India, May 3 -- India's digitalisation reforms in public administration have improved productivity in micro, small and medium enterprises (MSMEs) in states that have embraced such changes, the International Monetary Fund (IMF) said in a working paper.

The authors compared the productivity of unincorporated manufacturing firms in states that have undertaken more digitalisation reforms with those having fewer such changes in public administration. "We find that states that undertake more public administration digitalisation experience higher productivity growth and lower productivity dispersion among firms," economists Somnath Sharma and Kenichi Ueda.

MSMEs contribute around 35 per cent of manufacturing output in India, employ around 110 ...