New Delhi, Feb 26 (KNN) The Department of Economic Affairs (DEA) under the Finance Ministry has released its latest economic report, revealing a remarkable surge in employment within Micro, Small, and Medium Enterprises (MSMEs) registered under the Udyam portal.

Since its inception in July 2020, the Udyam portal has witnessed a monumental 5.3-fold increase in employment, according to the report.

As of February 9, 2024, the number of individuals employed by MSMEs with Udyam registration skyrocketed from 2.8 crore in July 2020 to an impressive 15.3 crore.

This substantial rise underscores the government's efforts to stimulate employment generation through MSMEs, with the Udyam portal playing a pivotal role in facilitating registrations and fostering growth in the sector.

Presently, the Udyam-registered MSMEs contribute significantly to employment, with a total of 15.6 crore individuals engaged in various roles.

Notably, this figure includes 3.89 crore women employees, reflecting strides towards gender inclusivity in the workforce.

The DEA report attributes this surge in MSME employment to several government initiatives aimed at bolstering the sector.

The redefinition of MSMEs, announced on June 1, 2020, expanded the criteria to include enterprises with turnover up to Rs 250 crore and investment up to Rs 50 crore, thereby broadening the scope and accessibility for businesses.

Furthermore, the implementation of schemes like the Emergency Credit Link Guarantee Scheme (ECLGS) has addressed liquidity challenges faced by MSMEs, leading to a notable decrease in Non-Performing Assets (NPAs).

This, coupled with enhanced market access facilitated by the Government e-marketplace (GeM), has propelled growth and sustainability within the MSME ecosystem.

The positive impact of these initiatives is evident in the financial health of MSMEs, as highlighted in the Reserve Bank of India's (RBI) Financial Stability Report.

The report indicates a steady decline in gross non-performing assets (GNPA) within the MSME portfolio of scheduled commercial banks, dropping from 9.3 per cent in March 2022 to 4.7 per cent in September 2023.

The surge in MSME employment, coupled with improved financial indicators, reflects the success of government policies in fostering a conducive environment for small and medium enterprises to thrive.

With continued support and innovation, MSMEs are poised to play an even more significant role in driving India's economic growth and inclusive development agenda.

(KNN Bureau)