Empowering MSMEs: A Blueprint for India's Economic Transformation

Assocham and Egrow Foundation propose a centralised grievances portal for MSMEs, akin to RBI's Ombudsman, to address challenges across various sectors. The report emphasizes lowering corporate tax to 15%, simplifying GST, and implementing structural reforms for MSMEs to help achieve India's development goals by 2047.

The Associated Chambers of Commerce and Industry of India (Assocham), in partnership with the Egrow Foundation, is advocating for a centralized grievances platform for Micro, Small and Medium Enterprises (MSMEs), similar to the Reserve Bank of India's Ombudsman initiative. This proposal aims to address issues spanning multiple departments and state governments.

The recommendation stems from an extensive study titled 'MSMEs Facing Challenges in Doing Business,' which combines quantitative data from over 150 companies and qualitative insights from approximately 120 industry stakeholders. The report outlines strategic initiatives and a roadmap, positioning MSMEs as pivotal to India's ambition of becoming a developed nation by 2047.

The study also advises a reduction in corporate income tax for MSMEs to 15% from the current 25%, suggesting a streamlined GST system to facilitate compliance. The report highlights the need for user-friendly MSME registration portals and suggests establishing an MSME Policy Index to track state-level adherence and improvements in policy implementation.

(With inputs from agencies.)