A policy gap in Chandigarh’s industrial ecosystem has come under national scrutiny, as Manish Tewari raised concerns in the Lok Sabha over the incomplete implementation of the MSME framework in the Union Territory.
Instead of focusing merely on legislative procedure, the issue highlights a deeper problem: Chandigarh’s businesses may be operating without fully accessing the protections and benefits available under the Micro, Small and Medium Enterprises Development Act, 2006.
Tewari questioned why key provisions of the Act have not been fully adopted locally, even though the law applies nationwide. He pointed out that this gap could be limiting MSMEs in Chandigarh from accessing crucial support systems such as protection against delayed payments, formal recognition of service enterprises, and institutional mechanisms designed to ease business operations.
The concern also extends to competitiveness. Industry bodies have reportedly flagged that businesses in Chandigarh are at a disadvantage compared to neighbouring states where MSME frameworks are more fully operational. This lack of parity, Tewari suggested, could discourage investment and slow down industrial growth in the city.
In response, the Centre clarified that while the MSME Act is applicable in Chandigarh, certain benefits depend on local institutional setups, such as facilitation councils for dispute resolution. The government also noted that over 89,000 MSMEs are already registered in the Union Territory through the Udyam portal, indicating participation but not necessarily full structural support.
The responsibility for implementing a dedicated MSME policy, however, lies with the Chandigarh administration and the Ministry of Home Affairs. This division of responsibility appears to be at the heart of the issue, leaving businesses caught between central provisions and local execution gaps.
Framing the issue sharply, Tewari argued that selective implementation of a central law could undermine the interests of MSMEs—one of the largest employment generators in the city. His remarks bring attention to a broader national question: whether policy design alone is enough, or if effective on-ground implementation is what truly determines economic growth.