Ministry of Micro, Small and Medium Enterprises (MSME)

8-Dec-2022: Atmanirbhar Bharat Package

The Government has taken a number of initiatives under Aatmanirbhar Bharat Package to support the MSMEs. These include:

Rs. 5 lakh crore Collateral Free Automatic Loans under Emergency Credit Line Guarantee Scheme (ECLGS) for business, including MSMEs.
Rs. 50,000 crore equity infusion through MSME Self-Reliant India Fund.
New revised criteria for classification of MSMEs.
No global tenders for procurement up to Rs. 200 crores.
“Udyam Registration” for MSMEs, for Ease of Doing Business
Launching of an online Portal “Champions” in June, 2020 to cover many aspects of e-governance including grievance redress & handholding of MSMEs.

25-Jul-2022: Latest Data on MSMEs

The Ministry of MSME, maintains data of registration of MSMEs, cancellation of registration and employment on Udyam Registration Portal.

The data on credit outstanding to the MSME sector by Scheduled Commercial Banks for the last three financial years indicates an increasing trend, as shown below:

Amount in Rs. in Crore

Year/Quarter ended	Amt. O/s
March 2020	16,13,582.17
March 2021	17,83,924.80
March 2022*	20,22,634.29

Source: Priority Sector Return submitted by SCBs

*Date is provisional

The Government of India, under Aatma Nirbhar Bharat, has announced measures to help micro, small and medium enterprises in the country. These include (i) Subordinate Debt for stressed MSMEs; (ii) Rs. 3 lakh crore Emergency Credit Line Guarantee Scheme (ECLGS) for business, including MSMEs, which has subsequently been increased to Rs. 5 lakh crore; (iii) Rs. 50,000 crore equity infusion through Self-Reliant India Fund; (iv) New revised criteria of classification of MSMEs; (v) New registration of MSMEs through ‘Udyam Registration’ for Ease of Doing Business; (vi) No global tenders for procurement up to Rs. 200 crore.

28-Mar-2022: Promotion of MSMEs in Defence Sector

The Government has taken the following policy initiatives for promotion of Micro, Small & Medium Enterprises (MSMEs) in defence sector:

In the Defence Acquisition Procedure 2020, there are specific reservations on Orders up to Rs. 100 Crore/ year for MSMEs.
An innovation ecosystem for Defence titled Innovations for Defence Excellence (iDEX) has been launched in April 2018. iDEX is aimed at creation of an ecosystem to foster innovation and technology development in Defence and Aerospace by engaging Industries including MSMEs, Start-ups, Individual Innovators, R&D institutes and Academia and provide them grants/funding and support to carry out R&D which has potential for future adoption for Indian defence and aerospace needs.
The Defence Offset guidelines have further paved the way for proactive participation of MSMEs of India by incorporating a scheme of multipliers of 1.5 for engaging MSME as Indian Offset Partners (IOP), which promotes their integration in global supply chain.
MSMEs are important partners in DRDO projects and DRDO transfers technologies to them. They are important partners in industry ecosystem for the production of DRDO developed products. DRDO through its scheme Technology Development Scheme (TDF) funds industries, especially Start-ups and MSMEs upto an amount of Rs 10 Cr. for innovation, research and development of Defence Technologies in the field of Defence and Aerospace.
Department of Defence Production (DDP) conducts outreach programs in various parts of the country to interact with Industry Associations, Industry especially MSMEs and academia, to spread awareness about the potential export opportunities. A scheme aimed to promote MSMEs in defence is in place. Under this scheme, conclaves/ seminars are being organized in Tier II and Tier III cities across the country with strong industrial MSMEs presence with the support of the DDP.
Regular interactions are taking place to settle the grievance of vendors at DPSUs. A Defence Investor Cell has been opened in DDP to address the issues being faced by vendors especially MSME vendors.

