Service sector

Ease of doing business for MSMEs rises to 67, service sector faces more problems

New Delhi, May 24 (SocialNews.XYZ) The overall ease of doing business of micro, small and medium-sized enterprises (MSME EODB) stands at 64 points out of 100, of which the EODB for MSMEs in the manufacturing sector was higher than that in the service sector, according to a study published on Tuesday.

The study ‘Ease of Doing Business for MSMEs in India: Percolating EODB Reforms at Factory Level’ was carried out by the Research Office of the PHD Chamber of Commerce and Industry (PHDCCI) in collaboration with the Commerce Department of the Delhi School of Economics, University of Delhi. It was released by Union Minister Jal Shakti, Gajendra Singh Shekhawat.


The study is based on a pan-India stratified random sample survey of MSMEs in the manufacturing and service sectors, using a structured EODB 25-parameter questionnaire. The survey was conducted for the period 2021 and responses from 5,254 MSMEs were received.

“The survey results revealed that the overall EODB for MSMEs stands at 64, of which the EODB for MSMEs in the manufacturing sector stands at 67 and the EODB for MSMEs in the services sector stands at 61. “, says the report.

The top five rating metrics for the ease of doing business of MSMEs include adoption of digitalization, availability of information on business procedures and compliance, processes and procedures for starting a business, availability of adequate power supply and the process of tax registration and tax compliance.

On the other hand, the lowest rated metrics were government support for marketing, reduction in time to obtain credit, and reduction in overall costs of doing business.

The top five rating metrics for the ease of doing business of MSMEs in the manufacturing sector include adoption of digitalization, availability of information on business procedures and compliances, availability of adequate power supply, process tax registration and tax compliance; and the availability of infrastructure (internet, telecommunications and other utility), the report says.

“The worst performing metrics were government support for marketing, reduced time to obtain credit and reduced cost of electricity,” he added.

According to the survey, the main rating parameters for the ease of doing business of MSMEs in the services sector include the availability of information on business procedures and compliances, business start-up processes and procedures, the regulatory environment, corporate dissolution and digitalization adoption. The lowest rated metrics were reduced cost of compliance, reduced time to obtain credit, and reduced overall costs of doing business.

Source: IANS

Ease of doing business for MSMEs rises to 67, service sector faces more problems

About Gopi

Gopi Adusumilli is a programmer. He is editor of SocialNews.XYZ and president of AGK Fire Inc.

He enjoys designing websites, developing mobile apps and publishing news articles from various authenticated news sources.

As for writing, he enjoys writing about current world politics and Indian movies. His future plans include developing SocialNews.XYZ into a news website that has no bias or judgment towards any.

He can be reached at gopi@socialnews.xyz