In a significant step taken ahead toward the goal of encouraging Micro, Small, and Medium Enterprises, Udyam registration crossed the 20-lakh milestone in the country. Gujarat climbed to the fifth position in the country, thus marking one of the biggest milestones regarding its robust industrial base and proactive initiatives taken by the government for the propagation of MSMEs.
The actual number of MSMEs in Gujarat could thus be higher than the registered ones, experts believe. Of the functional MSMEs, many do not get registered for a host of reasons, one of which is the fear of getting under the GST radar. Prashant Patel, the immediate past president of the Federation of Indian MSMEs, pointed out that if all functional units were taken into account, Gujarat could well be the second in the country.
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Gujarat's MSME Landscape
Gujarat has always been the land of industries, be it MSMEs. Out of 20 lakh registrations in the country, there are 19.10 lakh units of micro, 81,841 units of small, and 8,460 units of medium enterprises in Gujarat. Specialization in the fields of chemicals, textiles, engineering, pharmaceuticals, and automobile industries, as well as in gems and jewelry, is also in the state. These industries are the backbone of the Gujarat economy, employing almost 1.10 crore people
District-wise Performance
| DISTRICT | MICRO | SMALL | MEDIUM | TOTAL |
| Ahmedabad | 4,00,003 | 18,790 | 2,233 | 4,21,026 |
| Surat | 3,80,531 | 19,301 | 1,598 | 4,01,430 |
| Rajkot | 1,86,956 | 7,522 | 838 | 1,95,316 |
| Vadodara | 1,49,197 | 4,906 | 527 | 1,54,630 |
| Kutch | 73,217 | 3,771 | 420 | 77,408 |
Government Initiatives
The state government has implemented several initiatives for the growth of MSMEs in the state. These relate to financial assistance, infrastructure development, and skill development programs. The effort of the government has been very instrumental in encouraging new registrations and making an enabling environment conducive to business growth.
National Scenario
At the national level, Maharashtra, Tamil Nadu, Uttar Pradesh, and Rajasthan are ahead of Gujarat in terms of total Udyam registrations. Though, in the number of medium units, Gujarat stands at the second position after Maharashtra. This clearly states that the State has a strong presence in the medium enterprise segment of the overall industrial ecosystem.
Future Prospects
The future thus looks promising for the MSME sector in Gujarat. With continued government support and a strong base of industries, the state is very well placed to attract more and more investments and drive growth in its economy. The present emphasis on sectors such as auto and auto-ancillary, renewable energy, agro, and food processing is likely to open up newer opportunities, further boosting the MSME landscape.
Crossing the 20 lakh mark of Udyam registrations testifies to the fact that this sector in India responded resiliently and has huge growth potential. The fifth position of Gujarat in the country once again underlines its importance as an industrial powerhouse. If this continues, coupled with an encouraging attitude of the government and business-friendly environment, the state MSME sector is bound to grow and flourish continuously.
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