The Udyam portal, facilitated by the government for MSME registration, has achieved a significant milestone by surpassing 3.5 crore registrations. This feat underscores the growing adoption of formalized registration among micro, small, and medium enterprises (MSMEs) in India.
UAP’s Contribution: A notable portion of the registrations, totaling 1.27 crore micro enterprises, was facilitated through the Udyam Assist Platform (UAP). Launched in January last year, UAP serves as a vital avenue for informal micro enterprises (IMEs) to obtain Udyam registration certificates, enabling them to access benefits linked to priority sector lending.
Diverse Registration Channels: Designated Agencies (DAs), including banks, NBFCs, MFIs, and cooperative banks, utilize IMEs’ data such as Aadhaar and bank transactions to register these enterprises, fostering inclusivity in the formalization process.
Employment and Export Figures: The registered MSMEs collectively account for a substantial employment base of 16.67 crore. Manufacturing units constitute 59.46 lakh of the registered enterprises, while service enterprises total 1.68 crore. Moreover, 1.96 lakh units engaged in exports have contributed significantly to India’s export landscape, exporting goods worth Rs 15.28 lakh crore.
Continuous Growth Trajectory: Since its launch in July 2020, the Udyam portal has witnessed a steady rise in registrations, surpassing milestones of 1 crore, 2 crores, and 3 crores in quick succession. This growth trajectory signifies the increasing recognition and utilization of the portal among MSMEs, especially post-Covid.
Challenges and Withdrawals: Despite the upward trend in registrations, a notable number of Udyam-registered enterprises have withdrawn their registrations due to business closures. However, initiatives are underway to address these challenges and sustain the momentum of MSME formalization.