Lok Sabha Question No. 1236 (UNSTARRED), answered on 2023-07-27
Subject: Downward Trend in MSMEs
Ministry: MICRO,SMALL AND MEDIUM ENTERPRISES
Asked by: Malook Nagar

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

## LOK SABHA UNSTARRED QUESTION No. 1236 TO BE ANSWERED ON 27.07.2023

## DOWNWARD TREND IN MSMEs

1236. SHRI MALOOK NAGAR:

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

- (a) whether it is a fact that continuous downward trend is being noticed in Micro, Small and Medium Enterprises (MSME) sector during the last three years;
- (b) if so, the details thereof;
- (c) whether it is also a fact that industries are not getting policy and administrative support as a result of which industries are not flourishing and its production is declining and if so, the details thereof;
- (d) the reasons behind such downward trend in industry; and
- (e) the steps taken by the Government to address these problems of industry?

## ANSWER

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

- (a) & (b): As on 25.07.2023, as per Udyam Registration Portal, the total number of MSMEs which  were  registered  since  inception  (01.07.2020)  to  25.07.2023  in  all  India  was  2,08,18,798, which includes 30,93,352 informal micro enterprises on the Udyam Assist Platform. The average registration  on  Udyam  Registration  Portal  is  in  the  range  of  25,000-30,000  per  day.  Year  wise registrations on the Portal are showing an increasing trend, as given below:

| Year Wise Total MSME Registered under Udyam Registration Portal Since Inception to 25.07.2023   | Year Wise Total MSME Registered under Udyam Registration Portal Since Inception to 25.07.2023   | Year Wise Total MSME Registered under Udyam Registration Portal Since Inception to 25.07.2023   |
|-------------------------------------------------------------------------------------------------|-------------------------------------------------------------------------------------------------|-------------------------------------------------------------------------------------------------|
| Year/Period                                                                                     | Total                                                                                           | Cumulative Total                                                                                |
| 01/07/2020 - 31/03/2021                                                                         | 28,49,117                                                                                       | 28,49,117                                                                                       |
| 01/04/2021 - 31/03/2022                                                                         | 51,50,353                                                                                       | 79,99,470                                                                                       |
| 01/04/2022 - 31/03/2023                                                                         | 72,55,624                                                                                       | 1,52,55,094                                                                                     |
| 01/04/2023 - 25/07/2023 ( 4 months)                                                             | 24,70,352                                                                                       | 1,77,25,446                                                                                     |

The positive trend can also been seen in credit off take by the MSMEs. Under the Credit Guarantee Scheme for Micro and Small Enterprises, 7.17 lakh guarantees were approved in the FY 2021-22, involving an amount of 56,172 crore. During the FY 2022-23, 11.65 lakh guarantees were approved,  involving  an  amount  of  Rs.  1,04,781  crore.  Considering  the  excellent  response  to  the scheme,  the  Government,  in  Budget  2023-24  announced  the  infusion  of  Rs.  9,000  crore  in  the corpus of CGTMSE to enable additional credit of Rs. 2.00 lakh crore with a reduced cost of credit. As on 30.06.2023, 2.34 lakh guarantees approved involving an amount of Rs. 30,498 crore (F.Y. 2023-24).

: 2 :

(c) to (e): Ministry of MSME has taken a number of  policy initiatives to support MSMEs in the country in the recent past, include:

- i. Rs. 50,000 crore equity infusion through MSME Self-Reliant India Fund.
- ii. New revised criteria for classification of MSMEs.
- iii. 'Udyam Registration' for MSMEs, for Ease of Doing Business
- iv. Inclusion of Retail and Wholesale traders as MSMEs on 02.07.2021.
- v. Non-tax benefits extended for 3 years in case of an upward change in status of MSMEs.
- vi. Launch  of  Udyam  Assist  Platform  (UAP)  on  11.01.2023  to  bring  the  Informal  Micro Enterprises (IMEs) under the formal ambit for availing the benefit under Priority Sector Lending (PSL).
- vii. Launching of an online Portal 'Champions' in June, 2020 to cover many aspects of egovernance including grievance redress and handholding of MSMEs
- viii. Roll out of Raising and Accelerating MSME Performance (RAMP) programme with an outlay of Rs. 6,000 crore over 5 years.

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