“MSMEs are the backbone of our economy, creating jobs and driving growth,” says PM Modi

Micro, Small and Medium Enterprises (MSMEs) have long been recognised as the backbone of India’s economy—driving job creation, innovation, and inclusive growth. Hon’ble Prime Minister Shri Narendra Modi has once again highlighted the government’s unwavering commitment to strengthening this crucial sector.

Speaking on recent developments, PM Modi noted that every reform undertaken by the government has been directed towards making small and medium businesses stronger—whether through easier access to credit, wider market opportunities, or simplified regulatory processes.

The Prime Minister particularly emphasised the importance of the latest changes in GST, describing them as a significant step in empowering MSMEs. These reforms focus on:

• Rationalising tax rates to reduce the financial burden on small businesses.

• Simplifying compliance processes, cutting down on paperwork and operational hassles.

• Boosting enterprises across India by making it easier to operate, compete, and grow in both domestic and global markets.

As part of the 56th GST Council reforms, several key changes were introduced to further support MSMEs. The shift to a simplified two-slab structure (5% and 18%) reduces complexity and makes taxation more predictable. Rate cuts in sectors like textiles, footwear, and small appliances lower input costs and increase demand for MSME products. Additionally, faster GST registration and refund processes ease cash flow pressures, while simplified compliance for e-commerce sellers helps small businesses access wider markets.

PM Modi referred to these improvements as part of a “Next-Gen GST”, ensuring that taxation becomes a tool for growth rather than a hurdle. By making GST more transparent, predictable, and business-friendly, the reforms are expected to unlock new opportunities for entrepreneurs and accelerate India’s journey towards an Atmanirbhar Bharat.

“MSMEs are the backbone of our economy, creating jobs and driving growth,” the Prime Minister said. “With Next-Gen GST, we are not just simplifying taxes—we are creating an ecosystem where small businesses can dream bigger, compete globally, and contribute even more to India’s growth story.”