Ease of doing business for MSMEs: Almost five months after the inclusion of retail and wholesale trade in the MSME category, 5.33 lakhs of registrations have taken place on the Udyam portal, representing 9% of total business registrations to date. on the digital platform. According to data shared by MSME Minister Narayan Rane to Lok Sabha in response to a question, 5,333,404 registrations were registered on the portal between July 2, 2021 and November 29. Former MSME Minister Nitin Gadkari had announced the revised July 2 guidelines for MSMEs with the inclusion of retail and wholesale as MSMEs.
In a tweet, Gadkari added that the revised guidelines would benefit retail and wholesale traders by 2.5 crore. The minister said that retail and wholesale was outside the purview of MSMEs, but with the changes to the guidelines, retail businesses were allowed to register on the Udyam portal. However, “the benefits of ‘Udyam’ registrations for these traders are limited to Priority Sector Loan (PSL) loans only,” Rane informed.
According to the Reserve Bank of India, PSL refers to sectors that impact broad sections of the population, weaker sections and other employment-intensive sectors such as agriculture and micro and small companies. Categories of PSL, which included agriculture, MSMEs, export credit, education, housing, social infrastructure, renewable energy, etc., benefit from loans at concessional rates.
The total number of registrations as of December 5, 2021 on the Udyam portal stood at 59.24 lakh, of which 55.93 lakh from micro-businesses, 2.98 lakh from small businesses and 33,216 medium-sized businesses, according to data from the portal. Currently, only PAN and Aadhaar details are required to register the business on the Udyam portal.
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The inclusion of retail and wholesale trade in the MSME category was essentially a restoration of the MSME status which had been withdrawn from both trade segments in June 2017. According to the official journal notification of June 27, 2017, the activities retail and wholesale were neither manufacturing nor service units as defined in the 2008 MSMED Act. Therefore, they were unable to obtain the Udyog Aadhaar memorandum (known as the MSME registration). With the revised definition of MSMEs, the number of MSMEs in the country is most likely to increase. Currently India has over 6.33 million MSMEs.
Among the advantages of registering on the Udyam portal, there is no need to renew the registration, an unlimited number of activities, including manufacturing or service, can be added to a single registration, MSMEs can register in the government electronic marketplace and simultaneously aboard the TReDS platform, registration can also help MSMEs to enjoy the benefits of government programs such as credit guarantee program, procurement policy audiences, etc.