PMO Sets Stage For Major MSME Reforms Ahead Of December Launch

Trade & Policy

PMO Sets Stage For Major MSME Reforms Ahead Of December Launch

The government is preparing a sweeping reform agenda for micro, small and medium enterprises (MSMEs), with Narendra Modi expected to unveil the next generation of policy changes by early December.

Officials in the Prime Minister’s Office, the Ministry of MSME and the Ministry of Finance are said to be drafting a three-tier roadmap. This will begin with cluster-level workshops, followed by zone-level conferences in seven cities in November, culminating in a national conference and formal rollout.

Key reform themes include lowering compliance costs, simplifying legal and tax frameworks, streamlining credit access and boosting innovation in MSMEs. Industry sources say cost-competitiveness is high on the agenda, alongside improving ease of doing business for small firms.

The MSME sector is critical to India’s economy. It contributes about 30 % to manufacturing output, 45 % to total exports, and employs over 120 million people. Implementation of these reforms could accelerate job creation and strengthen supply-chain resilience ahead of India’s US$1 trillion manufacturing ambition. Firms and industry associations are watching closely, as the outcome may reshape the business environment for thousands of small enterprises across sectors.

Key reform themes include lowering compliance costs, simplifying legal and tax frameworks, streamlining credit access and boosting innovation in MSMEs. Industry sources say cost-competitiveness is high on the agenda, alongside improving ease of doing business for small firms.

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