CAG Calls For Regulatory Reforms To Strengthen MSME Sector

(MENAFN- KNN India) New Delhi, Jan 30 (KNN) The Comptroller and Auditor General of India (CAG) on Thursday proposed a four-pronged strategy, simplification, digitalisation, decriminalisation, and removal of redundant laws, to strengthen the Micro, Small and Medium Enterprises (MSME) sector.

Speaking at the 'Pan-India Horizontal Audit on Ease of Doing Business (EoDB)' conclave for MSMEs, CAG, K. Sanjay Murthy said the sector is vital for economic growth, inclusive development, entrepreneurship, supply chains, and livelihoods across urban and rural India.

He noted that excessive regulatory burdens hinder competitiveness and slow industrial growth, calling for reforms spanning the Centre, States, and local bodies, reported The Hindu.

Murthy emphasised that effective implementation requires inter-departmental coordination, digital integration, uniformity in execution, and feedback from businesses and citizens.

Highlighting the rise in public procurement from MSMEs, he said the audit, one of the first detailed block-level reviews, would continue nationwide, with a focus on data-driven decision-making and sharing best practices across States.

MSME Secretary S.C.L. Das highlighted collaborative efforts between government and industry to ease compliance challenges, while other speakers included Ministry of Statistics Secretary Saurabh Garg and TeamLease Chairman Manish Sabharwal.

The audit, covering 2021-22 to 2025-26, will be coordinated by the Office of the Principal Accountant General (Audit-II), West Bengal, with participation from all State Audit Offices.

It will assess relevant Central Ministries, State Departments, district-level institutions, and State Public Sector Undertakings. Insights are expected to refine reforms, reduce compliance burdens, and create a predictable business environment for MSMEs, the CAG said.

(KNN Bureau)

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