Slash Barriers, Boost MSMEs Growth
The Jammu and Kashmir government’s recent decision to constitute a committee aimed at improving the Ease of Doing Business (EoDB) for Micro, Small, and Medium Enterprises (MSMEs) signals a welcome recognition of the sector’s pivotal role in driving economic growth, employment, and regional stability. MSMEs, often hailed as the backbone of India’s economy, have demonstrated remarkable resilience in the face of multiple challenges—from macroeconomic fluctuations to the lingering effects of the pandemic and region-specific constraints such as infrastructural deficits and limited access to formal credit. Yet, despite their contribution, these enterprises continue to grapple with systemic inefficiencies—excessive red tape, fragmented regulatory compliance, and operational hurdles—that stifle their potential. The committee’s mandate, which includes streamlining regulations, addressing non-regulatory barriers, and formalizing unregistered businesses, presents a critical opportunity to reshape the entrepreneurial landscape of the Union Territory.
Past experiences with similar committees—both in J&K and elsewhere—reveal a recurring pattern: well-articulated recommendations often fail to translate into meaningful policy action due to bureaucratic inertia, lack of stakeholder engagement, and weak enforcement mechanisms. For this effort to yield tangible results, the committee must adopt a fundamentally different approach—one rooted in empirical research, inclusive dialogue, and measurable outcomes. The first step must be a thorough, ground-level assessment of the regulatory burden facing MSMEs. Multiple licensing requirements, overlapping inspections, and cumbersome approval processes disproportionately affect small businesses, forcing many to operate informally or abandon expansion plans altogether. A rationalized compliance framework—particularly for start-ups and micro-enterprises—could significantly reduce entry barriers and encourage formalization. Beyond regulatory reforms, the committee must also address the less visible but equally critical non-regulatory constraints that impede growth. Entrepreneurs frequently cite challenges such as unreliable power supply, inadequate transport connectivity, difficulties in securing land, and a shortage of skilled labour as major obstacles. These issues, often overlooked in policy discussions, require targeted interventions—whether through infrastructure upgrades, public-private partnerships, or skill development initiatives. Crucially, the committee’s deliberations must incorporate voices from across the MSME spectrum—from small manufacturers in Srinagar and Jammu to rural artisans and tech start-ups—to ensure that solutions are contextually relevant and implementable. Another pressing concern is the vast informal sector, which operates outside the ambit of government support and financial inclusion. Bringing these enterprises into the formal fold through simplified registration processes, awareness campaigns, and incentives—such as preferential access to credit and subsidies, would not only expand the tax base but also enhance their ability to scale and compete. Digital tools, including mobile-based registration and single-window clearance systems, could play a transformative role here, as evidenced by successful models in states like Gujarat and Karnataka. Yet, regulatory and administrative reforms alone are insufficient. A holistic MSME ecosystem demands robust institutional support, ranging from financial literacy programs and digital infrastructure to marketing assistance and export facilitation. Clustering industries, establishing common facility centers, and fostering mentorship networks can enhance productivity and innovation. Moreover, aligning the committee’s efforts with central schemes such as the Udyam Registration Portal and the Credit Guarantee Fund Scheme will ensure policy coherence and maximize resource utilization. Transparency and accountability must underpin this entire process. Unlike past committees whose reports gathered dust in government archives, this body should operate with a clear timeline, periodic progress reviews, and a public dashboard to track implementation. Regular consultations with industry bodies, subject-focused academicians, and representation of UT outsider entrepreneurs with big investments and civil society will maintain momentum and allow for mid-course corrections.
From a broader perspective, the committee’s work is not merely about improving business rankings—it is about revitalizing J&K’s economic prospects. MSMEs are more than economic units; they are vehicles of social mobility, regional integration, and grassroots innovation. A well-executed strategy can unlock their potential, fostering job creation, reducing disparities, and reinforcing stability. However, this requires moving beyond symbolic gestures and embracing a culture of execution. The committee must be judged not by the volume of its recommendations but by the depth of its impact. If it succeeds, Jammu and Kashmir could emerge as a model for MSME-led growth in challenging environments. If it falters, it will join a long list of missed opportunities. The choice is clear, and the time to act is now.
