Centre Plans Major Next-Gen Reforms to Boost MSME Ease of Business

The Centre is preparing a fresh wave of reforms aimed at strengthening India’s micro, small, and medium enterprises (MSMEs), with a focus on simplifying registrations, compliance processes, and inspections. This initiative comes as the sector, a crucial contributor to manufacturing, exports, and employment, deals with global challenges including the 50% US tariff impact.

Cluster-level surveys are already underway to identify major bottlenecks faced by MSMEs, especially in return filing and local-level compliances. The government plans to hold extensive stakeholder consultations in December to finalise the reform roadmap. Key ministries, including the Prime Minister’s Office and Finance Ministry, are jointly working on improving norms related to imports and value addition in the sector.

A high-level panel led by NITI Aayog Member Rajiv Gauba has also proposed measures designed to enhance productivity and reduce regulatory hurdles. These third-generation reforms could be announced by the end of this year or featured in the Union Budget 2026–27. Additionally, recent GST Council decisions, including simplified registration and lower input tax rates, are expected to provide further relief to MSMEs.

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