👍👍👍Retailers, wholesalers top MSME registrations on Udyam portal: Govt data | The Financial Express

Clipped from: https://www.financialexpress.com/industry/sme/msme-eodb-retailers-wholesalers-top-msme-registrations-on-udyam-portal-govt-data/2985923/

Ease of doing business for MSMEs: Retail and wholesale trades were added to the MSME definition for priority sector lending benefits from banks.

The government had eased credit access for retail and wholesale traders by treating them at par with other borrowers with respect to CGTMSE loans.

Ease of doing business for MSMEs: Retail and wholesale traders reinstated under the MSME category by the government in July 2021 are topping the table of top 10 segments or sub-sectors in the MSME sector based on the number of registrations on the Udyam portal. As of February 2, 2023, out of around 1.38 crore Udyam-registered MSMEs, the top 10 categories or segments contributed for 96.47 lakh registrations, of which 19.7 lakh – maximum registrations – were of retail traders and 12.3 lakh, second highest number of registrations, were of wholesale traders except those dealing with motor vehicles and motorcycles, according to the data shared by the minister of state in the MSME ministry Bhanu Pratap Singh Verma in a written reply to a question in the Rajya Sabha recently.

Also read: Bank credit to retail, wholesale trade jumps 16% YoY in November: RBI data

Importantly, retail and wholesale trades were added to the MSME definition for priority sector lending benefits from banks. According to the Reserve Bank of India’s latest data, the gross bank credit (non-priority) deployed to the retail and wholesale trade in the country in December 2022 jumped 13.7 per cent year-on-year (YoY) to Rs 7.68 lakh crore from 14.7 per cent during December 2021 at Rs 6.75 lakh crore.

The government had further eased credit access for retail and wholesale traders by treating them at par with other borrowers with respect to loans under the credit guarantee scheme of the Credit Guarantee Fund Trust for Micro and Small Enterprises (CGTMSE). With the circular issued on November 30, 2022 by CGTMSE, the credit limit for MSEs into retail and wholesale trade with guarantee cover was increased from Rs 1 crore to Rs 2 crore.

Also read: FE Exclusive: Loans to retail, wholesale traders under CGTMSE to be treated at par with other segments

Meanwhile, the other top eight categories, as per the data shared data in the Rajya Sabha on MSME registrations by the minister of state in the MSME ministry, Bhanu Pratap Singh Verma, were food products manufacturers (11.6 lakh), companies in land transport and transport via pipelines (10.9 lakh), food and beverage service activities (10.2 lakh), other personal service activities (10.1 lakh), other manufacturing activities (6.31 lakh), manufacturers of textiles (5.99 lakh), other professional, scientific and technical activities (4.50 lakh), manufacturers of wearing apparels (4.43 lakh). 

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