Ministry of MSME through its 18 Tool Rooms and Technical Institutions spread across the country imparts training in the field of Tool making and allied Trades to youth as well as MSMEs and its workers, including during the COVID-19 pandemic period. DPSUs also organize various MSMEs Vendor Development Program (VDP), Skill Development Programs and webinar sessions on regular basis for MSME vendors, including during the COVID-19 pandemic. Online support and guidance is provided to MSMEs for registration and for uploading the tender on GeM and NIC portal by DPSUs. In addition, Ministry of MSME imparts training and upgrades/develops skills of unemployed youth and MSMEs through various programmes/schemes, as given below:

Under the National SC-ST Hub Scheme, skill training/entrepreneurship development programs are organized for aspiring and existing SCs/STs entrepreneurs through various Training Institutions across the country.
Under the Coir Vikas Yojana, Ministry also implements ‘Skill Upgradation and Mahila Coir Yojana’ which imparts training for Women artisans engaged in Coir sector.
Under the ‘Prime Minister Employment Generation Programme’ (PMEGP) Scheme, all beneficiaries are mandatorily provided with Entrepreneurship Development Program (EDP) training through online/offline mode before setting up their units.

Contracts for worth Rs 53,838 crore for 31 equipment have been awarded by the Armed Forces to the domestic industry since notification of the two Positive Indigenization Lists. No separate data for MSMEs is centrally maintained in this regard.

3-Feb-2022: Expansion of MSME sector

Promotion and development of enterprises is a State subject. The Central Government supplements the efforts of the State/UT Governments through various schemes, programmes and policy initiatives for promotion, development and enhancing the competitiveness of MSMEs and to increase employment opportunities in the country.

The Ministry of MSME implements various schemes and programmes for growth and development of MSME Sector in the country. These schemes and programmes inter-alia include Prime Minister’s Employment Generation programme (PMEGP), Scheme of Fund for Regeneration of Traditional Industries (SFURTI), A Scheme for Promoting Innovation, Rural Industry & Entrepreneurship (ASPIRE), Credit Guarantee Scheme for Micro and Small Enterprises, Micro and Small Enterprises Cluster Development Programme (MSE-CDP) etc. Benefits under these schemes are available to all eligible MSMEs throughout the country. Ministry of MSME has also been implementing a special scheme viz. ‘Promotion of MSMEs in North Eastern Region and Sikkim’ which focuses on improving the condition of MSME Sector in North Eastern States including Assam. The Scheme-wise Budget allocation of these schemes is given below:-

Budget Allocation (Rs. in crore)

S.No.	Name of the Scheme	2019-20	2020-21	2021-22 (As on 31.12.2021)
1	Prime Minister's Employment Generation Programme (PMEGP)	2,327.10	2,500.00	2,000.00
2	Scheme of Fund for Regeneration of Traditional Industries (SFURTI)	125.00	464.85	170.00
3	A Scheme for Promoting Innovation, Rural Industry & Entrepreneurship (ASPIRE)	50.00	30.00	15.00
4	Credit Guarantee Scheme	597.00	100.00	0.04
5	Micro and Small Enterprises Cluster Development Programme (MSE-CDP)	227.90	390.69	156.60

8-Dec-2022: Atmanirbhar Bharat Package

The Government has taken a number of initiatives under Aatmanirbhar Bharat Package to support the MSMEs. These include:

Rs. 5 lakh crore Collateral Free Automatic Loans under Emergency Credit Line Guarantee Scheme (ECLGS) for business, including MSMEs.
Rs. 50,000 crore equity infusion through MSME Self-Reliant India Fund.
New revised criteria for classification of MSMEs.
No global tenders for procurement up to Rs. 200 crores.
“Udyam Registration” for MSMEs, for Ease of Doing Business
Launching of an online Portal “Champions” in June, 2020 to cover many aspects of e-governance including grievance redress & handholding of MSMEs.

25-Jul-2022: Latest Data on MSMEs

The Ministry of MSME, maintains data of registration of MSMEs, cancellation of registration and employment on Udyam Registration Portal.

The data on credit outstanding to the MSME sector by Scheduled Commercial Banks for the last three financial years indicates an increasing trend, as shown below:

Amount in Rs. in Crore

Year/Quarter ended	Amt. O/s
March 2020	16,13,582.17
March 2021	17,83,924.80
March 2022*	20,22,634.29

Source: Priority Sector Return submitted by SCBs

*Date is provisional

28-Mar-2022: Promotion of MSMEs in Defence Sector

The Government has taken the following policy initiatives for promotion of Micro, Small & Medium Enterprises (MSMEs) in defence sector:

