The Micro, Small, and Medium Enterprises (MSMEs) significantly contribute to the Indian economy and growth of entrepreneurial ventures through reform. To help ease MSMEs registration, the government of India recently announced to simplify the process.
Addressing the press, Nitin Gadkari (MSME Minister) said, “To ease the MSMEs registration process, only Aadhar card and PAN card will be required. Once the unit registration is complete, it will be given priority and finance. Small businesses will also be given entrepreneurship training and related help.”
He further added that full support will be given to the MSMEs as their contribution is significant to India’s economic and social growth. MSMEs registration plays a key role in its inception. By fostering an entrepreneurship environment, it generates massive employment opportunities. He said that to make India a global economic powerhouse, the Indian government will be supporting the ecosystem to boost their contribution towards a five trillion dollar economy.
Nitin Gadkari, Minister of Road Transport & Highways and MSMEs, also announced a special incentive package of ₹20 lakh crore under Atmanirhar Bharat Abhiyan.
These announcements were made during a webinar of SME Street Game Changers Forum on June 15, 2021. SME Street Game Changers Forum is a program aimed to connect and influence MSMEs with the support of the government of India, the Ministry of MSMEs, and the National Small Industry Corporation (NSIC).
An overview of Indian MSME Industry
The Micro, Small, and Medium Enterprises (MSMEs) industry contribute a whopping 29% towards India’s GDP through national and international trade services. Data suggests that by May 2021, the MSMEs registration portal had already seen 30,00,822 registrants. India has 6.3 crore MSMEs for both national and international trade services.
Initial Public Offering (IPO) witnessed 16 SMEs entering the market after raising ₹100 crores in 2020. For years 2021-22, this number is expected to reach 60 for bringing equity funds to meet MSME business requirements.
All the units falling under MSMEs registration are also encouraged to market their products through the Government e-Marketplace (GeM) from where Ministries and Public Sector Units (PSUs) procure.
Simplifying MSMEs Registration
Simplifying the MSMEs registration process that now only requires Aadhar card and PAN card is an initiative in the right direction. Not only will it help such units to register quickly but also procure finances in a reasonable time.
It is a welcome change to boost the sector after a massive hit from the pandemic in these 1.5 years.
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