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Which Business Comes Under MSME? Explore the Complete List of MSME Businesses

List of MSME Businesses

MSME stands for Micro, Small, and Medium Enterprises. MSME contributes around 45% of India’s total internal industrial employment, hence it is the backbone of a country’s economy. There are multiple businesses including service businesses, manufacturing, and trading business in a country. However, the government has not considered covering all the businesses under MSME.

So aren’t you curious to know the MSME businesses? If yes, then consider yourself lucky because we got you covered with all the information and recent updates on this article.

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Here’s a complete list of MSME businesses.

List of MSME Businesses

  1. Leather products.
  2. Moulding – This includes products like combs, umbrella frames, plastic toys, etc
  3. Natural Fragrance and Flavours.
  4. Placement and Management Consultancy Services.
  5. Training and Educational Institute.
  6. Energy Efficient Pumps.
  7. Xeroxing.
  8. Beauty Parlour and crèches.
  9. Auto repair services, and garages.
  10. X-Ray Clinics.
  11. Tailoring.
  12. Equipment Rental & Leasing.
  13. Photographic lab.
  14. Servicing of Agricultural Farm Equipment. This includes tractor, pump repairing, ring boring machine.
  15. Back Office Operation Relating to Computerised Data.
  16. STD/ISD booths.
  17. Retail Trade with low Capital.
  18. Multi Channels Dish cable T.V. with Dish Antenna.
  19. Laundry and Dry Cleaning.
  20. Toughened Metallic Ware.
  21. Automotive Electronic Component products.
  22. Electronic Surveillance and Security.
  23. Mechanical Engineering Excluding Transport Equipment. This is inclusive of steel almirahs, cocks, and valves, wire cutters, etc.
  24. Engineering and Fabrication.
  25. Recorders, VCRs, Radios, Transformer, Motors, Watches.
  26. Micronutrients For Plants.
  27. Active Pharmaceutical Ingredients and Ayurvedic Products.
  28. Khadi Products and Hosiery Products.
  29. Handicraft activities like Spinning, Weaving, Artisans.
  30. Printing and other products made of paper.
  31. Coir Industry.
  32. Furniture and wood products.
  33. Poultry Farm.
  34. Bicycle parts.
  35. Stationery Items.
  36. Call centre.
  37. Rubber Products.
  38. IT Solution Provider. Services include creating a server bank, application service provider, smart card customization, service provider, etc.
  39. Testing Labs for industries.
  40. Auto Parts Components. Which includes horn buttons, door channels, wiper blade components, battery cell tester.
  41. Ceramics and glass products include roofing tiles, glass flooring tiles, granite, etc.
  42. Retail and wholesale business


In an aim to strengthen the MSME sector, Minister of MSME and Road Transport and Highways Shri Nitin Gadkari announced revised guidelines for MSMEs. With the inclusion of Retail and Wholesale Businesses under the MSME sector.

With the guidelines, the Retail and Wholesale Businesses will now be allowed to register on the Udyam Registration Portal. And take the benefit of Priority Sectors lending as per RBI guidelines in regards to MSME loans and lending policies.

Learn more about – What Is Udyam Registration For MSME? Step-By-Step Process Of MSME Registration And Its 10 Benefits

This is the updated list of MSME businesses that have been included under MSME act. Now, for getting registered under MSME you must need a NIC code. What is a NIC code? Let’s check that out.

What is a NIC Code?

National Industrial Classification Code (NIC) is a code that is used for Udyog Aadhaar and LLP registration or company registration.

The code is a must-have while you are filling a form for your company’s registration under the Udhyog for an MSME. This is needed along with other important information like Aadhaar card number, contact number, email address and bank details. Adding on to that, the NIC code in MSME is in the form of a 2 to 3 digit code. The 2 to 3 digit code represents the group of business activities. The 4 digit code represents a class of business activity and the 5 digit code represents a subclass of the business activity.

Now, let’s have a look at the recent Government notification to get a more clear view of the code.

Learn more about – What Is Udyog Aadhar? Step-By-Step Registration Process And Benefits Of Udyog Aadhar For MSME Explained

Government notification (NIC CODE)

The Government of India has released the recent order dated 17.07.2020. As per the recent Government order, this is the entire list of MSME businesses.

There are certain activities (NIC code) that are not covered under MSMED ACT, 2006 for registration of the Udyog Aadhar Memorandum. In the recent order dated 17.07.2020 the list was updated and it is clarified that the below-mentioned businesses and activities will not come under MSME.

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The Government has its exceptions and certain activities are not included under MSME. They are listed here –

  • Forest and logging.
  • Fishing and aquaculture.
  • Activities of households as employers for domestic personnel.
  • Activities of extraterritorial organisations and bodies.
  • Undifferentiated goods and services-producing activities of private households for their own use.

This is issued by the Ministry of Micro Small and Medium Enterprises and certain activities like craft hunting and animal production are also not included except for,

  • Production of eggs.
  • Operation of poultry hatcheries.
  • Beekeeping and production of honey and beeswax.
  • Raising of silkworms, production of silkworm cocoons.
  • Operation of Agricultural irrigation equipment.
  • Support activities for animal production.
  • Preparation of crops of primary markets.
  • Cotton ginning, cleaning, ginning.
  • Preparation of tobacco leaves.
  • Other post-harvest crop activities.
  • Seed processing for propagation.

Why Certain Businesses are not Covered in the MSME List?

The Government in its notification passed in June 2017 very clearly stated that organizations that do not deal with manufacturing and offering services will not come under MSME. This is because the main purpose of MSME is to support startups with benefits and subsidies. But the trading companies are a link between a manufacturer and a customer. That is why it does not come under this scheme. But a trader who creates products that are different in some way or the other and trades it can get registered. Also, a trader who sells the product but also provides additional services for the same product can get themselves registered under MSME.

For example, if the trader sells a brand’s TV and also offers repair services for it. He can get registered under MSME business as a service provider.



Still have doubts and questions regarding MSME, the businesses that come under it, the documents required for MSME registration, and the procedure to generate an MSME certificate?

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