The aggregate loans of micro, small and medium enterprises (MSME) restructured by scheduled commercial banks (SCBs) and public sector banks (PSBs) stands around ₹1.37 lakh crore, mentions the Economic Survey. Of this, ₹58,524 crore across 9.8 lakh accounts was on the books of PSBs, and ₹78,591 crore was done by SCBs under the August 2020 and May 2021 schemes announced by the Reserve Bank of India.
Besides, under the Emergency Credit Line Guarantee Scheme of up to ₹4.5 lakh crore, nearly 66% of the amount was disbursed to MSMEs. The scheme has been extended till the end of March 2022. Under the credit guarantee scheme (CGS), while ₹36,899 crore was disbursed in FY21, in the current fiscal, ₹22,959 crore has been provided for as of November 30, 2021, mentions the survey.
In terms of credit flow, while the offtake to large industries broadly remained at the same level as of last year, medium industries, particularly, witnessed high double-digit growth for over a year with credit growth to the segment working out to 48.7% in November 2021 compared with 25.7% in November 2020. Comparatively, credit growth to micro and small industries accelerated to 12.7% in November 2021 from 0.6% a year ago, reflecting effectiveness of various measures taken by the government and the RBI to boost credit flow to the micro, small and medium enterprises (MSME) sector, states the survey.
As per the National Sample Survey (NSS) 73rd round, conducted by National Sample Survey Office, there were 633.88 lakh unincorporated non-agriculture MSMEs in the country engaged in different economic activities (196.65 lakh in manufacturing, 0.03 lakh in non-captive electricity generation and transmission, 230.35 lakh in trade and 206.85 lakh in other services) excluding those MSMEs registered under the Factories Act, Companies Act and (c) those falling under Section F of National Industrial Classification (NIC) 2008.
The relative importance of MSMEs can be gauged from the fact that the share of MSME GVA in total GVA (current prices) for 2019-20 was 33.08%, mentions the survey. The number has been consistently improving, going up from 31.80% in FY15.
Recent measures taken by the government to improve the ease of doing business for the MSMEs include the launch of the new Udyam registration portal in July 2020. The registration is fully online, digital, paperless and is based on self-declaration. No documents or proof are required to be uploaded for registering as an MSME. Aadhaar and PAN are required for registration and details on investment and turnover of enterprises are taken automatically from relevant government databases.
The survey mentions that under the new scheme, as on January 17, 2022, 66,34,006 enterprises had registered on the portal, of which 62,79,858 are micro; 3,19,793 are small; and 34,355 are medium enterprises. Further, among the new measures, the retail and wholesale trades were included as MSMEs and they are allowed to be registered on the portal. However, the benefits to retail and wholesale trade MSMEs are to be restricted to priority sector lending only. In this regard, now, street vendors can also register as retail traders on the portal and avail the benefit of priority sector lending.
Under the prime minister's employment generation programme, the estimated employment generated (number of persons) in micro enterprises in FY21 and 2021-22 (as on 01.07.2021) was 5.95 lakh and 1.19 lakh, respectively.