Lok Sabha Question No. 1347 (UNSTARRED), answered on 2023-02-09
Subject: Financial Incentive Policy
Ministry: MICRO,SMALL AND MEDIUM ENTERPRISES
Asked by: Kalyan Banerjee

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

## LOK SABHA UNSTARRED QUESTION NO. 1347 TO BE ANSWERED ON 09.02.2023

## FINANCIAL INCENTIVE POLICY

## 1347. SHRI KALYAN BANERJEE:

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

- (a) whether the Government has framed an enhanced financial incentive policy to boost up the MSME sector;
- (b) if so, the details thereof and if not, the reasons therefor;
- (c) the  number  of  registered  MSMEs  currently  functioning  along  with  the  number  of  those  currently lying closed during the last five years and the current year, State/UT-wise;
- (d) whether the Government proposes to provide employment, subsidies and financial compensation to persons affected by the closure of MSMEs due to the Covid-19 pandemic; and
- (e) if so, the details thereof and if not, the reasons therefor?

## ANSWER

## MINISTER OF STATE FOR MICRO, SMALL AND MEDIUM ENTERPRISES (SHRI BHANU PRATAP SINGH VERMA)

- (a) & (b): The  Government  has  taken  a  number  of  recent  incentives  to  boost  up  the  MSME  sector. Some of these include:
- i. Rs.  5.00  lakh  crore  Emergency  Credit  Line  Guarantee  Scheme  (ECLGS)  for  businesses, including MSMEs;
- ii. Rs. 50,000 crore equity infusion through Self Reliant India (SRI) Fund;
- iii. New revised criteria for classification of MSMEs;
- iv. No global tenders for procurement up to Rs. 200 crores;
- v. 'Udyam Registration' for MSMEs, for Ease of Doing Business;
- vi. Launching  of  an  online  Portal  'Champions'  in  June,  2020  to  cover  many  aspects  of  egovernance including redressing grievances and handholding of MSMEs;
- vii. Inclusion of Retail and Wholesale traders as MSMEs;
- viii.   Non-tax benefits extended for 3 years in case of an upward change in status of MSMEs.
- ix. Launch of Udyam Assist Platform on 11.01.2023 to bring Informal Micro Enterprises under the formal ambit for availing the benefit under Priority Sector Lending.
- x. Budget  2023-24  has  announced  the  infusion  of  Rs.  9,000  crore  in  the  corpus  of  Credit Guarantee Fund Trust for Micro & Small Enterprises to enable an additional credit of Rs. 2.00 lakh crore with reduced cost of the credit.
- (c): The number of MSMEs currently functioning and closed during the last five years and the current year, State/UTs -wise, is attached at Annexure I.
- (d) & (e): As  informed  by  M/o  Labour  and  Employment  that  Aatmnirbhar  Bharat  Rojgar  Yojana (ABRY) has been launched with effect from 1 st October, 2020 to incentivize employers for creation of new employment  along  with  social  security  benefits  and  restoration  of  loss  of  employment  during  Covid-19 pandemic.  Under  the  scheme,  Government  of  India  for  a  period  of  two  years,  is  crediting  both  the employee's share (12% of wages) and employer's share (12% of wages) of contribution payable or only the employee's  share,  depending  on  employement  strength  of  the  Employees'  Provident  Fund  Organisation (EPFO) registered establishments. This scheme intends to reduce the financial burden of the employers and encourage them to hire more workers. The terminal date for registration of beneficiaries was 31.03.2022. As on 24.01.2023, benefits  have been  provided to  60.26  lakh  beneficiaries  through  1.52  lakh  establishments throughout the country.

***

Annexure I Annexure referred to in reply to part (c) of Lok Sabha Unstarred Question No. 1347 for answer on 09.02.2023.

