President’s Column
Biswanath Bhattacharya
President, FOSMI
MSMEs: The Unsung Heroes Powering New India
PRESIDENT’S MESSAGE: December 2025
The introduction of GST 2.0 marks a significant milestone in India’s journey towards a more transparent and business-friendly tax system. The substantial reduction in tax rates across a wide range of items – from daily essentials to consumer durables – is a timely step to strengthen purchasing power. Lower prices naturally boost consumption, stimulate market demand, and provide fresh momentum to domestic industry and trade.
However, it is a matter of deep concern that MSMEs are once again facing severe challenges due to global disruptions and domestic pressures. The recent U.S. tariff shock has exposed the vulnerability of India’s export landscape, particularly in MSME-driven sectors such as textiles, leather, engineering goods, and gems & jewellery. Many small exporters are experiencing cancelled orders, delayed payments, and serious cash-flow constraints, which in turn affect employment – especially among semi-skilled and women workers.
At a time when rapid technological advancements and Artificial Intelligence are redefining competitiveness, MSMEs urgently need targeted support in the form of financial relief, policy stability, and skill and capacity building. Strengthening this sector is essential for sustaining livelihoods and ensuring that MSMEs continue to drive inclusive and equitable economic growth.
A very proactive step by the Ministry of MSME, Government of India, is the introduction of the MSME Samadhan – Delayed Payment Monitoring and Online Dispute Resolution (ODR) Portal, effective from 15th October 2025 for all new cases. This digital platform empowers MSMEs to address delayed payment issues swiftly through online filing, tracking, and resolution via MSE Facilitation Councils. With virtual conciliation and arbitration, disputes can now be settled faster, at lower cost, and without physical appearances. This initiative strengthens ease of doing business, safeguards MSME finances, and promotes greater accountability among buyers.
I am also delighted to note that the Open Network for Digital Commerce (ONDC) launched under the DPIIT and the RAMP Programme, is set to revolutionize market access for our MSMEs. By democratizing e-commerce and reducing dependence on large platforms, ONDC will significantly lower transaction costs and create a level playing field. This is a transformative step that connects local production with national and global markets, enabling true digital empowerment and enhancing the competitiveness of every MSME.
The Government of India has further announced the implementation of the Four New Labour Codes from 21st November 2025, marking a landmark reform in labour governance. By consolidating 29 laws into a simplified and transparent framework, the codes aim to ensure fair wages, social security, safe working conditions, and reduced compliance burdens for MSMEs. FOSMI will continue to guide members in understanding these changes and turning compliance into an opportunity for improved productivity and sustainable growth.
FOSMI has submitted its Pre-Budget Memorandum 2026-27 to the Ministry of Finance, based on valuable inputs from our members. We sincerely thank all members for their thoughtful suggestions, which have strengthened our representation on critical MSME-related issues.
As we approach the New Year, I extend my warmest greetings to all our esteemed members. May 2026 bring prosperity, good health, and renewed energy to our entire MSME fraternity.