BS EDIT: Unlocking MSME growth: India’s need for mid-sized champions

By Business StandardPublished On Mar 28, 2025

MSMEs: A vital growth engine

MSMEs contributed 30.1% to India’s GVA in 2022-23 and exports surged to ₹12.39 trillion in 2024-25 — yet many still struggle to grow beyond small scale

Dx-EDGE: A step towards digital empowerment

The CII-NITI-AICTE platform will help MSMEs embrace tech. But tech adoption alone won’t bridge the scale gap without structural reforms

Why Indian firms stay small

Complex compliance burdens lead entrepreneurs to operate multiple small units instead of scaling one — limiting productivity and efficiency

Labour laws & regulatory overhang

High compliance costs and rigid labour laws have led to contractualisation and deterred growth — with half the workforce still stuck in agriculture

Time to act on known solutions

Labour codes remain unimplemented. The Public Accounts Committee flagged GST issues for MSMEs this week — these gaps need urgent fixing

Will a deregulation commission help?

Modi’s idea of a deregulation commission could be a game-changer — if it streamlines rules and helps mid-sized firms scale in a tough global economy