Udyam Registration: A Gateway to Global Markets for Indian MSMEs
Udyam Registration: A Gateway to Global Markets for Indian MSMEs
Blog Article
India's Micro, Small, and Medium Enterprises (MSMEs) are the lifeline of its economy, contributing significantly to employment generation, exports, and industrial output. While the sector has traditionally catered to domestic markets, globalization and digital access have opened up new avenues. One tool that’s helping small businesses take their first step toward international trade is Udyam Registration.
In this article, we explore how Udyam Registration is not just a compliance formality but a gateway for MSMEs to connect with global markets, enabling them to export, build international trust, and compete on a global platform.
Understanding Udyam Registration in Simple Terms
Udyam Registration is a government-recognized online system that provides a unique identity to businesses classified under Micro, Small, or Medium categories. It replaced the old system of MSME registration in 2020, with a simplified and paperless process.
Key Highlights:
- No documents required to upload
- Applicable to manufacturers, traders, and service providers
Once registered, the business receives an e-certificate with a unique Udyam number, which can be used to access various benefits and schemes.
MSMEs and the Global Opportunity
India’s MSME sector contributes to around 45% of total exports, but this is mostly from medium-sized companies. A vast number of micro and small businesses are yet to explore global markets due to:
- Lack of awareness
- No formal business identity
- Absence of export certifications
- Fear of complex international trade rules
With Udyam Registration, the first barrier—business formalization—is removed. This simple step enables small businesses to start their global journey.
How Udyam Registration Helps in Going Global
Let’s break it down into simple benefits for MSMEs looking to expand internationally:
Eligibility for IEC (Import Export Code)
One cannot export without having an Import Export Code (IEC). Most registration consultants require businesses to have a Udyam Certificate to process IEC applications. Udyam Registration gives credibility and makes the IEC process faster.
Builds Trust with International Clients
Having Udyam Registration shows that the business is officially recognized by the Government of India. This builds trust and legitimacy when dealing with foreign buyers or partners.
Access to Export Promotion Schemes
Only Udyam-registered MSMEs can apply for schemes like:
- MEIS/SEIS: Merchandise Exports from India Scheme
- TIES: Trade Infrastructure for Export Scheme
- Export Promotion Capital Goods (EPCG)
These schemes offer financial assistance, duty exemptions, and training for exporters.
Easier Access to Export Financing
Udyam Registration makes it easier to approach banks for:
- Pre-shipment and post-shipment credit
- Packing credit
- Foreign currency loans
Banks give preference to registered MSMEs for export financing under lower interest rates and collateral-free loans.
Participation in International Trade Fairs
The Ministry of MSME and Export Promotion Councils organize trade fairs and exhibitions in foreign countries. Udyam-registered MSMEs can participate at subsidized costs and showcase their products internationally.
Access to eCommerce Export Platforms
Global platforms like Amazon Global Selling, Alibaba, and Etsy require proper business registration. With Udyam Registration, MSMEs can list themselves as verified sellers, expanding their reach to international customers.
Steps to Register on Udyam Portal for International Ambitions
Let’s look at how any small business can begin this journey:
Visit the Udyam Portal: Open the official Udyam Registration portal on your browser.
Fill in Business Details: Enter important details like your business name, type, address, and bank account information. Ensure accuracy in the data.
Review and Submit the Form: Review the information to confirm it's correct. After reviewing, apply.
Pay the Registration Fee: Select your payment method and complete the payment for registration.
Receive OTP on Mobile: An OTP will be sent to the mobile number linked with your Aadhaar
card.
Enter OTP: Input the OTP sent to your phone to verify your identity.
Complete Registration: Once your details are confirmed, your registration will be completed.
Receive Your Udyam Certificate: Once verified, your Udyam Registration certificate will be generated and sent directly to your email.
Important Government Schemes for Export-Ready MSMEs
Here are a few schemes that Udyam-registered businesses can benefit from:
- International Cooperation Scheme (ICS): Financial assistance for participation in trade fairs abroad.
- Districts as Export Hubs Initiative: MSMEs are mapped district-wise and supported with export promotion initiatives.
- Market Development Assistance (MDA): Helps small exporters with branding and promotion in overseas markets.
Digital India + Udyam = Global Access
Thanks to Digital India, many services that once required in-person visits are now available online. Udyam Registration is a classic example. When combined with:
- Digital payment systems,
- Online trade directories,
- Virtual exhibitions, and
- eLogistics platforms,
MSMEs can now operate and sell globally right from small towns and villages.
Note: Now easily update udyam certificate through the udyam portal
Conclusion
Udyam Registration is not just a government formality—it’s a stepping stone to a global future for India’s small businesses. Whether you run a handicraft unit in Rajasthan, a food processing business in Bihar, or a textile workshop in Tamil Nadu, Udyam can be your launchpad to the world.
So, if you're a small business owner with a dream to expand, don’t wait—get your Udyam Certificate today. It could be your copyright to international trade, foreign customers, and global growth. Report this page