Loan for Business

MSME Business List 2025: Eligible Industries & Registration Guide

By Tata Capital
02 January 2026
9 mins read
1683

Want to start a small business of your own? This is the right time to do so!

The Micro, Small and Medium Enterprises sector or MSME sector has emerged as a key driver of the Indian economy, with countless success stories to tell. Every day, the MSME business list keeps growing.

Today, the MSME sector accounts for over 40% of the country’s GDP and over 40% of India’s exports. What’s more, MSMEs in India also contribute greatly to employment generation, ranking second to agriculture. MSMEs also offer vital support to larger businesses and give rise to a marketplace that fosters innovation, partnership, and collaboration.

To encourage small and medium business owners, the Indian government has launched several initiatives to help the MSME sector grow. MSMEs can gain financial assistance, benefit from tax breaks, and get easier access to markets. So, if you want to learn more about MSMEs and start a venture of your own, this blog is for you.

Read more to learn about which businesses strictly come under the MSME sector and which ones don’t.

MSME Sector Categorization: Micro, Small & Medium Enterprises Explained

The Indian government’s Ministry of MSMEs is solely responsible for overseeing and enforcing the rules, regulations, and legal frameworks that govern MSMEs.

Based on investment and turnover, the MSME sector is divided into three categories: micro, small, and medium.

S.No	Type of business	The maximum investment (in Rupees)	Maximum Annual turnover (in Rupees)
1	Micro Businesses	1 crore	5 crores
2	Small Businesses	10 crores	50 crores
3	Medium Businesses	50 crores	250 crores

Also, read – NIC Code for MSME:Guide on National Industrial Classification

MSME Classification Criteria: Investment & Turnover Limits

MSMEs are broadly classified as manufacturing businesses and service businesses.

As per the Ministry of MSMEs, ‘all business activities – services and manufacturing- are covered in the MSME sector’ as long as they meet the investment and turnover criteria mentioned in the above section.

#1. Manufacturing businesses

Manufacturing businesses consist of enterprises involved in producing tangible goods. These businesses can be small-scale artisan workshops to medium-sized factories as long as they meet the investment and turnover criteria.

These businesses can be engaged in:

#1 Fabricating products

#2 Assembling components

#3 Processing raw materials to create finished goods

#2. Service sector businesses

Service businesses or service sector businesses focus on providing intangible services rather than tangible products. These enterprises offer services to other companies, organisations, or individual consumers.

Service-based MSMEs include:

#1 Consulting firms

#2 Legal firms and accounting firms

#3 Hospitality services

#4 Healthcare, exercise, and wellness services

#5 Educational institutions

#6 Security services

Also, read – Get MSME Loan Without Collateral in 5 Ways

Official MSME Business List: 41+ Eligible Industries (2025 Update)

Here is a handy MSME business list for you. These businesses have been approved as MSMEs by the government of India.

#1 Leather goods production- bags, belts, shoes, and wallets

#2 Moulding of items – plastic containers, combs, household goods, umbrella frames, plastic toys, etc.

#3 Natural fragrances and flavours

#4 Consultancy services for job placement and management

#5 Training centres and educational institutions

#6 Energy-efficient pump manufacturing

#7 Xerox, lamination, and other related services

#8 Beauty parlours, salons, and day-care services

#9 Automotive repair services, welding services, and garages

#10 X-ray (X-radiation) clinics

#11 Equipment rental and leasing services

#12 Photography lab solutions

#13 Agricultural farm equipment servicing – tractors, pumps, or ring boring machine

#14 Back-office data operations

#15 STD (Subscriber Trunk Dialling) / ISD (International Subscriber Dialling) booth services

#16 Low-capital retail trade

#17 Multi-channel dish cable television with dish antenna

#18 Laundry services, laundromats, and dry cleaning services

#19 Toughened metallic ware production

#20 Automotive electronic components

#21 Electronic surveillance and security solutions, CCTV installation

#22 Mechanically engineered products – steel cupboards, clocks, valves, wire cutters, etc.

#23 Engineering and fabrication services

#24 Recorders, VCR (Video Cassette Recorder), radios, transformers, motors, watches

#25 Micronutrients and supplements for plant growth

#26 Active pharmaceutical ingredients and Ayurvedic products

#27 Khadi and similar hosiery product manufacturing

#28 Handicraft activities – spinning, weaving, artisan crafts

#29 Printing, card-based products, and paper-based products

#30 Coir and jute industry

#31 Furniture and wooden products

#32 Poultry farming

#33 Bicycle parts manufacturing

#34 Stationery item production

#35 Call centre services

#36 Rubber product manufacturing

#37 Information technology solutions – server bank creation, application service provider, smart card customisation, etc.

