The Link Between MSME Udyam Registration and Export Benefits

 The Link Between MSME Udyam Registration and Export Benefits

Micro, Small, and Medium Enterprises (MSMEs) play a crucial role in the economic development of a country. In India, MSMEs contribute significantly to the GDP and employment generation. To support and promote these enterprises, the Indian government has introduced several schemes and benefits, one of which is the MSME Udyam Registration. This article will explore the link between MSME Udyam Registration and the export benefits available to these enterprises.

What is MSME Udyam Registration?

Definition and Purpose

MSME Udyam Registration is a government registration process for micro, small, and medium enterprises in India. This registration provides a unique identification number to the business, allowing it to avail various benefits and schemes offered by the government.

Eligibility Criteria

To be eligible for MSME Udyam Registration, a business must fall under the defined criteria for micro, small, or medium enterprises based on investment and turnover.

  • Micro Enterprises: Investment up to ₹1 crore and turnover up to ₹5 crore.
  • Small Enterprises: Investment up to ₹10 crore and turnover up to ₹50 crore.
  • Medium Enterprises: Investment up to ₹50 crore and turnover up to ₹250 crore.

Benefits of MSME Udyam Registration

Access to Government Schemes

One of the primary benefits of MSME Udyam Registration is access to various government schemes designed to support the growth and development of small businesses. These schemes include financial assistance, subsidies, and incentives.

Easier Loan Approvals

Registered MSMEs can avail collateral-free loans under schemes like the Credit Guarantee Fund Trust for Micro and Small Enterprises (CGTMSE). Banks and financial institutions also offer lower interest rates and priority lending to registered MSMEs.

Subsidies and Concessions

MSMEs with Udyam Registration are eligible for subsidies on patent registration, trademark registration, and industrial promotion. They also receive concessions on electricity bills and are exempt from certain direct taxes.

The Link Between MSME Udyam Registration and Export Benefits

Export Promotion Capital Goods Scheme (EPCG)

The Export Promotion Capital Goods (EPCG) scheme allows MSMEs to import capital goods at zero customs duty for producing quality goods and services to boost exports. Registered MSMEs can benefit from this scheme to reduce production costs and enhance their competitiveness in the global market.

Market Development Assistance (MDA) Scheme

The Market Development Assistance (MDA) scheme provides financial support to MSMEs for participation in international trade fairs, exhibitions, and buyer-seller meets. This helps businesses showcase their products on a global platform and explore new markets.

Interest Equalization Scheme

Under the Interest Equalization Scheme, MSME exporters can avail a subsidy on interest rates for pre-shipment and post-shipment credit. This reduces the cost of borrowing and improves cash flow, enabling businesses to compete effectively in international markets.

Steps to Register for MSME Udyam Registration

Step 1: Visit the Udyam Registration Portal

To begin the registration process, visit the official Udyam Registration Certificate portal (

Step 2: Fill in the Details

Provide the required details such as Aadhaar number, business name, type of organization, and other relevant information. Ensure all information is accurate and up-to-date.

Step 3: Submit the Application

After filling in the details, submit the application online. No fees are required for the registration process.

Step 4: Receive the Udyam Registration Certificate

Once the application is processed, you will receive the Udyam Registration Certificate with a unique identification number for your business.

Importance of Export Benefits for MSMEs

Enhancing Global Competitiveness

Export benefits help MSMEs reduce their production costs, improve product quality, and compete effectively in international markets. This not only boosts their sales and revenue but also enhances their reputation globally.

Expanding Market Reach

With export benefits, MSMEs can explore new markets and expand their customer base beyond domestic boundaries. This diversification helps reduce dependency on the local market and mitigates risks associated with market fluctuations.

Encouraging Innovation and Growth

Access to international markets encourages MSMEs to innovate and improve their products and services. The exposure to global competition drives businesses to adopt better technologies and practices, leading to overall growth and development.

Also read:- Document required for udyam registration

Challenges Faced by MSMEs in Exporting

Lack of Awareness

Many MSMEs are unaware of the export benefits available to them. This lack of awareness prevents them from leveraging these benefits to grow their business.

Limited Resources

MSMEs often have limited financial and human resources, making it challenging to navigate the complexities of international trade and comply with export regulations.

Access to Finance

Despite the availability of schemes, many MSMEs still face difficulties in accessing finance for export activities due to stringent lending criteria and lack of collateral.

Overcoming Challenges

Awareness Programs

The government and industry associations should conduct awareness programs to educate MSMEs about the benefits of Udyam Registration and the export incentives available to them.

Simplified Procedures

Simplifying the procedures for accessing export benefits and providing one-stop solutions can help MSMEs overcome the barriers to exporting.

Financial Support

Enhancing the availability of financial support and easing the lending criteria for MSMEs can facilitate their participation in international trade.


MSME Udyam Registration opens up a world of opportunities for small businesses in India, especially in the realm of exports. The various export benefits linked to Udyam Registration, such as the EPCG scheme, MDA scheme, and Interest Equalization Scheme, provide the much-needed support for MSMEs to compete globally. However, to fully leverage these benefits, it is essential to address the challenges faced by MSMEs and ensure they have the necessary resources and knowledge to succeed in international markets. By doing so, MSMEs can not only contribute to the country’s economic growth but also establish themselves as significant players in the global market.


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