Udyam MSME registrations cross 20L; Guj 5th in country

Gujarat crossed the 20 lakhs Udyam MSME registration mark on Friday, making it the fifth in the country in terms of total registrations. Maharashtra, Tamil Nadu, Uttar Pradesh and Rajasthan are ahead of Gujarat. Out of 20 lakhs, Gujarat has 19.10 lakhs micro, 81,841 small and 8,460 medium units. Gujarat is ranked second after Maharashtra in the number of medium units.

Experts believe that the actual number of units in Gujarat is higher, but these do not get themselves registered with Udyam due to various reasons. According to state Govt. officials, Gujarat has a higher number of medium and large units mainly in sectors like chemicals, textiles, engineering, pharmaceuticals, auto, gems and jewellery. The registered MSMEs provide employment to around 1.10 crores people in the State. Gujarat has been the country’s MSME hub for decades. There were apprehensions that due to Section 43B(H) that requires payment within 45 days, MSME registration would decrease. But the State has continued to add new units in the MSME category even in this phase. Gujarat has crossed 20 lakhs registration mark due to various initiatives by the State Govt. for the growth of MSMEs.

Apart from textiles, chemicals, pharma and engineering, the State is witnessing significant new registrations in sectors like auto and auto ancillary, renewable energy, agro and food processing. In terms of districts, Ahmedabad has the highest Udyam registrations with 4.21 lakhs, followed by Surat (4.01 lakhs), Rajkot (1.95 lakhs) and Vadodara (1.54 lakhs). Ahmedabad, Surat, Rajkot, Morbi and Vadodara have a higher number of medium-sized units. Gujarat has a much higher number of MSMEs, but not all are registered. Many functional MSMEs fear that they will come under the GST radar, if they register under Udyam. Hence, they do not get registered until they reach the compulsory GST registration turnover (Rs 20 lakhs for services and Rs 40 lakhs for manufacturing). If all the functional units are considered, then Gujarat can be ranked second in the country after Maharashtra.