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GOVERNMENT OF INDIA
MINISTRY OF MICRO, SMALL AND MEDIUM ENTERPRISES
LOK SABHA
UNSTARRED QUESTION NO. 1022
TO BE ANSWERED ON: 05.02.2026
REGULATION ON MSMEs
1022. SHRI KESINENI SIVANATH:
Will the Minister of MICRO, SMALL AND MEDIUM ENTERPRISES be pleased to state:
(a) whether the Government has conducted any studies or assessments to evaluate compliance
costs faced by Micro, Small and Medium Enterprises (MSMEs) due to regulatory requirements,
taxation, quality standards and reporting obligations;
(b) if so, the details regarding such studies including key findings and sector-wise impact
thereof;
(c) the details regarding the steps taken by the Government to reduce compliance burden on
MSMEs, including digitisation measures and regulatory simplification initiatives;
(d) the details regarding the incubation and mentoring support provided to MSMEs through
Government-led incubators, including the number of incubators supported under various Central
schemes, State-wise; and
(e) the details regarding the number of IT-based MSMEs registered in the country, State-wise
and the number of private and Government-led incubators supporting such enterprises, along with
the financial assistance provided to them?
ANSWER
MINISTER OF STATE FOR MICRO, SMALL AND MEDIUM ENTERPRISES
(SUSHRI SHOBHA KARANDLAJE)
(a) to (c): Government of India has taken a number of steps to reduce compliance burden on
MSMEs, including digitisation measures and regulatory simplification initiatives. Some of them are
given below:
i. Udyam Registration Portal was launched on 01.07.2020 to facilitate ease of registration for
MSMEs. The process of registration on Udyam is fully online, paperless and based on self-
declaration. The Ministry in association with Small Industries Development Bank of India
(SIDBI) launched Udyam Assist Platform on 11.01.2023, for bringing Informal Micro
Enterprises (IMEs) into the formal ambit. This has helped the registered IMEs to avail the
benefits of Priority Sector Lending.
ii. This Ministry has reduced the Compliance Burden on business as well as on citizens related
to Public Procurement Policy for MSEs Order, 2012 vide Notification No. S.O. 3237(E)
dated 11th August, 2021 by merging 04 compliances into one, reducing the number of
compliances from 07 to 04. The Central Ministries/ Departments/ Central Public Sector
Enterprises (CPSEs) require to take necessary steps to develop appropriate vendors by
organizing Vendor Development Programmes or Buyer-Seller Meets focused on developing
Micro and Small Enterprises (MSEs) for procurement through GeM Portal.: 2 :
iii. As informed by DPIIT, National Single Window System has been developed, which
integrates the existing clearance/regulatory systems of various Ministries/ Departments of
Government of India and State Governments.
iv. As informed by Central Board of Indirect Taxes & Customs, Department of Revenue, the
Government has undertaken various initiatives / policy measures to encourage MSMEs in the
country. No GST Registration is required for supply of goods upto Rs. 40 lakh and supply of
services upto Rs. 20 lakh, Composition scheme for Goods/Restaurant Services and Service
Providers, Quarterly Returns Monthly Payment scheme, etc.
(d) & (e): The Ministry of MSME implements MSME Innovative scheme under MSME
Champions scheme which is an amalgamation of components of Incubation, Design, and Intellectual
Property Rights (IPR). The incubation component of the Scheme aims to promote and support
untapped creativity and the adoption of latest technologies in MSME that seek validation of their
ideas at 'proof-of-concept level. The details regarding the incubation and mentoring support provided
to MSMEs through Government-led Incubators, including the number of incubators supported under
various Central Schemes, State-wise are given at Annexure-I.
Further, various Ministries and Departments are also promoting the development of
incubation centers across the country through initiatives like Startup India Seed Fund Scheme
(SISFS), Technology Incubation and Development of Entrepreneurs (TIDE 2.0), Domain Specific
Centres of Excellence (CoEs), Rashtriya Krishi Vikas Yojana (RKVY) Agribusiness Incubators (R-
ABIS), NIDHI Technology Business Incubator (TBI), Atal Incubation Centres (AIC), Software
Technology Parks of India (STPI), Livelihood Business Incubators (LBIs) under ASPIRE, and
Biotechnology Industry Research Assistance Council (BIRAC)-backed incubators amongst others.
