MSME: Udyam Portal Surpasses 15 Crore Jobs Milestone

The Udyam portal has recently reached a milestone with over 15 crore jobs reported by micro, small, and medium enterprises (MSMEs) registered on the platform. Out of this total, 3.06 crore registrations came directly through the portal, contributing 13.86 crore jobs, including 3.41 crore women employees. Additionally, 1.17 crore jobs were reported by 99.98 lakh micro units registered via the Udyam Assist Portal (UAP).

As of the latest data, the Udyam units were categorized into 2.99 crore micro enterprises, 5.80 lakh small enterprises, and 54,045 medium enterprises. This showcases the diverse representation of businesses on the Udyam platform.

Hailing the achievement, Union MSME Minister Narayan Rane attributed the success to Prime Minister Narendra Modi. “It is a matter of immense joy and pride that under the leadership of Prime Minister Narendra Modi, the MSME sector has achieved the great success of generating more than 15 crore employment. These 15 crore workers include more than 3.4 crore women. The MSME sector is promoting micro, small and medium entrepreneurs on a large scale, thereby creating new livelihoods across the country,” Rane posted on social media.

The Udyam portal was introduced in July 2020 as a replacement for the Udyog Aadhaar Memorandum (UAM). The earlier UAM had registered only 1.02 crore MSMEs during its operation from September 2015 to June 2020. In comparison, the new Udyam portal has significantly increased both registrations and job reporting.

The Udyam portal was launched in July 2020 to replace the Udyog Aadhaar Memorandum (UAM) in 2020. According to the MSME ministry’s 2020-21 annual report, UAM had registered only 1.02 crore MSMEs during its years of operation between September 2015 and June 30, 2020.

Formalizing Unregistered MSMEs

To formalize unregistered MSMEs and provide them with access to priority sector lending, the government launched the Udyam Assist Portal (UAP) in January of the current year. This initiative was discussed in a report by the standing committee on finance, led by Member of Parliament Jayant Sinha, who was a former Minister of State for Finance.

Interestingly, within three years and four months since its launch, the government's online registration portal for MSMEs had achieved a significant milestone by surpassing three crore registrations.

Obtaining registration on Udyam and acquiring a certificate is mandatory for enterprises to access the benefits offered by the central government through various MSME schemes. The Portal is linked to the databases of Central Board of Direct Taxation (CBDT) and Goods and Services Tax Network (GSTN).

Priority Sector Lending

In addition, the Reserve Bank of India (RBI) has previously issued directives to all financial institutions, which include banks and non-banking financial companies (NBFCs), to consider informal micro enterprises (IMEs) falling outside the purview of the Goods and Services Tax (GST) framework or those exempt from the CGST Act, 2017. These IMEs, if holding the Udyam Assist Certificate (UAC), should be categorized as micro-enterprises when implementing priority sector lending (PSL) norms.

As per a circular issued by the RBI, the government has mandated that certificates issued through the Udyam Assist Platform (UAP) for Informal Micro Enterprises (IMEs) should be treated equivalently to the Udyam Registration Certificate, facilitating access to Priority Sector Lending (PSL) benefits.

In conclusion, the achievement reflects the commitment of the government to promote entrepreneurship and create new employment opportunities, particularly for women. The government's efforts to formalize unregistered MSMEs through the Udyam Assist Portal (UAP) have further expanded access to priority sector lending and the associated benefits.