|         | State/UTs         | No. of MSMEregistered                                      | No. of MSMEregistered                                      | No. of MSMEregistered                                      | No. of MSMEregistered                                      | No. of MSMEregistered         | No. of MSMEregistered         | No. of MSMEregistered         | No. of MSMEclosed                                          | No. of MSMEclosed                                          | No. of MSMEclosed                                          | No. of MSMEclosed                                          | No. of MSMEclosed                                  | No. of MSMEclosed                                  | No. of MSMEclosed                                  |
|---------|-------------------|------------------------------------------------------------|------------------------------------------------------------|------------------------------------------------------------|------------------------------------------------------------|-------------------------------|-------------------------------|-------------------------------|------------------------------------------------------------|------------------------------------------------------------|------------------------------------------------------------|------------------------------------------------------------|----------------------------------------------------|----------------------------------------------------|----------------------------------------------------|
| Sl. No. | State/UTs         | Udyam Aadhaar Registration (From 01.04.2017 to 30.06.2020) | Udyam Aadhaar Registration (From 01.04.2017 to 30.06.2020) | Udyam Aadhaar Registration (From 01.04.2017 to 30.06.2020) | Udyam Aadhaar Registration (From 01.04.2017 to 30.06.2020) | Udyam Registration 01.07.2020 | Udyam Registration 01.07.2020 | Udyam Registration 01.07.2020 | Udyam Aadhaar Registration (From 01.04.2017 to 30.06.2020) | Udyam Aadhaar Registration (From 01.04.2017 to 30.06.2020) | Udyam Aadhaar Registration (From 01.04.2017 to 30.06.2020) | Udyam Aadhaar Registration (From 01.04.2017 to 30.06.2020) | Udyam Registration (From 01.07.2020 to 03.02.2023) | Udyam Registration (From 01.07.2020 to 03.02.2023) | Udyam Registration (From 01.07.2020 to 03.02.2023) |
| Sl. No. | State/UTs         | 2017-18                                                    | 2018-19                                                    | 2019-20                                                    | 2020-21                                                    | 2020-21                       | 2021-22                       | 2022-23                       | 2017- 18                                                   | 2018- 19                                                   | 2019- 20                                                   | 2020- 21                                                   | 2020- 21                                           | 2021- 22                                           | 2022- 23                                           |
| 1       | Andhra Pradesh    | 54,581                                                     | 38,510                                                     | 73,392                                                     | 42,267                                                     | 65,655                        | 1,48,206                      | 1,95,177                      | 0                                                          | 0                                                          | 0                                                          | 0                                                          | 0                                                  | 113                                                | 208                                                |
| 2       | Arunachal Pradesh | 212                                                        | 501                                                        | 528                                                        | 445                                                        | 729                           | 2,257                         | 3,198                         | 0                                                          | 0                                                          | 0                                                          | 0                                                          | 0                                                  | 0                                                  | 1                                                  |
| 3       | Assam             | 1,714                                                      | 4,212                                                      | 12,150                                                     | 8,716                                                      | 17,231                        | 72,171                        | 1,00,204                      | 0                                                          | 0                                                          | 1                                                          | 3                                                          | 0                                                  | 8                                                  | 22                                                 |
| 4       | Bihar             | 99,167                                                     | 72,562                                                     | 75,053                                                     | 50,720                                                     | 91,138                        | 2,22,911                      | 2,48,586                      | 0                                                          | 0                                                          | 1                                                          | 2                                                          | 18                                                 | 541                                                | 464                                                |
| 5       | Chhattisgarh      | 8,253                                                      | 15,082                                                     | 30,138                                                     | 13,488                                                     | 33,287                        | 69,123                        | 86,975                        | 0                                                          | 0                                                          | 0                                                          | 0                                                          | 4                                                  | 64                                                 | 91                                                 |
| 6       | Goa               | 1,204                                                      | 2,095                                                      | 3,035                                                      | 2,062                                                      | 6,087                         | 8,666                         | 12,438                        | 0                                                          | 0                                                          | 0                                                          | 0                                                          | 3                                                  | 5                                                  | 15                                                 |
| 7       | Gujarat           | 1,93,473                                                   | 1,71,331                                                   | 1,84,252                                                   | 71,803                                                     | 2,49,543                      | 4,01,428                      | 4,13,965                      | 0                                                          | 0                                                          | 0                                                          | 0                                                          | 67                                                 | 492                                                | 873                                                |
| 8       | Haryana           | 29,458                                                     | 51,536                                                     | 66,230                                                     | 41,379                                                     | 1,03,719                      | 1,80,338                      | 1,91,101                      | 0                                                          | 0                                                          | 3                                                          | 3                                                          | 16                                                 | 151                                                | 327                                                |
| 9       | Himachal Pradesh  | 2,166                                                      | 4,597                                                      | 6,620                                                      | 3,256                                                      | 12,950                        | 27,011                        | 39,085                        | 0                                                          | 0                                                          | 16                                                         | 2                                                          | 2                                                  | 8                                                  | 83                                                 |
| 10      | Jharkhand         | 21,562                                                     | 25,724                                                     | 32,203                                                     | 19,885                                                     | 43,441                        | 83,697                        | 1,10,205                      | 0                                                          | 0                                                          | 1                                                          | 1                                                          | 0                                                  | 134                                                | 188                                                |
| 11      | Karnataka         | 56,783                                                     | 85,254                                                     | 1,14,143                                                   | 94,403                                                     | 1,53,446                      | 3,16,354                      | 3,48,156                      | 0                                                          | 0                                                          | 2                                                          | 2                                                          | 4                                                  | 272                                                | 428                                                |
| 12      | Kerala            | 20,566                                                     | 27,706                                                     | 36,268                                                     | 24,006                                                     | 72,560                        | 1,18,732                      | 1,46,873                      | 0                                                          | 0                                                          | 0                                                          | 1                                                          | 2                                                  | 137                                                | 273                                                |
