Indian Economy News

The Government has taken several steps to promote Ease of Doing Business (EOBD) for MSMEs

According to a press release from the Ministry of Micro, Small, and Medium Enterprises, the Government of India has introduced various initiatives to improve Ease of Doing Business (EODB) for micro, small, and medium enterprises (MSMEs). Efforts made by the Government to improve the EODB for MSMEs have included simplifying processes, digitising compliance, increasing MSME access to credit, providing faster payment to MSME vendors, and helping MSME vendors connect with both domestic and international markets. Additionally, the Government has introduced various initiatives to assist MSMEs in building capacity, adopting technology, and developing skills, creating a basis for increased competitiveness and the ability to integrate into larger value chains. 
To improve the resilience and growth potential of the sector by making the ecosystem more conducive to MSME operations, the Government is implementing various reforms concerning credit guarantee programmes, collateral-free loan products, and lowering the level of documentation required. As a result, the Government anticipates an improvement in the overall business climate that exists for MSMEs, which will encourage both entrepreneurs and economic development in all localities. In addition, the release of this press statement highlights the Government’s continued commitment to creating and supporting a more enabling environment for the continued development of MSMEs, as it relates to improving the formalisation of MSMEs, fostering innovation, and enhancing their scalability. By improving and streamlining existing processes for MSME support and through the strengthened institutional support for small business development, the Government is creating the conditions to empower small businesses and provide ongoing investment opportunities and job creation. Overall, these actions are evidence of a comprehensive approach to facilitating MSME EODB enhancement and demonstrate the Government's continued commitment to supporting inclusive economic growth.

Disclaimer: This information has been collected through secondary research and IBEF is not responsible for any errors in the same.