‘Regulatory framework hinders MSMEs’ growth and innovation.

• MSMEs, employing 23.24 crore people, face regulatory compliance challenges, hindering formalization, labour productivity, and employment growth.

• MSMEs create jobs at low capital costs, driving economic growth, employment generation, and innovation.

• Firms in India often remain small, losing access to institutional capital, skilled talent, and technology infusion, leading to a parallel, informal economy and low labour productivity.

• The government has focused on improving access to finance, enhancing technological capabilities, providing market linkages, and addressing structural challenges.

• The Udyam Assist Platform (UAP) was introduced in 2023 to formalize informal micro enterprises, with over 2.39 crore formalized.

• The government launched the Self-Reliant India (SRI) Fund to provide equity funding to MSMEs with the potential to scale up.

• The government is also implementing the Micro and Small Enterprises-Cluster Development Programme (MSE-CDP) across the country.