  22. Rubber product manufacturing
  23. Bicycle parts manufacturing
  24. Poultry farming
  25. Khadi and similar hosiery products
  26. Rubber product manufacturing
  27. Agricultural farm equipment – tractors, pumps, boring equipment
  28. Wooden furniture and other wooden products
  29. Handicraft activities – spinning, weaving, artisan crafts
  30. Printing – cards, bags, paper-based products
  31. Energy-efficient pump manufacturing
  32. Equipment and leasing services
  33. Metallic ware production
  34. Automotive electronic components
  35. Auto parts – horn buttons, door channels, wiper blade, battery cell tester
  36. Engineering and fabrication services
  37. Ceramics and glass products
  38. Micronutrients and supplements for plant growth

Businesses that do not fall under MSME

Not all businesses fall under MSME, and the Government of India has listed some of them below.

  • Gambling and betting companies
  • Forestry and timber harvesting
  • Fishing and aquaculture business
  • Motorcycle trade and repair
  • Household activities, employment of domestic help
  • Goods and services produced by private households for personal use
  • Activities of extraterritorial organisation


Above, we have provided a comprehensive list of MSME businesses in India and their widespread presence; it is obvious that MSMEs are an important part of the country’s economic expansion.

The Indian government acknowledges the significance of the MSME sector and has launched several financing schemes designed to meet their needs to promote the sector’s expansion.

This sector has been given a lot of importance and funds when required. Many lenders like LoanTap provide MSME loans to help them carry out their services.


Do women entrepreneurs in the MSME sector have access to any particular programmes?

Ans. Yes, the MSME sector offers specific programmes and initiatives for female entrepreneurs, with the goal of promoting women’s involvement in the business through mentorship, training, and financial support.

Can MSMEs receive help with technology upgrades?

Ans. Yes, MSMEs can get help for technological upgrades, improving their systems, and upgrading their equipment in order to increase productivity and competitiveness.

What is the role of MSMEs in the export sector?

Ans. MSMEs play an important role in the export industry because they boost export revenue, support homegrown goods, and make businesses more competitive in global marketplaces by offering good quality goods and services.

Under the MSME sector, what are Medium Enterprises?

Ans. Investment (in plant, & machinery or equipment) does not exceed 10 crores and turnover does not exceed 250 crore

What are the advantages of registering as an MSME?

Ans. Registering as an MSME offers several advantages, such as ease during procurement, government programmes, subsidies, and exemptions from certain restrictions.