Big plans in the works for small businesses

A fresh round of reforms could be rolled out soon for the micro, small, and medium enterprises (MSMEs) sector.

- MONIKA YADAV

The Prime Minister’s Office (PMO) is working with the MSME ministry and finance ministry on steps to reduce the tax and compliance burden of such units and improve their cost-competitive-ness, it is learnt. The government may announce these initiatives by end of the year.

According to the documents reviewed by Business Standard, the exercise follows a three-tier format, beginning with cluster-level workshops, followed by zone-level conferences in seven cities in November, and culminating in ana-tional conference later in the year.

This comes at a time when a high-level committee, led by Rajiv Gauba, Niti Aayog member and former cabinet secretary, has reportedly proposed a set of reforms to simplify procedures and regulations in the MSME sector, among other things.

Speaking about the reform package that is being readied for December launch, a government official said that the MSME ministry aims to submit its recommendations to the PMO by mid-November. “After that the proposals will be reviewed in consultation with the finance ministry.”