| 13      | Madhya Pradesh    | 2,06,137                                                   | 2,99,758                                                   | 2,93,487                                                   | 41,995                                                     | 1,12,485                      | 2,47,233                      | 2,89,589                      | 0                                                          | 0                                                          | 9                                                          | 2                                                          | 1                                                  | 112                                                | 440                                                |
| 14      | Maharashtra       | 1,90,800                                                   | 5,68,295                                                   | 7,04,173                                                   | 2,52,574                                                   | 6,54,730                      | 9,82,332                      | 9,84,798                      | 0                                                          | 0                                                          | 130                                                        | 76                                                         | 3                                                  | 1,831                                              | 2,697                                              |
| 15      | Manipur           | 6,415                                                      | 8,856                                                      | 10,533                                                     | 3,159                                                      | 10,504                        | 13,841                        | 17,800                        | 0                                                          | 0                                                          | 0                                                          | 0                                                          | 0                                                  | 0                                                  | 48                                                 |
| 16      | Meghalaya         | 565                                                        | 720                                                        | 602                                                        | 257                                                        | 701                           | 2,233                         | 4,894                         | 0                                                          | 0                                                          | 0                                                          | 0                                                          | 0                                                  | 1                                                  | 1                                                  |
| 17      | Mizoram           | 799                                                        | 755                                                        | 1,200                                                      | 412                                                        | 1,122                         | 3,555                         | 5,900                         | 0                                                          | 0                                                          | 0                                                          | 1                                                          | 0                                                  | 1                                                  | 2                                                  |
| 18      | Nagaland          | 142                                                        | 366                                                        | 763                                                        | 579                                                        | 720                           | 3,325                         | 6,134                         | 0                                                          | 0                                                          | 0                                                          | 0                                                          | 0                                                  | 1                                                  | 5                                                  |
| 19      | Odisha            | 19,142                                                     | 16,111                                                     | 29,601                                                     | 28,345                                                     | 49,823                        | 1,06,506                      | 1,37,799                      | 0                                                          | 0                                                          | 1                                                          | 0                                                          | 1                                                  | 118                                                | 165                                                |
| 20      | Punjab            | 29,035                                                     | 59,802                                                     | 86,240                                                     | 32,783                                                     | 1,01,278                      | 1,83,244                      | 2,19,048                      | 0                                                          | 0                                                          | 2                                                          | 0                                                          | 0                                                  | 208                                                | 88                                                 |
| 21      | Rajasthan         | 1,28,489                                                   | 1,35,787                                                   | 1,79,051                                                   | 67,723                                                     | 2,37,324                      | 3,95,224                      | 4,19,082                      | 0                                                          | 0                                                          | 44                                                         | 26                                                         | 11                                                 | 312                                                | 839                                                |
| 22      | Sikkim            | 171                                                        | 254                                                        | 268                                                        | 225                                                        | 351                           | 1,778                         | 2,246                         | 0                                                          | 0                                                          | 0                                                          | 1                                                          | 0                                                  | 0                                                  | 1                                                  |
| 23      | Tamil Nadu        | 2,17,959                                                   | 2,32,933                                                   | 2,55,786                                                   | 90,955                                                     | 3,14,589                      | 5,44,128                      | 5,87,529                      | 0                                                          | 0                                                          | 2                                                          | 0                                                          | 2                                                  | 591                                                | 1487                                               |
| 24      | Telangana         | 46,218                                                     | 89,097                                                     | 74,115                                                     | 35,681                                                     | 98,370                        | 1,62,467                      | 1,84,854                      | 0                                                          | 0                                                          | 6                                                          | 4                                                          | 2                                                  | 128                                                | 93                                                 |
| 25      | Tripura           | 701                                                        | 1,552                                                      | 1,491                                                      | 1,111                                                      | 1,703                         | 6,740                         | 11,180                        | 0                                                          | 0                                                          | 4                                                          | 3                                                          | 0                                                  | 8                                                  | 6                                                  |
| 26      | Uttar Pradesh     | 1,18,984                                                   | 1,24,344                                                   | 1,67,451                                                   | 1,16,510                                                   | 2,19,413                      | 4,16,110                      | 5,40,870                      | 0                                                          | 0                                                          | 17                                                         | 15                                                         | 20                                                 | 494                                                | 914                                                |
| 27      | Uttarakhand       | 6,275                                                      | 9,725                                                      | 17,738                                                     | 9,136                                                      | 22,890                        | 50,036                        | 58,814                        | 0                                                          | 0                                                          | 0                                                          |                                                            | 1                                                  | 32                                                 | 161                                                |
| 28      | West Bengal       | 36,518                                                     | 31,333                                                     | 44,075                                                     | 60,162                                                     | 64,231                        | 1,71,332                      | 2,13,848                      | 0                                                          | 0                                                          | 2                                                          | 1 5                                                        | 17                                                 | 153                                                | 284                                                |

