Introduction: On March 15, 2024, a significant milestone was achieved in the formalization journey of Micro, Small, and Medium Enterprises (MSMEs) in India. The total number of registered enterprises on the Udyam and Udyam Assist Platform (UAP) crossed 4 crore, marking a momentous achievement for the Ministry of Micro, Small and Medium Enterprises.
Detailed Analysis:
1. Background: The Ministry of MSMEs has been actively involved in promoting and developing MSMEs in the country. In line with this objective, it introduced a composite definition for classification of MSMEs based on investment in plant and machinery and turnover.
2. Launch of Udyam Registration Portal: To streamline the registration process and facilitate formalization, the Ministry launched the Udyam Registration Portal (Udyam) on July 1, 2020. This online platform allows enterprises with PAN to register easily and free of cost. It captures details of both investment in plant and machinery and turnover from the databases of CBDT and GSTN.
3. Introduction of Udyam Assist Platform (UAP): Recognizing the need to include enterprises without GSTIN in the formalization process, the Ministry launched the Udyam Assist Platform (UAP) on January 11, 2023. This platform caters to enterprises not having a GSTIN and provides them with a certificate similar to the Udyam Registration Certificate.
4. Policy Support: The Government of India, through a Gazette Notification, specified that certificates issued on the UAP to Informal Micro Enterprises (IMEs) would be treated equivalently to Udyam Registration Certificates for availing Priority Sector Lending (PSL) benefits. The Reserve Bank of India (RBI) further reinforced this by categorizing IMEs with Udyam Assist Certificates as Micro Enterprises for PSL classification purposes.
Conclusion: The achievement of registering over 4 crore enterprises on the Udyam and UAP platforms is a testament to the success of the MSME formalization initiative undertaken by the Ministry. By simplifying registration procedures and extending support to enterprises at various stages of formalization, the government is fostering a conducive environment for the growth and development of MSMEs in India. This milestone not only reflects the increasing awareness and participation of MSMEs in formal channels but also underscores the significant role these enterprises play in the country’s economic landscape. As the formalization drive continues, it is expected to unlock new opportunities for MSMEs, enhance their competitiveness, and contribute to India’s overall economic growth and prosperity.
*****
Total number of registered enterprises on Udyam and UAP crosses 4 crore, a major milestone for formalization initiative undertaken by the Ministry
On 15th March, 2024, the total number of registered enterprises on Udyam and UAP crossed 4 crore, which is a major milestone for the formalization initiative undertaken by the Ministry of Micro, Small and Medium Enterprises . The Ministry is committed to facilitate the promotion and development of Micro, Small and Medium Enterprises.
The Ministry through a notification dated 26th June, 2020 adopted a composite definition of investment in plant and machinery and turnover, introduced for classification of micro, small and medium enterprises. Vide a notification dated 1st July, 2020, a simple, online and free Udyam Registration Portal i.e. Udyam was launched for formalization of enterprises having PAN. The Udyam Registration takes into account the investment in plant and machinery and turnover both. The details of investment in plant and machinery and turnover are captured from the database of CBDT and GSTN.
Subsequently, the Ministry launched Udyam Assist Platform (UAP) on 11th January, 2023 for enterprises not having GSTIN. The Government of India, vide Gazette Notification S.O. 1296(E) dated 20th March, 2023, specified that the certificate issued on the UAP to Informal Micro Enterprises (IMEs) shall be treated at par with Udyam Registration Certificate for the purpose of availing Priority Sector Lending (PSL) benefits. Accordingly, RBI vide its circular dated 9th May, 2023 also categorised that the IMEs with an Udyam Assist Certificate shall be treated as Micro Enterprises under MSME for the purposes of PSL classification.
*****
