Lok Sabha Question No. 1022 (UNSTARRED), answered on 2026-02-05
Subject: Regulation on MSMEs
Ministry: MICRO, SMALL AND MEDIUM ENTERPRISES
Asked by: Shri Kesineni Sivanath

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

## LOK SABHA UNSTARRED QUESTION NO. 1022 TO BE ANSWERED ON: 05.02.2026

## REGULATION ON MSMEs

## 1022. SHRI KESINENI SIVANATH:

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

- (a) whether the Government has conducted any studies or assessments to evaluate compliance costs  faced  by  Micro,  Small  and  Medium  Enterprises  (MSMEs)  due  to  regulatory  requirements, taxation, quality standards and reporting obligations;
- (b) if  so,  the  details  regarding  such  studies  including  key  findings  and  sector-wise  impact thereof;
- (c) the  details  regarding  the  steps  taken  by  the  Government  to  reduce  compliance  burden  on MSMEs, including digitisation measures and regulatory simplification initiatives;
- (d) the  details  regarding  the  incubation  and  mentoring  support  provided  to  MSMEs  through Government-led  incubators,  including  the  number  of  incubators  supported  under  various  Central schemes, State-wise; and
- (e) the details regarding the number of IT-based MSMEs registered in the country, State-wise and the number of private and Government-led incubators supporting such enterprises, along with the financial assistance provided to them?

## ANSWER

## MINISTER OF STATE FOR MICRO, SMALL AND MEDIUM ENTERPRISES (SUSHRI SHOBHA KARANDLAJE)

(a) to (c): Government of India has taken a number of steps to reduce compliance burden on MSMEs, including digitisation measures and regulatory simplification initiatives. Some of them are given below:

- i. Udyam Registration Portal was launched on 01.07.2020 to facilitate ease of registration for MSMEs. The process of registration on Udyam is fully online, paperless and based on selfdeclaration.  The  Ministry  in  association  with  Small  Industries  Development  Bank  of  India (SIDBI)  launched  Udyam  Assist  Platform  on  11.01.2023,  for  bringing  Informal  Micro Enterprises (IMEs) into the formal ambit. This has helped the registered IMEs to avail the benefits of Priority Sector Lending.
- ii. This Ministry has reduced the Compliance Burden on business as well as on citizens related to  Public  Procurement  Policy  for  MSEs  Order,  2012  vide  Notification  No.  S.O.  3237(E) dated  11th  August,  2021  by  merging  04  compliances  into  one,  reducing  the  number  of compliances  from  07  to  04.  The  Central  Ministries/  Departments/  Central  Public  Sector Enterprises  (CPSEs)  require  to  take  necessary  steps  to  develop  appropriate  vendors  by organizing Vendor Development Programmes or Buyer-Seller Meets focused on developing Micro and Small Enterprises (MSEs) for procurement through GeM Portal.

- iii. As  informed  by  DPIIT,  National  Single  Window  System  has  been  developed,  which integrates  the  existing  clearance/regulatory  systems  of  various  Ministries/  Departments  of Government of India and State Governments.
- iv. As informed by Central Board of Indirect Taxes & Customs, Department of Revenue, the Government has undertaken various initiatives / policy measures to encourage MSMEs in the country. No GST Registration is required for supply of goods upto Rs. 40 lakh and supply of services upto Rs. 20 lakh, Composition scheme for Goods/Restaurant Services and Service Providers, Quarterly Returns Monthly Payment scheme, etc.

(d) & (e): The  Ministry  of  MSME  implements  MSME  Innovative  scheme  under  MSME Champions scheme which is an amalgamation of components of Incubation, Design, and Intellectual Property  Rights  (IPR).  The  incubation  component  of  the  Scheme  aims  to  promote  and  support untapped creativity and the adoption of latest technologies in MSME that seek validation of their ideas at 'proof-of-concept level. The details regarding the incubation and mentoring support provided to MSMEs through Government-led Incubators, including the number of incubators supported under various Central Schemes, State-wise are given at Annexure-I.

