Udyam Portal

• 04 Aug 2022

Why in News?

Around one crore Micro, Small and Medium Enterprises (MSMEs) have registered on the Udyam portal within a span of 25 months, according to the Union Minister of Micro, Small, and Medium Enterprises.

What is Udyam Portal?

• About:
  • It was launched on 1^st July, 2020.
  • It’s an online system for registering MSMEs, launched by the Union MSME ministry.
  • Further, it is linked to the databases of the Central Board of Direct Taxes(CBDT) and Goods and Services Tax Network (GSTN). 
    • GSTN is a unique and intricate IT enterprise that establishes a channel of communication and interaction between taxpayers, the central and various state governments, and other stakeholders.
  • It is fully online, does not require any documentation, and is a step towards Ease of Doing Business for MSMEs.
• Significance:
  • Udyam registrations are essential for MSMEs to utilize the benefits of schemes for the Ministry of MSME and for Priority Sector Lending from banks.
    • Also, MSMEs contribute to the GDP, exports, and employment generation of the country.
• New Initiatives:
  • The MSME ministry signed MoUs with the Ministry of Tourism and the National Small Industries Corporation for the sharing of Udyam data.
  • Further, the Digi locker facility for Udyam registration would be linked.

What are MSME?

• About:
  • The Micro Small and Medium Enterprises (MSMEs) sector is a major contributor to the socio-economic development of the country. 
    • In India, the sector has gained significant importance due to its contribution to the Gross Domestic Product (GDP) of the country and its exports. 
    • The sector has also contributed immensely with respect to entrepreneurship development, especially in semi-urban and rural areas of India.
  • According to the provisions of the Micro, Small & Medium Enterprises Development (MSMED) Act, 2006 the Micro, Small, and Medium Enterprises (MSME) are classified into two classes i.e., Manufacturing Enterprises and Service Enterprises.
    • The enterprises are further categorized based on investment in equipment and annual turnover.
• Related initiatives:
  • Scheme of Fund for Regeneration of Traditional Industries (SFURTI).
  • A Scheme for Promoting Innovation, Rural Industry & Entrepreneurship (ASPIRE).
  • MSME Innovative Scheme.

Source: PIB