Streamlining MSME Growth: Reducing Regulatory Burdens for Better Business

Excessive regulations hinder MSME competitiveness, says CAG K Sanjay Murthy. To boost growth, multi-level government reforms are needed. Focus is on data-driven audits and innovative practices. Recent collaborations show promise, but sustained deregulation and digitalisation are essential for strengthening MSMEs and ensuring national development.

Excessive regulatory burdens are undermining enterprise competitiveness, according to CAG K Sanjay Murthy, who later spoke at an 'Audit Conclave' on Pan-India Horizontal Audit on Ease of Doing Business for MSMEs, hosted by the Comptroller and Auditor General of India.

Murthy remarked that MSMEs are pivotal for economic and inclusive growth, supporting entrepreneurship and livelihoods in both urban and rural areas. He suggested that reforms should span various government levels, from local bodies to the national level, and be based on a four-pronged strategy of Simplification, Digitalisation, Decriminalisation, and Elimination of redundant laws.

Collaboration between government and industry sectors recently led to a reduction in compliance burdens, noted S C L Das, Secretary of the Ministry of MSME. This collaboration is essential for reforming legislation and policies. The Pan-India audit aims to focus on data-driven decision-making to bolster MSME support, with the exercise covering a period from 2021 to 2026.

(With inputs from agencies.)