Lok Sabha Question No. 3548 (UNSTARRED), answered on 2023-08-10
Subject: Impact of Demonetisation and GST on MSMEs
Ministry: MICRO,SMALL AND MEDIUM ENTERPRISES
Asked by: S. Jothimani

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

## LOK  SABHA UNSTARRED QUESTION NO. 3548 TO BE ANSWERED ON 10.08.2023

## IMPACT OF DEMONETISATION AND GST ON MSMEs

3548. MS. S. JOTHIMANI:

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

- (a) whether there is a negative impact of Demonetisation and GST on the growth of Micro, Small and Medium Enterprises (MSMEs) in the country;
- (b) if so, the details thereof;
- (c) whether it is true that several MSMEs were shut down during the last three years and if so, the details thereof;
- (d) the details and the number of MSMEs shut down during the last three years, State and yearwise;
- (e) the details of MSMEs shut down in Tamil Nadu, district-wise;
- (f) the impact of shutting down of MSMEs on the employment rate in the country, especially for the State of Tamil Nadu; and
- (g) whether  the  Government  is  taking  any  steps  to  ensure  that  MSMEs  continue  to  grow, especially in the state of Tamil Nadu and 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 Ministry of MSME has not conducted any independent assessment of the impact of demonetisation and GST on the growth of MSME Sector. In fact, the MSME sector has shown resilience in terms of GST growth despite the COVID-19 disruptions as can be seen from the table below:

| Figure IX.10: GST paid (in Rs. lakh crore) by MSMEs in FY22 crossed the pre-pandemic level   | Figure IX.10: GST paid (in Rs. lakh crore) by MSMEs in FY22 crossed the pre-pandemic level   | Figure IX.10: GST paid (in Rs. lakh crore) by MSMEs in FY22 crossed the pre-pandemic level   | Figure IX.10: GST paid (in Rs. lakh crore) by MSMEs in FY22 crossed the pre-pandemic level   |
|----------------------------------------------------------------------------------------------|----------------------------------------------------------------------------------------------|----------------------------------------------------------------------------------------------|----------------------------------------------------------------------------------------------|
|                                                                                              | Micro                                                                                        | Small                                                                                        | Medium                                                                                       |
| FY19                                                                                         | 2.1                                                                                          | 0.8                                                                                          | 1.8                                                                                          |
| FY20                                                                                         | 2.2                                                                                          | 0.9                                                                                          | 1.9                                                                                          |
| FY21                                                                                         | 2.0                                                                                          | 0.9                                                                                          | 1.8                                                                                          |
| FY22                                                                                         | 2.3                                                                                          | 1.0                                                                                          | 2.0                                                                                          |
| Source: Economic Survey 2022-23                                                              | Source: Economic Survey 2022-23                                                              | Source: Economic Survey 2022-23                                                              | Source: Economic Survey 2022-23                                                              |

- (c): As per Udyam Registration Portal, the total number of MSMEs which were closed/shut down during 01.07.2020 to 31.03.2023 are as follows:

| Year                     | No. of MSMEs closed/shut down (as on 31.03.2023)   |
|--------------------------|----------------------------------------------------|
| 01.07.2020 to 31.03.2021 | 175                                                |
| 01.04.2021 to 31.03.2022 | 6,222                                              |
| 01.04.2022 to 31.03.2023 | 13,290                                             |
| Total                    | 19,687                                             |

(d): Details of MSMEs closed/shut down during the last three years, State and year-wise are at Annexure-I.

(e): The details of MSMEs closed/shut down in Tamil Nadu, district-wise are at Annexure -II.

- (f): As per Udyam Registration Portal launched on 01.07.2020, the number of MSME which were closed/shut down during 01.07.2020 to 31.03.2023 was 19,687 and the number of persons employed in  those  MSMEs  were  1,34,078.  During  the  same  period,  71,12,910  new  MSMEs  have  been incorporated and registered on Udyam Registraition Portal with an employment of 4,37,72,890.

In the same period, the number of MSME which were closed/ shut down during 01.07.2020 to 31.03.2023 in Tamil Nadu was 2,493 and the number of persons employed in those MSMEs was 12,132.  During  the  same  period,  7,23,522  new  MSMEs  have been incorporated  and  registered  on Udyam Registraition Portal with an employment of 43,19,187.

