In an effort to create more employment opportunities, the Karnataka government proposes to decriminalise employers’ compliance and bring in a policy for Micro, Small and Medium Enterprises (MSMEs). CM Siddaramaiah also announced formulation of the Textile Policy 2025-30, aiming to generate 2 lakh jobs.
The Karnataka Budget 2025 includes significant initiatives related to MSMEs and employer compliance. Here’s a breakdown:
- Decriminalization of Non-Compliance:
- The Karnataka government proposes to decriminalize employers’ compliance. This means that violations of certain conditions by employers will no longer be treated as criminal offenses.
- The government plans to introduce the “Karnataka Employers’ Compliance Decriminalisation Bill” and the “Karnataka Employers’ Compliance Digitisation Bill.
- This move aims to simplify regulations and ease the burden on industries.
- MSME Support:
- A separate MSME policy will be formulated to achieve Karnataka’s Sustainable Development Goals, accelerate the economy, and address regional imbalances.
- The government intends to establish more common facility centers under the MSME cluster development scheme to support the sector.
- Focus on Job Creation:
- There is a focus on creating employment opportunities, with allocations made towards this goal.
- Digitization of Compliance:
- Compliance of employment conditions will be digitized. This is a move to modernize and streamline the regulatory process.
A separate MSME policy will be formulated with the objective of achieving Karnataka’s Sustainable Development Goals, accelerate the economy and mitigate regional imbalances.
- Source: Click Here
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