#38 Testing labs for industries

#39 Auto parts components – horn buttons, door channels, wiper blade components, battery cell tester

#40 Ceramics and glass products – roofing tiles, glass flooring tiles, granite, etc.

#41 Retail and wholesale business operations

If your business falls under this MSME business list, you can register your company on the Udyam portal of the Indian government using the NIC (National Industrial Classification) code.

Also, read – What is Market Development Assistance (MDA) Scheme?

Non-MSME Businesses: Excluded Industries & Activities

As per the MSMED (Micro, Small, and Medium Enterprises Development) Act 2006, these businesses do not come under the MSME list of companies. So, if your company falls under this non-MSME business list, you will not be eligible for the benefits offered by the government.

#1. Gambling companies and betting ventures

#2. Forestry and timber harvesting

#3. Fishing and aquaculture businesses

#4. Motorcycle trade and repair

#5. Retail trade (excluding vehicles and motorcycles)

#6. Activities of households employing domestic personnel

#7. Goods and services produced by private households for personal use

#8. Activities of extraterritorial organisations and bodies

Also, read – Cancel Your MSME License Online

How to Register Your Business as an MSME: Udyam Portal Guide

Registering your business as an MSME has never been easier, thanks to the Udyam Portal. This government-backed, single-window system is designed to simplify the registration process.

Whether you are exploring the MSME list of business, checking who is eligible for an MSME loan, or identifying which business comes under MSME, this portal ensures a smooth experience for all entrepreneurs. Consider verifying your business category, whether it’s manufacturing, trade, or part of the MSME service sector list, to ensure you choose the correct MSME category list.

Follow these simple steps to complete your registration:

Step 1: Visit the official Udyam Registration portal to begin your application.
Step 2: Enter your Aadhaar number to verify your identity.
Step 3: Fill in details about your enterprise, including name, type, and location.
Step 4: Provide your bank account details for verification purposes.
Step 5: Choose the appropriate National Industry Classification (NIC) code matching your business activities.
Step 6: Review the information carefully and submit your Udyam Registration form for processing.

This process ensures your business is officially recognised and eligible for MSME benefits.

Also, read – What is the Seed Money Scheme?

Top MSME Schemes & Benefits: PMEGP, CGTMSE & More

Whether you’re exploring the MSME list of businesses or checking which business comes under MSME, these schemes offer structured assistance to strengthen micro, small, and medium enterprises across sectors.

Key schemes and their benefits include:

Prime Minister’s Employment Generation Programme (PMEGP): Combines loans and grants with subsidies of 15–35%, aiding rural and semi-urban entrepreneurs.
Credit Guarantee Scheme (CGTMSE): Provides government-backed guarantees for loans up to ₹5 crore, reducing risk for lenders and supporting growth.
Pradhan Mantri Mudra Yojana (PMMY): Offers loans up to ₹10 lakh, improving credit access for micro and small businesses.
Emergency Credit Line Guarantee Scheme (ECLGS): Supplies quick liquidity during economic stress, promoting innovation and stable operations.
Stand-Up India Scheme: Funds ₹10 lakh to ₹1 crore for women and SC/ST entrepreneurs in the manufacturing and MSME service sector listed businesses.
Credit-Linked Capital Subsidy Scheme (CLCSS): Offers a 15% capital subsidy for technology upgrades, boosting competitiveness and design capabilities.

These initiatives help clarify who is eligible for MSME loan while guiding entrepreneurs through the MSME category list for targeted support.

MSME vs SME: Key Differences & Eligibility Criteria

Now that we’ve discussed MSME list of businesses and MSME service sector list, let’s explore how MSME differs from SME.

