Government Accelerates Ease of Doing Business Reforms to Empower India’s MSMEs

The Government of India has intensified its efforts to strengthen the Ease of Doing Business (EoDB) ecosystem for Micro, Small and Medium Enterprises (MSMEs), recognising their central role in economic growth, employment generation, and innovation. A series of targeted reforms and digital interventions are helping MSMEs scale operations, improve liquidity, and integrate more effectively with government procurement systems.

Revised MSME Definition Enables Business Growth and Upward Mobility

One of the most impactful reforms has been the revision of MSME classification criteria, aimed at encouraging enterprises to grow without fear of losing policy benefits. By redefining investment and turnover thresholds, the government has created upward mobility for MSMEs, enabling them to invest in advanced technology, enhance skilling initiatives, and expand business operations while remaining eligible for MSME-specific incentives.

This reform has been widely welcomed by industry stakeholders, as it supports the transition of micro enterprises into small and medium categories, fostering long-term competitiveness.

Over 60,000 MSME Claims Settled Under Vivad se Vishwas–I Scheme

In the post-COVID recovery phase, the Vivad se Vishwas–I (VsV-I) Scheme has played a critical role in restoring trust and financial stability among MSME vendors. Under the scheme, over 60,000 pending claims of MSME vendors have been finalised, providing much-needed liquidity and closure to disputes with government entities.

The initiative has significantly reduced litigation and payment delays, helping MSMEs stabilise cash flows and focus on business revival and expansion.

MSME-SAMBANDH Portal Strengthens Government Procurement Transparency

To ensure timely payments and greater procurement opportunities for MSMEs, the government has operationalised the MSME-SAMBANDH Portal. The platform enables real-time monitoring of procurement by Central Government Ministries, Departments, and Central Public Sector Enterprises (CPSEs).

The portal enhances transparency and accountability in public procurement while ensuring adherence to the mandatory procurement norms from MSMEs. It also empowers enterprises by giving them visibility into procurement trends and payment performance across government bodies.

Credit Support Boost for SC/ST Entrepreneurs Through SCLCSS

To promote inclusive entrepreneurship, the Special Credit Linked Capital Subsidy Scheme (SCLCSS) is supporting aspiring SC/ST entrepreneurs in setting up new enterprises. The scheme provides capital subsidy linked with institutional credit, reducing entry barriers for first-generation entrepreneurs and encouraging participation from underrepresented communities.

By facilitating access to finance and modern equipment, SCLCSS is enabling sustainable enterprise creation and job generation at the grassroots level.

A Holistic Push Towards MSME-Friendly Governance

Together, these initiatives reflect the government’s comprehensive approach to strengthening the MSME ecosystem—combining regulatory reforms, dispute resolution mechanisms, digital transparency, and inclusive credit support. As India moves towards its vision of Viksit Bharat, MSMEs remain at the heart of the country’s economic transformation.