A study on ‘Ease of Doing Business for MSMEs in India: Percolating EODB Reforms at Factory Level’ was conducted by the PHD Research Bureau of the PHD Chamber of Commerce and Industry in collaboration with the Department of Commerce, Delhi School of Economics, University of Delhi.
India was placed 63rd out of 190 countries in the World Bank’s Ease of Doing Business EODB Report in 2020, up 14 places from last year. While international EODB rankings are provided by the World Bank, state-level rankings in India for EODB (BRAP Ranking) are provided by the Department for Promotion of Industry and International Trade (DPIIT).
Even with lower investments, Micro, Small, and Medium Enterprises (MSMEs) make a major contribution to the Indian economy. This industry is critical to India’s growth and development, accounting for a significant share of the country’s GDP, employment, investments, and exports.
The adoption of digitization, availability of information on business procedures and compliances, processes and procedures for starting a business, adequate power supply availability, and the process of tax registration and compliance are the top five scoring parameters for MSMEs’ ease of doing business.
Government helps for marketing, reduced time to obtain finance, and lower total costs of conducting business, on the other hand, received the lowest scores.
