Common policy for business development to MSMEs

Last Updated: Wed, Feb 27, 2013 12:30 hrs

New Delhi, Feb 27 (IANS) India's Economic Survey 2012-13, tabled in parliament Wednesday, says a common policy for business development can help in improving the business climate for micro, small and medium enterprises (MSMEs).

"A common policy and an institutional architecture overseeing all business regulations will help consolidate and enact changes," said the survey authored by chief economic advisor to the finance ministry, Raghuram Rajan.

According to the survey, independent coordinating agencies on public private partnership (PPP) mode should be established to help entrepreneurs in fulfilling regulatory and other requirements to start a business.

The survey suggested that these proposed agencies should help arrange services such as financing, finding raw material suppliers and marketing products, while charging a fee for some of the services.

It also called upon a new policy to ease the exit process of unsuccessful companies. While it suggested that employment exchanges should be transformed to enable job matching between employer and employee.

The survey added that innovative approaches are needed for giving MSMEs the incentive to grow like maintaining incentives for a period after the MSME crosses the size threshold.

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