In the Defence Acquisition Procedure 2020, there are specific reservations on Orders up to Rs. 100 Crore/ year for MSMEs.
An innovation ecosystem for Defence titled Innovations for Defence Excellence (iDEX) has been launched in April 2018. iDEX is aimed at creation of an ecosystem to foster innovation and technology development in Defence and Aerospace by engaging Industries including MSMEs, Start-ups, Individual Innovators, R&D institutes and Academia and provide them grants/funding and support to carry out R&D which has potential for future adoption for Indian defence and aerospace needs.
The Defence Offset guidelines have further paved the way for proactive participation of MSMEs of India by incorporating a scheme of multipliers of 1.5 for engaging MSME as Indian Offset Partners (IOP), which promotes their integration in global supply chain.
MSMEs are important partners in DRDO projects and DRDO transfers technologies to them. They are important partners in industry ecosystem for the production of DRDO developed products. DRDO through its scheme Technology Development Scheme (TDF) funds industries, especially Start-ups and MSMEs upto an amount of Rs 10 Cr. for innovation, research and development of Defence Technologies in the field of Defence and Aerospace.
Department of Defence Production (DDP) conducts outreach programs in various parts of the country to interact with Industry Associations, Industry especially MSMEs and academia, to spread awareness about the potential export opportunities. A scheme aimed to promote MSMEs in defence is in place. Under this scheme, conclaves/ seminars are being organized in Tier II and Tier III cities across the country with strong industrial MSMEs presence with the support of the DDP.
Regular interactions are taking place to settle the grievance of vendors at DPSUs. A Defence Investor Cell has been opened in DDP to address the issues being faced by vendors especially MSME vendors.

Under the National SC-ST Hub Scheme, skill training/entrepreneurship development programs are organized for aspiring and existing SCs/STs entrepreneurs through various Training Institutions across the country.
Under the Coir Vikas Yojana, Ministry also implements ‘Skill Upgradation and Mahila Coir Yojana’ which imparts training for Women artisans engaged in Coir sector.
Under the ‘Prime Minister Employment Generation Programme’ (PMEGP) Scheme, all beneficiaries are mandatorily provided with Entrepreneurship Development Program (EDP) training through online/offline mode before setting up their units.

3-Feb-2022: Expansion of MSME sector

Budget Allocation (Rs. in crore)

S.No.	Name of the Scheme	2019-20	2020-21	2021-22 (As on 31.12.2021)
1	Prime Minister's Employment Generation Programme (PMEGP)	2,327.10	2,500.00	2,000.00
2	Scheme of Fund for Regeneration of Traditional Industries (SFURTI)	125.00	464.85	170.00
3	A Scheme for Promoting Innovation, Rural Industry & Entrepreneurship (ASPIRE)	50.00	30.00	15.00
4	Credit Guarantee Scheme	597.00	100.00	0.04
5	Micro and Small Enterprises Cluster Development Programme (MSE-CDP)	227.90	390.69	156.60

2021

5-Aug-2021: Establishment of MSMEs

The Micro, Small and Medium Enterprises (MSME) sector consists of private players and investments in this sector are made by the entrepreneurs themselves. The Ministry of MSME does not establish micro, small and medium enterprises in the country. Promotion and development of enterprises is a State subject. However, the Central Government supplements the efforts of the State/UT Governments through various schemes, programmes and policy initiatives for promotion, development and enhancing the competitiveness of MSMEs in the country.

MSMEs can avail the benefits of schemes being implemented by the Government such as Prime Minister's Employment Generation Programme (PMEGP), Rural Employment Generation Programme (REGP), Micro Units Development & Refinance Agency (MUDRA), Credit Linked Capital Subsidy for Technology Upgradation Scheme (CLCS-TUS), Scheme for Khadi, Village and Coir Industries, International Cooperation Scheme, Procurement and Marketing Support Scheme, Scheme for Credit Guarantee Fund for Micro and Small Enterprises, etc.

15-Jun-2021: Government Simplifies Registration Process for MSMEs

Minister for Road Transport & Highways and Micro, Small and Medium Enterprises, Shri Nitin Gadkari announced simplification of process for registration of Micro, Small and Medium Enterprises. Addressing a webinar of SME Street Game Changers Forum this evening, Shri Gadkari said that now only PAN and Aadhaar will be required for registration of MSMEs.

The Minister added that after getting registered, the MSME unit will be getting priority and finance. He said that there is a need to impart training to small units in fields of entrepreneurship and other related aspects. He assured full support of the MSME Ministry, and also expressed hope that banks and NBFCs will also provide full support to small businesses.

