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Economic Survey 24-25 calls for deregulation and stronger support for MSMEs
Industry News- Jan 31,25
The Survey outlines a three-step process for states to systematically review regulations based on cost-effectiveness.
The Economic Survey 2024-25, tabled in Parliament by Union Minister of Finance and Corporate Affairs Smt. Nirmala Sitharaman, emphasises the need for enhanced deregulation to support Micro, Small, and Medium Enterprises (MSMEs). It highlights that excessive regulatory burdens hinder efficiency, increase costs, and limit growth opportunities. The Survey underscores that India’s economic growth requires continuous reforms from both union and state governments to allow MSMEs to operate efficiently and compete cost-effectively.
The Survey outlines a three-step process for states to systematically review regulations based on cost-effectiveness. It calls for a state-led Ease of Doing Business (EoDB) 2.0 initiative to address the root causes of regulatory challenges, focusing on liberalising standards, reducing tariffs, and implementing risk-based regulations. Drawing from global examples, the Survey stresses the urgency of deregulation in an environment facing export, energy, and emissions challenges.
Additionally, the Economic Survey highlights various government initiatives supporting MSMEs. The Micro and Small Enterprises-Cluster Development Programme (MSE-CDP) aims to develop industrial clusters, while the Self-Reliant India (SRI) Fund, with a corpus of Rs 500 billion, provides equity funding. The government is also addressing MSME concerns through initiatives like MSME Samadhan and the CHAMPIONS portal, which facilitates dispute resolution and provides support in multiple regional languages.
As of November 26, 2024, MSMEs have reported employing 232.4 million individuals. The government has further strengthened financial support through the revamp of the Credit Guarantee Scheme for Micro and Small Enterprises (CGTMSE) and the introduction of the Udyam Registration Portal to formalise enterprises. The Trade Receivables Discounting System (TReDS) has been instrumental in ensuring timely payments to MSMEs, reinforcing financial stability in the sector.
(Pib.Gov)
Economic Survey 2025
union budget
budget 2025
union budget 2025
economic survey
Nirmala Sitharaman
CHAMPIONS portal
MSME Samadhan
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