Udyam System of registration: 6% of MSMEs owned by SC entrepreneurs

What is the News?

The Ministry of MSME has released the data regarding the number of Scheduled Caste (SC) owned enterprises covered under the Udyam system of registration.

What are the key findings from the data?

The proportion of enterprises owned by Scheduled Caste entrepreneurs in the overall national tally of MSMEs is 6%.

Maharashtra tops India’s list in the number of MSMEs owned by entrepreneurs from the Scheduled Castes. Tamil Nadu and Rajasthan occupy the second and third slots.

Further, among the number of SC-owned MSME enterprises, micro-enterprises accounted for the highest followed by small and medium.

What is the Udyam System of registration?

It was launched in July 2020. It is a new registration portal for MSMEs. This portal is more streamlined than the previous Udyog Aadhaar Memorandum. The portal is also fully integrated with Income Tax and GST IN systems.

Upon registration on this portal, an enterprise will be assigned a permanent identification number to be known as “Udyam Registration Number”.

The registration on this portal is necessary for any MSME (regardless of the social category of ownership) that wants to avail concessions or benefits from the Central and State governments and want to get covered under schemes of the governments, including priority sector lending of banks.

Otherwise, the MSMEs which had registered themselves under the previous system such as Udyog Aadhar Memorandum(UAM) can carry on their business.

Source: This post is based on the article ‘6% of MSMEs owned by SC entrepreneurs’ published in The Hindu on 29th January 2022.