Emphasizing the importance of MSMEs, the Minister said that the MSMEs contribute significantly in the economic and social development of the country by fostering entrepreneurship and generating large employment opportunities. He said that with an objective of making India a global economic powerhouse, vision of MSME aims towards building a supporting ecosystem for MSMEs to enhance their contribution towards five trillion dollar economy. He said that in order to boost the economic activities of MSMEs, the Government has announced a special incentive package ‘Aatmanirbhar Bharat Abhiyan’ of 20 lakh crore rupees.

2020

7-Nov-2020: New online system of MSME/Udyam Registration stands the test of Time & Technology

New online system of MSME/Udyam Registration launched by Union MSME Ministry, w.e.f. 1st July, 2020, has stood the test of Time & Technology as more than 11 lakh MSMEs have successfully registered themselves by now.

It may be stated that Ministry of MSME had revised the definition of MSMEs and process of registration w.e.f. 1st July, 2020. It also launched a new portal for MSME/Udyam registration (https://udyamregistration.gov.in). Since then, the portal is working smoothly. In a major first, this portal is seamlessly integrated with CBDT and GST networks as also with the GeM. It may be noted that through this integration, now MSME registration is a totally paperless exercise.

Ministry has instructed all of its Field Establishments such as MSME-Development Institutes, MSME Technology Centers, NSIC, KVIC, Coir Board to extend full support to entrepreneurs for Udyam Registration. Similarly, all District Magistrates and District Industries Centers have been requested to expedite registration by the MSMEs. Grievances of MSMEs relating to registration are being handled by CHAMPIONS’ platform through its network of Central Control Room and 68 State Control Rooms across the country.

As per the analysis of the registrations till October 31, 2020 (more than 10 Lakh), the trend and broad picture is as follows:-

3.72 lakh enterprises have registered under Manufacturing category whereas 6.31 lakh enterprises under Service sector.
The share of Micro Enterprises is 93.17% whereas Small and Medium Enterprises are 5.62% and 1.21% respectively.
7.98 lakh enterprises are owned by Male whereas 1.73 lakh enterprises by Female entrepreneurs.
11,188 enterprises are owned by Divyangjan entrepreneurs.
The Top 5 Industrial sectors of registrations are – Food Products, Textile, Apparel, Fabricated Metal products and Machinery & equipments.
1,01,03,512 persons have been given employment by these registered units.
5 leading States for Udyam registrations are Maharashtra, Tamil Nadu, Rajasthan, Uttar Pradesh and Gujarat.
Registration without PAN is permitted upto 31.03.2021 as a transitional arrangement.
Similarly, Registration without GST number is also permitted upto 31.03.2021 as a transitional arrangement.

Enterprises which are not yet registered, should register themselves to avail the benefits of Ministry of MSME and other Government agencies. The registration is free of cost and should be done only on the Government portal showing .gov.in.

Entrepreneurs are again advised to be careful of fake and misleading agencies and websites/portals. For any assistance, entrepreneurs can contact nearby DICs or CHAMPIONS’ Control Rooms of the Ministry or can write on our portal https://champions.gov.in.

6-Nov-2020: Ministry of MSME, Government of India warns unscrupulous elements against cheating people in the name of Prime Minister's Employment Generation Programme (PMEGP) Scheme

Ministry of MSME, Government of India, has alerted the general public and potential entrepreneurs against cheating in the name of Prime Minister’s Employment Generation Programme.

In a statement issued today, Ministry of MSME has informed that some instances are reported to the Ministry that potential entrepreneurs / beneficiaries are being approached by private persons or agencies offering loans under PMEGP Scheme and handing over loan sanction letters and cheating the entrepreneurs by charging money from them. Ministry has warned the unscrupulous elements against cheating general public in its name and it has been informed that the Ministry has already taken up the matter with the police authorities for proper investigation and action.

Prime Minister's Employment Generation Programme (PMEGP) is a central sector credit linked subsidy scheme being implemented by the Ministry of MSME since 2008-09 to assist first generation entrepreneurs for setting up of micro enterprises across the country.

Under the PMEGP Scheme, the entire process of application and fund flow right from receipt of application to sanction and release of loan by banks to the applicants has been made online through only one Government portal run by Khadi and Village Industries Commission. The portal can be accessed at https://www.kviconline.gov.in/pmeepeportal/pmegphome/index.jsp. The whole process is totally free of cost.

