{"id":8142,"date":"2020-07-17T09:31:12","date_gmt":"2020-07-17T04:01:12","guid":{"rendered":"https:\/\/itatonline.org\/articles_new\/?p=8142"},"modified":"2020-07-17T09:35:09","modified_gmt":"2020-07-17T04:05:09","slug":"udyam-registration-rebirth-of-msmes","status":"publish","type":"post","link":"https:\/\/itatonline.org\/articles_new\/udyam-registration-rebirth-of-msmes\/","title":{"rendered":"Udyam Registration – Rebirth Of MSMES"},"content":{"rendered":"

\"CACA Naresh Kumar Kabra has provided interesting insights into the provisions of The Micro, Small and Medium Enterprises Development (MSMED) Act, 2006. He has pointed out that certain important changes in the definition of MSME have been incorporated under the \u201cAtmanirbhar Bharat Package<\/em>\u201d and a new procedure of Udyam Registration has also been introduced. All of these important aspects have been explained by the ld. author in a succinct manner<\/strong> <\/p>\n

Micro, Small and Medium Enterprises (MSME) sector has emerged as a highly growing and dynamic sector of the Indian economy over the last decade. India has more than 6 crore units falling under MSME categories which contribute approximately 29% to the country’s GDP. These enterprises not only play crucial role in providing large employment opportunities at comparatively lower capital cost than large industries but also help in industrialization of rural & backward areas, thereby, reducing regional imbalances, assuring more equitable distribution of national income and wealth. MSMEs are complementary to large industries as ancillary units and this sector contributes enormously to the socio-economic development of the country.<\/p>\n

<\/p>\n

The Micro, Small and Medium Enterprises Development (MSMED) Act was notified in 2006 to address policy issues affecting MSMEs as well as the coverage and investment ceiling of the sector.<\/p>\n

In 2015, Modi Government introduced new Udyog Aadhaar Scheme under the campaign of ‘Make in India’ to make the process of registration easy with only requirement of one Aadhaar for one enterprise.<\/p>\n

Then, after 14 years, the much-expected change in the definition of MSME was brought to reality by the Modi Government under the “Atmanirbhar Bharat Package”. Also, a new procedure of Udyam Registration was introduced which triggered the reclassification for all MSME enterprises exiting on 30th June 2020.<\/p>\n

In this article, I have discussed and compared the changes which have been made through the Notification S.O. 2119(E) dated 26th June, 2020 in the MSMED Act, 2006 and also tried to explain the new method of classification of enterprises.<\/p>\n

A. Role of MSMEs in Indian Economy-<\/u><\/strong><\/p>\n

I. Total No. of Registered Enterprises-<\/strong><\/p>\n\n\n\n\n
\n Total No. of Registered Enterprises<\/strong> <\/td>\n\n

Micro Enterprises<\/strong> <\/p>\n<\/td>\n

\n

Small Enterprises<\/strong> <\/p>\n<\/td>\n

\n

Medium Enterprises<\/strong> <\/p>\n<\/td>\n<\/tr>\n

\n

6.33 Crores<\/strong> <\/p>\n<\/td>\n

\n

6.30 Crores <\/p>\n<\/td>\n

\n

3.31 Lakhs <\/p>\n<\/td>\n

\n

0.05 Lakhs <\/p>\n<\/td>\n<\/tr>\n

\n

99.40% <\/p>\n<\/td>\n

\n

0.52% <\/p>\n<\/td>\n

\n

0.007% <\/p>\n<\/td>\n<\/tr>\n<\/table>\n

(Source- Annual Report of MSME FY2019)<\/em><\/strong>
\n II. Total No. of Registrations done in FY2020-<\/strong><\/p>\n\n\n\n\n
\n Total <\/strong> <\/td>\n\n

Micro Enterprises<\/strong> <\/p>\n<\/td>\n

\n

Small Enterprises<\/strong> <\/p>\n<\/td>\n

\n

Medium Enterprises<\/strong> <\/p>\n<\/td>\n<\/tr>\n

\n

25.12 Lakhs<\/strong> <\/p>\n<\/td>\n

\n

22.06 Lakhs <\/p>\n<\/td>\n

\n

2.95 Lakhs <\/p>\n<\/td>\n

\n

0.11 Lakhs <\/p>\n<\/td>\n<\/tr>\n

\n

 <\/p>\n<\/td>\n

\n

87.82% <\/p>\n<\/td>\n

\n

11.74% <\/p>\n<\/td>\n

\n

0.44% <\/p>\n<\/td>\n<\/tr>\n<\/table>\n

(Source- Data Shared by Mr. Nitin Gadkari)<\/em><\/strong> <\/p>\n

\n III. Employment Generation-<\/strong>\n <\/p>\n

Over 11.10 Crores Indians were employed in micro, small or medium businesses across India in financial year 2019. (Source- Annual Report of MSME FY2019)<\/em>\n <\/p>\n

IV. Contribution in Exports<\/strong>
\n The share of MSME related products in total exports from India during FY 2018-19 was 48.10%<\/u><\/strong><\/p>\n

B. Benefits to MSMEs <\/u>–<\/u><\/strong><\/p>\n