A comprehensive new study by the Associated Chambers of Commerce and Industry of India (Assocham) has issued an urgent call for sweeping reforms to simplify business regulations and streamline approval systems across Indian states. The industry body emphasized that efficient, digitized, and time-bound single-window clearances could revolutionize India's micro, small and medium enterprises (MSMEs), which contribute approximately one-third to the nation's economic output.
State-Level Challenges and Reform Priorities
The second phase of Assocham's landmark study, titled 'Ease of Doing Business in Indian States,' revealed that despite significant policy advancements in recent years, smaller enterprises continue facing substantial hurdles. Complex compliance procedures, overlapping documentation requirements, and bureaucratic delays remain major obstacles for MSME operations across multiple states.
The report specifically highlighted the critical need to replace fragmented "multiple-window" systems with efficient single-window mechanisms, particularly in states including West Bengal, Odisha, and Andhra Pradesh. This transformation would significantly enhance transparency and accountability in business approval processes.
Key Recommendations for MSME Empowerment
Assocham proposed several concrete measures to alleviate the compliance burden on smaller enterprises. The chamber recommended introducing a consolidated annual compliance form that would combine multiple statutory filings into a single document. Additionally, the study suggested implementing biennial or triennial filing cycles under the Companies Act specifically for registered MSMEs.
The industry body also urged state governments to simplify land-use and zoning procedures, rationalize approval fees, and strengthen essential last-mile infrastructure such as roads, electricity, and water supply networks. These improvements would substantially enhance the competitiveness of MSME operations across diverse sectors.
Digital Transformation and Economic Vision
The report emphasized that by leveraging digitization and implementing time-bound approval systems, Indian states could attract significantly greater domestic and foreign investment. Assocham President Nirmal Minda acknowledged recent reforms like GST simplification but noted that businesses still navigate multiple compliance layers and approval processes.
"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," Minda stated, adding that the industry chamber is actively collaborating with central and state governments to identify and implement crucial regulatory and financial reforms.
Echoing this perspective, Assocham Secretary General Manish Singhal declared that India's growth ambitions fundamentally 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," Singhal emphasized.
The comprehensive report gathered insights from 18 states, including Andhra Pradesh, Bihar, Gujarat, Kerala, Odisha, Punjab, Tamil Nadu, Telangana, Uttar Pradesh, and West Bengal, providing a robust foundation for its recommendations aimed at accelerating India's journey toward becoming a $30 trillion economy by 2047.
