Difference between NSIC & MSME

Posted on Thursday, December 15th, 2022 | By IndusInd Bank

The Ministry of MSME has set up several departments to look after specific needs of upcoming and growing dynamic business needs of the micro, small & medium enterprises. The NSIC, or the National Small Industries Corporation Limited of the MSME Ministry caters to small-scale business in raw material procurement, product marketing, credit rating improvement, technology upgradation and adoption of modern management practices.  

Here we will understand about NSIC’s role in growth of MSMEs, its application & certification procedure and salient features.   

What is NSIC? It’s benefits and application procedure explained 

The National Small Industries Corporation is a public sector enterprise under Ministry of Micro, Small and Medium Enterprises (MSME), and was established in 1955 to accelerate the growth of micro and small enterprises across India on commercial basis. NSIC undertakes implementation of specific MSME Ministry’s policies, programmes and schemes for providing infrastructure and support services to enterprises. 

Benefits under NSIC 

Before we proceed to the procedure of registering your enterprise under NSIC, let’s take a look at the benefits the NSIC registered MSMEs enjoy. 

1. Tech upgradation support: The corporation assists small enterprises in development and implementation of a technology strategy that best suits their businesses’ needs. On the execution level, NSIC also helps in smooth integration of new technology to their operational environment, customers and suppliers. 

2. Upskilling of manpower: The NSIC has its technology service centres – dedicated to skill based training of manpower, spread in various locations across the country. Manpower and MSME employee upskilling via seminars, classes and exposure are carried out in the fields of machine tools, CNC, solar energy, robotics, AI & ML etc.  

3. Marketing support: Assistance in applying tender, increasing digital presence of a business, displaying competencies of MSMEs in exhibitions and organising buyer-seller meets are few of the marketing support services that NSIC offers to registered enterprises. It also disseminates information on market intelligence for enterprises by maintaining a database of domestic and international market studies. 

4. Credit facilitation: NSIC also facilitates credit requirements of small enterprises, especially in procurement of raw materials (both indigenous and imported) via its Raw Material Assistance Scheme. 

5. Setting up of new MSMEs: New small enterprises can take advantage of by integrated services provided by the corporation in the areas of training and skill development, selecting small projects, preparing project profiles/reports, identifying sources of plant, machinery & equipment, financing, and much more.  

NSIC implements its various programmes and projects via its 39 sub-branchs, 9 zonal offices, 5 technical services centres, and 2 software technology parks spread throughout across the country. 

Application procedure 

NSIC follows a fully online ‘Single Point Registration Scheme’ which can be done at www.nsicspronline.com. You will need your Udyam Registration Number, PAN, Premise ownership proof (like rent deed) and latest electricity bill among other required documents. You will have to fill a 7-step form and upload all the documents, following which a third party agency will authenticate the information you have provided. Once cleared, you will receive a Single Point Registration certificate on successful completion.    

How is NSIC different from MSME? 

On the basis of scope: NSIC is a corporation that falls under the Ministry of MSME – hence the scope of MSME is wider. While Ministry of MSME caters to numerous businesses needs of all small-scale enterprises, NSIC is majorly focused on commercial growth of micro and small enterprises in the country. 

On the basis of support functions: Both MSME Ministry and NSIC help in acceleration and expansion of businesses. Schemes and support functions of NSIC specialise in marketing and technology needs.  

On the basis of registration: NSIC registration process is slightly more tedious than MSME Udhyam registration process and requires more documents. Unlike Udyam, NSIC charges a nominal registration fee based on the turnover. Udyam registration is mandatory to get your business registered by NSIC, but the opposite is not true. 

On the basis of certification: Udyam MSME certificate covers all the same benefits offered by NSIC certificate. Additionally, by having an Udyam certificate, you may be eligible for tax benefits, subsidies and exemption in processing fee of various other services related to your business.  

Disclaimer: The information provided in this article is generic in nature and for informational purposes only. It is not a substitute for specific advice in your own circumstances. Hence, you are advised to consult your financial advisor before making any financial decision.  IndusInd Bank Limited (IBL) does not influence the views of the author in any way. IBL and the author shall not be responsible for any direct/indirect loss or liability incurred by the reader for taking any financial decisions based on the contents and information.