Bikky Khosla | 09 Nov, 2020
11 lakh MSMEs have got themselves registered till October 31, under the Udyam
Registration system which took off on July 1 this year. This is welcome news.
Poor registration has remained a lingering problem for India's millions of
micro, small and medium enterprises, limiting the sector’s access to policy
support, and now it is encouraging to see gradual increase in their number of
registration over the years.
government has revised the definition of MSMEs as well as the process of their
registration from July 2020. A new registration portal, 'MSME/Udyam', was launched,
and later it was seamlessly integrated with CBDT and GST networks as also
with the GeM, making the registration process a totally paperless exercise. And
now the latest figures reflect the positive efforts, though we have yet to
achieve a lot considering the large number of MSMEs still in the unorganised
A thorough look into the latest official data shows
that micro, small and medium enterprises contributed 93.17%, 5.62% and 1.21%,
respectively to overall Udyam
registrations. Maharashtra, Tamil Nadu, Rajasthan, Uttar Pradesh and Gujarat
are the 5 leading states while food products, textile, apparel, fabricated
metal products and machinery & equipment are the top 5 sectors. It is
encouraging that 1,01,03,512 persons have been given employment by these newly
It can be expected that the Udyam registration system will now help form a
verified database of MSME units in the country, because the system is
integrated with CBDT and GST.
It is also encouraging that the MSME ministry
has instructed all of its field establishments, including District Magistrates
and District Industries Centres to extend full support for registration of MSME
units. This definitely will add to the ease of doing business as far as MSMEs
I invite your opinions.