Excerpt from Deccan Herald Article, Published on Jun 23, 2025.
The government needs to ramp up its efforts in offering meaningful compliance relief to MSMEs, according to Mahesh Krishnamoorthy, Managing Director of Core Integra. In a recent statement, he emphasized that labour compliance has long remained outside the core focus of regulatory reforms, leaving micro, small, and medium enterprises (MSMEs) struggling to manage the growing burden of compliance. MSMEs form the backbone of the Indian economy, contributing significantly to employment and GDP. Yet, the compliance framework remains complex and outdated, particularly in the realm of labour laws. Krishnamoorthy stated that while digitalization and policy reforms have picked up pace, specific and impactful measures focused on MSMEs are still lacking. Many businesses continue to face difficulties in obtaining and maintaining their MSME registration, managing various state-specific requirements, and staying updated with frequent regulatory changes.
With over 60 million registered MSMEs in India, the sector requires targeted support to thrive in today’s fast-changing economic environment. The existing compliance systems, especially those related to employee management and statutory obligations, are often too intricate for smaller firms to handle without external assistance. These challenges deter unregistered businesses from seeking an MSME certificate, thereby missing out on critical benefits like subsidies, credit access, and market opportunities. Krishnamoorthy pointed out that labour reforms should not only focus on large-scale enterprises but must also include simplified frameworks tailored for MSMEs. Reducing paperwork, offering a unified compliance dashboard, and improving access to real-time legal guidance are key steps the government can implement to bring real change.
As MSMEs strive to recover from economic disruptions, it is essential that the government actively includes them in compliance reform dialogues. By making MSME compliance more manageable, accessible, and transparent, India can unlock the full potential of its entrepreneurial ecosystem.
To delve deeper into this topic, please read the full article Deccan Herald.