Further,  various  Ministries  and  Departments  are  also  promoting  the  development  of incubation  centers  across  the  country  through  initiatives  like  Startup  India  Seed  Fund  Scheme (SISFS), Technology  Incubation and Development of Entrepreneurs (TIDE 2.0), Domain Specific Centres of Excellence (CoEs), Rashtriya Krishi Vikas Yojana (RKVY) Agribusiness Incubators (RABIS),  NIDHI  Technology  Business  Incubator  (TBI),  Atal  Incubation  Centres  (AIC),  Software Technology  Parks  of  India  (STPI),  Livelihood  Business  Incubators  (LBIs)  under  ASPIRE,  and Biotechnology Industry Research Assistance Council (BIRAC)-backed incubators amongst others.

The  state-wise  number  MSMEs  registered  in  the  country  as  on  31.01.2026  including  ITbased MSMEs are given at Annexure -II.

*****

## Annexure -I

The State/UT wise number of Host Institutes (HIs) Approved, State-wise number of His Supported, State-wise number of Ideas approved under the scheme since launch as on date are tabulated below:

| S. No.   | State/UT          |   State wise No. of HIs Approved |   State wise No. of HIs Supported |   Number of Ideas Approved |
|----------|-------------------|----------------------------------|-----------------------------------|----------------------------|
| 1        | Andhra Pradesh    |                               74 |                                36 |                        129 |
| 2        | Arunachal Pradesh |                                2 |                                 1 |                          3 |
| 3        | Assam             |                                6 |                                 3 |                          6 |
| 4        | Bihar             |                               11 |                                 6 |                         14 |
| 5        | Chandigarh        |                                1 |                                 1 |                          7 |
| 6        | Chhattisgarh      |                               16 |                                 6 |                         13 |
| 7        | Delhi             |                               10 |                                 4 |                         16 |
| 8        | Goa               |                                1 |                                 1 |                          3 |
| 9        | Gujarat           |                               33 |                                15 |                         45 |
| 10       | Haryana           |                               12 |                                 6 |                         13 |
| 11       | Himachal Pradesh  |                                5 |                                 2 |                          2 |
| 12       | Jammu And Kashmir |                                3 |                                 2 |                          4 |
| 13       | Jharkhand         |                                7 |                                 4 |                         11 |
| 14       | Karnataka         |                               60 |                                32 |                         98 |
| 15       | Kerala            |                               31 |                                12 |                         31 |
| 16       | Madhya Pradesh    |                               45 |                                11 |                         22 |
| 17       | Maharashtra       |                               69 |                                37 |                         87 |
| 18       | Meghalaya         |                                3 |                                 2 |                          4 |
| 19       | Odisha            |                               24 |                                13 |                         47 |
| 20       | Puducherry        |                                2 |                                 2 |                          3 |
| 21       | Punjab            |                               14 |                                 4 |                         15 |
| 22       | Rajasthan         |                               31 |                                14 |                         39 |
| 23       | Sikkim            |                                1 |                                 0 |                          0 |
| 24       | Tamil Nadu        |                              179 |                               113 |                        508 |
| 25       | Telangana         |                               68 |                                43 |                        162 |
| 26       | Tripura           |                                2 |                                 1 |                          1 |
| 27       | Uttar Pradesh     |                               32 |                                19 |                         67 |
| 28       | Uttarakhand       |                               10 |                                 6 |                         11 |
| 29       | West Bengal       |                               21 |                                14 |                         57 |
|          | Grand Total       |                              773 |                               410 |                       1418 |

