New Delhi, Jun 27 (KNN) In a significant move to bolster India's Micro, Small, and Medium Enterprises (MSME) sector, the government is set to announce sweeping reforms to the MSMED Act, 2006.

The proposed amendments aim to modernise the Act, addressing challenges posed by economic and technological advancements since its inception, as well as the impact of the Covid-19 pandemic.

The reforms are built on four key pillars: enhancing inclusivity, future-proofing the Act, improving coordination, and boosting ease of doing business in the MSME ecosystem.

Among the notable changes, the government plans to expand the definition of "suppliers" to include medium enterprises, allowing them access to Facilitation Councils for dispute resolution.

Another crucial reform involves incorporating the Udyam registration portal into the Act, which will streamline the formalisation process for MSMEs.

The amendments will also empower the government to respond swiftly to new legislations affecting the MSME sector. This flexibility is crucial in an ever-evolving business landscape and will enable policymakers to adapt quickly to changing circumstances.

Enhancing inter-ministerial and centre-state coordination is another key focus area. The reforms aim to foster a 'whole-of-government' approach to MSME development, ensuring that policies and initiatives are well-coordinated and effective across different levels of governance.

In a move to ease business operations, the government plans to decriminalise certain offenses, replacing criminal penalties with civil fines.

Addressing the perennial issue of delayed payments, the reforms will include medium enterprises in the resolution framework and introduce online dispute resolution mechanisms.

The event will feature sessions on reducing litigation costs for MSMEs, introducing new arbitration regulations, and showcasing AI-powered translation tools to facilitate multilingual arbitration proceedings.

These changes will be unveiled at the UDYAMI BHARAT event scheduled for Thursday at the Dr. Ambedkar International Centre in New Delhi.

Industry experts and stakeholders eagerly await the detailed announcements at the UDYAMI BHARAT event, which is poised to mark a new chapter in India's MSME policy landscape.

(KNN Bureau)