- (g): The Ministry of MSME implements various schemes and programmes for the growth and development of MSME sector in the country on pan India basis, including State of Tamil Nadu. The schemes/programmes  inter  alia  include  Prime  Minister's  Employment  Generation  Programme (PMEGP), Credit Guarantee Scheme for Micro and Small Enterprises, Micro and Small EnterprisesCluster Development Programme (MSE-CDP), MSME  Champions, Entrepreneurship Skill Development  Programme  (ESDP),  Procurement  and  Marketing  Support  Scheme  (PMSS)  and National SC/ST Hub (NSSH).

*****

Annexure- I Annexure referred to in reply to part (d) of the Lok Sabha Unstarred question No. 3548 answered on 10.08.2023

| Sl. No.               | State                       |            |                  | 2020-21 (01/07/2020 - 31/03/2021) 2021-22   | 2020-21 (01/07/2020 - 31/03/2021) 2021-22   | 2022-23    | 2022-23          | Total      | Total            |
|-----------------------|-----------------------------|------------|------------------|---------------------------------------------|---------------------------------------------|------------|------------------|------------|------------------|
| Sl. No.               | State                       | Total MSME | Total Employment | Total MSME                                  | Total Employment                            | Total MSME | Total Employment | Total MSME | Total Employment |
| 1                     | Andhra Pradesh              | -          | -                | 113                                         | 523                                         | 261        | 1,652            | 374        | 2,175            |
| 2                     | Arunachal Pradesh           | -          | -                | -                                           | -                                           | 1          | 4                | 1          | 4                |
| 3                     | Assam                       | -          | -                | 8                                           | 89                                          | 28         | 123              | 36         | 212              |
| 4                     | Bihar                       | 18         | 65               | 541                                         | 2,938                                       | 547        | 3,001            | 1,106      | 6,004            |
| 5                     | Chhattisgarh                | 4          | 27               | 64                                          | 340                                         | 134        | 583              | 202        | 950              |
| 6                     | Goa                         | 3          | 4                | 5                                           | 10                                          | 17         | 38               | 25         | 52               |
| 7                     | Gujarat                     | 67         | 302              | 492                                         | 2,632                                       | 1,074      | 4,843            | 1,633      | 7,777            |
| 8                     | Haryana                     | 16         | 40               | 151                                         | 731                                         | 404        | 1,921            | 571        | 2,692            |
| 9                     | Himachal Pradesh            | 2          | 7                | 8                                           | 32                                          | 86         | 633              | 96         | 672              |
| 10                    | Jharkhand                   | -          | -                | 134                                         | 719                                         | 251        | 1,829            | 385        | 2,548            |
| 11                    | Karnataka                   | 4          | 8                | 272                                         | 1,295                                       | 534        | 4,205            | 810        | 5,508            |
| 12                    | Kerala                      | 2          | 5                | 137                                         | 563                                         | 339        | 1,181            | 478        | 1,749            |
| 13                    | Madhya Pradesh              | 1          | 3                | 112                                         | 514                                         | 548        | 2,356            | 661        | 2,873            |
| 14                    | Maharashtra                 | 3          | 12               | 1,831                                       | 8,733                                       | 3,276      | 14,313           | 5,110      | 23,058           |
| 15                    | Manipur                     | -          | -                | -                                           | -                                           | 62         | 478              | 62         | 478              |
| 16                    | Meghalaya                   | -          | -                | 1                                           | 45                                          | 1          | 1                | 2          | 46               |
| 17                    | Mizoram                     | -          | -                | 1                                           | 4                                           | 2          | 26               | 3          | 30               |
| 18                    | Nagaland                    | -          | -                | 1                                           | 1                                           | 5          | 34               | 6          | 35               |
| 19                    | Odisha                      | 1          | 1                | 118                                         | 2,912                                       | 212        | 1,170            | 331        | 4,083            |
| 20                    | Punjab                      | -          | -                | 208                                         | 789                                         | 88         | 1,189            | 296        | 1,978            |
| 21                    | Rajasthan                   | 11         | 51               | 312                                         | 1,294                                       | 1,068      | 9,021            | 1,391      | 10,366           |
| 22                    | Sikkim                      | -          | -                | -                                           | -                                           | 1          | 6                | 1          | 6                |
| 23                    | Tamil Nadu                  | 2          | 4                | 591                                         | 2,571                                       | 1,900      | 9,557            | 2,493      | 12,132           |
| 24                    | Telangana                   | 2          | 10               | 128                                         | 10,749                                      | 102        | 569              | 232        | 11,328           |
| 25                    | Tripura                     | -          | -                | 8                                           | 23                                          | 6          | 89               | 14         | 112              |
| 26                    | Uttar Pradesh               | 20         | 86               | 494                                         | 2,536                                       | 1,110      | 17,451           | 1,624      | 20,073           |
| 27                    | Uttarakhand                 | 1          | 3                | 32                                          | 143                                         | 202        | 5,908            | 235        | 6,054            |
| 28                    | West Bengal                 | 17         | 94               | 153                                         | 757                                         | 363        | 2,409            | 533        | 3,260            |
| 29                    | Andaman And Nicobar Islands | -          | -                | 9                                           | 28                                          | 12         | 40               | 21         | 68               |
| 30                    | Chandigarh                  | 1          | 2                | 21                                          | 88                                          | 8          | 43               | 30         | 133              |
| 31                    | Delhi                       | -          | -                | 210                                         | 1,097                                       | 470        | 5,079            | 680        | 6,176            |
| 32                    | Jammu And Kashmir           | -          | -                | 51                                          | 192                                         | 121        | 483              | 172        | 675              |
| 33                    | Ladakh                      | -          | -                | 1                                           | 2                                           | 2          | 4                | 3          | 6                |
| 34                    | Lakshadweep                 | -          | -                | -                                           | -                                           |            |                  |            | -                |
| 35                    | Puducherry The Dadra And    | -          | -                | 8                                           | 247                                         | - 39       | - 298            | - 47       | 545              |
| Daman And Diu Total:- | Daman And Diu Total:-       | 175        | 724              | 6,222                                       | 42,662                                      | 13,290     | 90,692           | 19,687     | 134,078          |

