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MSME-registration platform Udyam crosses 3 crore registration mark; Check details

The Udyam registration platform has emerged as a game-changer for Micro, Small, and Medium Enterprises (MSMEs) in India. With its user-friendly online registration system, Udyam has achieved a significant milestone by surpassing 3 crore registrations in just three years and four months since its launch. This article delves into the remarkable success of the Udyam registration platform, highlighting its impact on formalizing and empowering MSMEs across the country.

The Udyam Registration Platform: A Catalyst for MSMEs

Understanding Udyam Registration

The Udyam registration platform serves as the authorized system for the registration of micro, small, and medium enterprises with turnovers of up to Rs 250 crore. This initiative by the MSME Ministry aims to provide recognition and formalize the operations of MSMEs, making it easier for them to access government support, financial assistance, and other incentives.

Impressive Registration Numbers

As of October 27, the Udyam platform recorded a total of 3 crore registered enterprises. Out of these, nearly 96.72 lakh non-GST small businesses have registered on the Udyam Assist platform. Micro-enterprises dominate the platform with 2.93 crores registered, followed by 5.78 lakh small enterprises and 53,935 medium enterprises. Collectively, these enterprises employ over 14.87 crore individuals, including 3.37 crore women employees.

State-wise Distribution of Registrations

The state-wise registration data reveals Maharashtra as the leader with over 35 lakh registered enterprises. This indicates a strong presence of MSMEs in Maharashtra and their active participation in the formal registration process. The top five states in terms of Udyam registrations are Maharashtra, Tamil Nadu, Uttar Pradesh, Gujarat, and Rajasthan. These numbers shed light on the diverse and robust MSME sector across different regions of India.

Diverse Nature of Indian MSMEs

Manufacturing and Service Providers

Out of the 2.03 crore MSMEs registered with GST, 53.41 lakh are manufacturing units, and 1.49 crore are service providers. This diversity showcases the varied nature of MSMEs in India, with a significant number engaged in both manufacturing and service-related activities. The presence of such a broad spectrum of enterprises highlights the contribution of MSMEs to the overall economic growth of the country.

Exporting Enterprises

Remarkably, 1.92 lakh MSMEs engaged in export activities have collectively exported goods and services valued at over Rs 15 lakh crore. This underlines the global reach and significant role played by Indian MSMEs in enhancing the country's presence in the international market. Exporting MSMEs contribute significantly to India's economic growth and demonstrate the potential of these enterprises to drive the nation's exports.

Udyam Registration: A Gateway to Government Support

The Udyam registration and the subsequent issuance of the Udyam Assist Certificate play a crucial role in bringing more MSMEs into the formal economic fold and facilitating their access to financial services and government support schemes. This registration is mandatory for MSMEs to avail themselves of the benefits provided by the central government under various schemes specifically designed for their growth and development.

Financial Inclusion and Priority Sector Lending

Inclusion of Informal Micro Enterprises (IMEs)

The Reserve Bank of India (RBI) has instructed all financial institutions, including banks and Non-Banking Financial Companies (NBFCs), to consider informal micro enterprises (IMEs) that are not covered under the Goods and Services Tax (GST) regime or are exempted from the Central Goods and Services Tax (CGST) Act, 2017. These IMEs, if they possess the Udyam Assist Certificate (UAC), are to be classified as micro-enterprises for the purpose of priority sector lending (PSL) norms.

Promoting Financial Support and Credit Availability

The directive from the RBI ensures that even small enterprises that may not be part of the formal tax structure but have obtained Udyam registration can access priority sector lending benefits from financial institutions. This move promotes financial support and credit availability for a broader segment of the MSME sector, thereby fostering inclusive growth and financial inclusion for smaller businesses.

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The Tax Heaven

Mr.Vishwas Agarwal✍📊, a seasoned Chartered Accountant 📈💼 and the co-founder & CEO of THE TAX HEAVEN, brings 10 years of expertise in financial management and taxation. Specializing in ITR filing 📑🗃, GST returns 📈💼, and income tax advisory. He offers astute financial guidance and compliance solutions to individuals and businesses alike. Their passion for simplifying complex financial concepts into actionable insights empowers readers with valuable knowledge for informed decision-making. Through insightful blog content, he aims to demystify financial complexities, offering practical advice and tips to navigate the intricate world of finance and taxation.

Frequently Asked Questions

Udyam is an online registration platform introduced by the Government of India for Micro, Small, and Medium Enterprises (MSMEs). It serves as a platform for MSMEs to register and avail various benefits and schemes offered by the government.

Udyam has recently crossed the milestone of 3 crore registrations. This achievement is significant as it reflects the increasing adoption of the platform by MSMEs seeking to formalize their businesses and avail of government support.

Registering on the Udyam platform provides MSMEs with various benefits, including access to government schemes, subsidies, credit facilities, market opportunities, and protection under the MSME Development Act.

MSMEs can check their registration details on the Udyam platform by visiting the official website and logging into their accounts using their Udyam Registration Number (URN) or other relevant credentials.

MSMEs need to provide basic details such as business name, address, type of enterprise, Aadhaar number of the owner or authorized signatory, and other relevant information to register on the Udyam platform.

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