Ms. Supriya Devasthali, Director (EoDB), DPIIT, Ministry of Commerce and Industry, Government of India informed that the government has launched ‘Business Reform Action Plan’ to work with the states, at the ‘Workshop on EoDB- MSMEs Perspective’, which was organized by the apex industry body, PHD Chamber of Commerce and Industry (PHDCCI) in collaboration with the Department for Promotion of Industry and Internal Trade (DPIIT), Ministry of Commerce and Industry, Government of India. The objective of the workshop is to promote ease of doing business (EoDB) for Micro, Small and Medium Enterprises (MSMEs) as they are the mutual growth drivers of the Indian economy at this juncture. She added that we have recovered significantly from the COVID-19 pandemic, but have been challenged by recent geopolitical developments, where the Russia-Ukraine conflict is impacting the global economic growth scenario.
Ms. Devasthali went on to explain that the government collaborates with the states, because there are several small towns in our country where people are keen to do business. If someone wants to start a business in these towns, we can help them in making them aware of what the government has to offer in terms of setting up and EoDB, so that the industry can begin to work with them. The unique feature of this initiative is that the DPIIT has ranked the states based on this plan, which creates competition. There have been instances when investment marked for one state has gone to another instead.
DPIIT’s Director (EoDB) also stated that since the government’s goal is to make living easier for citizens, the department is working hard to improve industry facilities, such as registrations and online registrations. She also stated that the government is reworking rules that are intimidating people from doing business. The proposal bill, she revealed, could be introduced during the upcoming Parliament session.
She added that before going ahead with any policy or decision, we consult with industry representatives to identify gaps and challenges in them and make changes accordingly.
Mr. Pradeep Multani, President of the PHDCCI, lauded the DPIIT department for making the effort to understand the problems of the industries and providing appropriate solutions. He stated that while the nation is moving forward at a rapid pace today, there are some issues on the ground that need work and have to be highlighted in today’s interaction. He added that whatever issues we have raised with Madam Director, DPIIT till date has not only been acknowledged by her, but she has even taken action on them.
Shri Saurabh Sanyal, Secretary General, PHD Chamber, in his vote of thanks stated that Ease of doing business and reduced costs of doing business plays a very crucial role in the progressive growth of MSMEs. Also, a cost-effective logistics network and uninterrupted supply of power would provide impetus to industries and MSME sector in the country.
Dr. S P Sharma, Deputy Secretary General, PHDCCI, presented a survey study on ‘Ease of Doing Business for MSMEs in India: Percolating EoDB Reforms at Factory Level’, which was conducted by PHDCCI in collaboration with the Department of Commerce, Delhi School of Economics (DSE), Delhi University. He explained that the study was based on a pan-India stratified random sample survey of MSMEs from the manufacturing and services sectors, where they used a structured questionnaire on 25 parameters of ease of doing business. According to an extensive survey of over 5,000 MSMEs conducted by the PHD Research Bureau of the PHDCCI (EODB) for MSMEs, the overall EoDB for MSMEs is 64 on a scale of 100, with manufacturing MSMEs scoring 67 and services MSMEs scoring 61.
Dr. Sharma emphasized that adoption of digitization was the highest-scoring parameter for the ease of doing business for manufacturing MSMEs, while government marketing assistance, reduction in the time required to obtain credit, and reduction in the cost of power were the lowest-scoring parameters.