**Executive Summary**
This document outlines the Government's response to questions regarding the new analytics system of the Udyam Portal for Micro, Small, and Medium Enterprises (MSMEs). The response details how the system is utilized to identify sectors needing targeted policy support, the integration with GST and TReDS, guidelines for re-classification and verification of enterprises, and measures taken for data security. The revised investment and turnover criteria for enterprise classification become effective on April 1, 2025.
**Key Points / Main Content**
* **Udyam Portal Analytics System Usage:**
* The Udyam Portal data enables real-time monitoring of MSME registrations across sectors and regions.
* This facilitates the classification of enterprises by category (Micro, Small, Medium) and sector (Manufacturing, Services, Trading) based on NIC codes.
* The database allows the government to focus interventions and formulate sector-specific policies to benefit MSMEs.
* **Integration with GST and TReDS:**
* The Udyam Registration Portal integrates with the Income Tax database of Central Board of Direct Taxes and TReDS platforms.
* This integration streamlines enterprise verification and enables smoother onboarding of MSMEs on TReDS, improving access to credit through invoice discounting.
* **Re-classification and Verification Guidelines:**
* Classification, re-classification, and verification of enterprises on the Udyam Portal, including those exceeding limits, utilize GST and PAN-linked data.
* **Data Security:**
* Udyam Registration can only be done through the online portal www.udyamregistration.gov.in, ensuring data security.
* **Revised MSME Criteria:**
* Micro Enterprise: Investment up to ₹2.5 crore and turnover up to ₹10 crore.
* Small Enterprise: Investment up to ₹25 crore and turnover up to ₹50 crore.
* Medium Enterprise: Investment up to ₹125 crore and turnover up to ₹500 crore.
**Impact Analysis**
**MSMEs**
* **Impact:** Benefit from targeted policies and schemes based on sector-specific data, enhanced access to credit through streamlined integration with TReDS, and clarity on classification criteria.
* **Action Required:** Ensure accurate registration and compliance with the revised MSME criteria.
**Government (Ministry of MSME)**
* **Impact:** Enhanced ability to monitor and analyze the MSME sector, enabling the development of more effective policies and interventions.
* **Action Required:** Continue to utilize the Udyam Portal data for policy formulation and implementation, and ensure the security and integrity of the platform.
Key Entities Referenced
Udyam Portal: Online platform for MSME registration and data analytics, used by the government to identify sectors and sub-sectors requiring targeted policy support.
Micro, Small and Medium Enterprises (MSME): The subject of the policy regarding definition, classification, registration, and support.
Udyam Registration Portal (URP): The formal registration portal for enterprises having PAN.
Trade Receivables Discounting System (TReDS): Platform for MSMEs to access credit; integration with Udyam Portal simplifies onboarding and verification.
Ministry of Micro, Small and Medium Enterprises: The central ministry responsible for policies related to MSMEs and the Udyam Portal.
GOVERNMENT OF INDIA
MINISTRY OF MICRO, SMALL AND MEDIUM ENTERPRISES
LOK SABHA
UNSTARRED QUESTION NO. 1916
TO BE ANSWERED ON 11.12.2025
NEW ANALYTICS SYSTEM OF UDYAM PORTAL
1916. SHRI SATISH KUMAR GAUTAM:
MS KANGNA RANAUT:
DR. MANNA LAL RAWAT:
SHRI RADHESHYAM RATHIYA:
SHRI DAMODAR AGRAWAL:
SMT. SHOBHANABEN MAHENDRASINH BARAIYA:
Will the Minister of MICRO, SMALL AND MEDIUM ENTERPRISES be pleased to state:
(a) the manner in which the Government is utilising the new analytics system of the Udyam
Portal to identify sectors and sub-sectors requiring targeted policy support based on industry-
specific data;
(b) whether the Government proposes to integrate the Udyam Portal with GST and Trade
Receivables Discounting System (TReDS) platforms to enable single sign-on access and simplify
MSME compliance and access to credit and if so, the details thereof;
(c) the guidelines finalised for mandatory re-classification and verification of enterprises
exceeding the prescribed investment/turnover thresholds under MSME classification and the manner
in which this would help ensure continued benefits for micro enterprises; and
(d) the measures taken by the Government to ensure data security and prevent unauthorised
registrations on the mobile Udyam Registration application?
ANSWER
MINISTER OF STATE FOR MICRO, SMALL AND MEDIUM ENTERPRISES
(SUSHRI SHOBHA KARANDLAJE)
(a): A revised definition based on the twin criteria of investment and turnover, was adopted to
define Micro, Small and Medium Enterprises (MSME) in 2020. Accordingly, for registration of
enterprise having PAN, Udyam Registration Portal (URP) was launched on 01.07.2020. To
formalise Informal Micro Enterprises (IMEs) i.e. Enterprises, which are exempt from filing GST,
Udyam Assist Platform (UAP), was launched on 11.01.2023.On this basis of the data received on the
Udyam Portal, the data enables Government to monitor MSME registrations on real time across
various sectors and geographical regions. This helps to classify enterprises based on their category
(Micro, Small and Medium) and sector of activity, namely Manufacturing, Services, and Trading, as
per NIC codes. The database of Udyam Registration facilitates Government for focused
interventions to formulate sector specific policies and schemes for the benefit of MSMEs in the
country to strengthening the MSME ecosystem. Government has further re-classified the criteria for
Micro Enterprise investment up to ₹2.5 crore and turnover up to ₹10 crore, for Small Enterprise
investment up to ₹25 crore and turnover up to ₹50 crore; and for Medium Enterprise investment up
to ₹125 crore and turnover up to ₹500 crore w.e.f. 01.04.2025.: 2 :
(b): The Udyam Registration Portal has integration with the Income Tax database of Central
Board of Direct Taxes and the Trade Receivables Discounting System (TReDS) platforms to
facilitate ease of functionality. This integration streamlines verification of an enterprise and enables
smoother onboarding of MSMEs on TReDS, thereby improving their access to credit through
invoice discounting.
(c): The classification, re-classification, and verification of enterprises on Udyam Portal,
including those exceeding the prescribed investment or turnover limits takes place using GST and
PAN-linked data.
(d): The Udyam Registration can be done only through online Portal
www.udyamregistration.gov.in.
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