Economic Survey: Ease of compliance for MSMEs required to unleash growth

The 2023-24 Economic Survey underscored the need for easing licensing, inspection, and compliance requirements for micro, small and medium enterprises (MSMEs), highlighting them as major hurdles to growth.

"Ease of doing business on the ground reinforces the findings of the study FISME has conducted at the District level. Reforms in urban development management and regulatory compliances can significantly improve the business environment and unleash economic growth," said Anil Bhardwaj, secretary general, Federation of Indian Micro and Small & Medium Enterprises (FISME).

For further growth of India's Mittelsand, a German term referring to small and medium-sized enterprises (SMEs) and family-owned businesses, the survey emphasised on "deregulation as a vital contributor."


It also focused on improving physical and digital connectivity and formulating an export strategy that allows MSMEs to broaden their market base and grow. States have also been urged to take steps in reducing compliance burden of MSMEs.

"The management bandwidth in MSMEs to grow business, seek new markets, get funding, and hire labour is limited, and this limited bandwidth is spent disproportionately on compliance," noted the survey.

The survey focused on the benefits for MSMEs registered on the government's Udyam portal, including informal micro-enterprises registered on the Udyam Assist Portal.