A new report by TeamLease RegTech highlights the heavy regulatory load on India’s small and medium-sized manufacturing businesses (MSMEs). These companies grapple with over 1,450 rules every year, costing them between ₹13-17 lakh annually just to stay compliant. Business owners are calling for reforms to cut the red tape, arguing that simpler rules would free up resources for growth and innovation—especially as they already face challenges like supply chain snags and funding gaps.

Editor’s Note: MSMEs are the backbone of India’s economy, but drowning in paperwork and costs just to follow the rules. If compliance stays this cumbersome, it could stifle job creation and competitiveness—exactly the opposite of what a growing economy needs. The report adds fuel to the ongoing debate about how much regulation is too much, especially for smaller players who can’t afford teams of lawyers or consultants.