Status of MSMEs and Closures
As of July 25, 2024, 2.76 crore MSMEs have registered on the Udyam portal since its launch on July 1, 2020. Of these, 49,342 units have shut down, resulting in a job loss of 3,17,641. According to Minister of State for MSME Shobha Karandlaje, no survey has been conducted to assess the status of closed MSMEs or measures taken for their revival over the past five years. Reasons cited for closures include change in ownership, duplicate registrations, and discontinuation of certificates.
State-Wise Closures
Maharashtra recorded the highest closures, with 12,233 units shutting down, followed by Tamil Nadu (6,298), Gujarat (4,861), and Rajasthan (3,857). Despite these closures, over 5.57 crore MSMEs have registered on the Udyam portal, creating 23.41 crore jobs.
Government Initiatives for Revival
To support and rebuild MSMEs, the government has launched several measures, including:
Emergency Credit Line Guarantee Scheme: A Rs 5 lakh crore initiative to ensure liquidity.
Udyam Registration: Simplified registration for MSMEs.
Self-Reliant India Fund: A Rs 50,000 crore equity infusion program.
Portal Champions: An online platform to resolve grievances and aid MSMEs.
MSME Status Expansion: Inclusion of retail and wholesale traders under the MSME category.
Rising MSME Loans
India’s MSME loan portfolio grew by 17.8% to Rs 64.1 lakh crore as of March 2024, compared to the previous year. Loans to self-employed individuals surged by 28.9% to Rs 35.7 lakh crore, while loans to MSME entities increased by 6.6% to Rs 28.4 lakh crore, highlighting a growing credit appetite in the sector.
