New Delhi: A new study by the Associated Chambers of Commerce and Industry of India (Assocham) has called for urgent reforms to simplify business regulations and streamline approval systems across states and said that efficient, digitized, and time-bound, single-window clearances could be a game-changer for India’s micro, small and medium enterprises (MSMEs), which contribute about a third to the country’s economy.
The second phase of the industry chamber’s study ‘Ease of Doing Business in Indian States’ noted that while policy reforms have progressed in recent years, smaller enterprises continue to struggle with complex compliance procedures, overlapping documentation and bureaucratic delays.
The report said efficient single-window mechanisms, particularly in states such as West Bengal, Odisha and Andhra Pradesh, must replace fragmented “multiple-window” systems to improve transparency and accountability.
The report recommended a consolidated annual compliance form for MSMEs that would combine multiple statutory filings. It also proposed introducing biennial or triennial filing cycles under the Companies Act to reduce the compliance burden on registered MSMEs.
Assocham also urged states to simplify land-use and zoning procedures, rationalize approval fees and strengthen last-mile infrastructure such as roads, electricity, and water supply to improve competitiveness.
By leveraging digitization and time-bound approval systems, states could attract greater domestic and foreign investment, the report said.
Highlighting the disproportionate burden of compliance on smaller enterprises, the report suggested simplified return filings, graded penalties, and exemptions from mandatory audits. It also called for integrating multiple statutory filings into a unified digital interface to reduce compliance costs and promote formalization.
“While there have been notable policy reforms and simplification of processes such as for GST recently, businesses still navigate multiple layers of compliances and approvals,” said Assocham president Nirmal Minda adding tht the industry chamber is working closely with the central and state governments to identify and implement regulatory and financial reforms.
“Together, we can create a transparent, efficient and investment-friendly environment that benefits both small and large enterprises and drives India’s growth story forward,” Minda said.
Echoing the view, Assocham secretary general Manish Singhal said India’s growth ambitions depend on making business operations easier and more predictable for MSMEs. “States have a pivotal role in this transformation. By prioritizing MSME empowerment, we can unleash unprecedented entrepreneurial energy across the country. MSMEs contribute about a third to our economy, employment, and exports. Making it easier for them will be the cornerstone of India’s journey to becoming a $30 trillion economy by 2047,” Singhal said.
The report has brought insights from 18 states, including Andhra Pradesh, Bihar, Gujarat, Kerala, Odisha, Punjab, Tamil Nadu, Telangana, Uttar Pradesh, and West Bengal.