Ease of doing business for MSMEs: The Udyam Registration portal’s data disclosed by the MSME Ministry over two years after the launch of the portal showed 8.81 crore people employed by 1.19 crore MSMEs registered on the portal. Out of the total employment, 2.05 crore were women, the latest data published on the portal at the time of publishing this report showed.
Apart from jobs, the government also shared export statistics. The portal had 1.48 lakh exporting units registered with an export value of Rs 9.55 lakh crore. In terms of business activity, over 34,000 enterprises registered on the Udyam portal were in manufacturing in comparison to 84.74 lakh service MSMEs. 95 per cent (1.14 crore) of total registered MSMEs on the portal were micro followed by only 3.54 per cent (4.23 lakh) small businesses and 0.32 per cent (39,289) medium enterprises.
While MSME registrations on the portal had crossed 1 crore in August this year, a handful of enterprises had revoked their registrations. According to the data shared by MoS MSME Bhanu Pratap Singh Verma in Lok Sabha in July, 35,501 enterprises had withdrawn their registration as of July 15, 2022, of which 67 per cent or 24,075 registrations were withdrawn in the previous financial year 2021-22 while 931 registrations were withdrawn in FY21.
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In the current financial year, 10,495 enterprises had cancelled their Udyam licenses. Nonetheless, the total number of withdrawals was only 0.35 per cent of the total registrations on the portal so far. The portal was launched by the government following the change in the definition of MSMEs, doing away with the distinction between manufacturing and services businesses.
Bringing MSMEs into the formal economy through registration has been the focus of the government to solve multiple issues faced by enterprises. Speaking at FE MSME Business Conclave earlier this year, MSME Ministry Secretary B.B. Swain had said that for the multiplicity of issues faced in the MSME sector, a multi-pronged approach is more suitable.
“The first obvious step here, which is also kind of the biggest ambition of the MSME Ministry is to identify micro, small and medium entrepreneurs and to bring them under a formal structure. Formalisation is our primary target and the biggest ambition.”