Street vendors are one of the most significant sections of the economic ladder. They contribute significantly to our economy by selling their products on the street. The street vendors are involved in selling various products and services on their own or other public space. The government has taken several steps for the betterment of street vendors. Now, the government has decided to start a separate category for street vendors under Udyam Registration.
MSME has decided to include Street Vendors trade as MSMEs for the limited purpose of Priority Sector Lending and they would be allowed to be registered on Udyam Registration Portal for the following NIC Codes and activities mentioned against them:
|NIC Code||Retail and Wholesale Trade|
|45||Wholesale and retail trade and repair of motor vehicles and motorcycles|
|46||Wholesale trade except for motor vehicles and motorcycles|
|47||Retail trade except for motor vehicles and motorcycles|
Benefits That Street Vendors Can Avail With Udyam Registration
The revised definition of MSME will help Street Vendors Trade by giving better finance options for businesses that want to get structured. It will give retail MSMEs the support they need to survive, revive and thrive.
The Covid pandemic-affected Street Vendors will now be able to restore their businesses by obtaining finances from banks, which was earlier denied to them. Besides tax concessions, Udyam registered entities also have access to cheaper credit and ease in getting various business-related approvals.
Street Vendors are now eligible to get loans from banks and financial institutions for expansion purposes.
Street Vendors will now be eligible for several government schemes.
Street vendors are one of the most significant sections of the economic ladder. They contribute significantly to our economy by selling their products on the street. The government has taken several steps for the betterment of street vendors like Udyam Registration, but still there is a huge gap between what needs to be done and what is actually being done by them.