Hyderabad:The figures of the real GDP in India during the first quarter of 2020-21 indicate that economic activity contracted due to the strict lockdown measures imposed by the Government.
This contraction has also had an impact on the Micro, Small and Medium Enterprises (MSME) Sector. However, as MSMEs are there in both formal and informal sector, data regarding temporary or permanent closure of the units are not maintained by the Government of India.
However, post Covid-19, Government has taken a number of initiatives under Aatma Nirbhar Bharat Abhiyan to support the MSME sector in the country. Some of which are:
i) Rs. 3 Lakh crore Collateral Free Automatic Loans for business, including MSMEs.
ii) Rs.20,000 crore Subordinate Debt for Stressed MSMEs.
iii) Rs. 50,000 crore equity infusion through MSME Fund of Funds.
iv) New Revised criteria for the 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 crores.
An online portal “Champions” had also been launched on June 2020 by the Prime Minister that covers many aspects of e-governance including grievance redressal and handholding of MSMEs.
Along the same lines, RBI has also announced several measures to reduce Financial Stress of MSMEs.
Registration of MSMEs
To increase the ease of registration on Udyam Registration portal, the Ministry of MSME has made the registration process hassle-free by making it paperless, online and without any supporting documents and fee.
Also read: Policy proposal for employment generation, scale-up in MSME sector
The portal has linkages with Income Tax, GST portals for fetching the investment and turnover figures automatically.
The Ministry of MSME has created the Champions Control Rooms functioning in various institutions and offices of the Ministry including the Development Institutes (MSME-DI) that shall act as Single Window Systems for facilitating the registration process and further handholding the MSMEs in all possible manner.
The District Industries Centres (DICs) under State Governments/UT administrations also act as Single Window facilitation Systems in their Districts.
The Government is also running campaigns in social media to popularize the Udyam Registration and to spread awareness about the same.
