About 20,000 MSMEs closed down in last three years: Modi govt admits in Parliament

Amid all the hullabaloo surrounding Rozgar Mela organised by the Modi government, it has come to the fore that about 20,000 MSMEs – considered the backbone of the Indian economy – have been closed down in the last three years.

In reply to a question asked by TMC MP Kalyan Banerjee, the Modi government told Parliament that 19,687 MSMEs registered on Udyam Portal were closed down between July 2020 and March 2023.

Minister of State for Micro, Small and Medium Enterprises, Bhanu Pratap Singhs said 13, 290 MSMEs were closed down in the last one year alone.

According to the government's own submission, 175 MSMEs were closed between July 2020 to March 20121. Between April 2021 and March 2022 6,222 MSMEs were closed, the Modi government told Parliament.

Reacting to it, Congress leader Jairam Ramesh said, “This estimate is also far less than the reality. “

“The MSME sector has not yet recovered from the impact of demonetisation and GST. Adequate steps have not been taken by the government. This is the reason why the sector which could have played an important role in providing employment to the youth, could have strengthened the country's economy, is in its worst phase in the so-called Amrit Kaal,” added Ramesh.

Congress president Mallikarjun Kharge also took a swipe at the Modi government for organizing Rozgar Mela.

He said event-jivi Modi is pretending as if he has provided 2 crore jobs eyer year. He pointed out that there are 30 lakh vacancies that should have been fulfilled by the government.