According to a working paper by the International Monetary Fund (IMF), India's digitalisation reforms in public administration have led to improved productivity in micro, small, and medium enterprises (MSMEs) in states that have adopted these changes. Economists Somnath Sharma and Kenichi Ueda noted that states with more extensive digitalisation reforms experienced higher productivity growth and reduced productivity disparities among firms. MSMEs, which contribute approximately 35% of India's manufacturing output and employ around 110 million workers, have benefited from these reforms, particularly between 2010-11 and 2014-15. The reforms aimed to simplify regulations and enhance digital systems across six key areas, including tax systems and commercial disputes. While the digitalisation of administrative processes has reduced compliance costs and improved transparency, the paper indicates that microenterprises are unlikely to relocate or expand to states with more reforms, suggesting limited spillover effects. Overall, the findings underscore the importance of digitalisation in enhancing the business environment for MSMEs in India.