The number of MSMEs formally registered with the MSME Ministry through the Udyam registration portal has crossed the 3.5 crore mark. As of Tuesday, 3.55 crore MSMEs were registered of which 3.48 crore were micro enterprises, 5.97 lakh were small enterprises and 54,939 were medium enterprises, showed data from the Udyam portal.
The total count included 1.27 crore micro enterprises registered via the Udyam Assist Platform (UAP). Launched in January last year, UAP allows informal micro enterprises (IMEs) not registered under Goods and Services Tax (GST) to get the Udyam registration certificate and access benefits related to priority sector lending.
To register such enterprises, Designated Agencies (DAs) including banks, non-banking financial companies (NBFCs), micro finance institutions (MFIS), small finance banks, regional rural banks, scheduled cooperative banks, etc., use IMEs’ data such as Aadhaar and bank transactions.
The total employment disclosed by 3.55 crore MSMEs on the Udyam platform was 16.67 crore. Out of the registered enterprises, 59.46 lakh were manufacturing units and 1.68 crore were service enterprises. In terms of exports, 1.96 lakh were export units exporting goods worth Rs 15.28 lakh crore.
Launched on July 1, 2020, post Covid, the portal had crossed 2 crore registrations in June last year and 1 crore in August 2022 while the 3-crore mark was achieved in October last year.
Even as the count of MSMEs entering the formalised ecosystem continues to grow, a number of Udyam-registered enterprises have withdrawn the registration.
Between July 2020 and December 8, 2023, 32,298 units had cancelled their registration due to the shutdown of their businesses, according to the data shared in the Lok Sabha by the minister of state in the MSME Ministry Bhanu Pratap Singh Verma in a written reply to a question in December last year.
12,611 units had cancelled their registration due to business closure as of December 8 in the current fiscal, nearing the FY23 count of 13,290 MSMEs withdrawing their registrations. 6,222 MSMEs in FY22 and 175 MSMEs in FY21 had cancelled their registrations due to shutting down of their businesses.