Unlocking MSME Growth: Overcoming India's Regulatory Challenges

The Assocham report identifies critical regulatory and infrastructural barriers that hinder MSMEs in India. It advocates for streamlined state-driven reforms, improved compliance systems, and infrastructure upgrades. The report recommends digitized single window systems and a simplified MSME compliance form to rationalize processes and facilitate business operations.

Despite their potential to significantly contribute to India's economy, micro, small, and medium enterprises (MSMEs) face numerous hurdles, according to a new report by the industry body Assocham. Released on Thursday, the report outlines persistent regulatory and infrastructural barriers that stifle MSME growth in various Indian states.

The report, "Ease of Doing Business in the Indian States," calls for accelerated reforms to empower MSMEs. Key issues include complex and overlapping approval processes, GST-related complications, and infrastructure bottlenecks. The report emphasizes the necessity of switching from fragmented to digitized single window systems, especially in states like West Bengal, Odisha, and Andhra Pradesh.

To further ease the burden on small businesses, the report suggests a significant overhaul of the compliance architecture. Recommendations include a consolidated annual MSME compliance form and moving certain filings to a biennial or triennial cycle. The report underscores the need for a predictable, transparent, and efficient business environment to propel economic growth.

(With inputs from agencies.)