Multiple Measures Taken To Reduce Compliance Burden, Strengthen MSMEs: Minister

New Delhi, Feb 10 (KNN) The government has taken several steps to provide operational and regulatory support to Micro, Small and Medium Enterprises (MSMEs) and reduce their compliance burden, said Minister of State for MSME Shobha Karandlaje in reply to a question in Rajya Sabha.

The Minister stated that the definition of MSMEs was revised in 2020 and has been further updated with effect from April 1, 2025, to promote upward mobility in technology adoption, skilling, business growth and expansion.

She highlighted that Udyam Registration, launched on July 1, 2020, has simplified the registration process. The system is voluntary, fully online, free of cost, paperless and based on self-declaration, with no requirement to upload documents or proof.

Retail and wholesale traders were included under the MSME category with effect from July 2, 2021, expanding the scope of benefits. Additionally, non-tax benefits are extended for three years in cases where enterprises experience an upward change in status.

To formalise informal micro enterprises, the Government launched the Udyam Assist Platform on January 11, 2023, enabling such enterprises to access Priority Sector Lending benefits. The Minister also noted the operationalisation of the Self Reliant India Fund to facilitate equity infusion into MSMEs.

Measures to Ensure Credit Flow

Karandlaje stated that several schemes have been implemented to ensure uninterrupted credit flow and financial support to MSMEs. These include the Prime Minister's Employment Generation Programme (PMEGP), which provides margin money subsidy for setting up new micro enterprises in the non-farm sector.

Other initiatives include the Credit Guarantee Scheme (CGS) for collateral-free loans to Micro and Small Enterprises, collateral-free loans up to Rs 20 lakh for informal micro enterprises, PM Vishwakarma Yojana, and Mudra loans.

Citing a State Bank of India research report dated January 23, 2023, she said that under the Emergency Credit Line Guarantee Scheme (ECLGS), nearly 14.6 lakh MSME accounts were prevented from slipping into non-performing asset (NPA) classification, with about 98.3 percent of these accounts belonging to Micro and Small Enterprises.

Enhancing Competitiveness and Institutional Support

The Minister further informed that the MSME Champions Scheme has been introduced to modernise processes, reduce wastages, improve competitiveness and support enterprises in expanding their national and global presence.

In addition to this, Tool Rooms and Technology Centres under the Ministry are also providing skilling and handholding support to MSMEs. To strengthen institutional support and enhance awareness, the Ministry regularly organises workshops and interactive sessions in coordination with MSME-Development and Facilitation Offices (MSME-DFOs), banks, member lending institutions, SIDBI and CGTMSE.

She stated that these measures are aimed at creating a supportive ecosystem to promote growth, formalisation and competitiveness of MSMEs across the country.