Role of Udyam in Promoting Make in India for Manufacturers

India has taken many steps to become a global manufacturing hub. One of the major steps in this direction is the "Make in India" initiative, launched by the Government of India in 2014. The goal of this initiative is to encourage companies to manufacture their products in India and promote job creation, innovation, and skill development. To support this vision, the government also introduced a system called Udyam Registration for Micro, Small, and Medium Enterprises (MSMEs).

Udyam Registration is an online process that gives manufacturers and other small businesses official recognition. It offers many benefits like government schemes, financial aid, and market access. This simple registration system plays a powerful role in pushing forward the "Make in India" movement, especially for manufacturers.

In this article, we will explain in simple words how Udyam Registration helps manufacturers and supports the Make in India vision.

Understanding Make in India and Udyam Registration

1. Make in India

Make in India is a government-led campaign aimed at turning India into a global manufacturing powerhouse. It encourages Indian and foreign companies to set up manufacturing plants in India. The campaign focuses on improving ease of doing business, building better infrastructure, and attracting investment in manufacturing sectors like electronics, textiles, food processing, and automobiles.

2. Udyam Registration

Udyam Registration is a government-provided registration for MSMEs. It replaced the old system of Udyog Aadhaar. Any business engaged in manufacturing or service activities and meets the investment and turnover limits can register as an Udyam. Manufacturers who register as Udyam get a unique identification number and access to various government benefits. It is free, simple, and can be done online with minimal documents.

Making It Easy for Small Manufacturers

Many small manufacturers in India work from their homes, small workshops, or rural areas. These small units often face challenges such as lack of paperwork, limited access to finance, and no official recognition.

Udyam Registration solves this problem by offering a simple and paperless way to register. A small manufacturer only needs:

• Aadhaar number of the business owner
  
  

• PAN number
  
  

• Basic business details like name and activity
  
  

After registration, the manufacturer gets an official certificate. This makes them eligible to apply for loans, government tenders, subsidies, and many more schemes that support manufacturing. This ease of registration gives a boost to local and small-scale manufacturing and helps grow Make in India from the grassroots level.

Access to Government Support and Subsidies

Once a manufacturer is registered under Udyam, they become eligible for various government schemes that are specifically created to support Indian manufacturers. These include:

• Credit Guarantee Scheme: Small manufacturers can get loans without needing to provide security or collateral.
  
  

• Interest Subsidy: Some loans offer reduced interest rates for Udyam-registered units.
  
  

• Technology Upgradation: Financial help to adopt modern machinery and tools.
  
  

• Market Development Assistance: Support to promote and sell products in India and abroad.
  
  

• Participation in Trade Fairs: Udyam units are invited to government-sponsored trade fairs which provide a platform to display and sell their products.
  
  

These schemes lower the cost of production and improve product quality, which directly supports the growth of manufacturing in India under the Make in India initiative.

Boosting Indian Manufacturing through Easier Loans

One of the biggest problems for small manufacturers is getting money to start or grow their business. Banks and financial institutions often ask for many documents or collateral. Udyam Registration changes this.

After registering under Udyam, small manufacturers are seen as trustworthy businesses by banks and NBFCs (non-banking financial companies). This improves their chances of getting loans under schemes such as:

• PMEGP (Prime Ministers Employment Generation Programme)
  
  

• MUDRA Loan Scheme
  
  

• Stand-Up India
  
  

• Credit Linked Capital Subsidy Scheme
  
  

Easy and quick access to loans helps these manufacturers invest in machinery, raw materials, and skilled laborhelping them increase production and create more jobs in India.

Encouraging Indian Brands and Products

Udyam Registration gives identity and official recognition to many small Indian manufacturers. Earlier, many of them remained unknown or were working without a name. Now, with official status, they can brand their products better and participate in marketing programs.

This helps build a sense of pride and trust in Indian-made goods. It increases public support for locally made items and reduces dependence on imported products. Promoting Indian brands strengthens the Make in India campaign and helps local manufacturers reach wider markets.

Reservation and Preference in Government Tenders

The Government of India gives special support to Udyam-registered manufacturers when it comes to government tenders. According to the Public Procurement Policy, 25% of the total procurement by Central Government ministries and departments must be done from MSMEs.

This includes:

• Relaxation in tender requirements
  
  

• No need for earnest money deposits
  
  

• Price preference up to 15%
  
  

• 3% reservation for women-led MSMEs

These measures allow Udyam-registered manufacturers to sell their products to large government departments, boosting production and income.

Promoting Rural and Backward Area Manufacturing

One of the goals of Make in India is to create jobs and promote industries in rural and backward areas. Udyam Registration plays a big role in achieving this. Many people in villages have traditional skills such as weaving, pottery, furniture-making, food processing, and handicrafts.

With Udyam Registration, these skilled artisans can turn their skills into small businesses. The government also supports these rural manufacturers through cluster development, tool rooms, and skill training centers.

This helps reduce migration to cities and creates local employment, which supports balanced economic growth and the Make in India mission.

Digital Push for Indian Manufacturing

Udyam Registration is completely online and can be done from anywhere. This shows how the government is encouraging the use of digital tools in business. By making the process digital, the government saves time and paperwork and improves transparency.

Manufacturers who register also get access to government portals like:

• GeM (Government e-Marketplace): Sell directly to government departments
  
  

• TReDS (Trade Receivables Discounting System): Get early payment for invoices
  
  

• MSME Sampark: Connect with skilled job seekers
  
  

This digital ecosystem supports manufacturers in becoming modern and competitive, which is important for India's image as a global manufacturing hub.

Helping Indian Manufacturers Go Global

Udyam Registration is not only useful for domestic success. It also helps small manufacturers take their products to the international market. With the help of schemes like:

• Export Promotion Capital Goods (EPCG)
  
  

• Duty Drawback Scheme
  
  

• Market Access Initiative (MAI)
  
  

Registered units can reduce costs, join global trade fairs, and get exposure to international buyers. They can also receive guidance from Indias Export Promotion Councils.

Going global helps increase foreign exchange earnings, grow the Indian economy, and strengthen the Make in India movement.

Building Trust and Better Business Relations

When a manufacturer has Udyam Registration, it builds trust with buyers, suppliers, and financial institutions. Everyone wants to do business with companies that are officially recognized and legally compliant.

Buyers feel more confident in placing orders. Banks trust them more. Even online platforms like Amazon and Flipkart give preference to verified businesses.

This improves business relations and helps Indian manufacturers become more professional and organized.

Note: Now easily update udyam certificate through the Udyam portal

Conclusion

Udyam Registration is more than just a formal process. It is a powerful tool that gives strength, identity, and support to millions of manufacturers across India. It opens the doors to financial aid, market access, skill development, and global reach.

By helping small and medium manufacturers grow and modernize, Udyam Registration plays a direct and important role in promoting the Make in India initiative. It ensures that India's manufacturing story is not just about big factories but also about the thousands of small units that together build a strong, self-reliant, and globally respected India.

When Indian manufacturers are supported at every levelfrom idea to production to salethey become confident, competitive, and ready to lead. And that is how Udyam Registration becomes a strong backbone of the Make in India dream.