Economic Survey 2023-24 Advocates For Simplifying Regulations For MSMEs

New Delhi, Jul 22 (KNN) The Economic Survey 2023-24, tabled by Union Minister for Finance in the Parliament today calls for unshackling the Micro, Small and Medium Enterprise (MSME) sector.

 Noting that the MSME sector occupies the centerstage in India’s economic story, the Survey adds the sector continues to face extensive regulation and compliance requirements and faces significant bottlenecks with access to affordable and timely funding being one of the core concerns.

It says Licensing, Inspection, and Compliance requirements that MSMEs have to deal with, imposed particularly by sub-national governments, hold them back from growing to their potential and being job creators of substance.

Calling for deregulation as a vital policy contribution, the Survey says revival or creation of institutional mechanisms for dialogue with states on required policy changes is essential. It adds that much of the action has to happen at the level of sub-national (state and local) governments.

Reacting to the assessment Anil Bhardwaj Secretary General, Federation of Indian Micro and Small & Medium Enterprises (FISME) has said, “The Economic Survey’s assertion for the greater need for pushing ease of doing business at ground reinforces the findings of the study FISME has conducted at District level. Reforms in urban development management and regulatory compliances can significantly improve  business environment and unleash economic growth”.

“Our observation is that business-friendly environment catalyses movement of low earning farm labour to skill based better paying jobs in businesses and also increases participation of women in labour force. The cumulative impact of these transformations is dramatic on local economy and ultimately on the economy of the state. What is interesting is as that most of the reforms are to be carried out at the state level”, he added.

The Survey mentions that  MSMEs are the backbone of the Indian economy, contributing approximately 30 per cent of the country’s GDP, 45 per cent of manufacturing output, and providing employment to 11 crore of India’s population.

(KNN Bureau)