Annexure-II

| Wise Total Enterprises Detail Under UDYAM &UAP Since 01/07/2020 to 31/01/2026   | Wise Total Enterprises Detail Under UDYAM &UAP Since 01/07/2020 to 31/01/2026   | Wise Total Enterprises Detail Under UDYAM &UAP Since 01/07/2020 to 31/01/2026   | Wise Total Enterprises Detail Under UDYAM &UAP Since 01/07/2020 to 31/01/2026   | Wise Total Enterprises Detail Under UDYAM &UAP Since 01/07/2020 to 31/01/2026   | Wise Total Enterprises Detail Under UDYAM &UAP Since 01/07/2020 to 31/01/2026   | Wise Total Enterprises Detail Under UDYAM &UAP Since 01/07/2020 to 31/01/2026   | Wise Total Enterprises Detail Under UDYAM &UAP Since 01/07/2020 to 31/01/2026   | Wise Total Enterprises Detail Under UDYAM &UAP Since 01/07/2020 to 31/01/2026   | Wise Total Enterprises Detail Under UDYAM &UAP Since 01/07/2020 to 31/01/2026   | Wise Total Enterprises Detail Under UDYAM &UAP Since 01/07/2020 to 31/01/2026   | Wise Total Enterprises Detail Under UDYAM &UAP Since 01/07/2020 to 31/01/2026   | Wise Total Enterprises Detail Under UDYAM &UAP Since 01/07/2020 to 31/01/2026   | Wise Total Enterprises Detail Under UDYAM &UAP Since 01/07/2020 to 31/01/2026   | Wise Total Enterprises Detail Under UDYAM &UAP Since 01/07/2020 to 31/01/2026   |
|---------------------------------------------------------------------------------|---------------------------------------------------------------------------------|---------------------------------------------------------------------------------|---------------------------------------------------------------------------------|---------------------------------------------------------------------------------|---------------------------------------------------------------------------------|---------------------------------------------------------------------------------|---------------------------------------------------------------------------------|---------------------------------------------------------------------------------|---------------------------------------------------------------------------------|---------------------------------------------------------------------------------|---------------------------------------------------------------------------------|---------------------------------------------------------------------------------|---------------------------------------------------------------------------------|---------------------------------------------------------------------------------|
| Sl. No.                                                                         | State                                                                           | Micro                                                                           | Small                                                                           | Medium                                                                          | Total                                                                           | Women                                                                           | General                                                                         | SC                                                                              | ST                                                                              | OBC                                                                             | Manufactu ring                                                                  | Service                                                                         | Trading                                                                         | Employme nt                                                                     |
| 1                                                                               | Andaman and Nicobar Islands                                                     | 21,645                                                                          | 156                                                                             | 4                                                                               | 21,805                                                                          | 6,313                                                                           | 16,325                                                                          | 332                                                                             | 262                                                                             | 4,882                                                                           | 4,023                                                                           | 10,101                                                                          | 7,681                                                                           | 369,410                                                                         |
| 2                                                                               | Andhra Pradesh                                                                  | 3,800,597                                                                       | 16,986                                                                          | 982                                                                             | 3,818,565                                                                       | 2,081,614                                                                       | 1,791,265                                                                       | 442,295                                                                         | 80,726                                                                          | 1,503,898                                                                       | 768,411                                                                         | 1,708,791                                                                       | 1,341,363                                                                       | 19,605,054                                                                      |
| 3                                                                               | Arunachal Pradesh                                                               | 46,678                                                                          | 379                                                                             | 19                                                                              | 47,076                                                                          | 21,177                                                                          | 9,050                                                                           | 838                                                                             | 35,175                                                                          | 2,010                                                                           | 13,977                                                                          | 10,510                                                                          | 22,589                                                                          | 272,578                                                                         |
| 4                                                                               | Assam                                                                           | 1,450,337                                                                       | 6,695                                                                           | 519                                                                             | 1,457,551                                                                       | 523,300                                                                         | 877,486                                                                         | 126,280                                                                         | 134,998                                                                         | 318,668                                                                         | 417,995                                                                         | 374,559                                                                         | 664,997                                                                         | 9,904,891                                                                       |
| 5                                                                               | Bihar                                                                           | 4,126,666                                                                       | 11,974                                                                          | 583                                                                             | 4,139,223                                                                       | 1,915,215                                                                       | 1,637,648                                                                       | 370,934                                                                         | 79,473                                                                          | 2,050,787                                                                       | 740,409                                                                         | 1,234,696                                                                       | 2,164,118                                                                       | 16,743,707                                                                      |
| 6                                                                               | Chandigarh                                                                      | 77,515                                                                          | 1,263                                                                           | 132                                                                             | 78,910                                                                          | 20,297                                                                          | 64,268                                                                          | 8,676                                                                           | 441                                                                             | 5,474                                                                           | 11,226                                                                          | 35,083                                                                          | 32,601                                                                          | 430,835                                                                         |
