“With RAI and the government Udyam portal itself being of tremendous service and support- the process that an MSME business registers in India has become as easy as falling off a log” says Yasmin Kapoor
The Indian MSMEs sector has a major role in determining the economy of our country- contributing to a wholesome 29% in the GDP through its trade and market involvement. The current MSME India’s overview shows us how the segment has been rapidly on way of expansion, with a CAGR of 18.5% increase in number in just the year from 2019-2020. The country accounts for a total of about 6.3 crore MSMEs today while the segment continues to grow, being in absolute sync to India’s ambitious 5 trillion Dollar Dream- by generating employment opportunities for the youth and making diligent contributions to the revenue of the State. The government has therefore been actively invested to develop India’s MSME sector and enhance their capabilities with support of resources and funds. While new players are welcomed to take up MSME businesses, the government has declared it’s motives to also pay attention to the burning issues that the sector faces today.
Yasmin Kapoor brings attention to one big hindrance the Indian MSMEs are currently tackling, “Domestic businesses require a backed capital that assists their liquidity to function smoothly and gather momentum.” Government and financial institutions have a pivotal role in providing the needed financial stimulus that can make the Indian landscape a friendly-space for small businesses to bud and bloom. India has of late ramped up on this area- conceptualizing great deals of policies and schemes that aim to empower entrepreneurs and their growing businesses. In the 2021 Union Budget, the Indian government has announced funds of Rs 10,000 crores for GECL (Guarantee Emergency Credit Line) facilities to help MSMEs borrow funds during crisis and continue business. Yasmin Kapoor adds to this how, “The Budget allocation for MSMEs that stood at Rs 7572 crores for the FY21 was doubled to Rs 15,700 crores in FY22- showing how the Nation’s government is yet as keen to see the MSME map widen, as for individual players and ventures in the sector.” Under the Statutory body that is responsible to help MSMEs- the MSME ministry had launched the Udyam Registration Portal for zero-cost registration of Indian MSME’s to be a handy tool for convenient and regulated business-landscape in India. The Udyam Registration portal came to replace the earlier existing e-filling system of Udyog Aadhar Memorandum (UAM).
The Ministry of MSME formulates a variety of schemes to help provide credit and financial assistances to the businesses while also catering to areas of skill development, infrastructural development, technological assistance, marketing expertise, quality growth and so much more. To be able to best extend the benefits of its services to the wide landscape of MSMEs that exist in India- the government requires data of all that exists to be able to draw analysis and understand the density and nature of businesses that exists under this segment. Moreover, with getting MSMEs to register to the government’s portal- data based on the product category, the size of the enterprise along with the investment and turnover are all readily available to access.
Yasmin Kapoor adds one colloquial move that was made under the Udyam registration portal- “The RBI has made a recent announcement to add retail and wholesale businesses under its wings- allowing them to register under the category of MSMEs.” This means that the benefits of MSMEs in regard of schemes and loans are now extended to 2.5 crores wholesale and retail traders that exist in India based on priority sector lending. These benefits include lower interest rates on bank loans, tax rebates, ready preference for government tenders and access of MSME schemes like E-commerce or upskilling drives.
In light of this new initiative by the RBI, the Retail Association of India has come forward to assist these newly MSME added retail and wholesale businesses to access the Udyam portal and register themselves in without hassles. The RAI has set up a helpdesk to assist these businesses to get the best benefits out of the government scheme. Yasmin Kapoor commends on the marvels that the RAI initiative can bring about, “6,534 member establishments having approximately 500,000 stores that provide employment to about 43 million Indians are registered to RAI today. We are sure to witness massive participation into the government’s Udyam as RAI has chosen to support its back.”
It is in full vigor that Indian businesses ought to favor the Udyam portal. It is the first of its kind introduced to the MSME picture in India. The portal is self-declarative, paperless and absolutely free to access for entrepreneurs. The portal requires no elaborate registration process- only the Aadhaar number of the business owner is asked for. The PAN and GST-linked details on investment in the business are automatically generated through the portal, since it is integrated with Income Tax and GSTIN systems. MSMEs are given a permanent registration number and a certificate post-registration and that completes the process. Moreover, owners dealing with multiple manufacturing activities do not have to create and manage multiple accounts for it- it all is covered within one registration onto the Udyam portal. Businesses with EM-II or UAM registration were directed to re-register to Udyam which initially created some passive responses- but with RAI and the government Udyam portal itself being of tremendous service and support- the process that an MSME registers in India has become as easy as falling off a log.
