A Call for Digital Governance in Nagaland: Empowering MSMEs | BAN

India’s digital revolution has transformed the way the country does business, with Micro,  Small, and Medium Enterprises (MSMEs) emerging as powerful engines of inclusive  economic growth. With the advent of digital governance, the ease of doing business has  significantly improved—thanks to platforms and schemes such as Udyam Registration, the  Government e-Marketplace (GeM), digital lending portals, and various startup-friendly  initiatives. Today, even entrepreneurs from the most remote corners of India are  participating in the national economy like never before.

This transformation has opened doors for small business owners from a remote and  resourceful state like Nagaland, offering them a fair chance to be part of India’s growing  digital economy.
According to recent statistics from the Ministry of MSME, over 5.5 lakh MSMEs in the  Northeastern Region have registered under the Udyam portal as of late 2024. This includes a  steadily growing number from Nagaland, demonstrating that with the right infrastructure  and policy support, neither distance nor remoteness are barriers to progress.  These MSMEs have gained access to national-level tenders, subsidies, credit linkages, and  GeM procurement opportunities, which were once beyond their reach. This digital shift has  ushered in new opportunities for wealth creation, entrepreneurship, and decentralized  economic participation.

To fully unlock this potential, however, the Government of Nagaland must now take digital  governance seriously and implement it as a core policy for inclusive growth.  Under the Startup India policy, for example, startups can participate in tenders without prior  experience and are exempt from submitting Earnest Money Deposits (EMD)—a move  designed to level the playing field. There are also specific advantages for SC/ST  entrepreneurs, such as the L1 + 15% provision, allowing them to win tenders if their bid is  within 15% of the lowest bid, promoting diversity and inclusion in public procurement.  Additionally, the MSME Samadhaan portal has proven to be an effective tool for addressing  delayed payments to MSMEs, ensuring that small businesses are not left waiting for dues.  Such initiatives have significantly boosted the confidence and sustainability of MSMEs  across the country.

It is this ecosystem of fairness, empowerment, and opportunity that Nagaland must now  build. The tools are already available—what’s needed is the political will and policy  implementation to harness them for the betterment of the people.

The Problem: Opaque Tendering, Unequal Opportunities &  Compromised Quality  
Despite being a state rich in talent and entrepreneurial spirit, Nagaland’s procurement  ecosystem continues to be marred by the opaque culture of table tenders and under-the-table  dealings. It is no secret that across key departments like Home, Transport, PWD,  Agriculture, Horticulture, and Food & Civil Supplies, the same set of contractors have been  receiving work for over a decade.

This monopolization of contracts, often executed without transparency or fair competition,  sidelines aspiring entrepreneurs—especially youth and first-time business owners—who are  left disillusioned and disengaged. The result is a grossly unequal distribution of work and  wealth, leading to widespread frustration and a growing trust deficit between the  government and the people.

Moreover, an unspoken consequence of this tendering malpractice is that contractors who  secure work through backdoor dealings often feel entitled to compromise on the quality of  work or undersupply in the case of goods procurement. Since contracts are allegedly  “bought” rather than earned on merit, there is little accountability or incentive to deliver  high standards. This directly affects infrastructure durability, service delivery, and the  credibility of government institutions.

The Solution: Digital Governance and Transparency 
The Government of Nagaland must build and adopt its own tech infrastructure for e governance, especially for procurement and public tenders. This can be achieved through:
• A State-run e-Procurement Portal, integrated with mobile access, for real-time  publication and monitoring of tenders.
• Transparent and traceable bidding processes, with fair eligibility criteria.
• Inclusion of first-time entrepreneurs and local MSMEs in government procurement  policies.
• Regular capacity building for local businesses to equip them to participate  competitively.
Digital governance will not only reduce corruption but also improve service delivery, ensure  justice to the underserved, and create a fair, accountable, and efficient government.

A Vision for Nagaland  
As part of the NDPP-led Government’s manifesto and its commitment to good governance,  it is only fitting that Nagaland takes the lead in ushering in a new era of digital transparency  and inclusive development.

The State must move away from outdated practices that breed inequality, and instead,  cultivate a culture of integrity, innovation, and public service. Economic justice and digital  governance are not merely administrative tools—they are instruments of social change.

Bhutan, our neighboring country, sets a powerful example by prioritizing Gross National  Happiness. As a Christian-majority state, Nagaland too must walk the talk in setting ethical  standards of governance that promote happiness, equity, and inclusion. This is not just a  policy shift; it is a moral imperative.

A digitized, corruption-free governance system would mean faster services, efficient project  execution, and ultimately a happier, more prosperous Nagaland.

Conclusion  
The Business Association of Nagas (BAN) strongly urges the State Government to  recognize the untapped potential of local entrepreneurs and take immediate steps to  implement a transparent, digital-first governance model.

Let us make Nagaland a beacon of hope, growth, and good governance in the Northeast. Let  us show that a small state can lead with big ideas—and set a bold example not just for India,  but for the world.

Let us lead. Let us reform. Let us rise.

~ Issued by the Business Association of Nagas (BAN)