Lok Sabha Question No. 3928 (UNSTARRED), answered on 2026-03-17
Subject: Ease of Doing Business
Ministry: COMMERCE AND INDUSTRY
Asked by: Dr. Prabha Mallikarjun

## GOVERNMENT OF INDIA MINISTRY OF COMMERCE & INDUSTRY

## DEPARTMENT FOR PROMOTION OF INDUSTRY AND INTERNAL TRADE

## LOK SABHA

UNSTARRED QUESTION NO. 3928. TO BE ANSWERED ON TUESDAY, THE 17 TH  MARCH, 2026.

## EASE OF DOING BUSINESS

## 3928.  DR. PRABHA MALLIKARJUN:

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

## वाणिज्य एवं उद्योग मंत्री

- (a) whether  excessive  and  overlapping  compliance  requirements  continue  to increase  costs  and  uncertainty  for  industries,  particularly  Micro,  Small  and Medium Enterprises (MSMEs), if so, the details thereof;
- (b) whether multiple inspections and reporting obligations persist despite ease-ofdoing-business reforms, if so, the details thereof;
- (c) whether digital compliance platforms have effectively reduced human interface and delays, if so, the details thereof;
- (d) whether frequent regulatory changes affect long term industrial planning and investment decisions, if so, the details thereof; and
- (e) the roadmap for simplifying compliance while safeguarding labour, environmental and safety standards?

## 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): The  Government  has  been  streamlining  regulatory processes  under  the principles  of Ease  of  Doing  Business  (EoDB) and Reducing  Compliance Burden  (RCB) ,  which  apply  across  all  sectors  and  categories  of  business enterprises, including MSMEs.

In this context, the Central Government supplements the efforts of the States/UTs through various programmes and policy initiatives for the overall development and  promotion  of  MSMEs  across  the  country.  The  Ministry  of  MSME  has undertaken  several  initiatives  to  reduce  the  compliance  burden  and  simplify regulatory requirements for MSMEs. Some of the key measures taken are:

- i. Introduction of revised criteria for classification of MSMEs.
- ii. Registration  of  MSMEs  through  the Udyam Registration Portal ,  which provides  a  simple  online  registration  of  enterprises  based  on  selfdeclaration.  The  portal  is  integrated  with  PAN  and  GST  databases  and enables paperless MSME registration, thereby facilitating Ease of Doing Business for the MSME sector.
- iii. Launch of the Udyam Assist Platform on 11.01.2023 for bringing Informal Micro Enterprises (IMEs) into the formal economic framework.
- iv. Launch of the MSME Samadhaan Portal ,  which enables MSMEs to file complaints regarding delayed payments by buyers and track the status of their cases online.
- v. Launch of the Champions Portal , which provides e-governance support, grievance redressal, and handholding for MSMEs.
- vi. Extension  of  non-tax  benefits  for  a  period  of  three  years  in  case  of  an upward change in the status of MSMEs.
- vii. Provision of special facilitation for MSMEs on the GeM portal ,  including API integration with the Udyam MSME database for simplified seller registration through a two-step process .

Since  the  inception  of  the  Udyam  Registration  Portal  on  01.07.2020  till 15.03.2026, around 7.92 crore MSMEs have been registered, with a recorded employment of approximately 34.95 crore .

Inspections  and  reporting  are  conducted  in  accordance  with  the  prescribed guidelines and rules of the respective statutes regulating the sectors in which the business enterprises operate. To enhance efficiency and reduce duplication, the Department  for  Promotion  of  Industry  and  Internal  Trade  (DPIIT) has introduced several EoDB reforms, including joint and combined inspections, mandatory use of standardized inspection checklists, computerized riskbased  inspection  systems,  and  provisions  for  self-certification  or  thirdparty certification .  These measures help minimize repetitive inspections and reporting requirements.

Out of the 36 States and Union Territories , more than 26 have implemented DPIIT's inspection-related  reforms , resulting in improved transparency, predictability, and efficiency in inspection processes.

Further,  the  Government  has  undertaken  additional  measures  to  support MSMEs, including:

- i. Facilitation for participation of MSMEs in exhibitions, trade fairs and events organized at  ITPO and other platforms.
- ii. Reduction in patent fees for MSMEs.
- iii. Provision for expedited examination of patent applications for MSMEs.
4. (c) to (e): Digital compliance platforms have significantly reduced human interface and delays in regulatory processes. DPIIT has been advocating the integration of State Single Window Systems with the National Single Window System , PAN-based unified login, online delivery of key regulatory services, time-bound service delivery, and transparent monitoring dashboards. More than 29 States and UTs have implemented these measures, while the remaining are in the process  of  adopting  the  National  Single  Window  System  through  reverse integration. This enables end-to-end online processes including applications, payments, tracking, certification, and verification.

The  Government  remains  committed  to  ensuring  a  stable,  predictable,  and investor-friendly  regulatory  environment  to  promote  industrial  growth  and investment.  In  this  direction,  several  initiatives  have  been  undertaken  to rationalize and reduce regulatory compliance across Central Ministries/Departments  and  States/UTs.  Under  the  Regulatory  Compliance Reduction  exercise,  a  total  of 47,290  compliances have  been  reduced,  of which 16,109 have been simplified, 22,288 digitized, 4,623 decriminalized, and 4,270 redundant compliances eliminated.

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