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Udyam Portal

  • 04 Aug 2022
  • 3 min read

Why in News?

Around one crore Micro, Small and Medium Enterprises (MSMEs) have registered on the Udyam portal within a span of 25 months, according to the Union Minister of Micro, Small, and Medium Enterprises.

What is Udyam Portal?

  • About:
    • It was launched on 1st July, 2020.
    • It’s an online system for registering MSMEs, launched by the Union MSME ministry.
    • Further, it is linked to the databases of the Central Board of Direct Taxes(CBDT) and Goods and Services Tax Network (GSTN). 
      • GSTN is a unique and intricate IT enterprise that establishes a channel of communication and interaction between taxpayers, the central and various state governments, and other stakeholders.
    • It is fully online, does not require any documentation, and is a step towards Ease of Doing Business for MSMEs.
  • Significance:
    • Udyam registrations are essential for MSMEs to utilize the benefits of schemes for the Ministry of MSME and for Priority Sector Lending from banks.
      • Also, MSMEs contribute to the GDP, exports, and employment generation of the country.
  • New Initiatives:
    • The MSME ministry signed MoUs with the Ministry of Tourism and the National Small Industries Corporation for the sharing of Udyam data.
    • Further, the Digi locker facility for Udyam registration would be linked.

What are MSME?

  • About:
    • The Micro Small and Medium Enterprises (MSMEs) sector is a major contributor to the socio-economic development of the country. 
      • In India, the sector has gained significant importance due to its contribution to the Gross Domestic Product (GDP) of the country and its exports. 
      • The sector has also contributed immensely with respect to entrepreneurship development, especially in semi-urban and rural areas of India.
    • According to the provisions of the Micro, Small & Medium Enterprises Development (MSMED) Act, 2006 the Micro, Small, and Medium Enterprises (MSME) are classified into two classes i.e., Manufacturing Enterprises and Service Enterprises.
      • The enterprises are further categorized based on investment in equipment and annual turnover.
  • Related initiatives:

Source: PIB

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