49,342 MSMEs Closed Since 2020; 3,17,641 Jobs lost: Union MSME Minister

New Delhi, Dec 3 (KNN) The government has clarified that no formal survey has been conducted to assess the number of closed Micro, Small, and Medium Enterprises (MSMEs) across the country. 

Minister of State in the MSME Ministry, Shobha Karandlaje, made this statement while responding to a parliamentary question in the Rajya Sabha about government efforts to revive and rebuild closed MSME units.

Despite the absence of a comprehensive survey, the government has implemented several initiatives to support the MSME sector. 

These measures include the Rs 5 lakh crore Emergency Credit Line Guarantee Scheme, the Udyam Registration portal, a Rs 50,000 crore equity infusion through the Self Reliant India Fund, and the launch of an online Portal Champions. 

The ministry has also expanded the definition of MSMEs to include retail and wholesale traders.

Recent data from the Udyam portal reveals a complex picture of the MSME landscape. As of July 25, 2024, out of 2.76 crore MSMEs registered since the portal's launch on July 1, 2020, 49,342 units have been reported as shut. 

MSME Minister Jitan Ram Manjhi informed the Lok Sabha that these closures have resulted in a total job loss of 3,17,641 positions.

Manjhi emphasised that these de-registrations or closures occur due to various reasons, including changes in company ownership, redundant certificates, and duplicate registrations. 

The geographical distribution of these closures shows Maharashtra leading with 12,233 closed units, followed by Tamil Nadu with 6,298, Gujarat with 4,861, and Rajasthan with 3,857 shutdowns.

Amidst these challenges, the MSME sector continues to show resilience. The Udyam portal indicates that over 5.57 crore MSMEs have registered, reporting an impressive 23.41 crore jobs. 

Furthermore, the sector's financial landscape demonstrates growth, with the MSME loan portfolio expanding by 17.8 percent to Rs 64.1 lakh crore as of March 2024, according to credit bureau CRIF High Mark.

The loan growth presents an interesting breakdown, with loans to self-employed individuals increasing by 28.9 percent to Rs 35.7 lakh crore, compared to a 6.6 percent growth in loans to MSME entities. 

This data underscores the dynamic nature of India's small and medium enterprise ecosystem, highlighting both its challenges and potential for recovery and growth.

(KNN Bureau)