Focus: GS II- Government Policies and Interventions
Why in News?
Around one crore Micro, Small and Medium Enterprises (MSMEs) have registered on the Udyam portal within a span of 25 months, according to the Union Minister of Micro, Small, and Medium Enterprises.
About Udyam Portal:
- It was introduced on July 1st, 2020.
- The Union MSME ministry introduced an online mechanism for registering MSMEs.
- Additionally, it is connected to the databases of the Goods and Services Tax Network and the Central Board of Direct Taxes (CBDT) (GSTN).
- A channel of communication and engagement between taxpayers, the central government, several state governments, and other stakeholders is established via the complex and one-of-a-kind IT enterprise known as GSTN.
- It is entirely online, doesn’t call for any paperwork, and helps MSMEs operate more easily.
Significance:
- For MSMEs to take advantage of the benefits of programmes for the Ministry of MSME and for Priority Sector Lending from banks, Udyam registrations are required.
- Additionally, MSMEs support the nation’s exports, GDP, and job creation.
