Minister of State in the MSME Ministry Shobha Karandlaje on Monday said no survey for closed MSMEs has been conducted so far. The minister was responding to a question in the Rajya Sabha on whether the government has conducted any survey of closed units and steps taken to revive and rebuild such MSMEs during the last five years.
Listing out the steps taken by the government to revive and rebuild the MSMEs, Karandlaje noted the Rs 5 lakh crore Emergency Credit Line Guarantee Scheme, Udyam Registration, Rs 50,000 crore equity infusion through Self Reliant India Fund, launching of online Portal Champions, inclusion of retail and wholesale traders as MSMEs, and more.
As of July 25, 2024, out of 2.76 crore MSMEs registered on the Udyam portal since its launch on July 1, 2020, 49,342 were shut, MSME Minister Jitan Ram Manjhi had informed Lok Sabha during the monsoon session of the Parliament. The closures have resulted in a total job loss of 3,17,641.
“MSMEs de-registered or showed closure on the portal due to a number of reasons such as change in the company owner, certificate not required anymore, duplicate registration, and such other reasons,” Manjhi had said.
Maharashtra had maximum closures of 12,233 units followed by Tamil Nadu with 6,298 closures, Gujarat with 4,861 shutdowns, Rajasthan with 3,857 closures and more.
According to the government’s Udyam portal, over 5.57 crore MSMEs have registered with the MSME Ministry so far, reporting 23.41 crore jobs.
Meanwhile, India’s MSME loan portfolio had jumped by 17.8 per cent to Rs 64.1 lakh crore as of March 2024 from the year-ago period, according to credit bureau CRIF High Mark. MSME loans included loans to entities with aggregate credit exposure of up to Rs 50 crore and self-employed individuals. Loans to self-employed individuals increased by 28.9 per cent to Rs 35.7 lakh crore in comparison to a 6.6 per cent growth to Rs 28.4 lakh crore in loans to MSME entities.