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Regulations, business registrations, credit and market access still a challenge for MSME



Complying with regulations, obtaining business registrations and accessing finance and markets are some of the most challenging issues plaguing the Micro, Small and Medium Enterprises (MSME), according to “MSMEs Facing Challenges in Doing Business,” a study published by ASSOCHAM in collaboration with Egrow Foundation.

The study highlights the need for innovative solutions in the banking system that bring transparency to loan approval processes and make borrowing cheaper for the MSME sector.

Further, the study recommends introducing MSME-specific bonds and mutual funds to improve credit access for MSMEs and expand Small Finance Banks (SFBs) so that more informal micro-enterprises in rural and semi-urban areas have access to funds.

It also points out a coordination gap between state and central governments in implementing government schemes targeting MSMEs, which results in such schemes failing to meet their objectives.

The study underscores the need to formalise micro and small enterprises for India to achieve its Viksit Bharat goals while charting a roadmap for India to become a developed country by 2047.


“The report lays out a strategic plan and roadmap for the MSMEs on India’s path to become a developed country by 2047. The recommendations will serve as a valuable resource in making informed and strategic policy decisions,” said Sanjay Nayar, President, the Associated Chambers of Commerce and Industry of India (ASSOCHAM).The study also suggests slashing corporate income tax rates for MSMEs from 25% to 15% and a simplified Goods and Services Tax (GST) system to ease tax compliance.

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