Udyam Scheme: 11 lakh MSMEs registered

On November 7, 2020, the Government of India announced that over 11 lakh MSMEs have registered on the new online system of Udyam Registration. It was launched in July 2020.

Key Highlights

According to GoI, over 3.72 lakh have been registered under manufacturing category and 6.31 lakh have registered under service sector. Of these registered enterprises, 93.17% were micro enterprises, 5.62% were small enterprises and 1.21 were medium enterprises. Around 7.98 lakh enterprises were owned by male, 1.73 lakh enterprises were owned by female entrepreneurs. Around 11,188 enterprises were owned by Divyangjan.

Achievers

• The top five industries of registrations include textile, food products, apparel, machinery and equipment and fabricated metal products. Over 1 crore persons were employed through these registration units.
• The leading states in the registration are Rajasthan, Maharashtra, Tamil Nadu, Gujarat and Uttar Pradesh.

MSME schemes

The Government of India has been bringing in several measures to help the MSMEs thrive during the COVID-19 pandemic. Atma Nirbhar Bharat package mainly focused on MSMEs. The definition of the MSMEs were changed to increase their ease of doing business and for easy availability of loans. The street vendors were specially given importance through the PM SVANidhi Scheme.

Background

More than 40-60% of the MSME were facing closure due to COVID-19. They were already under stress due to the implementation of GST and Demonetisation in 2016.

MSMEs in India

According to the Annual Report of Ministry of MSME, there are 6.34 crores of MSMEs in the country. Of these 51% are situated in rural India. Both rural and urban MSMEs provide employment to more than 11 crore people. However, 55% of these employments are provided by the urban MSMEs.

Udyam Registration Portal

A person willing to establish as micro, medium or small enterprise shall file registration at the Udyam registration portal. The registration is based on self declaration. Upon registration, the enterprise is provided with a unique number called the “Udyam Registration Number”

Udyam Sakhi portal was launched for women entrepreneurs separately.

Month: Current Affairs - November, 2020