Faster economic growth is only possible if the Union and state governments continue to implement reforms that allow small and medium enterprises to operate efficiently and compete cost-effectively, said the Economic Survey 2024 on Friday.
Tabled in Parliament by Union Finance Minister Nirmala Sitharaman, the Survey recommended reducing excessive regulatory burdens, saying governments can help businesses become more efficient, reduce costs, and unlock new growth opportunities.
"Regulations increase the cost of all operational decisions in firms," it noted.
Recognising that the government has implemented several policies and initiatives over the last decade to support and promote the growth of MSMEs, the Survey said some challenges in the regulatory environment remain.
Regulatory compliance burden holds back formalisation and labour productivity, limits employment growth, chokes innovation, and depresses growth.
The Survey observed a tendency for firms in India to remain small and the logic for it often is to remain under the regulatory radar and steer clear of the rules and labour and safety laws.
It said that the biggest casualties of this are employment generation and labour welfare, which most regulations were originally designed to encourage and protect, respectively.
The Union government has undertaken deregulation by implementing process and governance reforms, simplifying taxation laws, rationalising labour regulations, and decriminalising business laws.
"On their part, states have also participated in deregulation by reducing compliance burdens and simplifying and digitising processes," said the Survey.
Stating that such efforts have laid the foundation for states to embark on the next round of reforms now, the Economic Survey 2024-25 has outlined a three-step process for states to systematically review regulations for their cost-effectiveness.
The steps include identifying areas for deregulation, thoughtfully comparing the regulations with other states and countries and estimating the cost of each of these regulations on individual enterprises.
The survey highlights that Ease of Doing Business 2.0 should be a state government-led initiative focused on fixing the root causes behind the unease of doing business.
States should boost biz reforms to generate higher incomes for citizens: Eco Survey
States should focus on business reforms on a priority basis to achieve buoyancies in some industrial or service sectors, the Economic Survey 2024-25 said on Friday.
NCERT team seizes pirated textbooks in Agartala
Officials of the National Council of Educational Research and Training (NCERT), along with Tripura Police, seized pirated NCERT books that were being sold to students in bookshops in Agartala, officials said on Friday.
Mamta Kulkarni's past haunts her, leads to expulsion from Kinnar Akhada
Actress Mamta Kulkarni, who ruled the 90s, has been expelled from the Kinnar Akhada. The designation of Mahamandaleshwar, which was given to the actress, has been revoked. The reason behind the same has been revealed to the actress’ past link to cinema, and her alleged criminal past.
Lifestyle choices, workplace culture key for mental well-being, productivity: Eco Survey
Lifestyle choices and workplace culture are critical for the mental well-being and thus, the productivity of the people in India, according to the Economic Survey 2024-25 on Friday.
Eco Survey: Demographic advantage, responsible approach position India to benefit from AI
With AI research and development currently concentrated in the hands of a few, very large companies that control the resources to erect high entry barriers, AI adoption in place of humans presents the risk of concentrating the benefits of automation.
Prez Murmu faces ‘repeated’ insults from Congress: Sonia Gandhi’s comments fuel backlash
The BJP was quick to condemn the remarks, calling them “derogatory” and accusing the Congress of disrespecting the President. BJP leaders said that Congress’s “feudal mindset” cannot accept that a tribal woman like Droupadi Murmu achieved the position of President of India.
India's farm sector has clocked robust growth on the back of govt schemes: Economic Survey
The agriculture sector in India has shown robust growth in recent years, averaging 5 per cent annually from FY17 to FY23, demonstrating resilience despite challenges, according to the Economic Survey 2024-25.
India a bright spot in global manufacturing despite persistent geo-political tensions: Eco Survey
The global manufacturing landscape has undergone significant shifts over the past decade and India has been one of the dynamic economies that gained a greater presence in the space gradually vacated by developed countries.