Udyam and Ease of Doing Business for Indian Manufacturers

India is a country with a large number of small and medium businesses. These businesses play a vital role in the economy. Many of them are manufacturers who make products in factories or small units. To support such manufacturers, the Indian government has initiated various schemes. One such helpful scheme is Udyam Registration.

MSME Registration is a government registration process that helps small businesses get official recognition. It is made especially for Micro, Small, and Medium Enterprises (MSMEs). When manufacturers register under Udyam, they get many benefits that make it easier to do business. This is part of the government’s larger plan to improve the Ease of Doing Business in India.

This article explains what Udyam is, how it supports manufacturers, and how it connects with the goal of making business easier in India.

What is Udyam Registration?

Udyam Registration is a government registration for small and medium enterprises in India. It is managed by the Ministry of Micro, Small and Medium Enterprises. If a manufacturer wants to get official recognition as an MSME, they must register on the Udyam portal.

The Udyam registration process is completely online, free of cost, and very simple. It requires only a few documents, like the Aadhaar number of the owner and the PAN number of the business. After successful registration, the business receives a unique Udyam Registration Number and a certificate.

Who Can Register Under Udyam?

Businesses that fall under the Micro, Small, or Medium category can register. These categories are based on the amount of investment and turnover:

1. Micro Enterprise
   

• Investment up to Rs. 2.5 crore
  

• Turnover up to Rs. 10 crore
  
  

2. Small Enterprise
   
   

• Investment up to Rs. 25 crore
  

• Turnover up to Rs. 100 crore
  
  

3. Medium Enterprise
   
   

• Investment up to Rs. 125 crore
  

• Turnover up to Rs. 500 crore

Manufacturing units that come under these categories are eligible for Udyam registration.

Benefits of Udyam for Manufacturers

Manufacturers who register under Udyam get many benefits. These benefits help them grow and make their business activities easier. Some key benefits include:

1. Access to Loans and Financial Help

Udyam-registered businesses can easily apply for collateral-free loans under government schemes like the Credit Guarantee Fund Scheme. Banks and financial institutions give preference to Udyam-certified manufacturers.

2. Subsidies and Incentives

The government gives subsidies on technology upgrades, quality improvement, and ISO certification to registered businesses. This helps manufacturers improve their production.

3. Easier Government Tenders

Udyam-registered businesses get special benefits in government tenders. There is less competition from big companies, and some tenders are reserved only for small manufacturers.

4. Protection from Late Payments

Under the MSME Development Act, Udyam businesses get protection against delayed payments from buyers. If a buyer delays payment beyond 45 days, the manufacturer can file a complaint with the MSME Samadhaan portal.

5. Reduced Cost for Intellectual Property

Udyam units get subsidies on patent registration and trademark registration. This encourages manufacturers to protect their inventions and brand names.

6. Ease in Licenses and Approvals

With Udyam registration, manufacturers can get various licenses, approvals, and registrations with reduced paperwork and faster processing.

How Udyam Improves the Ease of Doing Business

“Ease of Doing Business” means how simple it is to start, run, and grow a business in a country. The government of India is working hard to make the business environment smooth and supportive. Udyam registration helps in the following ways:

1. Simple Online Process

The entire Udyam registration process is paperless and online. This saves time and effort for manufacturers. There is no need to visit government offices.

2. No Registration Fees

There are no charges for Udyam registration. This removes the financial burden for small business owners.

3. Single Window System

Udyam registration is now linked with other portals like the GeM portal (Government e-Marketplace) and TReDS (Trade Receivables Discounting System). This means that manufacturers can easily access government markets and get payments quickly.

4. Recognition and Trust

An Udyam certificate shows that a business is officially recognised by the Indian government. This helps build trust with customers, banks, and buyers.

Why Udyam is Important for Indian Manufacturers

Manufacturing is a strong pillar of India’s economy. It provides jobs, supports exports, and helps reduce imports. Small manufacturers often struggle with finance, technology, marketing, and competition. Udyam helps solve many of these problems.

Here’s why Udyam is very important for manufacturers:

1. Helps in Formalisation

Many manufacturers in India work in the unorganised sector. Udyam brings them into the formal economy. This makes them eligible for schemes, subsidies, and government support.

2. Encourages Growth

With financial support and better market access, small manufacturers can grow their business. They can move from micro to small, and from small to medium level.

3. Boosts Employment

As manufacturing units grow, they hire more workers. This creates local employment and supports rural development.

4. Promotes Innovation

Udyam provides support for product innovation, technology adoption, and research. This helps Indian manufacturers improve their quality and compete globally.

Role of Udyam During the Pandemic

The COVID-19 pandemic affected businesses all over the world. In India, small manufacturers suffered due to lockdowns, low demand, and supply chain problems. During this time, the Udyam portal helped businesses in the following ways:

• Allowed quick registration for new businesses
  

• Enabled access to the Emergency Credit Line Guarantee Scheme (ECLGS)
  

• Helped in getting relief packages and loan moratoriums
  

• Offered support through various government schemes for recovery
  

This showed how Udyam could be used to support manufacturers during tough times.

Government Initiatives Linked with Udyam

Several other schemes and platforms are linked with Udyam to make business easier for manufacturers. Some important ones include:

1. GeM (Government e-Marketplace): Manufacturers can register on GeM and sell their products directly to government departments. Udyam registration makes this process simpler.

2. TReDS: TReDS helps manufacturers get early payment for invoices. This improves cash flow and reduces the problem of delayed payments.

3. MSME Samadhaan: If a manufacturer doesn’t receive payment on time, they can file a complaint on the MSME Samadhaan portal.

4. ZED Certification: The Zero Defect Zero Effect (ZED) scheme encourages manufacturers to improve product quality and reduce environmental impact. Udyam-registered businesses get help in getting this certification.

Common Challenges and How to Overcome Them

While Udyam registration has many benefits, some manufacturers face challenges like:

• Lack of awareness
  
  

• Difficulty in using online portals
  
  

• Language barriers
  
  

• Technical errors in the registration form

To overcome these challenges:

• The government and local bodies should conduct awareness programs
  
  

• More help centers should be opened for small manufacturers
  
  

• Portals should support regional languages
  
  

• The process should be mobile-friendly
  
  

These steps can help more manufacturers register and enjoy the benefits.

Future of Udyam and Ease of Doing Business

The Udyam registration system is expected to become even more useful in the future. Here are some possible improvements:

• More automatic linking with GST and Income Tax systems
  
  

• Better integration with export portals and international markets
  
  

• AI-based dashboards for monitoring growth and compliance
  
  

• Dedicated mobile apps for manufacturers
  
  

• Regular updates and user-friendly improvements on the portal
  
  

These improvements can make business even easier for Indian manufacturers and help India become a global manufacturing hub.

Note: Now, you can easily Print Udyam Certificate through the Udyam portal

Conclusion

Udyam registration is a major step toward making business simple and supportive for Indian manufacturers. It reduces paperwork, provides financial help, ensures timely payments, and opens up government markets. With this system, manufacturers can focus more on production and growth instead of struggling with formalities.

The Ease of Doing Business is improving in India, and Udyam is playing a strong role in that journey. Small manufacturers, who are the backbone of the economy, now have the tools and recognition they need to succeed.

If you are a manufacturer and have not yet registered under Udyam, it is the right time to do it. The process is simple, free, and full of advantages. With Udyam, you can take your business to new heights and become a proud part of India's growth story.