Assocham for upgrade of state, central policies to boost MSMEs

The Associated Chambers of Commerce and Industry of India (Assocham) has suggested reforms in national and state policies across sectors to enhance the ease of doing business for small enterprises and build a globally competitive micro, small and medium enterprises (MSME) ecosystem in the country.

The industry body, in a paper titled 'Ease of Doing Business in the Indian States: Deregulation for Business to Prosper', highlighted regulatory barriers in the form of building and construction laws, environment, labour and logistics regulations that restrict the growth of MSMEs.

"The paper decodes state-specific issues and calls for tailored interventions that reflect the unique governance models and economic conditions of each region," said Manish Singhal, secretary general, Assocham.


National level
It called for modification of building and construction laws, reducing number of no-objection certificates required and allowing third-party technical licensors to issue construction permits.

The paper outlined best practices across states, such as Andhra Pradesh, which allows private building surveyors to approve buildings under 15 metres, and Maharashtra, which introduced separate licensing terms and reduced fees for MSMEs.

The industry body also underscored the need to amend environmental regulations that misclassify low-polluting industries as high-polluting, along with lengthy environmental approval processes.

Assocham proposed expanding ambit of white category industries or non-polluting industries, and accurate classification of industries by the Central Pollution Control Board. It suggested strengthening the single-window system to eliminate offline submissions.