The Institute of Small Enterprises and Development (ISED) has recommended several reform measures to the Union government relating to enterprise development and entrepreneurship promotion.

In its pre-budget memorandum, ISED Director PM Mathew said these reform measures are expected to trigger changes in the labour market in favour of enhanced job creation by new job creators themselves, besides nourishing the country’s global value chains in its favour.

As Central banks across the world simultaneously hike interest rates in response to inflation, the world may be edging toward a recession in 2023 and a string of financial crises in emerging market and developing economies that would do them lasting harm, the memorandum noted.

Despite all global constraints, India has a unique advantage with several positive factors such as high domestic demand, opportunities around the increasing middle class and young population, and high returns on investment that are capable of revolutionising the structure and direction of economic growth.

Therefore, as a global investment destination, India’s potential on the manufacturing front is tremendous. Capitalising on such circumstances is both a challenge and an opportunity. It demands some major reform measures suitable for energising the entrepreneurs, and at a time, helps to reduce the pressure on the government as a major job creator, ISED said.

Strategic approach

The government, of late, has come out with a strategic approach to governance focusing on the district. There is a need for a real realignment of a ‘district’ focus from routine governance issues to adopting a competitive, calibrated, and steadfast approach to deliver world-class governance, driven by effective use of technology and evidence- base.

ISED proposes an ‘eleven-point agenda’, covering vital areas such as institutional reform, development finance, and public funding of enterprise and entrepreneurship development initiatives.

GDP and employment have long been recognised as the major indicators of economic progress. Yet, the key driver of this indicator, which is also called the ‘business base’ is critical. The budget should strive on creating such a business base, which is a difficult task. It is this difficult terrain that the budget has to explore, the memorandum noted.