• International Monetary Fund says India’s digitalisation reforms have boosted MSME productivity
  • States with higher digital adoption in public administration saw: Faster productivity growth & Lower gaps between firms
  • Reforms mainly focused on digitising government processes
  • Small and micro firms benefited the most, as they face higher bureaucratic burdens
  • Reforms helped level the playing field between large and small businesses
  • States implementing more reforms saw higher total factor productivity
  • Limited spillover effects: MSMEs did not significantly relocate across states & Reforms were part of a broader push, including a 98-point action plan in 2014
  • Overall impact: Easier business environment & More efficient MSME operations & Reduced informal costs and discretionary decision-making