Over 6,200 enterprises shut down business during 2021-22, data from the Udyam Registration Portal, revealed after a reply provided by minister of state for micro, small and medium enterprises, Bhanu Pratap Singh Verma in Lok Sabha.
Out of the 1.38 crore enterprises registered from July 1, 2020 to January 30, 2023, a total of 6,222 enterprises shut down business during 2021-22.
Responding to a question posed by DMK MP Gautham Sigamani Pon, Verma said, “With the launch of Udyam Registration Portal on 01.07.2020 to 30.01.2023, more than 1.38 crore enterprises have registered from 01.07.2020 to 30.01.2023, of which 6,222 enterprises shut down business during 2021-22, which constitutes 0.0004% of the total MSMEs registered on Udyam Registration Portal.”
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Any person who intends to establish or has established a micro, small, or medium enterprise can file Udyam Registration online in the Udyam Registration portal, which is based on self-declaration.
According to the MSME ministry, there is no requirement to upload documents, papers, certificates, or proof.
The Udyam registration is not mandatory for starting new MSMEs; however, through the scheme, registered MSMEs can avail of benefits of schemes of the ministry of MSMEs, such as the Credit Guarantee Scheme, Public Procurement Policy, and an additional edge in Government Tenders & Protection against delayed payments.
Verma also underlined several government initiatives to support MSMEs in the country, including a ₹5 lakh crore Emergency Credit Line Guarantee Scheme for businesses comprising MSMEs along with ₹50,000 crore equity infusion through Self Reliant India Fund.
MoS Verma also noted that global tenders are provided for procurement of up to ₹200 crore. For availing the Priority Sector Lending, street vendors, retail, and wholesale traders are included as MSMEs.
The government also launched an online portal, “Champions” in June 2020 to cover many aspects of e-governance, including redressing grievances and handholding MSMEs.
Underlining an additional initiative for the MSMEs, Verma said in his reply, “Launch of Udyam Assist Platform (UAP) on 11 January 2023 to bring Informal Micro Enterprises (IMEs) under the formal ambit for availing the benefit under Priority Sector Lending (PSL) is another initiative to support MSMEs.”
