Ease of Doing Business for MSMEs: MSME registrations on the government’s Udyam portal crossed 1 crore on Tuesday, a little over two years after the portal was launched on July 1, 2020, following the change in the definition of MSMEs, doing away with the distinction between manufacturing and services businesses. The announcement was made by the MSME Ministry at a press conference in Delhi. Speaking on the occasion, MSME Minister Narayan Rane and Minster of State for MSMEs Bhanu Pratap Singh Verma stressed on the need for Udyam registrations and also emphasised on its utility as an identity for MSMEs to avail benefits of various schemes by the ministry including Priority Sector Lending (PLI) by banks.
“In a span of 25 months, as many as 1 crore MSMEs have registered on the Udyam portal on a voluntary basis and declared that they employ 7.6 crore people, of which 1.7 crore are women,” the ministry said as it also signed memorandum of understandings (MoUs) with the Ministry of Tourism and National Small Industries Corporation (NSIC) for sharing of Udyam data.
Importantly, sharing of Udyam data was also announced in the budget by Finance Minister Nirmala Sitharaman to make access to government data on registration of MSMEs, unorganised workers, availability of skilled workforce, etc., more seamless. Udyam, e-Shram, National Career Service (NCS), and Atmanirbhar Skilled Employee-Employer Mapping (ASEEM) are four portals to be interlinked under the initiative for data sharing.
Meanwhile, the MSME Ministry also announced that the Udyam certificate will now be available in the DigiLocker facility.
The total Udyam registration count, at the time of filing this report, stood at 1,00,20,295, of which over 95 lakh were micro units, near 4 lakh were small businesses, and 38,087 were medium enterprises, according to the data from the portal.
However, there have been a handful of enterprises revoking their Udyam registrations. According to the data shared by Verma in Lok Sabha last month, 35,501 enterprises had withdrawn their registration as of July 15, 2022, of which 67 per cent or 24,075 registrations were withdrawn in the previous financial year 2021-22 while 931 registrations were withdrawn in FY21. 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.