India's largest database of small businesses is set to feed directly into its official statistics system. The Ministry of Micro, Small and Medium Enterprises (MSME) and the Ministry of Statistics and Programme Implementation (MoSPI) have signed a Memorandum of Understanding to institutionalise data sharing for the Statistical Business Register (SBR), an official statement said on Tuesday.
Under the MoU, the MSME Ministry will share unit-wise Udyam Registration data with MoSPI through application programming interfaces (APIs). The two-way API mechanism will support the preparation of the National Statistical Business Register (NSBR).
The agreement was signed by Dr Rajneesh, Additional Secretary and Development Commissioner, Ministry of MSME, and Dr Dalip Singh, Additional Director General, MoSPI, in the presence of senior officials from both ministries.
What Is a Statistical Business Register?
According to the government, the SBR is "a central and regularly updated database of registered statistical units engaged in economic activities within a defined geographical territory." It records businesses, enterprises and establishments, along with their key characteristics and how they are linked to one another.
It serves as the foundation of economic statistics. It helps identify the target population for economic surveys, supports sample selection, enables business demography statistics such as how many businesses start or close, and keeps different data sources consistent.
In Simple Terms: What an API Changes
An API allows two computer systems to exchange data automatically. Instead of sending files or reports periodically, the Udyam system can share updated information with MoSPI directly. That makes it easier to keep the business register current as new enterprises register or existing ones change.
Why It Matters: The Scale of Udyam
The pact matters because of how much data Udyam holds. About 7.83 crore MSMEs have registered on the Udyam portal since 2020, reporting total employment of 34.50 crore as of February 28, 2026, according to information given in Parliament.
Udyam was launched in 2020 to replace the earlier Udyog Aadhaar Memorandum system. It is integrated with tax and GST networks, which means much of its business information is linked to other official records.
For statisticians, a list of this size is valuable. Economic surveys are only as good as the list of businesses they start from. If small enterprises are missing from that list, estimates of output, jobs and growth can be off. Linking Udyam directly to the national register can help close that gap.
What It Means for Businesses
For MSMEs themselves, the official statement does not mention any new requirement or filing. The data sharing is between the two ministries, and is meant for statistical purposes such as surveys and business counts.
The statement also did not detail the privacy or confidentiality safeguards that will apply to unit-wise data. As more government databases are linked, how such data is protected will be an important question to follow.
The Bottom Line
India's small businesses number in the crores, but measuring them accurately has long been a challenge. By linking the Udyam database to the national statistical register, the government is trying to build a more complete and up-to-date picture of the economy, starting from its smallest units.
With inputs from IANS.