The Minister of State for MSMEs, Bhanu Pratap Singh Verma, has disclosed to Rajyasabha the staggering figures regarding the registration of Micro, Small, and Medium Enterprises (MSMEs) in India between July 1, 2020, and December 4, 2023.
Total 3,16,05,581 MSMEs registered from 2020 to 2023
Responding to a question from a Rajya Sabha Member, the Minister revealed that a total of 3,16,05,581 MSMEs had been registered during the specified period. This largescale registration was made possible through the innovative Udyam Assist Platform, designed to simplify the registration process for MSMEs nationwide.
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Putting the spotlight on the annual growth, the Minister presented figures showing a significant surge in registrations. In the year 2020, the platform registered 28,47,544 MSMEs. In 2021, the number increased to 51,47,993. The number reached another peak in 2022 with 85,82,179 registrations. And remarkably in 2023, the number skyrocketed to a whopping 1,50,27,865.
Further, answering an inquiry from Independent Member of Parliament, Kartikeya Sharma, Minister Verma divulged that among all registered MSMEs, a stunning 1,17,36,406 were women led. These numbers incorporate both formal and casual microbusinesses.
Micro and Small Enterprises Facilitation Councils (MSEFCs) to deal with overdue payments
In light of worries about outstanding dues troubling the MSME sector, Minister Verma detailed several measures implemented by the administration. These measures encompass setting up Micro and Small Enterprises Facilitation Councils (MSEFCs) across the nation and its Union Territories to deal with situations of overdue payments abiding by the clauses of the Micro, Small and Medium Enterprises Development (MSMED) Act, 2006.
Additionally, the Ministry of MSME launched the Samadhan Portal in 2017, providing a platform for filing grievances and monitoring outstanding dues to MSMEs. The government has urged States and Union Territories to set up more MSEFCs for quicker resolution of payment related issues, with 157 MSEFCs already established across various regions.
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Moreover, when queried by Independent MP Kartikeya Sharma, Minister Verma revealed that women run a total of 1,17,36,406 MSMEs from the total registered. These stats include both formal and casual small businesses.
Samadhan Portal to track & report pending payments to MSME
Moreover, to improve matters, special steps like introducing a niche portal within the Samadhan Portal have been taken. This portal tracks and reports pending payments and recurring payouts by the Central ministries, departments, and public sector firms to MSMEs. Importantly, all companies are instructed to register on the Trade Receivables Discounting System (TReDS), a digital platform helping to discount the trading receivables of MSMEs.
Abiding by the rules, firms are expected to file half-yearly reports to the Ministry of Corporate Affairs outlining the pending payments to MSMEs. In addition, under Section 43B of the Income Tax Act, tax deductions are granted only when the payments are cleared to MSMEs.
