MSMEs continue to face challenges in regulatory framework: Economic Survey

Micro, Small and Medium-scale Enterprises that employ 23.24 crore people in the country continue to face challenges in the regulatory environment, noted the Economic Survey tabled on Friday. “Regulatory compliance burden holds back formalisation and labour productivity, limits employment growth, chokes innovation and depresses growth,” it said. The efforts of the government in the last 10 years focused on improving access for the MSMEs to finance, enhancing technological capabilities, providing market linkages, and addressing structural challenges. Goa, which is largely reliant on tourism, leveraged TReDS during the COVID-19 disruption to enhance supplier liquidity, facilitating payments for over 250 MSMEs since October 2020, with invoice discounts.