G. Velladurai
As per data available from 01st July 2020 to 01st February 2025 a total of 486102 MSMEs are registered in Udyam registration portal launched for registration of MSMEs which are classified on the composite criteria of investment in Plant & Machinery or Equipment as per the notification of Ministry of MSME. Udyam registration is online, free of cost, paperless based on self-declaration basis and requires no upload of documents. As per the budget announcement the classification of MSME are revised as per the table below.
Reference Budget 2025-26
Presently out of the total MSMEs registered in Jammu & Kashmir 98% are classified as Micro units and now as per the revised classification this may further increase the registered Micro units percentage to around 99% which in turn useful to avail the various schemes and benefits of Government departments including the benefits under Public Procurement Policy which reserves 25% of purchase of Good & Services by various Government Departments & Public Sector Undertakings (PSU’s) among other schemes.
The MSME’s of Jammu & Kashmir provides employment to considerable percentage of population next only to agriculture and hence the sector needs focused approach for reaping the benefit of demographic divided. The MSMEs of the union is generating 36 percent of Manufacturing and contribute to 45 per cent exports and needs focused approach was addressed in this budget with due importance to MSME Sector.
The credit Guarantee Cover extended to Micro & Small Enterprises has been increased from 5 Crores to 10 Crores is a much welcomed step and this increase the flow of credit to the sector which is of prime importance.
This will be added advantage for both local investors who can start new enterprises and also the existing entrepreneurs who can expand their business to greater heights, also this move will be useful to attract new investors in to Jammu & Kashmir for increasing the employment opportunities of our youth.
Addressing the credit requirements of the MSME Sector is need of the hour and this budget has taken care of this requirement by providing 10 Lakh credit cards for the units registered in the Udyam Portal for accessing 5 lakhs credit for their enterprises. This budget also provides a New Fund of Funds of Rs.1000 Crores for the Startups of the Union which is also of Prime Importance. One more commitment for the sector includes providing Loans up to 2 Crores for 5 Lakh Women, Scheduled Caste and Scheduled Tribes first time entrepreneurs. This budget has focused the export based MSMEs by providing term Loans up to 20 Crores. This budget also addresses Footwear & Leather Sector, Toy Sector and Food Processing Sector, Skilling for the MSME Sector, Clean Tech Manufacturing and Make in India initiatives among other areas.
The Jammu & Kashmir stands to gain from this budget to greater extent as our industries are concentrated in Food processing Sector which includes Apple and Walnut and the units in Pulwama district for example which are making Leather for Footwear & other allied Leather types which provides maximum employment opportunities for our youth.
The distribution of MSMEs as per the district wise numbers enclosed clearly shows that MSMEs are really growth engine of our Jammu & Kashmir for all the districts and stands to gain in this budget.
(The author is Joint Director of Field office of Union Ministry of MSME for Jammu & Kashmir)
