Number Of Registered MSMEs To Reach Nine Crore By 2029
The MSME sector contributes more than 30% of GDP, 36% of manufacturing output, and over 45% of exports.
The number of registered micro, small and medium enterprises in India is projected to reach 9 crore by 2029, a senior government official stated on Wednesday.
Currently, over 6 crore MSMEs are registered under the Udyam and Udyam Assist portals, according to Mercy Epao, Joint Secretary in the Ministry of Micro, Small and Medium Enterprises, speaking at an Assocham event.
"We are trying to formalise all the MSMEs in the country and hopefully by 2029 we will reach 9 crore," Assocham said in a statement quoting Epao.
The MSME sector contributes more than 30% of GDP, 36% of manufacturing output, and over 45% of exports.
Bank credit to these entities has been growing at a faster rate than credit dispersal to large enterprises, Epao added.
State governments have also ramped up investments in MSMES. The Karnataka government had constituted a state-level task force to implementation recommendations based on a meeting held for Compliance Reduction and Deregulation particularly for MSMEs.
The meeting was held on March 21 and chaired by Chief Secretary Shalini Rajneesh. The main objective was on "simplifying the regulatory regime" to benefit MSMEs.
Discussions also focused on rationalizing procedures and processes across various areas, in cluding change of land use, building plan approval, construction permits, labor reforms, utilities & permissions, and decriminalization of minor procedural offenses, where feasible.
The government also announced significant revisions to the turnover and investment criteria for classifying micro, small and medium enterprises, which will come into effect from April 1.
Under the new guidelines, enterprises with investments up to Rs 2.5 crore will now be classified as micro enterprises, up from the previous threshold of Rs 1 crore. The turnover limit for micro enterprises has been revised from Rs 5 crore to Rs 10 crore.
Units with investments up to Rs 25 crore will be classified as small enterprises, an increase from the earlier limit of Rs 10 crore. The turnover limit for small enterprises has been doubled from Rs 50 crore to Rs 100 crore.
(With Inputs From PTI)
