Technology for MSMEs: Importantly, the FY23 withdrawal count till mid-December was 191 per cent up from 10,495 enterprises withdrawing their registrations till July 15 since the launch of the portal.
Technology for MSMEs: As many as 55,603 MSMEs registered on the government’s Udyam portal have withdrawn or cancelled their registrations as of December 14 since the launch of the portal on July 1 in 2020 to ease the MSME registration process. Out of the total withdrawal count, 55 per cent or 30,597 units cancelled their registrations in the current fiscal year itself till mid-December followed by 43 per cent or 24,075 units cancelling their registrations in FY22 and 1.6 per cent or 931 units of total withdrawals recorded in FY21 (July 1, 2020 – March 30, 2021).
The data was shared by the Minister of State for MSMEs Bhanu Pratap Singh Verma in a written reply in Rajya Sabha on Monday. Importantly, the FY23 withdrawal count till mid-December was 191 per cent up from 10,495 enterprises withdrawing their registrations till July 15 since the launch of the portal, FE Aspire had reported earlier.
According to the reasons cited in the earlier data shared in July this year (monsoon session of parliament) for cancelling registrations, shutting down of operations by 9,141 enterprises was among the key reasons while 5,510 enterprises withdrew their registrations because they didn’t require it any further. Moreover, 3,911 registrations were revoked due to the ‘change of owner’ in the business. Lastly, 15,597 enterprises had cancelled their licenses due to ‘other’ reasons.
However, the total withdrawal count was only 0.43 per cent of nearly 1.28 crore MSME registrations on the Udyam. “The withdrawals are not very significant if we look at the total registration count. Maybe MSMEs didn’t see significant benefits from the portal as unless one is doing business with the government or raising bank credit at a lower interest rate, there aren’t many benefits from the registration,” Ashok Saigal, MD, Frontier Technologies and Co-chairman, CII National MSME Council had told Financial Express Online.