In a significant milestone for India’s micro-business sector, registrations on the Udyam Assist Platform (UAP) have surpassed 1.50 crore for Informal Micro Enterprises (IMEs). Launched by the Ministry of Micro, Small and Medium Enterprises on January 11, 2023, the platform aims to streamline the registration process for IMEs by issuing Udyam Assist Certificates. Spearheaded by the Small Industries Development Bank of India (SIDBI), the platform has emerged as a vital tool for IMEs seeking formal recognition.
One of the platform’s key features is its inclusivity. IMEs without a Goods and Services Tax Identification Number (GSTN) can register on Udyam Assist Platform, thereby broadening access to formal recognition and associated benefits. Over the past 14 months, the platform has witnessed a surge in registrations, indicating a growing recognition among micro-entrepreneurs of the importance of formalization.
The Government of India, recognizing the significance of UAP in bolstering the micro-business ecosystem, issued a Gazette Notification (S.O. 1296(E)) on March 20, 2023. This notification decreed that certificates issued on the UAP to IMEs would be equivalent to Udyam Registration Certificates, paving the way for these enterprises to avail themselves of Priority Sector Lending (PSL) benefits. Subsequently, the Reserve Bank of India (RBI), through a circular dated May 9, 2023, classified IMEs holding Udyam Assist Certificates as Micro Enterprises under the MSME category for the purposes of PSL classification.
The Udyam Assist Platform not only simplifies the registration process but also serves as a gateway to formal credit and other support mechanisms crucial for the expansion and resilience of IMEs. As the platform continues to evolve, it is poised to play a pivotal role in unlocking the potential of India’s micro-business sector, driving economic growth, and fostering entrepreneurship at the grassroots level.