Basis of Difference	MSME	MSE
Full Form	Micro, Small, and Medium Enterprises	Small and Medium Enterprises
Categories	Micro (up to 10 employees), small (11 to 50 employees), and medium (51 to 250 employees)	small (up to 50 employees), and medium (51 to 250 employees)
Revenue Threshold	Can differ with country, but is typically lower for micro and small businesses	Typically, higher than MSME thresholds
Support Systems	Usually has specific government schemes and financing aimed at supporting small and micro businesses	Gets broader support but can be less targeted than MSME
Focus	Encourages grassroots entrepreneurship and job creation	These have an emphasis on contributing to the overall economic development of the country
Market Research	Typically local or niche markets	Can work on regional, national or even international scales
Innovation	Encourages innovation through local initiatives	Emphasis on scaling current innovations
Regulatory Framework	Can have simplified regulations for smaller entities	Usually follows standard business rules and regulations

Now, let’s look at the eligibility criteria for MSME and SME loans for businesses falling within the SME and MSME category list:

The applicant must be aged between 21 and 65 years
The business should have earned consistent profits for at least three years
The business turnover should indicate an upward trend for MSME loans
The business’s balance sheet should be audited by a registered Chartered Accountant for an MSME loan

Also, read – What is Subsidy, Meaning, Types, and its Benefits

MSME Loan Eligibility: Documentation & Application Process

If you fall in MSME list of businesses, here are the documents you must furnish as part of the process:

1. KYC Documents: Photograph, identity proof, and address proof. Documents include copies of your Aadhaar card/passport/Voter ID/Driving Licence and PAN card.

2. Income Proof: Last 2 years of ITRs and computation of income, profit and loss statement for the previous 2 years, audited financials with Tax Audit for the last 2 years, or balance sheet.

3. Business Proof: Business registration certificate, Trade license, GST Registration Certificate, or a certified copy of the partnership deed or sole proprietorship declaration.

4. Bank Statements: Current bank account and GST statements for the previous 6 months

If you fall in the MSME category list, here are the steps typically involved in applying for an MSME loan:

Step 1: Navigate to your chosen lender’s official website.

Step 2: Complete the application and upload all documents.

Step 3: Click submit

You’ll be notified once your MSME loan has been approved.

Apply Now

FAQs

What kind of businesses fall under MSME?

MSMEs in India include manufacturing and service enterprises such as textile production, food processing, IT services, and retail shops. They are classified based on investment in plant and machinery or equipment and annual turnover.

How do I know if a company is under MSME?

To check if a company is registered as an MSME, visit the Udyam registration portal. Click on the "Print/Verify" option and then select "Verify Udyam Registration Number." Enter the reference number, type the captcha code, and click "Verify" to confirm.

Which business is not under MSME?

Businesses not directly involved in manufacturing or providing services are excluded from the MSME category. Activities like gambling, logging, fishing, household services, retail trade (excluding vehicles), and goods for personal use are not covered under the MSMED Act, 2006.

How to get a list of MSMEs?

You can find the list of businesses that qualify or don’t qualify as MSMEs on the official MSME website. Visit udyamregistration.gov.in to access the information.

Can a startup be classified as an MSME?

A startup can be categorised as an MSME if it falls under one of the 41 categories specified in the government’s MSME circular.

Are MSMEs and small businesses the same?

MSMEs include micro, small, and medium enterprises, categorised based on size, investment, and turnover. While small businesses are part of MSMEs, the classification also includes micro and medium enterprises, as defined under the MSMED Act, 2006.

How do I check if my business qualifies as an MSME?

You can check if your business qualifies as an MSME by comparing its investment in plant and machinery or equipment and annual turnover with the government-defined limits. Refer to the official MSME list of business categories and verify whether your activity falls under manufacturing or services.

What documents are required for MSME registration?

To complete MSME registration, businesses typically need KYC documents such as Aadhaar, PAN, and address proof, along with income proof like ITRs and financial statements. Business registration or GST certificates and recent bank statements are also required for units listed under the MSME list of businesses.

Can a freelance professional register as an MSME?

Yes, a freelance professional can register as an MSME if they meet the prescribed turnover and investment limits. Be sure to check the MSME service sector list to check if your business falls within the list of eligible industries.

What are the tax benefits for MSME businesses?

MSME businesses with an annual turnover of over Rs 50 crores can claim a reduced tax rate of 25% under section 115BA. Further, MSMEs with an annual turnover of over Rs 1.5 crores can also benefit from the Composition Scheme under the GST regime.

How long does MSME registration take via Udyam portal?

MSME registration through the Udyam portal is usually completed within a few minutes if all details are entered correctly. Once submitted, the Udyam Registration Certificate is generated online, helping businesses listed under the MSME list of business access government schemes and benefits quickly.

Previous Post Disclaimer Next Post

Menu