MSMEs Cross 3 Crore Registration Milestone On Udyam Portal

Within three years and four months since its launch, the government's online registration portal for MSMEs has achieved a significant milestone by surpassing three crore registrations. The Udyam platform currently records more than three crore registered enterprises, which includes 96.72 lakh non-GST small businesses registered on the Udyam Assist platform as of October 30.

Udyam, the only platform authorized by the MSME Ministry for the registration of micro, small, and medium enterprises with turnovers of up to INR 250 crore, largely consists of micro-enterprises, accounting for 2.93 crore out of the total 3 crore registered enterprises. In addition to these micro-enterprises, there are 5.78 lakh small enterprises and 53,967 medium enterprises registered on the platform. Collectively, these enterprises employ over 14.90 crore individuals, with 3.38 crore women among the workforce.

As per the statewise registration data, Maharashtra secured the top position with more than 35 lakh registered enterprises. Following closely were Tamil Nadu with 20.5 lakh, Uttar Pradesh with 19.13 lakh, Gujarat with 14.87 lakh, and Rajasthan with 14.84 lakh registered enterprises, making them the top five states in terms of registration.

Among the 2.03 crore MSMEs registered with GST on the Udyam platform, there were 53.55 lakh manufacturing units and 1.49 crore service providers. Remarkably, 1.92 lakh MSMEs among them are engaged in exporting, collectively contributing to exports valued at more than INR 15 lakh crore in goods and services.

Ease Of Doing Business

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 government launched the Udyam Registration Portal on July 1, 2020 considering it a step towards Ease of Doing Business for MSMEs. The Portal is linked to the databases of Central Board of Direct Taxation (CBDT) and Goods and Services Tax Network (GSTN).

Furthermore, the Reserve Bank of India (RBI) has previously instructed all financial institutions, including banks and NBFCs, to consider informal micro enterprises (IMEs) that are not covered by the Goods and Services Tax (GST) framework or 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.

According to 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 regarded on par with the Udyam Registration Certificate, facilitating access to Priority Sector Lending (PSL) benefits.

To streamline this process, an interface was established between the Udyam Assist Platform (UAP) and the Udyam Registration Portal (URP). This interface allows for a smooth transition and migration of IMEs from UAP to URP once they have obtained the necessary mandatory documents.

In conclusion, the Udyam registration and the acknowledgment of the Udyam Assist Certificate play a pivotal role in integrating additional MSMEs into the formal economic framework. This, in turn, enhances their ability to access financial services and government support initiatives.