The Consortium of Indian Associations (CIA) has suggested the formation of an independent ministry for the self-employed and microenterprises to address specific issues concerning the sector.
“Though the government has been talking about ‘ease of doing business’, micro entrepreneurs continue to be governed by complicated and outdated laws and dispensable compliance burdens,” CIA convenor K.E. Raghunathan said in a statement.
The consortium also proposed that the government amend the Micro, Small and Medium Enterprises Development Act, 2006, to strengthen the state facilitation councils.
The recommendations were made by CIA based on a nationwide survey conducted during the first week of February, post-the presentation of the Union Budget for 2023-24, he said.
The objective of the survey was to know the predicament of MSMEs in India, their opinion on Budget 2023, and their unfulfilled requirements. The survey covered the opinion of 1,08,500 self-employed. The respondents included manufacturers (52%), service providers (10%), self- employed (11%), and exporters (9%) among others, Mr. Raghunathan said.
The report stressed the need for the government to adopt a three-pronged approach towards small to medium-sized businesses (SMBs) – exempt, protect and support – to mitigate the challenges being faced by the sector
The report and its findings will be submitted to the Prime Minister, Finance Minister, MSME Minister, Commerce and Industry Minister and to all state chief ministers, Mr. Raghunathan added.
