New Delhi: To promote the growth of Micro, Small, and Medium Enterprises (MSMEs) in India, the Ministry of Micro, Small and Medium Enterprises launched the Udyam Assist Platform on January 11 last year. This platform aims to streamline the registration process for Informal Micro Enterprises (IMEs) and has achieved a remarkable milestone with over 1.5 crore registrations in the last 14 months.
Implemented by the Small Industries Development Bank of India (SIDBI), the Udyam Assist Platform allows IMEs without a Goods and Services Tax Number (GSTN) to register easily, contributing to the inclusivity of small businesses in the formal sector.
A significant boost to the Udyam Assist Certificate came with the Government of India’s Gazette Notification S.O. 1296(E) on March 20, 2023. The notification specified that certificates issued through the Udyam Assist Platform for IMEs would be treated on par with the Udyam Registration Certificate. This recognition enables these enterprises to avail themselves of Priority Sector Lending (PSL) benefits, a crucial financial support mechanism.
In alignment with this development, the Reserve Bank of India (RBI) issued a circular on May 9, 2023, categorizing IMEs holding the Udyam Assist Certificate as Micro Enterprises under MSME for the purposes of Priority Sector Lending classification. This move further solidifies the government’s commitment to supporting the growth and development of small businesses in the country.
The Udyam Assist Platform has emerged as a pivotal tool in fostering a conducive environment for the MSME sector. By simplifying the registration process and providing tangible benefits through regulatory recognition, it is becoming a catalyst for the economic empowerment of informal micro enterprises across India.
This achievement signifies a step forward in the government’s vision to promote financial inclusion, encourage entrepreneurship, and create a robust ecosystem for the MSMEs, which play a crucial role in driving economic growth and employment generation in the country.