20,117 micro and small enterprises (MSEs) have scaled up their businesses to medium-sized entities in the current fiscal so far from the previous year. According to the data shared by MSME Minister Jitan Ram Manjhi in a written reply to a question in the Rajya Sabha on Monday, 17,745 enterprises have grown from small to medium while 2,372 micro units have grown into medium enterprises.
The five-year data showed that 15,918 small units grew into medium enterprises and 1,835 micro enterprises evolved into medium-sized entities from FY23 to FY24. Likewise, from FY22 to FY23, 1,221 entities grew from micro to medium and 6,476 enterprises scaled up from small to medium in size.
During the Covid period – from FY21 to FY22 – 714 micro units had scaled to medium-sized businesses and 3,701 small units had grown into medium businesses.
The Udyam portal extracts data from the portals of the income tax department and Goods and Services Tax Network (GSTN) and then classifies units as per the data on investment and turnover.
Post Covid, the government had announced a slew of measures to help MSMEs survive the pandemic such as the Emergency Credit Line Guarantee scheme (ECLGS), Self-Reliant India fund, no global tenders for procurement up to Rs 200 crore, collateral-free loans up to Rs 5 crore, inclusion of wholesale and retail trade under MSME definition, and more.
However, a number of MSMEs have also shut their operations post-pandemic. According to the latest data shared by Manjhi in Rajya Sabha on Monday, 49,905 have been shut since July 2020, which is 0.18 per cent of 2.77 crore MSMEs registered on the Udyam portal as of July 24.
In the current financial year, 10,390 units have been shut till July 24 in comparison to 19,828 in FY24, 13,290 in FY23, 6,222 in FY22 and 175 till March 2021 since July 2020.
Meanwhile, the number of units registered on the Udyam portal grew from 28.38 lakh in FY21 to 4.76 lakh crore as of July 24, 2024, showing an increase of 1577 per cent, Manjhi informed Rajya Sabha on Monday.