The state-wise number MSMEs registered in the country as on 31.01.2026 including IT-
based MSMEs are given at Annexure -II.
*****Annexure -I
The State/UT wise number of Host Institutes (HIs) Approved, State-wise number of His Supported,
State-wise number of Ideas approved under the scheme since launch as on date are tabulated below:
S. State wise No. of State wise No. of Number of Ideas
State/UT
No. HIs Approved HIs Supported Approved
1 Andhra Pradesh 74 36 129
2 Arunachal Pradesh 2 1 3
3 Assam 6 3 6
4 Bihar 11 6 14
5 Chandigarh 1 1 7
6 Chhattisgarh 16 6 13
7 Delhi 10 4 16
8 Goa 1 1 3
9 Gujarat 33 15 45
10 Haryana 12 6 13
11 Himachal Pradesh 5 2 2
Jammu And
12 3 2 4
Kashmir
13 Jharkhand 7 4 11
14 Karnataka 60 32 98
15 Kerala 31 12 31
16 Madhya Pradesh 45 11 22
17 Maharashtra 69 37 87
18 Meghalaya 3 2 4
19 Odisha 24 13 47
20 Puducherry 2 2 3
21 Punjab 14 4 15
22 Rajasthan 31 14 39
23 Sikkim 1 0 0
24 Tamil Nadu 179 113 508
25 Telangana 68 43 162
26 Tripura 2 1 1
27 Uttar Pradesh 32 19 67
28 Uttarakhand 10 6 11
29 West Bengal 21 14 57
Grand Total 773 410 1418Annexure-II
State Wise Total Enterprises Detail Under UDYAM & UAP Since 01/07/2020 to 31/01/2026
Sl. State Micro Small Medium Total Women General SC ST OBC Manufactu Service Trading Employme
No. ring nt
1 Andaman 21,645 156 4 21,805 6,313 16,325 332 262 4,882 4,023 10,101 7,681 369,410
and Nicobar
Islands
2 Andhra 3,800,597 16,986 982 3,818,565 2,081,614 1,791,265 442,295 80,726 1,503,898 768,411 1,708,791 1,341,363 19,605,054
Pradesh
3 Arunachal 46,678 379 19 47,076 21,177 9,050 838 35,175 2,010 13,977 10,510 22,589 272,578
Pradesh
4 Assam 1,450,337 6,695 519 1,457,551 523,300 877,486 126,280 134,998 318,668 417,995 374,559 664,997 9,904,891
5 Bihar 4,126,666 11,974 583 4,139,223 1,915,215 1,637,648 370,934 79,473 2,050,787 740,409 1,234,696 2,164,118 16,743,707
6 Chandigarh 77,515 1,263 132 78,910 20,297 64,268 8,676 441 5,474 11,226 35,083 32,601 430,835
7 Chhattisgarh 1,304,567 8,344 720 1,313,631 560,675 525,046 133,029 127,467 527,985 234,779 423,832 655,020 4,378,337
8 Delhi 1,387,179 28,418 2,751 1,418,348 377,949 1,154,839 102,130 8,009 152,315 314,475 491,168 612,705 8,870,375
9 Goa 126,553 1,121 77 127,751 49,345 102,199 2,633 5,257 17,631 26,697 63,404 37,650 485,494
10 Gujarat 4,207,089 54,125 4,225 4,265,439 1,152,020 2,753,039 240,547 198,430 1,072,447 1,148,434 1,346,814 1,770,191 16,679,892
11 Haryana 1,929,969 23,022 1,763 1,954,754 542,922 1,205,443 284,772 11,355 452,711 393,185 713,169 848,400 9,397,933
12 Himachal 332,203 2,572 209 334,984 76,972 229,526 62,336 13,991 29,065 63,605 121,332 150,047 1,431,323
Pradesh
13 Jammu and 815,822 3,220 215 819,257 193,571 687,375 55,453 32,459 43,912 262,796 266,470 289,991 3,223,053
Kashmir
