Micro, Small and Medium Enterprises are the lifeblood of the the country's economy. Almost 95 percent of the industrial units in India belong to this category. The sector employs 40 per cent of Indian workers.
Of the total MSM enterprises, only 82 per cent have been registered. The central government has been prompting all enterprises to come under the formal sector by offering registered units benefits including subsidies on loan interest amount. All enterprises registering under the 'Udyog Aadhaar' scheme will be granted a 12-digit Aadhaar number.
The number of registered units has increased from 4.95 lakh in 2016 to 80.14 lakh in 2019.
How to register?
Many of the micro enterprises are denied many official benefits because they are not registered. They can address the problem by getting themselves registered online with Udyog Aadhaar. They can register at https://udyogaadhaar.gov.in by furnishing their Aadhaar number. In case of partnership, the partner applying for registration can furnish his Aadhaar number. In case of a company, the applicant who represents the company can give his Aadhaar number. Once the Udyog Aadhaar number is filled up, the applicant will receive an OTP (one-time password) on the phone linked to the given Aadhaar number. Filling it back completes the registration process.
The central government promises 25 benefits for the registered MSMEs. First among these is loan without security. Units registered under Udyog Aadhaar are assured of interest-free loans and loan subsidies under various government schemes. Quick loans are a prime incentive for registering with the government.
They are also assured of electricity charge subsidies, special considerations in government tenders, fees exemption on applications for patents and trademarks, 15 per cent subsidy on expenses for technical upgrades, financial aid to participate in international expos are some of the benefits.