The Modi government’s new portal for MSME registration, which was launched amid Covid on July 1, 2020, along with the revised MSME definition, has topped the 30-lakh registration mark. As of May 16, 2021, 30,00,822 MSMEs had been registered on the Udyam Registration portal, which replaced the erstwhile method of filing for Udyog Aadhaar Memorandum (UAM), as per the on-line information readily available with the MSME Ministry. Importantly, practically 28 lakh registered enterprises had been micro units followed by close to 1.78 lakh tiny enterprises and 24,657 mid-sized enterprises. The Reserve Bank of India had last year mandated enterprises registered beneath Entrepreneur Memorandum (EM) element II and UAM till June 30, 2020, to file for new registrations on the Udyam Registration portal. However, it wasn’t clear that how numerous of these 30 lakh MSMEs had been new entities and these that had migrated from EM II and UAM.
While the government had recorded these 30 lakh registrations in ten-and-a-half months, there had been 1.02 crore registered MSMEs beneath UAM among September 2015 and June 2020 apart from practically 22 lakh units registered beneath EM II among 2007 and 2015, as per FY21 annual report of the MSME Ministry. Hence, out of the 1.24 crore registered MSMEs (UAM and EM II) in India, 24.1 per cent had been registered so far on the new portal assuming all Udyam Registrations had been current MSMEs from UAM or EM II.
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“While there is no data to show how many Udyam Registrations so far are new enterprises and how many have migrated from UAM or EM registrations but that is not a big figure. Many existing MSMEs are yet to apply for Udyam Registration due to reasons such as lack of awareness or lack of will as it is business as usual for them with their UAM or EM registrations and they haven’t faced any major challenge with the change in the law. The government and RBI would have to be a bit more stringent in getting MSMEs to register on new portal as the idea behind it is to consolidate MSME registration data at one place,” Pankaj Kumar, President, Indian Industries Association had told TheSpuzz Online.
The new Udyam Registration portal is integrated with the CBDT and GST networks along with the public procurement portal Government e-Marketplace to make finish-to-finish MSME registration paperless. MSMEs used to be registered at District Industries Centres (DICs) prior to the MSME Development Act, 2006 came into impact. Later, as per the provisions of the act, MSMEs had to file EM- element I at DICs prior to beginning an enterprise EM-element II just after commencement of production. As per the National Sample Survey (NSS) 73rd round performed by National Sample Survey Office for the duration of FY16, there had been 6.33 crore unincorporated non-agriculture MSMEs in India, of which 6.30 crore had been micro firms, 3.31 lakh had been tiny enterprises and 5,000 had been mid-sized enterprises, the annual report noted.