{"id":34672,"date":"2026-06-24T22:46:52","date_gmt":"2026-06-24T17:16:52","guid":{"rendered":"https:\/\/niir.org\/blog\/?p=34672"},"modified":"2026-06-24T22:16:27","modified_gmt":"2026-06-24T16:46:27","slug":"set-up-a-small-manufacturing-unit","status":"publish","type":"post","link":"https:\/\/www.niir.org\/blog\/set-up-a-small-manufacturing-unit\/","title":{"rendered":"How to Set Up a Small Manufacturing Unit in India: Licences & Steps"},"content":{"rendered":"

The Number That Should Change Your Plans<\/strong><\/p>\n

Today, there are more than 63 million MSMEs in India. But less than 1.5% of them have a proper Factory Licence. There is something about that one fact that’s why so many small factory shops stall \u2014 not because they’re not in demand, not because the product is shoddy, but because it’s not in the bank’s purview and the government’s scheme is not within reach.<\/p>\n

Think about that. You may have a working production line, a paying customer and a team of 8 skilled people \u2013 and still not be eligible for a collateral-free loan from CGTMSE, a capital subsidy from PMEGP or a GST refund on your inputs. All for the fact that the paper work was never done right from the beginning.<\/p>\n

As per Ministry of MSME <\/a>data, MSME industry accounts for around 30% of the Gross Domestic Product (GDP) and more than 110 million jobs in India. The possibility of the sector is not in doubt. The problem is that, despite a lot of interest, the only real problem is entering the system and the gruesome way that is accomplished \u2014 poorly documented and messy from scratch.<\/p>\n

This Guide solves the problem. Step by step.<\/p>\n

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