Gujarat on Thursday said new micro, small and medium enterprise (MSME) units will no longer be required to take various approvals to begin operations for the first three years.
An MSME unit can start operations after getting an acknowledgement certificate from the state nodal agency by submitting ‘declaration of intent’ the state government said after a cabinet meeting.
New MSME units are now exempted from taking various approvals for the first three years. After that they are required to get such approvals withing six months.
Chief minister Vijay Rupani said the new system will ensure ease of doing business and it fetch new investments in the MSME sector.
Early last month, a quarterly survey of small business by the state-run SIDBI has found that their sentiment of SME & MSMEs has been impacted by the broader trends in the economy. The quarterly survey conducted with rating agency Crisil, founds that the index of MSMEs outlook fell to 120 in the June quarter from 122 in the preceding quarter.