| 7                                                                               | Chhattisgarh                                                                    | 1,304,567                                                                       | 8,344                                                                           | 720                                                                             | 1,313,631                                                                       | 560,675                                                                         | 525,046                                                                         | 133,029                                                                         | 127,467                                                                         | 527,985                                                                         | 234,779                                                                         | 423,832                                                                         | 655,020                                                                         | 4,378,337                                                                       |
| 8                                                                               | Delhi                                                                           | 1,387,179                                                                       | 28,418                                                                          | 2,751                                                                           | 1,418,348                                                                       | 377,949                                                                         | 1,154,839                                                                       | 102,130                                                                         | 8,009                                                                           | 152,315                                                                         | 314,475                                                                         | 491,168                                                                         | 612,705                                                                         | 8,870,375                                                                       |
| 9                                                                               | Goa                                                                             | 126,553                                                                         | 1,121                                                                           | 77                                                                              | 127,751                                                                         | 49,345                                                                          | 102,199                                                                         | 2,633                                                                           | 5,257                                                                           | 17,631                                                                          | 26,697                                                                          | 63,404                                                                          | 37,650                                                                          | 485,494                                                                         |
| 10                                                                              | Gujarat                                                                         | 4,207,089                                                                       | 54,125                                                                          | 4,225                                                                           | 4,265,439                                                                       | 1,152,020                                                                       | 2,753,039                                                                       | 240,547                                                                         | 198,430                                                                         | 1,072,447                                                                       | 1,148,434                                                                       | 1,346,814                                                                       | 1,770,191                                                                       | 16,679,892                                                                      |
| 11                                                                              | Haryana                                                                         | 1,929,969                                                                       | 23,022                                                                          | 1,763                                                                           | 1,954,754                                                                       | 542,922                                                                         | 1,205,443                                                                       | 284,772                                                                         | 11,355                                                                          | 452,711                                                                         | 393,185                                                                         | 713,169                                                                         | 848,400                                                                         | 9,397,933                                                                       |
| 12                                                                              | Himachal Pradesh                                                                | 332,203                                                                         | 2,572                                                                           | 209                                                                             | 334,984                                                                         | 76,972                                                                          | 229,526                                                                         | 62,336                                                                          | 13,991                                                                          | 29,065                                                                          | 63,605                                                                          | 121,332                                                                         | 150,047                                                                         | 1,431,323                                                                       |
| 13                                                                              | Jammu and Kashmir                                                               | 815,822                                                                         | 3,220                                                                           | 215                                                                             | 819,257                                                                         | 193,571                                                                         | 687,375                                                                         | 55,453                                                                          | 32,459                                                                          | 43,912                                                                          | 262,796                                                                         | 266,470                                                                         | 289,991                                                                         | 3,223,053                                                                       |
| 14                                                                              | Jharkhand                                                                       | 1,510,829                                                                       | 5,904                                                                           | 356                                                                             | 1,517,089                                                                       | 701,770                                                                         | 704,364                                                                         | 111,225                                                                         | 96,052                                                                          | 605,256                                                                         | 229,532                                                                         | 487,429                                                                         | 800,128                                                                         | 6,120,597                                                                       |
| 15                                                                              | Karnataka                                                                       | 4,840,286                                                                       | 31,489                                                                          | 2,293                                                                           | 4,874,068                                                                       | 2,128,934                                                                       | 2,465,353                                                                       | 519,710                                                                         | 202,756                                                                         | 1,685,221                                                                       | 1,059,260                                                                       | 2,337,359                                                                       | 1,477,449                                                                       | 26,321,956                                                                      |
