MSME registration is not mandatory but registering will help you reap benefits from the government which include getting credit at low interest rates, incentives on products for export and many other benefits. To make sure that the MSME sector doesn’t get affected by competition in the market, the government has given exclusive rights to manufacture certain products only to this sector. This is called the reservation policy.
You can register your MSME under the Udyog Aadhar official website. Once you are registered you will be able to avail the benefits given by the government. The registration certificate issued by the registration authority will be seen as proof of being registered as an MSME with the government, to get the benefits promised.