Govt’s Udyam portal will level Udyog Aadhaar’s 1 cr MSME registration mark in 3 years likely: PHD Chamber
The Reserve Bank of India (RBI) had last year said that existing EMs part II and/or UAMs of MSMEs obtained before June 30, 2020, will continue to remain valid till March 31, 2021, even as they had to register before March under Udyam Registration on or after July 1, 2020.
A total of 1.02 crore MSMEs, as per the government data, were registered under UAM after its implementation in September 2015.
The number of MSME registrations on the Udyam Registration portal will level the 1 crore mark of MSMEs registered under Udyog Aadhaar Memorandum (UAM) in most likely around two-and-a-half or three-year period from the current 33 lakh, PHD Chamber of Commerce and Industry’s MSME Committee Chairperson Mohit Jain told Financial Express Online in an interaction. As of Tuesday, registrations on the new MSME registration portal, launched in July 2020, had crossed the 33-lakh mark from 30 lakh as of May 16, 2021, the available data from the MSME Ministry showed. A total of 1.02 crore MSMEs, as per the government data, were registered under UAM after its implementation in September 2015. The new Udyam Registration had replaced UAM in June last year following the government’s revision of the MSME definition in May. Before UAM, MSMEs had to file Entrepreneur Memorandum (EM) part-I at District Industries Centres before setting up the MSME and EM-II after beginning the production work. Between 2007-15, 21,96,902 EM-II filings were recorded.
“Udyam Registration has enhanced the speed of the registration process as you can simply do it with just an Aadhaar number. Given that the 33-lakh figure has been achieved in around 11 months, the portal will most likely achieve the 1 crore number in around a two-and-a-half or three-year period — unlike around five years taken for UAM to reach that milestone — because of ease of registration on the new portal. But MSMEs who won’t need it in their daily routine, might not register. This is similar to linking Aadhaar with mobile, I didn’t do it unless the government mandated it for Covid vaccination. They would do it once they have to apply for a government scheme,” Jain told Financial Express Online in an interaction.