MSME Expectations for Ease of Doing Business in 2024 and Beyond: Budget Expectations

In India, Micro, Small, and Medium Enterprises (MSMEs) often have specific demands with respect to further ease of doing business to enhance their operational environment. Although in past few years' the Modi Government have taken special focus towards Ease of Doing Business and dellivered immpresive progress on this front. But, there are still some key demands that are needed to be fullfilled. Some of the top demands by the MSMEs include:

1. Simplified Regulatory Compliance:

   MSMEs often request simplified and streamlined regulatory compliance processes to reduce bureaucratic hurdles and paperwork, making it easier for them to operate.

2. Digitalization and E-Governance:

   Demands for increased digitalization of government services to facilitate online transactions and filings, reducing the need for physical paperwork and minimizing administrative burdens.

3. Single Window Clearance:

   Advocacy for a single-window clearance system where businesses can obtain all necessary approvals and clearances from various government departments through a single point of contact, expediting the process.

4. Reduced Inspection and Audits:

   Calls for rationalization and reduction of inspections and audits to ease the compliance burden on MSMEs, allowing them to focus on business operations rather than dealing with frequent inspections.

5. Transparent and Predictable Policies:

   Demands for transparent and predictable policies that provide clarity on regulatory changes and minimize uncertainty for businesses planning their operations and investments.

6. Access to Credit and Finance:

   Continued demands for easier access to credit, with a focus on simplifying loan approval processes and reducing the collateral requirements, especially for smaller businesses.

7. Vendor Development Programs:

   Proposals for government-led initiatives to support vendor development programs, helping MSMEs integrate into supply chains of larger enterprises, fostering growth and stability.

8. Skill Development Initiatives:

   Requests for skill development programs that align with industry needs, ensuring that the workforce is equipped with the necessary skills to meet the evolving demands of the market.

9. Digital Infrastructure Development:

   Calls for improved digital infrastructure, including better internet connectivity and digital platforms, to enable MSMEs to leverage technology for business growth and efficiency.

10. Trade Facilitation Measures:

    Demands for measures that facilitate international trade, including simplified export-import procedures, reduced documentation, and incentives for MSMEs participating in global markets.

11. Incentives for Innovation and Technology Adoption:

    Appeals for incentives and support for MSMEs to invest in research and development, innovation, and the adoption of advanced technologies to enhance competitiveness.

12.  Government Procurement Opportunities:

    Requests for increased participation in government procurement opportunities, with measures to simplify the tendering process and provide a level playing field for MSMEs.

These demands collectively aim to create a more favorable business environment for MSMEs, fostering growth, innovation, and economic sustainability. Advocacy from industry associations and collaboration with the government are essential to address these concerns and implement policies that support the ease of doing business for MSMEs.

Additional and Important Expectation

To facilitate the development of MSMEs, establishing time-bound 'Government to Businesses' service parameters is crucial. The government should prioritize efficient and time-sensitive services that directly impact MSME operations. This includes streamlining regulatory compliance processes, ensuring that approvals, permits, and licenses are granted promptly.

A transparent and digitized single-window clearance system should be implemented, expediting the often complex bureaucratic procedures. Access to credit is paramount for MSMEs, and the government must establish time-bound processes for loan approvals, reducing red tape and ensuring swift financial assistance. In addition, the government should commit to a predictable policy environment, minimizing uncertainties for businesses and providing clear guidelines for their operations.

Skill development initiatives should be time-sensitive, aligning training programs with industry needs to equip the workforce with relevant skills efficiently. Furthermore, trade facilitation measures, such as simplified export-import procedures and documentation, should adhere to stringent timelines to boost international trade. By enforcing time-bound service parameters, the government can significantly contribute to the growth and sustainability of MSMEs, fostering a business-friendly ecosystem that encourages innovation, investment, and economic development.