Annexure  referred  to  in  reply  to  part  (e)  of  the  Lok  Sabha  Unstarred    question  No.    3548  answered  on 10.08.2023

| Sl. No.   | District        | TotalMSME   | Employment   |
|-----------|-----------------|-------------|--------------|
| 1         | Ariyalur        | 18          | 78           |
| 2         | Chengalpattu    | 50          | 302          |
| 3         | Chennai         | 530         | 2,654        |
| 4         | Coimbatore      | 257         | 1,182        |
| 5         | Cuddalore       | 69          | 397          |
| 6         | Dharmapuri      | 28          | 126          |
| 7         | Dindigul        | 51          | 272          |
| 8         | Erode           | 78          | 399          |
| 9         | Kallakurichi    | 7           | 28           |
| 10        | Kanchipuram     | 162         | 670          |
| 11        | Kanniyakumari   | 72          | 260          |
| 12        | Karur           | 15          | 60           |
| 13        | Krishnagiri     | 47          | 285          |
| 14        | Madurai         | 107         | 479          |
| 15        | Mayiladuthurai  | 12          | 57           |
| 16        | Nagapattinam    | 15          | 49           |
| 17        | Namakkal        | 56          | 380          |
| 18        | Perambalur      | 7           | 23           |
| 19        | Pudukkottai     | 16          | 45           |
| 20        | Ramanathapuram  | 20          | 106          |
| 21        | Ranipet         | 11          | 61           |
| 22        | Salem           | 90          | 513          |
| 23        | Sivaganga       | 15          | 77           |
| 24        | Tenkasi         | 19          | 102          |
| 25        | Thanjavur       | 46          | 232          |
| 26        | The Nilgirish   | 15          | 41           |
| 27        | Theni           | 34          | 121          |
| 28        | Thiruvallur     | 137         | 520          |
| 29        | Thiruvarur      | 12          | 51           |
| 30        | Tiruchirappalli | 64          | 301          |
| 31        | Tirunelveli     | 51          | 207          |
| 32        | Tirupathur      | 2           | 7            |
| 33        | Tiruppur        | 126         | 834          |
| 34        | Tiruvannamalai  | 42          | 229          |
| 35        | Tuticorin       | 44          | 197          |
| 36        | Vellore         | 58          | 246          |
| 37        | Villupuram      | 45          | 243          |
| 38        | Virudhunagar    | 65          | 298          |
|           |                 | 2,493       | 12,132       |
|           | Total:-         |             |              |