| 16                                                                              | Kerala                                                                          | 1,787,781                                                                       | 12,923                                                                          | 768                                                                             | 1,801,472                                                                       | 832,056                                                                         | 946,936                                                                         | 83,074                                                                          | 8,558                                                                           | 762,493                                                                         | 468,497                                                                         | 780,220                                                                         | 552,755                                                                         | 6,216,724                                                                       |
| 17                                                                              | Ladakh                                                                          | 19,745                                                                          | 114                                                                             | 3                                                                               | 19,862                                                                          | 6,101                                                                           | 1,728                                                                           | 158                                                                             | 17,869                                                                          | 107                                                                             | 6,872                                                                           | 7,042                                                                           | 5,948                                                                           | 58,134                                                                          |
| 18                                                                              | Lakshadweep                                                                     | 2,431                                                                           | -                                                                               | -                                                                               | 2,431                                                                           | 579                                                                             | 55                                                                              | 7                                                                               | 2,288                                                                           | 81                                                                              | 763                                                                             | 856                                                                             | 812                                                                             | 7,384                                                                           |
| 19                                                                              | Madhya Pradesh                                                                  | 4,673,947                                                                       | 19,811                                                                          | 1,179                                                                           | 4,694,937                                                                       | 1,648,570                                                                       | 1,585,857                                                                       | 616,055                                                                         | 320,906                                                                         | 2,171,746                                                                       | 792,141                                                                         | 1,316,509                                                                       | 2,586,287                                                                       | 15,185,492                                                                      |
| 20                                                                              | Maharashtra                                                                     | 9,815,933                                                                       | 74,542                                                                          | 6,893                                                                           | 9,897,368                                                                       | 3,522,246                                                                       | 6,468,329                                                                       | 912,939                                                                         | 262,144                                                                         | 2,251,906                                                                       | 2,042,677                                                                       | 3,809,646                                                                       | 4,045,045                                                                       | 33,660,613                                                                      |
| 21                                                                              | Manipur                                                                         | 172,958                                                                         | 424                                                                             | 18                                                                              | 173,400                                                                         | 96,884                                                                          | 95,078                                                                          | 10,429                                                                          | 29,319                                                                          | 38,529                                                                          | 74,995                                                                          | 49,058                                                                          | 49,347                                                                          | 840,443                                                                         |
| 22                                                                              | Meghalaya                                                                       | 70,438                                                                          | 412                                                                             | 32                                                                              | 70,882                                                                          | 35,577                                                                          | 14,787                                                                          | 1,263                                                                           | 53,662                                                                          | 1,165                                                                           | 15,718                                                                          | 24,008                                                                          | 31,156                                                                          | 384,421                                                                         |
| 23                                                                              | Mizoram                                                                         | 50,709                                                                          | 212                                                                             | 9                                                                               | 50,930                                                                          | 29,896                                                                          | 3,193                                                                           | 283                                                                             | 47,342                                                                          | 109                                                                             | 10,589                                                                          | 11,527                                                                          | 28,814                                                                          | 267,777                                                                         |
| 24                                                                              | Nagaland                                                                        | 72,503                                                                          | 176                                                                             | 16                                                                              | 72,695                                                                          | 37,422                                                                          | 13,387                                                                          | 1,013                                                                           | 56,762                                                                          | 1,524                                                                           | 19,413                                                                          | 19,010                                                                          | 34,272                                                                          | 307,022                                                                         |

