Govt considering MSME Code for streamlining all regulations
The government may adopt an MSME Code that will provide a comprehensive set of norms for the sector and will uniformity in state and central regulations on micro, small, and medium enterprises. The new code aims to streamline rules and regulations for MSMEs and improve the ease of doing business for them, said officials in the know. The code may also bring clarity regarding the norms for entry and exit of MSMEs. The norms for the exit of MSMEs gain significance as there is no specific insolvency or bankruptcy policy for the sector, though the government introduced a pre-packaged insolvency resolution process for small businesses in 2021.