Good Governance & Enhance Ease of Business for MSME

The evolving landscape of MSMEs in India not only presents opportunities for economic prosperity but also positions them as vital players in the country’s growth. MSMEs waiting for Mr. Modis return looks at enhanced ease in doing business basis various metrics which includes supportive policies, financial assistance schemes, strategic partnerships , funding access besides clearing the 45day payment and simplification of the GST hurdle.

Although there is a significant improvement in the ranking, out of 17 economies in the Asian region, India is ranked 10th in the 2023- 27 forecast period, up from 14th in 2018-22 period. The Indian government has been making strides in the right direction. but there is still a long way to go. According to official sources, the new government at the Centre is likely to undertake a few “quick reforms” vis-a-vis to World Bank’s Business Ready report, which reflects a more balanced and transparent approach toward evaluating a country’s business and investment opportunity, with recommendations from experts from World Bank Group, including governments, the private sector, and civil society.

The World Bank Group proposes to bringing back a fuller and sharper measure something that is badly needed by India, as we are in the midst of a slowdown.The report suggests to establish a better balance between the ease of conducting a business and the broader implications for society as a whole. It gives a more positive role for governments, advocating for better public services for businesses, in addition to experts’ assessments.

World Bank Group’s Chief Economist and Senior Vice President for Development Economics, Indermit Gill says, “Governments that do more to make their economies business-ready will do better in reviving private investment, creating jobs, and quickening the transition to cleaner energy.” There is no denying the fact that economies exist in different stages of readiness, and government play a key role in creating a business environment that is conducive for sustainable development.

Now that the stage is set for third stage of ease of doing business reforms. DPIIT is working with Federation of Indian Micro and Small & Medium Enterprises (FISME) and Institute of Chartered Accountants of India (ICAI) to assess time and cost impact of various regulations through the Cost of Regulations (CoR) framework. The assessment of costs would form the basis of the reforms to bring those costs down, it is believed.


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