Lok Sabha Question No. 154 (UNSTARRED), answered on 2023-07-20
Subject: Closed MSMEs
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. 154 TO BE ANSWERED ON 20.07.2023

## CLOSED MSMEs

## 154. SHRI KALYAN BANERJEE:

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

- (a) whether 10,655 Micro, Small and Medium Enterprises (MSMEs) closed down during the financial year 2022-23 which is highest during the last four years followed by 6,222 closed MSMEs in 2021-22 and if so, the details thereof;
- (b) whether it is also a fact that over 10000 MSMEs and additional over 9667 Udyam units shut down in 2016-2022 and if so, the details thereof;
- (c) whether it is also a fact that 9,222 Udyam MSMEs were shut down during 2021-23 and one lakh people losing their jobs from July 1, 2021 till March 31, 2023 and if so, the details thereof; and
- (d) the measures taken by the Government for MSME sector, which accounts for thirty per cent of  the  economy  and  almost  forty  per  cent  of  employment,  to  overcome  the  most  worrying  and critical problems?

## ANSWER

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

- (a) & (b): As per  Udyam Registration Portal,  the  total  number  of  Micro  Small  and  Medium Enterprises which were closed/shutdown during 01.07.2020 to 31.03.2023 are as follows:
- (c): As per Udyam Registration Portal launched on 01.07.2020, the number of MSMEs which were  closed/shutdown  during  01.07.2021  to  31.03.2023  was  19,248  and  the  number  of  persons employed in those MSMEs were 1,32,205 (as on 13.07.2023). During the same period, 45,99,944 new  MSMEs  have  been  incorporated  and  registered  on  Udyam  Registration  Portal  with  an employment of 2,89,35,351.
- (d): The Ministry of Micro, Small and Medium Enterprises implements various schemes for the growth and development of MSME sector in the country in areas of credit support, formalization, technological  assistance,  infrastructure  development,  skill  development  and  training  and  market assistance to MSMEs. The schemes/programmes inter alia include Prime Minister's Employment Generation  Programme  (PMEGP),  Credit  Guarantee  Scheme  for  Micro  and  Small  Enterprises (CGTMSE),  Micro  and  Small  Enterprises-Cluster  Development  Programme  (MSE-CDP),  A Scheme for Promoting Innovation, Rural Industry & Entrepreneurship (ASPIRE), Entrepreneurship Skill  Development Programme (ESDP), Procurement and Marketing Support Scheme (PMS) and National SC/ST Hub (NSSH).

| Year                     |   No. of MSMEs closed/shutdown (as on 13.07.2023) |
|--------------------------|---------------------------------------------------|
| 01.07.2020 to 31.03.2021 |                                               175 |
| 01.04.2021 to 31.03.2022 |                                              6222 |
| 01.04.2022 to 31.03.2023 |                                             13290 |
| Total                    |                                             19687 |

The  Government  has  taken  a  number  of  recent  initiatives  to  support  MSMEs  in  the  country, include:

- i. Rs.  5  lakh  crore  Emergency  Credit  Line  Guarantee  Scheme  (ECLGS)  for  business, including MSMEs.
- ii. Rs. 50,000 crore equity infusion through MSME Self-Reliant India 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 grievance redress and handholding of MSMEs.
- vii. Inclusion of Retail and Wholesale trades as MSMEs w.e.f. 02 nd July, 2021.
- viii. Non-tax benefits extended for 3 years in case of an upward change in status of MSMEs.
- ix. Roll  out  of  Raising  and  Accelerating  MSME  Performance (RAMP) programme with an outlay of Rs. 6,000 crore over 5 years.
- x. 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).

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