The recent buzz in the news is that a stunning number of approximately one crore Micro, Small and Medium Enterprises (MSMEs) have successfully registered on the Udyam portal within a short span of 25 months. This information comes directly from the Union Minister of Micro, Small, and Medium Enterprises.
Understanding the Udyam Portal
In an effort to streamline and simplify the process of registering MSMEs, the Udyam portal was launched by the Union MSME ministry on 1st July, 2020. The platform is fully digital and does not necessitate any physical documentation, a move that greatly contributes to the Ease of Doing Business for MSMEs.
Uniquely integrated with the databases of both the Central Board of Direct Taxes (CBDT) and Goods and Services Tax Network (GSTN), Udyam is a significant technological innovation. GSTN, a complex IT enterprise, establishes a crucial communication link between taxpayers, the central and various state governments, as well as other stakeholders.
The Importance of Udyam Registrations
Udyam registrations are vital for MSMEs to access the benefits of the many schemes provided by the Ministry of MSME, including the Priority Sector Lending offered by banks. MSMEs play a critical role in the country’s economy as they contribute substantially to the GDP, exports, and job creation.
New Initiatives Associated with the Udyam Portal
The Ministry of MSME has initiated further collaborative efforts for sharing Udyam data by signing Memorandums of Understanding (MoUs) with the Ministry of Tourism and the National Small Industries Corporation. In the near future, the Digi locker facility for Udyam registration will also be linked.
An Overview of MSMEs
MSMEs, or Micro, Small and Medium Enterprises, are instrumental for the socio-economic development of India. They add substantial value to the country’s Gross Domestic Product (GDP) and exports, hence gaining significant attention. MSMEs are particularly crucial in promoting entrepreneurship, especially in the semi-urban and rural areas of the nation.
Defined by the Micro, Small & Medium Enterprises Development (MSMED) Act, 2006, MSMEs are classified into two major categories – Manufacturing Enterprises and Service Enterprises. Further division is based on investment in equipment and annual turnover.
Additional Initiatives for MSMEs
To further support MSMEs, various schemes have been introduced. These include the Scheme of Fund for Regeneration of Traditional Industries (SFURTI), A Scheme for Promoting Innovation, Rural Industry & Entrepreneurship (ASPIRE), and the MSME Innovative Scheme.
