Lok Sabha Question No. 920 (UNSTARRED), answered on 2022-07-21
Subject: Role of MSMEs in Manufacturing Sector
Ministry: MICRO,SMALL AND MEDIUM ENTERPRISES
Asked by: Ajay Nishad

## GOVERNMENT OF INDIA

## MINISTRY OF MICRO, SMALL AND MEDIUM ENTERPRISES

## LOK SABHA UNSTARRED QUESTION No. †920 TO BE ANSWERED ON 21.07.2022

## ROLE OF MSMEs IN MANUFACTURING SECTOR

†920. SHRI AJAY NISHAD:

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

- (a) whether  Micro,  Small  and  Medium  Enterprises  (MSMEs)  play  an  important  role  in manufacturing sector of the country;
- (b) if  so,  the  percentage  contribution  of  MSMEs  in  total  production  of  manufacturing  sector during the last five years and the current year;
- (c) whether some units of MSMEs have also been closed during the said period; and
- (d) if  so,  the  total  number  of  closed  units  during  each  year  of  the  said  period  and  the  reasons therefor?

## ANSWER

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

- (a): Yes,  the  Micro,  Small  and  Medium  Enterprises  (MSMEs)  plays  an  important  role  in manufacturing sector of the country.
- (b): As per information received from Ministry of Statistics & Programme Implementation, the Share of MSME Manufacturing Output in All India Manufacturing Output was as follows:
- (c) & (d): As  per  Udyog  Aadhar  Portal,  the  number  of  enterprises  which  were  registered  and afterwards withdrawn their registration (as on 15.07.2022) with specified reasons is as follows:

| Year    | Share of MSMEMfg. O/P in All India Mfg. O/P (in %)   |
|---------|------------------------------------------------------|
| 2016-17 | 37.09%                                               |
| 37.38%  | 2017-18                                              |
| 36.86%  | 2018-19                                              |
| 36.68%  | 2019-20                                              |
| 2020-21 | 35.98%                                               |

| Reasons             |   2017-18 |   2018-19 |   2019-20 |   2020-21 (Till 30/06/2020) |   Total |
|---------------------|-----------|-----------|-----------|-----------------------------|---------|
| No Further Required |         0 |         0 |       157 |                          94 |     251 |
| Shut down           |         0 |         0 |       245 |                         155 |     400 |
| Duplicate           |         0 |         0 |        96 |                          69 |     165 |
| Owner Change        |         0 |         0 |       100 |                          58 |     158 |
| Other               |         0 |         0 |       314 |                         182 |     496 |
| Total               |         0 |         0 |       912 |                         558 |    1470 |

As per Udyam Registration Portal, the number of enterprises which were registered and afterwards withdrawn their registration (as on 15.07.2022) with specified reasons is as follows:

| Reasons             |   2020-21 (From 01/07/2020) |   2021-22 |   2022-23* |   Total |
|---------------------|-----------------------------|-----------|------------|---------|
| No Further Required |                         170 |      3733 |       1607 |    5510 |
| Shut down           |                         175 |      6222 |       2744 |    9141 |
| Duplicate           |                          67 |       942 |        333 |    1342 |
| Owner Change        |                          60 |      2713 |       1138 |    3911 |
| Other               |                         459 |     10465 |       4673 |   15597 |
| Total               |                         931 |     24075 |      10495 |   35501 |