HOME > MARKETS > ECONOMY NEWS
  ECONOMY NEWS
ECONOMY
Crippling regulatory delays, high compliance costs hurting MSMEs: ASSOCHAM
Nov-14-2025

The Associated Chambers of Commerce and Industry of India (ASSOCHAM) has said that critical barriers, including crippling regulatory delays, high compliance costs and a lack of effective single window systems, are holding back micro, small and medium enterprises (MSMEs) from realising their potential. Citing its report titled ‘Ease of Doing Business in the Indian States’, the industry lobby called for accelerated, state-driven reforms to empower MSMEs.

The report outlines the major regulatory and infrastructural bottlenecks that continue to hinder business operations across key Indian states. These include cumbersome and overlapping approval processes; GST-related hurdles, including complex registration procedures, refund delays, and frequent ITC disputes; logistics and infrastructure bottlenecks - including e-way bill inefficiencies, and unreliable electricity supply in states such as West Bengal and Odisha, which cause delays and production losses. 

According to the report, company law and BIS rules burden MSMEs with complex compliance, exit, and certification delays, while unclear FSSAI norms (especially for biotech products) add further regulatory uncertainty. It emphasizes that digitized and time-bound single window systems can be a game-changer in improving the investment climate across states. It calls for their urgent implementation in states like West Bengal, Odisha, and Andhra Pradesh, where the current systems are fragmented and often function as ‘multiple windows’ replacing them with streamlined processes that have fixed approval timelines and clear accountability. Beyond state-level systems, the report proposes a major overhaul of the national compliance architecture for small businesses.


  RELATED NEWS >>