More than 13 lakh informal micro-enterprises have been brought under the formal ambit since the launch of the Udyam registration portal on January 11, 2023, the secretary for micro, small and medium enterprises (MSME) ministry said on March 21.
The Udyam Assist Platform (UAP) was launched by the ministry to get informal micro enterprises into the formal ambit and benefit from priority sector lending by banks.
UAP is essentially a formalisation project by the MSME ministry with SIDBI or Small Industries Development Bank of India as its implementing agency to complement the Udyam registration portal of the ministry. The portal was inaugurated with the registration of 8 lakh micro enterprises and the initiative has already been able to garner over 5 lakh more registrations within two months of its launch.
“With this new initiative, the number of registered MSMEs has reached a figure of 1.64 crore with an estimated employment figure of more than 10.73 crore,” the secretary added.
MSMEs could become largest employer
Stating that the MSME sector could soon become the largest employer in the country, Swain cited the latest available data of the National Sample Survey conducted in 2015-16, which found that the MSME sector has been creating 11.10 crore jobs (360.41 lakh in manufacturing, 387.18 lakh in trade and 362.82 lakh in other services) in rural and the urban areas across the country.
“We are looking beyond formalisation of these micro units to make this sector the highest employment provider in the country. The figure of 10.73 crore employment generated is based on self-declaration by MSMEs and the sector is surely on its way to becoming the largest employment provider in the country," Swain said.
Also read: MSME competitive scheme part of efforts to strengthen sector: PM Modi
To help the sector face the current challenging phase, the government is working towards a comprehensive and coordinated response, Swain added.
“We are working with stakeholders to provide an enabling environment to MSMEs with a focus on access to credit, low cost of finance, equity inclusion, technology upgradation, access to green technology, enhanced procurement, and domestic and international market access and information dissemination,” he said, speaking at an ASSOCHAM event in New Delhi.
Reduction of guarantee fee under discussion
“We are aiming to start reductions in guarantee fee from April 1 this year. The percentage reduction is still being discussed. The step is aimed towards providing a boost to the growth of MSMEs,” the secretary told Moneycontrol.
The government in its budget for FY24 announced the implementation of a revamped credit guarantee scheme from April 1, 2023, through the infusion of Rs 9,000 crore into CGTMSE or Credit Guarantee Fund Trust for Micro and Small Enterprises that will lead to collateral-free guaranteed credit of Rs 2 lakh crore to MSMEs along with a reduction in annual guarantee fees.
Discover the latest Business News, Sensex, and Nifty updates. Obtain Personal Finance insights, tax queries, and expert opinions on Moneycontrol or download the Moneycontrol App to stay updated!
