PTI New Delhi

Critical barriers, including crippling regulatory delays, high compliance costs and a lack of effective single window systems, are holding back micro, small and medium enterprises from realising their potential, industry lobby Assocham said on Thursday.

Citing its report titled "Ease of Doing Business in the Indian States," the industry lobby called for accelerated, state-driven reforms to empower micro, small, and medium enterprises (MSMEs).  The report outlines the major regulatory and infrastructural bottlenecks that continue to hinder business operations across key Indian states.

These include cumbersome and overlapping approval processes; GST-related hurdles, including complex registration procedures, refund delays, and frequent ITC disputes; logistics and infrastructure bottlenecks - including e-way bill inefficiencies, , and unreliable electricity supply in states such as West Bengal and Odisha, which cause delays and production losses.

Moreover, company law and BIS rules burden MSMEs with complex compliance, exit, and certification delays, while unclear FSSAI norms (especially for biotech products) add further regulatory uncertainty, according to the report.  It emphasizes that digitized and time-bound single window systems can be a game-changer in improving the investment climate across states.