New MSMEs set up, jobs created doubled post Covid from FY19, FY20: Govt data

Ease of Doing Business for MSMEs: The number of jobs created by new enterprises also doubled post pandemic.

New MSMEs set up, jobs created doubled post Covid from FY19, FY20: Govt data
According to the combined data from the Udyam registration portal and the erstwhile Udyog Aadhaar Memorandum (UAM), 10,067 MSMEs were shut from 2016 to 2022.

Ease of Doing Business for MSMEs: The number of new MSMEs established post-Covid has more than doubled from enterprises set up before the pandemic, showed government data. The total number of new enterprises launched in FY21 and FY22 increased to 16.33 lakh and 18.34 lakh respectively from 8.71 lakh established in FY20 and 8 lakh in FY19, according to the Udyam portal data shared by Minister of State for MSMEs Bhanu Pratap Singh Verma in the Parliament during the monsoon session. The sharp rise in new enterprises came despite Covid-related challenges including job loss, supply chain and payment disruption, etc. faced by MSMEs.

Moreover, the number of jobs created by new enterprises also doubled post pandemic. From 48 lakh and 53 lakh jobs created by such enterprises in FY19 and FY20 respectively, the number shot up to 1 crore jobs in FY21 and 1.16 crore jobs in FY22 by new enterprises.

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Meanwhile, according to the combined data from the Udyam registration portal and the erstwhile Udyog Aadhaar Memorandum (UAM), 10,067 MSMEs were shut from 2016 to 2022. Sharing data in the Rajya Sabha last month, Verma noted that 400 MSMEs (4 per cent of total closures) were shut during the 2016-2019 period as per the UAM data. However, the majority 96 per cent units — 9,667 were shut between 2019 and 2022, according to the UAM and Udyam portal data. 

6,222 Udyam-registered MSMEs were shut in FY22 with 42,662 people losing jobs while 175 Udyam units were closed and 724 jobs were lost between July 1, 2020, and March 31, 2021. According to a SIDBI survey of a random sample pool of 1,029 MSMEs undertaken late last year across 20 States and two union territories and submitted on January 27, 2022, 67 per cent MSMEs reported temporary closure for up to a three-month period during Covid in the financial year 2020-21.

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