Compliance requirements are showing up as a burden on the chemical units in MSME. The companies are facing difficulty in meeting the compliance requirements. According to the details, every unit in the employment-intensive sector must meet 635 compliance requirements in a month. Hundreds of updates come every week. The big companies can meet these requirements easily with the help of their team and resources. However, this is not possible for the MSMEs. Let us begin with understanding the main concern behind the issue.
Chemicals Units that come under Micro Small and Medium units face difficulty meeting the compliance requirements. The company needs to meet 635 compliance requirements every month. The MSME chemical industry consists of $220 billion. The units are facing difficulty in compliance. Large enterprises have big teams to handle this. However, the MSMEs cannot spend enough resources on a single thing. Being an MSME, the company has a limited manpower which is also not skilled enough in several cases.
The sources mention that the MSMEs do not have the labour who can understand these requirements completely. The data mentions that 200 compliance updates weekly. Apart from that, 700 compliance updates come every month. There are 1,963 updates in the current quarter. Several industry leaders shared their opinions and beliefs about the situation. Co-founder and CEO of TeamLease RegTech mentions that the lack of training of the manpower is the main reason for this difficulty in the MSME sector.
Gujarat Chemical Association chairman, Jaimin Vasa, mentions that the licensing should be based on the specific industry requirements and it should be general for all in the industry. However, these compliance vary as per industry and place also. Different compliance for the same industry in different states makes it difficult for an MSME to comply. Government assistance can help these MSMEs overcome these challenges easily.
The compliance burden is not easy to handle for the micro organizations. However, the government needs to manage it because the chemical industry is increasing in demand in India. India is the third largest chemical industry in Asia. Apart from that, it is the sixth-largest industry in the world. This growing chemical industry in the world cannot be underestimated. Thus, chemical industry growth depends wholly on the constant changes to support the growing players. The chemical industry of India contributes to the 11% of the experts. The experts predict that the industry will become a $1 trillion industry by 2040. The industry reached 6th rank starting from 142nd rank in 2014.