| 29                                | Andaman And Nicobar Islands        | 1,457                             | 1,490                             | 1,517                             | 412                               | 1,852                             | 2,999                             | 3355                              | 0                                 | 0                                 | 3                                 | 2                                 | 0                                 | 9                                 | 9                                 |
|-----------------------------------|------------------------------------|-----------------------------------|-----------------------------------|-----------------------------------|-----------------------------------|-----------------------------------|-----------------------------------|-----------------------------------|-----------------------------------|-----------------------------------|-----------------------------------|-----------------------------------|-----------------------------------|-----------------------------------|-----------------------------------|
| 30                                | Chandigarh                         | 1,553                             | 3,192                             | 4,333                             | 2,299                             | 5,808                             | 9,581                             | 8,312                             | 0                                 | 0                                 | 0                                 | 0                                 | 1                                 | 21                                | 8                                 |
| 31                                | Dadar &Nagar Haveli and Daman &Diu | 1164                              | 2066                              | 2578                              | 999                               | 3127                              | 4242                              | 4273                              | 0                                 | 0                                 | 0                                 | 0                                 | 0                                 | 7                                 | 14                                |
| 32                                | Delhi                              | 21,962                            | 44,930                            | 58,302                            | 55,877                            | 90,532                            | 1,35,804                          | 1,47,780                          | 0                                 | 0                                 | 1                                 | 5                                 | 0                                 | 210                               | 396                               |
| 33                                | Jammu And Kashmir                  | 989                               | 2,416                             | 2,848                             | 2,411                             | 26,722                            | 74,781                            | 77,191                            | 0                                 | 0                                 | 0                                 | 0                                 | 0                                 | 51                                | 103                               |
| 34                                | Ladakh                             | 0                                 | 0                                 | 78                                | 61                                | 741                               | 2,314                             | 2,384                             | 0                                 | 0                                 | 0                                 | 0                                 | 0                                 | 1                                 | 2                                 |
| 35                                | Lakshadweep                        | 14                                | 24                                | 33                                | 13                                | 39                                | 209                               | 276                               | 0                                 | 0                                 | 0                                 | 0                                 | 0                                 | 0                                 | 0                                 |
| 36                                | Puducherry                         | 2,100                             | 2,693                             | 3,512                             | 1,265                             | 3,911                             | 8,301                             | 9,323                             | 0                                 | 0                                 | 0                                 | 0                                 | 0                                 | 8                                 | 31                                |
|                                   |                                    | 15,26,728                         | 21,35,609                         | 25,73,78 7                        | 11,77,37 4                        | 28,72,75 2                        | 51,79,20 9                        | 58,33,24 2                        | 0                                 | 0                                 | 245                               | 155                               | 175                               | 6,222                             | 10,767                            |
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