Economic Survey 2023-24: Deregulation of MSME Sector Crucial

The Economic Survey 2023-24 emphasizes the need for deregulation and improved support for Medium, Small, and Micro Enterprises (MSMEs) in India. Despite their critical role in the economy, MSMEs face challenges from extensive regulations and compliance requirements, which hinder their growth and access to funding. The Survey advocates for reducing regulatory burdens, enhancing connectivity, and implementing effective export strategies. It highlights the importance of threshold-based incentives with sunset clauses and suggests creating institutional mechanisms for dialogue with state governments. The government’s initiatives, such as credit schemes and equity infusion, aim to support MSME growth and formalization.\r