The Ministry of Micro, Small and Medium Enterprises (MSME) is urging industry leaders and associations to actively share inputs that can help improve policy frameworks, compliance structures, and trade competitiveness for MSMEs. The call came during a stakeholder event organised by the PHD Chamber of Commerce and Industry (PHDCCI) in New Delhi, where multiple speakers stressed the urgent need for resilience-building across India’s vast MSME ecosystem.
Government seeks collaboration on MSME 2.0 reforms
Ateesh Kumar Singh, Joint Secretary at the MSME Ministry, said the government is in the process of developing “2.0 versions” of its flagship initiatives. These include updates to existing schemes and legal reforms aimed at reducing compliance burdens, simplifying documentation, and integrating MSMEs into the formal digital economy.
Singh emphasised that real-time data from industries would be essential for designing more adaptive policies. He encouraged MSMEs to engage with government data platforms and contribute practical insights that reflect ground-level challenges.
Experts highlight strategic pathways for resilience
Experts from United Nations ESCAP and trade research bodies shared a roadmap for building long-term resilience in the sector. Rajan Sudesh Ratna, Deputy Head of UN ESCAP’s New Delhi office, outlined several pillars for strengthening MSMEs:
-
Export diversification through schemes like Atmanirbhar Bharat and Vocal for Local.
-
Leveraging Free Trade Agreements (FTAs) to access new international markets.
-
Accelerated digital adoption to improve visibility, reduce transaction costs, and enable better integration with global supply chains.
-
Market access support via targeted government interventions.
Murali Kallummal, Head of CRIT and Professor at IIFT’s Centre for WTO Studies, advocated for revisiting the MSME definition, creating better datasets for informal enterprises, and aligning MSME production with HS Codes to aid in FTA negotiations.
Upcoming GST 2.0 seen as compliance gamechanger
Participants noted that the anticipated GST 2.0 reforms could significantly improve compliance ease, reduce working capital lock-ups, and open new avenues for domestic and export trade.
According to industry observers, the reforms are expected to help MSMEs by:
-
Reducing cascading taxes through better credit mechanisms.
-
Cutting down on paperwork and reducing errors via digital interfaces.
-
Unlocking new segments of the market through simplified classification.
Lower costs, they said, would eventually benefit both businesses and consumers.
A collaborative model for growth and resilience
The discussions strongly advocated for a participatory model in policymaking, where MSMEs don’t just receive top-down reforms but help shape them.
As India faces an increasingly volatile global economic environment, MSMEs will need the support of adaptive regulatory frameworks, improved access to finance, and technological integration. Stakeholders at the event agreed that resilience would be best achieved through synergy between government intent and industry insight.