On Saturday, Prime Minister Narendra Modi urged the formalization of micro, small, and medium companies to aid in their growth while speaking to the state chief secretaries in New Delhi. PM Modi stated in his speech at the second national conference of chief secretaries that “States must act proactively towards formalization of MSMEs” in addition to the necessity of providing MSMEs with access to finance, technology, markets, and skill-building opportunities in order for them to be globally competitive.
He emphasized the need to increase the number of MSMEs using the GeM public procurement platform and the need for action to include MSMEs in the global value chain. The linkage of MSME clusters and self-help groups can be explored for promoting local products and obtaining GI tags registration for them, which will give a boost to the Vocal for Local initiative, according to PM Modi, who was speaking about the success of the cluster approach in the development of MSMEs. The prime minister also asked governments to recognize their top regional goods and assist them in achieving recognition on a national and worldwide scale.
Also Read: For exporters, ICICI bank launches digital services
“I firmly believe that we need to keep bolstering the MSME sector. To become Aatmanirbhar and promote economic progress, this is crucial. Increasing the popularity of regional goods is also crucial. Also emphasized the importance of quality in every sector of the economy, the Prime Minister stated in a second tweet.
Additionally, he urged chief secretaries to concentrate on putting a stop to “mindless compliances and those laws as well as norms which are outmoded. There is no room for excessive regulation and pointless limitations at a time when India is launching reforms that are unsurpassed.
Importantly, over 33,000 compliances were streamlined, rationalized, converted to digital forms, or made non-criminal by central ministries/departments, states/union territories, and local governments working together to facilitate doing business in India, Union Minister of State for Commerce and Industry Som Parkash informed Parliament in July of last year.
Also Read: Is the insurance industry prepared to meet the needs of SMEs?
The government intends to develop an Udyam-like registration site for MSMEs called the Udyam Assist Platform to simplify business laws and encourage units in the informal sector to enter the formal sector (UAP). UAP is a formalization effort of the MSME ministry and SIDBI to bring the Informal Micro Enterprises (IMEs) into the formal ambit, per a Dec. 23 directive from the Development Commissioner (DC) Office of the MSME ministry. For the purposes of receiving the advantages of priority sector loans, the certificate issued under the UAP would be treated on an equal footing with the Udyam Registration Certificate for IMEs.