Efficient Single Window Clearances can Significantly Ease Business for MSMEs : ASSOCHAM Report

The Associated Chambers of Commerce and Industry of India (ASSOCHAM) has released the second phase of its landmark study on “Ease of Doing Business in the Indian States”. The report calls for accelerated reforms aimed at simplifying business regulations, improving approval systems and supporting the growth of India’s Micro, Small and Medium Enterprises (MSMEs).

 The study emphasizes that digitized and time-bound Single Window Systems can be a game-changer in improving the investment climate across states. By streamlining approvals and reducing bureaucratic delays, such systems can greatly enhance efficiency and transparency. The report also recommends simplifying land-use and zoning procedures, rationalizing approval fees and strengthening last-mile infrastructure, particularly access to electricity, roads and water, to improve overall business competitiveness.

At the national level, the report proposes a single, consolidated annual MSME compliance form combining multiple filings such as AOC-4, MGT-7A, DIR-3 KYC, MSME Form-I and DPT-3. It also suggests introducing biennial or triennial filing cycles for registered MSMEs to ease compliance under the Companies Act.

Highlighting the disproportionate impact of regulatory compliances on smaller enterprises, the report observes that MSMEs continue to face high penalties, overlapping documentation and multiple filings, discouraging formalization and growth. It therefore advocates for simplified return filings, graded penalty structures, exemptions from mandatory audits and integration of multiple statutory filings into a single digital interface to reduce compliance costs.

Commenting on the findings, Mr. Nirmal Minda, President, ASSOCHAM, said, “While there have been notable policy reforms and simplification of processes such as for GST recently, businesses still navigate multiple layers of compliances and approvals. ASSOCHAM is working closely with both central and state governments to identify and implement regulatory and financial reforms. Together, we can create a transparent, efficient and investment-friendly environment that benefits both small and large enterprises and drives India’s growth story forward.”

Adding to this, Mr. Manish Singhal, Secretary General, ASSOCHAM, said, “India’s growth ambitions rest on our ability to make business easier, faster and more predictable for MSMEs. States have a pivotal role in this transformation as by prioritizing MSME empowerment, we can unleash unprecedented entrepreneurial energy across the country. MSME’s contribute about a-third to our economy, employment and exports. Hence, making it easier for them will be the cornerstone of India’s journey to becoming a USD 30 trillion economy by 2047.”

The report presents detailed state-level insights from 18 states including Andhra Pradesh, Bihar, Gujarat, Haryana, Kerala, Maharashtra, Odisha, Punjab, Rajasthan, Tamil Nadu, Telangana, Uttar Pradesh and West Bengal, among others. The findings underline that aligning state-level business reforms will be crucial to achieving India’s long-term growth objectives. 

One of the most urgent recommendations is the creation of true, functional single-window systems in states such as West Bengal, Odisha and Andhra Pradesh- with fixed approval timelines and clear accountability- replacing fragmented mechanisms that often function as “multiple windows.”

ASSOCHAM’s study reiterates that building a predictable, technology-driven and entrepreneur-friendly regulatory ecosystem can substantially enhance India’s competitiveness, attract greater domestic and foreign investments and unlock new opportunities for job creation and inclusive growth.