| 25                                 | Odisha                                       | 2,341,171                          | 10,022                             | 607                                | 2,351,800                          | 1,029,723                          | 1,251,751                          | 292,248                            | 131,091                            | 676,488                            | 493,593                            | 752,267                            | 1,105,940                          | 11,432,359                         |
|------------------------------------|----------------------------------------------|------------------------------------|------------------------------------|------------------------------------|------------------------------------|------------------------------------|------------------------------------|------------------------------------|------------------------------------|------------------------------------|------------------------------------|------------------------------------|------------------------------------|------------------------------------|
| 26                                 | Puducherry                                   | 105,645                            | 666                                | 59                                 | 106,370                            | 51,815                             | 53,399                             | 6,249                              | 288                                | 46,406                             | 20,642                             | 50,698                             | 35,030                             | 427,534                            |
| 27                                 | Punjab                                       | 2,066,029                          | 16,914                             | 1,226                              | 2,084,169                          | 648,281                            | 1,484,148                          | 397,756                            | 6,382                              | 195,527                            | 450,114                            | 758,041                            | 876,014                            | 9,200,524                          |
| 28                                 | Rajasthan                                    | 4,289,863                          | 27,205                             | 1,659                              | 4,318,727                          | 1,062,751                          | 1,486,996                          | 541,137                            | 254,768                            | 2,035,095                          | 1,183,324                          | 1,363,209                          | 1,772,194                          | 18,736,751                         |
| 29                                 | Sikkim                                       | 35,079                             | 164                                | 13                                 | 35,256                             | 18,233                             | 13,294                             | 2,402                              | 9,425                              | 10,134                             | 8,591                              | 12,835                             | 13,830                             | 142,336                            |
| 30                                 | Tamil Nadu                                   | 6,008,953                          | 39,259                             | 2,822                              | 6,051,034                          | 2,676,776                          | 3,936,020                          | 416,827                            | 27,626                             | 1,669,105                          | 1,501,993                          | 2,688,018                          | 1,861,023                          | 31,443,163                         |
| 31                                 | Telangana                                    | 3,702,077                          | 20,182                             | 1,783                              | 3,724,042                          | 2,042,557                          | 1,419,135                          | 455,631                            | 238,823                            | 1,609,835                          | 511,023                            | 1,670,621                          | 1,542,398                          | 20,436,757                         |
| 32                                 | The Dadra and Nagar Haveli and Daman and Diu | 33,931                             | 916                                | 135                                | 34,982                             | 8,856                              | 25,588                             | 1,063                              | 2,977                              | 5,339                              | 7,785                              | 13,532                             | 13,665                             | 292,764                            |
| 33                                 | Tripura                                      | 308,198                            | 701                                | 47                                 | 308,946                            | 198,289                            | 135,858                            | 65,163                             | 46,529                             | 61,388                             | 54,847                             | 95,606                             | 158,493                            | 1,254,789                          |
| 34                                 | Uttar Pradesh                                | 8,267,274                          | 40,249                             | 2,648                              | 8,310,171                          | 2,558,494                          | 3,441,294                          | 1,068,831                          | 70,016                             | 3,728,843                          | 1,634,621                          | 2,264,645                          | 4,410,905                          | 36,414,370                         |
| 35                                 | Uttarakhand                                  | 624,035                            | 4,040                              | 273                                | 628,348                            | 190,885                            | 399,806                            | 70,557                             | 10,846                             | 147,019                            | 108,037                            | 211,653                            | 308,658                            | 2,742,055                          |
| 36                                 | West Bengal                                  | 5,159,958                          | 24,088                             | 1,778                              | 5,185,824                          | 2,982,691                          | 4,172,710                          | 627,625                            | 59,158                             | 325,758                            | 861,910                            | 1,750,882                          | 2,573,032                          | 21,560,709                         |
|                                    | Total:-                                      | 75,586,593                         | 488,688                            | 36,816                             | 76,112,097                         | 30,030,756                         | 41,172,575                         | 8,031,900                          | 2,683,630                          | 24,210,859                         | 15,956,949                         | 27,274,600                         | 32,880,548                         | 335,247,556                        |
| Report Dated:- 03/02/2026 12:20 PM | Report Dated:- 03/02/2026 12:20 PM           | Report Dated:- 03/02/2026 12:20 PM | Report Dated:- 03/02/2026 12:20 PM | Report Dated:- 03/02/2026 12:20 PM | Report Dated:- 03/02/2026 12:20 PM | Report Dated:- 03/02/2026 12:20 PM | Report Dated:- 03/02/2026 12:20 PM | Report Dated:- 03/02/2026 12:20 PM | Report Dated:- 03/02/2026 12:20 PM | Report Dated:- 03/02/2026 12:20 PM | Report Dated:- 03/02/2026 12:20 PM | Report Dated:- 03/02/2026 12:20 PM | Report Dated:- 03/02/2026 12:20 PM | Report Dated:- 03/02/2026 12:20 PM |