Lok Sabha Question No. 1703 (UNSTARRED), answered on 2024-12-05
Subject: Digital Transformation of MSMEs
Ministry: MICRO, SMALL AND MEDIUM ENTERPRISES
Asked by: Smt. Pratima Mondal

## GOVERNMENT OF INDIA MINISTRY OF MICRO, SMALL AND MEDIUM ENTERPRISES

## LOK SABHA UNSTARRED QUESTION NO.1703 TO BE ANSWERED ON 05.12.2024

## DIGITAL TRANSFORMATION OF MSMEs

## 1703. SMT. PRATIMA MONDAL:

Will the Minister of  MICRO, SMALL AND MEDIUM ENTERPRISES be pleased to state:

- (a) whether  the  Government  acknowledges  concerns  raised  by  MSME  stakeholders  regarding persistent bureaucratic hurdles and high compliance costs, which remain significant barriers to sectoral growth despite initiatives announced in the Union Budget 2024-25;
- (b) the steps being taken to provide direct financial incentives for adopting sustainable and ecofriendly technologies and to ensure robust digital infrastructure and training programmes to support the digital transformation of MSMEs; and
- (c) whether the Government plans to address the lack of reliable sectoral data, which is reportedly a  critical  barrier  to  designing  effective  policy  interventions  for MSME  growth  and if so, the  details thereof?

## ANSWER

## MINISTER OF STATE FOR MICRO, SMALL AND MEDIUM ENTERPRISES (SUSHRI SHOBHA KARANDLAJE)

(a) & (b): The Government has been constantly working to address the concerns raised by MSME stakeholders regarding hurdles, burden and barriers to sectoral growth. These includes digitization and digitalization of services/ programmes, setting up single window clearances and reducing/ simplifying procedures  for  Ease  of  Doing  Business  (EODB).  Some  of  the  initiatives  of  Ministry  of  MSME  for digitalization, financing and sustainability  are Udyam Registration, MSME SAMBANDH, Micro and Small  Enterprises  -  Green  Investment  and  Financing  for  Transformation  Scheme  (MSE-  GIFT Scheme), Micro and Small Enterprises Scheme for Promotion and Investment in Circular Economy (MSE- SPICE Scheme), MSME Sustainable ZED Certification Scheme, Prime Minister Employment Generation  Programme  (PMEGP),  MSME  SAMADHAAN,  Micro  and  Small  Enterprises  -  Cluster Development Programme (MSE-CDP) etc.

The National Single Window System (NSWS) is a digital platform which guides in identifying and applying  for  approvals  according  to  business  requirements.  The  Ease  of  Doing  Business  under Department for Promotion of Industry and Internal Trade (DPIIT) is an initiative aimed at creating a conducive business environment. The key focus areas of the initiative are:

- (i) Simplification  of  procedures  related  to  applications,  renewals,  inspections,  filing  records, etc.
- (ii) Rationalization of legal provisions, by repealing, amending or omission of redundant laws, and
- (iii)   Digitization of government processes by creating online interfaces.

(c): The Udyam Registration Portal of this Ministry captures economic activities as per NIC 2008 Codes and provides the information regarding the Manufacturing and  Service sector.  Further,  more than 40 API integrations have been established with various organizations and bodies. Under the portal various  data  points  are  being  captured  and  the  data  derived  is  used  in  designing  Policy  and improvement for efficacy.

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