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View: Targeted reforms for easing micro entrepreneurship

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The compliance burden is disproportionately higher on smaller firms as their ability to deal with them is limited.

Synopsis

While the significance of facilitating business for the Micro, Small and Medium Enterprises sector in the roadmap to achieving the $5 trillion economy goal is well understood, it is the nuances within the MSME sector that warrant greater policy attention.

In recent years, the Ease of Doing Business reforms’ emphasis on strengthening the MSME ecosystem in India has been evident. The government has rolled out a range of initiatives aimed at facilitating business for the sector. India Budget 2022-23 laid out an extension in the Emergency Credit Line Guarantee Scheme (ECLGS) with an expanded guarantee cover of Rs 5 lakh crore, revamping of the Credit Guarantee Fund Trust for Micro and Small

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