Ease compliance for MSMEs with simplified GST and reduced TDS: ASSOCHAM-EGROW Study

economictimes.indiatimes.com:

ASSOCHAM in collaboration with Egrow Foundation conducted an in-depth study on “MSMEs Facing Challenges in Doing Business”. The study marked the culmination of a series of detailed interviews with members of various state units of ASSOCHAM.

These interactions provided valuable insights into the region-specific challenges faced by MSMEs, particularly concerning their unique products, market dynamics and business environments.
By combining quantitative data of 150+ companies from the survey with qualitative feedback from around 120 industry stakeholders, the study offered a comprehensive understanding of the multifaceted issues MSMEs faced.

It underscored the need for innovative financial solutions, urging banks to improve transparency in loan approval processes and eliminate unused credit charges. Introduction of MSME-specific bonds and mutual funds to enhance financial liquidity, promotion of mobile banks to serve informal micro-enterprises as well as the expansion of Small Finance Banks (SFBs) to better serve rural and semi-urban areas are among other suggestions.

ASSOCHAM President Sanjay Nayyar said, in a statement, “the report lays out a strategic plan and roadmap for the MSMEs on India's path to become a developed country by 2047.

The recommendations will serve as a valuable resource in making informed and strategic policy decisions. Our strong base of formal and informal entrepreneurs would need strategic support from the government — Centre and states, banks and conglomerates to be a critical partner in realising the national aspirations.

With the right ecosystem and collaboration, MSMEs can become the foundation of a resilient and globally competitive Indian economy''.