EoDB for manufacturing MSMEs higher than service sector, says study

New Delhi, May 26 (KNN) The Ease of Doing Business (EoDB) for MSMEs in the manufacturing sector was found higher than the service sector, as per a recent study.

And in terms of overall MSMEs, the sector stands at 64 points out of 100.

The research was conducted by the Research Bureau of the PHD Chamber of Commerce and Industry (PHDCCI) in collaboration with Department of Commerce, Delhi School of Economics, University of Delhi.

The title of the study is ‘Ease of Doing Business for MSMEs in India: Percolating EODB Reforms at Factory Level’ and was released by Union Jal Shakti Minister Gajendra Singh Shekhawat.

Random sample survey of MSMEs across pan India from manufacturing and services sectors, through a structured questionnaire on 25 parameters of EODB was carried.

The survey was conducted for the period 2021 and responses of 5,254 MSMEs were received. 

“The survey results revealed that the overall MSME EODB stands at 64, of which EODB for manufacturing sector MSMEs stands at 67 and EODB for service sector MSMEs stands at 61,” the report said.

Adoption of digitisation, availability of information on business procedures and compliances, processes and procedures for starting a business, adequate power supply availability, and process of tax registration and tax compliance are the top five scoring parameters for ease of doing business of MSMEs. 

On the other hand, the least scoring parameters were government support for marketing, reduction in time taken to obtain credit and reduction in the overall costs of doing business.

The five top scoring parameters for ease of doing business of manufacturing sector MSMEs include adoption of digitisation, availability of information on business procedures & compliances, adequate power supply availability, process of tax registration and tax compliance and availability of Infrastructure (internet, telecom and other utility), the report said. 

“The least scoring parameters were government support for marketing, reduction in time taken to obtain credit, and reduction in cost of power,” it added.  (KNN Bureau)