Over 32,000 MSMEs Shut Shop Across India In 3 Years, Maharashtra Tops List

New Delhi, Dec 19 (KNN) Indian Micro, Small, and Medium Enterprises (MSMEs) have faced closures of nearly 32,385 units in the last three and a half years, disclosed Union Minister of State for MSMEs, Bhanu Pratap Singh Verma, in the Rajya Sabha on Monday.

These MSMEs have cancelled their registrations on the Udyam portal, marking the end of their operations between July 1, 2020, and December 11, 2023, reported the Union Minister.

The most notable closures occurred in Maharashtra, where 3,066 MSMEs shut down operations this year alone, closely followed by Tamil Nadu with 1,740 closures and Gujarat with 1,218.

Even the relatively smaller Chandigarh region has been affected, with 1,590 MSMEs shutting down since July 2020. This includes 1,081 closures in Haryana, 340 in Punjab, and 128 in Himachal Pradesh.

Despite the concerning closure statistics, the minister added, the government has implemented financial support mechanisms across the nation.

According to the information shared in the Rajya Sabha, the Emergency Credit Line Guarantee Scheme (ECLGS) provided guarantees amounting to Rs 3.68 lakh crore to 1.19 crore MSME borrowers in the country.

Additionally, the Credit Guarantee Scheme for Subordinate Debt (CGSSD) for Stressed MSMEs extended Rs 96.80 crore to 803 accounts.

The NSIC Venture Capital Limited, under the Self-Reliant India Fund, invested a total of Rs 6,448 crore in MSMEs as of November 30 this year.

The Minister highlighted that the government's efforts extend to supporting export-oriented MSMEs, with 59 export facilitation centres established across the country to provide crucial hand-holding support for export promotion.

Furthermore, according to the Minister's response to a parliamentary question, MSMEs were instrumental in providing jobs to millions of people across states.

In 2023 alone, Haryana saw 10.03 lakh jobs, Punjab 9.51 lakh, Himachal Pradesh 2.26 lakh, and Chandigarh 40,443.

The total employment recorded on the Udyam registration portal since its inception in July 2020 till December this year is a staggering 14.35 crore.

Zooming in on the regional distribution of MSMEs, Punjab led with 8.01 lakh registered enterprises, followed by Haryana with 7.14 lakh, Himachal Pradesh with 1.24 lakh, and Chandigarh with 33,804.

In a gender-specific breakdown, Punjab emerged as a frontrunner in women-owned MSMEs, boasting 2.37 lakh such enterprises, followed by Haryana with 2.04 lakh, Himachal Pradesh with 25,656, and Chandigarh with 7,561.

(KNN Bureau)