Lok Sabha Question No. 322 (UNSTARRED), answered on 2025-07-22
Subject: Challenges Faced by Small Businesses
Ministry: COMMERCE AND INDUSTRY
Asked by: Shri Zia Ur Rehman

## GOVERNMENT OF INDIA MINISTRY OF COMMERCE & INDUSTRY DEPARTMENT FOR PROMOTION OF INDUSTRY AND INTERNAL TRADE

## LOK SABHA

## UNSTARRED QUESTION NO. 322.

TO BE ANSWERED ON TUESDAY, THE 22 ND  JULY, 2025.

## CHALLENGES FACED BY SMALL BUSINESSES

## 322.   SHRI ZIA UR REHMAN:

Will the Minister of COMMERCE AND INDUSTRY be pleased to state:

## वाणिज्य एवं उद्योग मंत्री

- (a) whether  the  Government  has  taken  cognizance  of  the  challenges  faced  by small businesses, exporters and start-ups due to global economic slowdown, inflation and rising logistics costs; and
- (b) if so, the details thereof along with the policy measures introduced to support trade, boost manufacturing and promote ease of doing business and if not, the reasons therefor?

## ANSWER

## वाणिज्य एवं उद्योग मंत्रालय में राज्य मंत्री ( श्री णिणिन प्रसाद ) THE MINISTER OF STATE IN THE MINISTRY OF COMMERCE & INDUSTRY (SHRI JITIN PRASADA)

- (a) & (b): To strengthen Micro, Small and Medium Enterprises (MSMEs), the Ministry of Micro, Small and Medium Enterprises has been implementing various schemes/programmes and  initiatives  such  as  the  Prime  Minister's  Employment  Generation  Programme (PMEGP), PM Vishwakarma Scheme, Credit Guarantee Scheme for Micro and Small Enterprises, Public Procurement Policy for Micro and Small Enterprises (MSEs), Micro and Small Enterprises-Cluster Development Programme (MSE-CDP),  MSME Champions Scheme, International Cooperation Scheme, Procurement and Marketing Support  Scheme  (PMS),  Udyam  Registration  Portal  and  Trade  Receivables  eDiscounting System(TReDS), to name the major ones.

To support small businesses, fee rebates of at least 80% for filing and processing of patent applications and maintenance of patents have been given to Startups, small entities (MSMEs) and educational institutes. Facility of expedited examination has also been  given  to  startups,  small  entities  (MSMEs).  Further,  in  order  to  fast-track examination  of  patent  application,  electronic  submission  of  documents  by  patent agents has been made mandatory and timelines have been streamlined.

Further,  the  Government,  with  an  intent  to  build  a  strong  ecosystem  for  nurturing innovation, startups and encouraging private investments in startup ecosystem of the country launched Startup India initiative on 16 th  January 2016. Over 1.75 lakh startups have  been  recognised  by  DPIIT  so  far. Under  the  Startup  India  initiative,  the Government  is  implementing  three  flagship  Schemes,  namely,  Fund  of  Funds  for Startups  (FFS),  Startup  India  Seed  Fund  Scheme  (SISFS)  and  Credit  Guarantee Scheme for Startups (CGSS) to support startups at various stages of their business cycle.

Similarly, Government has also introduced several policy measures to support trade, boost  manufacturing,  and  promote  ease  of  doing  business.    The  'Make  in  India' initiative  has  been  launched  to  make  India  a  hub  for  manufacturing,  design,  and innovation. Presently, 'Make in India' focuses on 27 sectors including 15 manufacturing sectors, implemented across various Ministries and Departments and State

Governments. Further, keeping in view India's vision of becoming 'Aatmanirbhar' and to enhance India's manufacturing capabilities and exports, Production Linked Incentive (PLI) schemes have been launched for 14 key sectors with an outlay of ₹1.97 lakh crore.  The  Government  has  also  approved  12  new  project  proposals  under  the National Industrial Corridor Development Programme (NICDP) with total project cost of  ₹28,602  crore  (incl.  land  cost)  to  facilitate  manufacturing  investments  into  the country.  The  other  major  initiatives  include  Foreign  Direct  Investment  (FDI)  policy reforms, National Logistics Policy to address logistics cost, PM Gati Shakti National Master Plan for integrated planning of multi-modal infrastructure, GIS enabled Land Bank,  Project  Monitoring  Group  to  remove  bottlenecks  in  setting  up  of  major infrastructure projects, setting up of industrial parks, policy measures to boost domestic manufacturing through public procurement orders, Phased Manufacturing Programme (PMP) and Quality Control Orders (QCOs). The Boilers Act 1923 has been re-enacted as the Boilers Act, 2025 (12 of 2025), wherein redundant /obsolete provisions have been omitted and certain substantive enabling provisions have been made for the rules and regulations,  which  is  expected  to  benefit  industries  reliant  on  boiler system. A combination of fiscal and monetary policy tools have been used by the government and central bank to keep inflation in check.

To enhance ease of doing business, several initiatives have been introduced which mainly focus on Reducing Compliance Burden (RCB), Decriminalization and National Single Window System (NSWS). The Business Reform Action Plan (BRAP) focuses on reduction in compliance burden and incentivises state government to lessen burden of compliance. The National Single Window System (NSWS) has been launched as a one-stop digital platform for facilitating Government to Business (G2B) approvals and investor-related clearances for industry. Also, the Government of India is determined to create an investment friendly ecosystem that strongly supports domestic as well as foreign investments.

To  enhance ease  of  doing  business,  the  Government,  through  the Jan  Vishwas (Amendment of Provisions) Act, 2023, has decriminalized 183 provisions across 42 Central Acts administered by 19 Ministries/ Departments. Building on this reform, the Hon'ble Finance Minister has announced the Jan Vishwas 2.0 initiative, under which DPIIT has undertaken an analysis of criminal  provisions  (including  both  major  and minor offences) across Acts under 39 Ministries/Departments.

To boost trade and exports, the Government has launched the New Foreign Trade Policy  (2023)  and  implemented  the  Interest  Equalization  Scheme  on  pre  and  post shipment rupee export credit. Common Digital Platform for Certificate of Origin has been launched to facilitate trade and increase Free Trade Agreement (FTA) utilization by  exporters.  Further,  Districts  as  Export  Hubs  initiative  has  been  launched  by identifying products with export potential in each district, addressing bottlenecks for exporting  these  products  and  supporting  local  exporters/manufacturers to generate employment in the district.

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