India has over 6.3 crore registered MSMEs that contribute significantly to the country’s economy. While they play a key role in employment and GDP, these enterprises face a complex and often difficult regulatory environment. Our new Report, “Decoding Compliance for Manufacturing MSMEs in India”, presents a clear view of the challenges MSMEs face in meeting compliance requirements.

From setting up a business to day-to-day operations and closure, MSMEs must deal with multiple laws, licenses, and inspections. Many of these requirements are repetitive, time-consuming, and costly. Around 44% of all compliance requirements come under labour laws, and over 32% carry a risk of imprisonment for non-compliance.

The document highlights:

• Compliance requirements for a manufacturing MSME
• Labour law challenges
• Compliance requirements subsuming criminality
• Cost of compliance and number of inspections
• Government initiatives and suggestions for improvement

This report is useful for MSME owners, policymakers, and professionals who want to understand the current system and consider possible reforms.

Download the report to learn more about how compliance impacts MSMEs in India.