Govt includes Retail and Wholesale Trade as MSMES

Filing of Udyog Aadhaar Memorandum (UAM)/ Udyam Registration is required for availing benefits of the schemes and programmes of the Ministry of MSME.

Jul 23, 2021 09:07 IST India Infoline News Service

The Minister for Micro Small and Medium Enterprises Narayan Rane in a written reply in the Lok Sabha announced that the Government has included Retail and Wholesale Trades as MSMEs. This came into effect on July 02, 2021. He further said that with the introduction of a new classification of MSMEs w.e.f. 01.07.2020, a new cost-free system of online Udyam Registration which is based on self–declaration, has replaced the erstwhile filing of the Udyog Aadhaar Memorandum.

Filing of Udyog Aadhaar Memorandum (UAM)/ Udyam Registration is required for availing benefits of the schemes and programmes of the Ministry of MSME.

The minister highlighted that the Government has launched the Credit Guarantee Scheme (CGS) to strengthen the credit delivery system and facilitate the flow of credit to the MSE sector without the hassles of collateral and third party guarantee.

Under the scheme, Credit Guarantee is given to the Member Lending Institutions (MLIs) for loans up to Rs200 lakh. As per the data received from Credit Guarantee Fund Trust for Micro and Small Enterprises (CGTMSE), Mumbai, there are 53,86,739 Nos. of guarantee and Rs2,72,007.42 crore amount of guarantee approved under Credit Guarantee Scheme since inception.

To strengthen the Indian economy and to provide help to upcoming entrepreneurs, recently the Government has taken a number of initiatives under Aatma Nirbhar Bharat Abhiyan to support the MSME sector in the country, especially in the Covid-19 pandemic. Some of them are:
  • Rs20,000 crore Subordinate Debt for MSMEs.
  • Rs.3 lakh crores Collateral free Automatic Loans for business, including MSMEs.
  • Rs50,000 crore equity infusion through MSME Self-Reliant India Fund
  • New Revised criteria of classification of MSMEs.
  • New Registration of MSMEs through ‘Udyam Registration’ for Ease of Doing Business.
  • No global tenders for procurement up to Rs200 crores.
An Online Portal “Champions” has been launched on 01.06.2020 by the Hon’ble Prime Minister. This covers many aspects of e-governance including redressal of grievances and handholding of MSMEs.

Also, RBI has announced several measures to Reduce Financial Stress of MSMEs.

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