Reform package recommended for MSME’s in India – The Hindu BusinessLine

Clipped from: https://www.thehindubusinessline.com/companies/reform-package-recommended-for-msmes-in-india/article37995572.ece

It is based on a comprehensive review of India’s MSME policy and programs and their implementation during the period 1997-2022

Institute of Small Enterprises and Development (ISED) has recommended an integrated policy approach and reform package on micro, small and medium enterprises in the country.

The document under ‘ISED Policy Briefs’ series, authored by P.M. Mathew, comes out in connection with the Silver Jubilee celebrations of the ISED Small Enterprise Observatory(ISED-SEO). It is based on a comprehensive review of India’s MSME policy and programs and their implementation during the period 1997-2022.

The Policy Brief paints an outlook for the future and spells out some key imperatives. Its twelve-point agenda relate to technology, issues relating to organization, understanding on subsector level issues, governance problems, the need for targeting action, a resource approach to entrepreneurship, broadening of public procurement, rationalization of tax regime, clarity on the concept of ‘region’ in the MSME agenda, dealing with the labour market, effectiveness of Credit Guarantee, and institutional reforms.

The ISED document spells out involvement and action from all relevant stakeholders, including government, financial sector, industry associations and civil society in an action programme geared to rejuvenation of the MSME sector that is strategically crucial to the Indian economy, as the second largest employment provider.

The document discusses the various policy options that could be considered at the national and regional levels, depending upon the political philosophy and ideological position of the governments. While employment being the common strategic thread for MSME promotion in India, such political differences need not stand in the way of a reform agenda, says the Report.

The reform package carries a set of innovative ideas including “enterprise security”, scientific monitoring of business demography, governance strategy, administrative reforms, responsible financing, and institutionalization of decentralized development.

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