No Private Party/Agency/ Middlemen/ Franchise, etc. is engaged or authorized for promoting and sanctioning PMEGP Projects or providing any financial assistance under PMEGP scheme.

Instances of potential entrepreneurs / beneficiaries being approached by private persons or agencies offering loans under PMEGP Scheme and handing over loan sanction letters and cheating the entrepreneurs by charging money from them is totally illegal and absolutely fake. General public is therefore advised to remain cautious of such unscrupulous elements.

30-Jun-2020: New Process of MSME Registration takes off in the name of Udyam Registration from 1st July, 2020

As already declared by the Union Ministry of Micro, Small and Medium Enterprises (MSME), vide the Notification Dated 26th June, 2020, the new process of Classification and Registration of enterprises is starting from 1st July, 2020. An enterprise for this purpose will be known as Udyam and its Registration Process will be known as 'Udyam Registration'.

Further highlights of this process are:

MSME registration process is fully online, paperless and based on self-declaration. No documents or proof are required to be uploaded for registering an MSME;
Aadhaar Number will be required for registration;
A Registration number will be given after registration;
After completion of the process of registration, an Udyam Registration Certificate will be issued;
This certificate will have a dynamic QR Code from which the web page on our Portal and details about the enterprise can be accessed;
There will be no need for renewal of Registration;
PAN & GST linked details on investment and turnover of enterprises will be taken automatically from the respective Government data bases;
MSME Ministry's online system will be fully integrated with Income Tax and GSTIN systems;
Those who have EM-II or UAM registration or any other registration issued by any authority under the Ministry of MSME, will also have to re-register themselves;
No enterprise is supposed to file more than one Udyam Registration. However, any number of activities including manufacturing or service or both may be specified or added in one Registration;
Government 's Facilitation mechanism in the name of single window systems at Champions Control Rooms and at DICs will help people in this process;
Registration Process is totally free. No Costs or Fees are to be paid in this regard.

Ministry has expressed confidence that this process will be extremely simple, seamless entrepreneur friendly. It will set an example in Ease of Doing Business, not only in India but internationally. It will reduce transaction time and costs. Entrepreneurs and Enterprises can focus on their real work and become globally competitive.

At the same time, looking to some private websites projecting as Government website, Ministry has clarified that except this portal of Government of India (www.udyamregistration.gov.in) and Government's Single Window Facilitation Systems, no other private online or offline system, service, agency or person is authorized or entitled to do MSME Registration or undertake any activity related with that process.

1-Jun-2020: PM Modi Launches CHAMPIONS: Technology Platform to empower MSMEs

Prime Minister Shri Narendra Modi launched the technology platform CHAMPIONS which stands for Creation and Harmonious Application of Modern Processes for Increasing the Output and National Strength.

As the name suggests, the portal is basically for making the smaller units big by solving their grievances, encouraging, supporting, helping and handholding. It is a real one-stop-shop solution of MSME Ministry.

This ICT based system is set up to help the MSMEs in present difficult situation and also to handhold them to become national and international champions.

Detailed objectives of CHAMPIONS:

Grievance Redressal: To resolve the problems of MSMEs including those of finance, raw materials, labor, regulatory permissions etc. particularly in the Covid created difficult situation;
To help them capture new opportunities: including manufacturing of medical equipments and accessories like PPEs, masks, etc. and supply them in National and International markets;
To identify and encourage the sparks: i.e. the potential MSMEs who are able to withstand the current situation and can become national and international champions.

It is a technology packed control room-cum-management information system. In addition to ICT tools including telephone, internet and video conference, the system is enabled by Artificial Intelligence, Data Analytics and Machine Learning. It is also fully integrated on real time basis with GOI’s main grievances portal CPGRAMS and MSME Ministry’s own other web based mechanisms. The entire ICT architecture is created in house with the help of NIC in no cost. Similarly, the physical infrastructure is created in one of ministry’s dumping rooms in a record time.

As part of the system a network of control rooms is created in a Hub & Spoke Model. The Hub is situated in New Delhi in the Secretary MSME’s office. The spokes are in the States in various offices and institutions of MSME Ministry. As of now, 66 state level control rooms are created and made functional. They are connected through video conference also in addition to the portal of Champions. A detailed standard operating procedure (SOP) has been issue to the officers and staff have been deployed and training has been conducted for them.