A focused review of various regulations impinging the MSME sector could help enable reduction of regulatory cholesterol and make it globally competitive. Elaborate (200 Words)
Refer - Financial Express
Enrich the answer from other sources, if the question demands.
IAS Parliament 4 years
KEY POINTS
· MSMEs are the backbone of the Indian economy. Numbering over 45 million, they provide employment to 150-180 million people, contributing to 30% of GDP and 40% of exports.
· Some of the challenges emanate from antiquated infrastructure, low productivity, inadequate liquidity, lack of IT skills and scientific inventory control, digital marketing, social media usage, etc.
· This opportunity should be used for bold and rapid structural modernisation of MSMEs, to attain Atmanirbhar Bharat. There is a need to upgrade skills in tune with the call of PM Modi—skill, reskill and upskill.
· New-age digital techniques will also help MSMEs raise finances smoothly. Fin-techs conduct loan evaluation quicker with documents digitally uploaded by loan-seekers. Applications are also customer-friendly, not needing long paper-based forms with numerous documents.
· The entire Indian e-commerce ecosystem and linked MSMEs are now poised to undergo a revolution with global players like Amazon, Flipkart, and now, Reliance-Jio supported by tech-behemoths Facebook and Google, each wooing suppliers and customers with global experience, best practices and technology.
· The role and potential of Indian MSMEs along with the need to improve their efficiency, productivity and quality needs to be viewed in the context of a globally competitive landscape of their peers in Vietnam, Thailand, Myanmar, etc.
· Keeping in view the need to speedily rejuvenate our MSMEs, a separate matrix could be evolved for Ease of Doing Business (EoDB) specifically designed for them. Their offerings, be it product or services, are different, the scale of operations and needs are different, regulatory barriers faced are different, and so are the “Doing Business” needs.
· While the Business Reforms Action Plan (BRAP), a joint exercise by the DPIIT and the World Bank, has brought spectacular results where India’s global ranking has gone up from 141st to 63rd. Such a focused exercise state-wise, even district-wise, based on the identified parameters for MSMEs could bring in dramatic results.
· This multiplicity in taxation may lead to increased compliance burden and blocking of working capital, with a manifold increase in the cost of doing business across the entire supply chain of the supplier, wholesaler/trader and seller, and also adversely impact the ease of doing business for MSMEs.
PRASHANT KUMAR 4 years
Pls Review Sir
IAS Parliament 4 years
Try to explain the flow chart, and write within two pages. Keep Writing.
Sonali 4 years
Please review
IAS Parliament 4 years
Good attempt. Keep Writing.
