The aim of Udyog Aadhar/UDYAM Registration is to simplify the process for the business owners to register their business under Micro Small Medium Enterprise or MSME. Udyog Aadhar is a government registration that is provided along with a recognition certificate and a unique number [Udyog Aadhaar Memorandum No. (UAM)]. In order to certify small/medium businesses or enterprises. The main motive to launch this facility is to offer a way to the government to provide the maximum benefits to medium or small-scale businesses or industries in India, who are registered via MSME. Now, it has become one of the main requirements to resume your business in the phase of COVID-19 during the lockdown.
Recently, Ministery of Micro, Small & Medium Enterprises, Govt. of India, launched a web portal for MSME Bank of Schemes, Ideas, Innovations & Research. Union Minister Sh.Nitin Gadkari said that his vision is to increase MSMEs contribution to India’s GDP to over 50% from the current 29% and Exports’ contribution which currently stands at 50% from the sector will be increased to 75%.
Contirbution of MSME in Indian Economy
- MSME’s contribute Approx. 29.7% of GDP and 49.66% of Indian Exports.
- Estimated Employment (number of persons) generated in micro enterprises during the year 2018-19 was 5.87 Lakhs
- Estimated number of workers in unincorporated non-agriculture MSMEs in the country are 11.10 crore
Revised Definition of MSME
| Sector | Manufacturing | Service Enterprises | ||
| Existing | Revised | Existing | Revised | |
| Micro Enterprises | Investment < 25Lac | Investment<1Cr. And Turnover<5Cr. | Investment < 10Lac | Investment<1Cr. And Turnover<5Cr. |
| Small Enterprises | Investment < 5Cr. | Investment<10Cr. And Turnover<50Cr. | Investment < 2Cr. | Investment<10Cr. And Turnover<50Cr. |
| Medium Enterprises | Investment < 10Cr. | Investment<20Cr. And Turnover<100Cr. | Investment < 5Cr. | Investment<20Cr. And Turnover<100Cr. |
Reforms by Indian Government for MSME Sector
- Rupees 3 Lakh Crore Collateral free automatic loans for MSME’s.
- Emergency credit line to MSME from banks and NBFC’s upto 20% of entire outstanding credit as on 29.02.2019
- Loan to have 4 year tenure with moratorium of 12 Months on Principal Repayment
- Interest to be capped.
- Borrowers with upto Rs. 25 Crore Outstanding and Rs 100 Crore Turnover is eligible to avail the facility.
- 100% Guarantee on principal and interest borne by Government.
- Scheme can be availed till 31st October 2020.
- Rupees 20000 Crore Subordinate Debt for stressed MSME’s
- Rupees 50000 Crore Equity infusion for MSME’s through Fund of Funds
- E-Market linkage for MSME’s to promote Trade
- MSME receivables from Government and PSU’s to be released in 45 days
- Global Tenders to be disallowe upto Rs. 200 Crores.
There are various stage through which an entrepreneur has to pass before establishing own business. These are as follows:
“If people are doubting how far you can go, go so far that you can’t hear them anymore.”