Ease of Doing Business for MSMEs: The employment in MSMEs assumes significance as the government intends to add 5 crore more jobs in the MSME sector by 2025 from 11.10 crore jobs as per the National Sample Survey (NSS) 73rd round conducted during the period 2015-16.
Ease of Doing Business for MSMEs: Minister of state for MSMEs Bhanu Pratap Singh Verma sharing data on employment in MSMEs noted that 1.31 crore people were employed in units incorporated in the financial year 2021-22, up 98 per cent from 66.2 lakh employees in MSMEs incorporated in FY20 or pre-Covid year and 16 per cent more in comparison to 1.12 crore employees in units incorporated in FY21. The data shared by Verma was sourced from Udyam registration portal.
This assumes significance as the government intends to add 5 crore more jobs in the MSME sector by 2025 from 11.10 crore jobs as per the National Sample Survey (NSS) 73rd round conducted during the period 2015-16. Meanwhile, according to the latest data from the Udyam portal, nearly 1.28 crore registered MSMEs employed 9.31 crore people including 2.18 crore women employees as of December 19, 2022.
However, MSMEs jobs were also impacted during the lockdown period. According to the government data, 6,222 Udyam MSMEs were shut in FY22 that led to 42,662 people losing their jobs while between July 1, 2020, and March 31, 2021, 175 units were closed and 724 jobs were lost. Nonetheless, with the government emergency credit scheme ECLGS, according to a report by SBI Research in January this year, ECLGS had saved 13.5 lakh MSME units, 1.5 crore jobs, and 14 per cent of outstanding MSME loans turning into non-performing assets.