Lok Sabha Question No. 680 (UNSTARRED), answered on 2021-07-22
Subject: Retail and Whoelsale Sector in MSME
Ministry: MICRO,SMALL AND MEDIUM ENTERPRISES
Asked by: Bhola Singh, Raja Amareshwara Naik, Sukanta Majumdar, Vinod Kumar Sonkar, Rajveer (Raju Bhaiya) Singh, Jayanta Kumar Roy, Sangeeta Kumari Singh Deo

## GOVERNMENT OF INDIA MINISTRY OF MICRO, SMALL AND MEDIUM ENTERPRISES

## LOK SABHA

## UNSTARRED QUESTION NO.680 TO BE ANSWERED ON 22.07.2021

## Retail and Wholesale Sector in MSME

## 680. SHRI BHOLA SINGH:

SHRI RAJA AMARESHWARA NAIK:

DR. SUKANTA MAJUMDAR:

SHRI VINOD KUMAR SONKAR:

SHRI RAJVEER SINGH (RAJU BHAIYA):

DR. JAYANTA KUMAR ROY:

SHRIMATI SANGEETA KUMARI SINGH DEO:

Will the Minister of MICRO, SMALL AND MEDIUM ENTERPRISES be pleased to state:

- (a) whether the Government has included the retail and wholesale sector into Micro, Small  and  Medium  enterprises  (MSMEs)  after  being  excluded  from  the  category  four years ago;
- (b) whether the new Udyam portal launched by the Government is a self-declaration and cost-free platform for entrepreneurs to  get their enterprises registered and if so, the details thereof;
- (c) the benefits given by the Government for registered MSMEs;

(d) whether the Government has facilitated the availability of collateral-free credit to all  MSMEs  and  if  so,  the  details  thereof  including  the  number  of  MSMEs  availed  this facility so far; and

- (e) the other steps being taken by the Government for providing requisite support to the MSMEs  and  upcoming  entrepreneurs  in  strengthening  Indian  economy  and  working towards the vision of Aatmanirbhar Bharat?

## ANSWER

## MINISTER OF MICRO, SMALL AND MEDIUM ENTERPRISES (SHRI  NARAYAN RANE )

- (a): Yes Sir. From 2 nd July, 2021, the Government has included Retail and Wholesale Trades as MSMEs.
- (b): Yes Sir. The Government, vide notification no. S.O. 2119(E) dated 26.06.2020, had notified composite criteria of classification of MSMEs based on investment in plant and machinery  or  equipment  and  turnover  of  the  enterprise.  With  the  introduction  of  new classification    of    MSMEs      w.e.f.  01.07.2020,    a    new  cost  -  free    system    of    online Udyam

Registration  which  is  based  on  self  -declaration,  has  replaced  the  erstwhile  filing  of Udyog Aadhaar Memorandum.

(c): Filing  of  Udyog  Aadhaar  Memorandum  (UAM)/  Udyam  Registration  is  required for availing benefits of the schemes and programmes of the Ministry of MSME.

(d): The Government has launched the Credit Guarantee Scheme (CGS) to strengthen credit  delivery  system  and  facilitate  the  flow  of  credit  to  the  MSE  sector  without  the hassles  of  collateral  and  third  party  guarantee.  Under  the  scheme,  Credit  Guarantee  is given to the Member Lending Institutions (MLIs) for loans upto Rs. 200 lakh. As per the data  received  from  Credit  Guarantee  Fund  Trust  for  Micro  and  Small  Enterprises (CGTMSE), Mumbai, there are  53,86,739  Nos.  of  guarantee  and  Rs.  2,72,007.42  crore amount of guarantee approved under Credit Guarantee Scheme since inception.

(e): To strengthen the Indian economy and to provide help to upcoming entrepreneurs, recently  the  Government has taken a number of initiatives under Aatma Nirbhar Bharat Abhiyan to  support  the  MSME  sector  in  the  country,  especially  in  Covid-19  pandemic. Some of them are:

- i. Rs. 20,000 crore Subordinate Debt for MSMEs.
- ii. Rs.3 lakh crores Collateral free Automatic Loans for business, including MSMEs.
- iii. Rs. 50,000 crore equity infusion through MSME Self-Reliant India Fund
- iv. New Revised criteria of classification of MSMEs.
- v. New  Registration  of  MSMEs  through  'Udyam  Registration'  for  Ease  of  Doing Business.
- vi. No global tenders for procurement up to Rs. 200 crores.

An Online Portal 'Champions' has been launched on 01.06.2020 by Hon'ble Prime Minister. This covers many aspects of e-governance including redressal of grievances and handholding of MSMEs.

RBI has also announced several measures to Reduce Financial Stress of MSMEs.

********