The number of firms registered on the MSME Ministry’s registration platform Udyam has roughly doubled in the nearly three years since its inception on July 1, 2020, with the reclassification of MSMEs following the Covid epidemic.
As of June 4, 2023, 1.96 crore firms have been registered with Udyam certificates, with 30.9 lakh being informal micro units brought into the formalisation fold via the Udyam Assist Platform (UAP). According to the data from the portal, 1.89 crore units were micro firms, 5.49 lakh were small enterprises, and 52,220 were medium enterprises.
The ministry introduced UAP in January this year to bring informal micro companies into the formal fold that are connected to the banking environment through digital transactions but are not GST registered. Banks are required to provide the required data of their informal micro-enterprise customers with UAP, which validates the data and registers units on the Udyam portal.
Prime Minister Narendra Modi said, “States must act proactively towards formalisation of MSMEs” along with the need to make finance, technology, market and access for skilling available to MSMEs to become globally competitive.
The Reserve Bank of India (RBI) had directed all financial institutions, including banks and non-banking financial companies (NBFCs), to treat informal micro-enterprises registered through the Udyam Assist platform as micro-enterprises for priority sector lending (PSL) classification.