14 Jharkhand 1,510,829 5,904 356 1,517,089 701,770 704,364 111,225 96,052 605,256 229,532 487,429 800,128 6,120,597
15 Karnataka 4,840,286 31,489 2,293 4,874,068 2,128,934 2,465,353 519,710 202,756 1,685,221 1,059,260 2,337,359 1,477,449 26,321,956
16 Kerala 1,787,781 12,923 768 1,801,472 832,056 946,936 83,074 8,558 762,493 468,497 780,220 552,755 6,216,724
17 Ladakh 19,745 114 3 19,862 6,101 1,728 158 17,869 107 6,872 7,042 5,948 58,134
18 Lakshadweep 2,431 - - 2,431 579 55 7 2,288 81 763 856 812 7,384
19 Madhya 4,673,947 19,811 1,179 4,694,937 1,648,570 1,585,857 616,055 320,906 2,171,746 792,141 1,316,509 2,586,287 15,185,492
Pradesh
20 Maharashtra 9,815,933 74,542 6,893 9,897,368 3,522,246 6,468,329 912,939 262,144 2,251,906 2,042,677 3,809,646 4,045,045 33,660,613
21 Manipur 172,958 424 18 173,400 96,884 95,078 10,429 29,319 38,529 74,995 49,058 49,347 840,443
22 Meghalaya 70,438 412 32 70,882 35,577 14,787 1,263 53,662 1,165 15,718 24,008 31,156 384,421
23 Mizoram 50,709 212 9 50,930 29,896 3,193 283 47,342 109 10,589 11,527 28,814 267,777
24 Nagaland 72,503 176 16 72,695 37,422 13,387 1,013 56,762 1,524 19,413 19,010 34,272 307,02225 Odisha 2,341,171 10,022 607 2,351,800 1,029,723 1,251,751 292,248 131,091 676,488 493,593 752,267 1,105,940 11,432,359
26 Puducherry 105,645 666 59 106,370 51,815 53,399 6,249 288 46,406 20,642 50,698 35,030 427,534
27 Punjab 2,066,029 16,914 1,226 2,084,169 648,281 1,484,148 397,756 6,382 195,527 450,114 758,041 876,014 9,200,524
28 Rajasthan 4,289,863 27,205 1,659 4,318,727 1,062,751 1,486,996 541,137 254,768 2,035,095 1,183,324 1,363,209 1,772,194 18,736,751
29 Sikkim 35,079 164 13 35,256 18,233 13,294 2,402 9,425 10,134 8,591 12,835 13,830 142,336
30 Tamil Nadu 6,008,953 39,259 2,822 6,051,034 2,676,776 3,936,020 416,827 27,626 1,669,105 1,501,993 2,688,018 1,861,023 31,443,163
31 Telangana 3,702,077 20,182 1,783 3,724,042 2,042,557 1,419,135 455,631 238,823 1,609,835 511,023 1,670,621 1,542,398 20,436,757
32 The Dadra 33,931 916 135 34,982 8,856 25,588 1,063 2,977 5,339 7,785 13,532 13,665 292,764
and Nagar
Haveli and
Daman and
Diu
33 Tripura 308,198 701 47 308,946 198,289 135,858 65,163 46,529 61,388 54,847 95,606 158,493 1,254,789
34 Uttar Pradesh 8,267,274 40,249 2,648 8,310,171 2,558,494 3,441,294 1,068,831 70,016 3,728,843 1,634,621 2,264,645 4,410,905 36,414,370
35 Uttarakhand 624,035 4,040 273 628,348 190,885 399,806 70,557 10,846 147,019 108,037 211,653 308,658 2,742,055
36 West Bengal 5,159,958 24,088 1,778 5,185,824 2,982,691 4,172,710 627,625 59,158 325,758 861,910 1,750,882 2,573,032 21,560,709
Total:- 75,586,593 488,688 36,816 76,112,097 30,030,756 41,172,575 8,031,900 2,683,630 24,210,859 15,956,949 27,274,600 32,880,548 335,247,556
Report Dated:- 03/02/2026 12:20 PM