Government Data Reveals 15,993 MSMEs Closed In Current Fiscal Year

ENA MSME 2024-02-12 13:14:48 New Delhi, Feb 12 (KNN) Since the launch of the Udyam registration portal by the government on July 1, 2020, the closure of Micro, Small, and Medium Enterprises (MSMEs) has witnessed a significant spike, reaching a staggering 35,680 closures as of February 5, 2024, according to official government data. This surge in closures post-Covid highlights the challenges faced by small businesses in the aftermath of the pandemic. The data, disclosed by Minister of State in the MSME Ministry Bhanu Pratap Singh Verma in a written reply to Lok Sabha, reveals that out of the total closures, 13,290 units ceased operations in the financial year 2022-23. Furthermore, FY22 saw the closure of 6,222 MSMEs, with an additional 175 units in FY21. Alarmingly, in the current fiscal year, as of February 5, 15,993 MSMEs have already closed their doors. The majority of closures were reported in Maharashtra, with 8,967 units shutting down, followed by Tamil Nadu with 4,606 closures, Gujarat with 3,243 closures, Uttar Pradesh with 2,925 closures, and Rajasthan with 2,723 closures. Despite these closures, the percentage remains relatively low, accounting for only 0.09 per cent of the 3.70 crore units registered on the Udyam portal. Minister Verma clarified that the reasons for Udyam registration cancellations vary, including changes in location or business, in addition to business closures. While the government does not maintain specific data on job losses in the MSME sector, it was reported that 63,248 individuals working in the sector lost their jobs between July 2020 and July 2022. This includes 19,862 job losses in FY21, 42,662 in FY22, and 724 up to July FY23. However, amidst these challenges, there has been a significant uptick in digitalisation within the MSME sector. Data from the Udyam portal indicates a substantial increase in total employment reported by Udyam-registered MSMEs, from 9.31 crore jobs as of December 19, 2022, to 17.03 crore jobs as of February 12, 2024. (KNN Bureau) 36658 https://knnindia.co.in/news/newsdetails/msme/government-data-reveals-15993-msmes-closed-in-current-fiscal-year 2024-02-12 13:14:48 knnindia.co.in Government Data Reveals 15,993 MSMEs Closed In Current Fiscal Year