MSME Udyam Registrations Crosses 2 Crore Milestone

The Ministry of Micro, Small, and Medium Enterprises (MSME) in India has achieved a significant milestone with over 200 million MSME registrations on the Udyam online registration and certification platform. The Minister of MSME, Narayan Rane, announced this accomplishment on Twitter, acknowledging the success of the Udyam Portal launched by Prime Minister Narendra Modi.

Udyam MSME Registration Crosses 2 Crore Certifications

Since its launch on July 1, 2020, the Udyam portal has registered a total of 201 lakh MSMEs, including 194 lakh micro, 5.54 lakh small, and approximately 52,000 medium enterprises. These numbers also include the 30.93 lakh MSMEs registered on the Udyam Assist Portal, which specifically caters to informal micro-enterprises.

Saket Dalmia, President of the PHD Chamber of Commerce and Industry, commended this achievement, highlighting that it represents a significant step towards formalizing the MSME sector. The Udyam registration provides a formal status to MSMEs, making them eligible for various benefits such as priority sector lending and participation in MSME schemes like the Credit Guarantee Scheme for Micro and Small Enterprises (CGTMSE) and MSME SAMADHAAN for resolving delayed payments.

However, it is worth noting that despite the Udyam registration system, a considerable number of MSMEs have faced challenges. According to data shared by the Minister of State for MSMEs, Bhanu Pratap Singh Verma, in February 2023, approximately 6,222 crore MSMEs had shut down their businesses during the financial year 2021-22.

Regarding the necessity of Udyam registration for MSMEs, it is not explicitly mentioned in the provided information. However, registering on the Udyam platform provides a formal status to MSMEs, allowing them to avail themselves of various government schemes and benefits. It also enables the government to gather authentic data on the MSME sector, aiding in their assessment of the nature of operations, sectoral segregation, and contribution to the economy. Additionally, Udyam registration can help boost revenue collections through GST and direct taxes.