Centre Mulls Overing Over Changes in the MSME Development Act
The Indian government is planning to change the MSME Development Act of 2006 as per the information received from the officials of the Ministry of MSME. This massive step is hoped to revise and improve the country’s rules and regulations concerning Micro, Small, and Medium Enterprises (MSMEs). Currently, the Ministry is in contact with numerous stakeholders to ensure that it gets useful information that will help in the formulation of changes expected in the Act in the future.
Coordination with stakeholders and gathering their opinion
On Wednesday discussions were held with small entrepreneurs of the Coimbatore-based associations through the Ministry of MSME. These interactive sessions were done in other to engage the affected parties most especially when making policy decisions regarding the Act. Regarding these issues, stakeholders introduced various options and opinions and the Ministry intends to use them as a basis for the legislative revision. According to the officials, the inputs are necessary from the industry so that the current challenges in the Act can be dealt with, and has the potential to enhance the growth and development of the MSMEs.
The prior basics then give key considerations that can be for the Amendment as follows.
The Ministry is especially concerned with various provisions of the Act that relate to the operations, funding, and, compliance of MSMEs in the country. It will be interesting to note that the amendments that are expected to be made shortly are likely to capture the dynamics of the sector and incorporate the practical solutions that the members of the industry are likely to provide. To achieve this goal, the Ministry intends to follow the following suggestions to improve the conditions for the development of MSMEs and subsequently, provide a contribution to the economy of the country.
The change in the MSME Development Act is in its infancy as part and parcel of the government’s effort to fine-tune policies that concern a sensitive area within the economy. It is therefore evident that through incorporating stakeholders in the premising of the legislation the Ministry is keen on producing legislation that is workable and desirable within the context of the recipient MSMEs.
