FAIITA President Highlights STQC Challenges for MSMEs

A pivotal statement released by Navin Gupta, FAIITA, shed light on the pressing challenges faced by Micro, Small, and Medium Enterprises (MSMEs) in the IT sector due to the stringent Standardisation, Testing, and Quality Certification (STQC) requirements. These regulations, aimed at bolstering data security, have inadvertently created barriers that many MSMEs struggle to overcome.

"While the intention behind STQC certification is to enhance data security, it presents significant challenges that many MSMEs find to be beyond their technical and financial reach," stated Gupta. "The added burden of compliance can lead to operational difficulties, and if not addressed promptly, we risk witnessing the closure of over 1,000 MSME units across the country."

Navin Gupta emphasised that these challenges can stifle innovation and growth within the sector. "Our MSMEs, which are vital to the economy, need support and resources to navigate these stringent requirements. Without adequate assistance, we jeopardise the livelihoods of many workers and the overall health of our industry."

In light of the current economic climate, where prices across various goods and services are on the rise, Navin Gupta urged stakeholders, including the government and financial institutions, to provide necessary support. "It is imperative that we create an environment where MSMEs can thrive, adapt to these challenges, and remain competitive. Collaborative efforts are essential to prevent operational disruptions and ensure sustainable growth," he concluded.

Broader Implications for the Economy

The MSME sector, which contributes approximately 30% to India's GDP and employs over 110 million people, is a cornerstone of economic inclusivity and innovation. However, rising operational costs and stringent regulations risk stifling its potential. Government initiatives like the Emergency Credit Line Guarantee Scheme (ECLGS) and the MSME Digital Scheme have provided some relief, but more targeted efforts are needed

As India continues its journey toward becoming a global IT powerhouse, the sustainability of its MSMEs remains paramount. FAIITA President Navin Gupta's call to action serves as a reminder that collaborative efforts are essential to ensure the sector's resilience and growth. By addressing the challenges posed by STQC requirements, stakeholders can pave the way for a thriving MSME ecosystem that drives innovation and competitiveness on a global scale.

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