News
Micro enterprises' share in total exports rises, drops for SMEs
The Economic Times, 29 March 2024
Micro enterprises saw an increase in their share in exports from India in January to 6.63% from 5.79% in 2020–21, whereas the share of small and medium enterprises fell to 10% from 11.64% and to 11.22% from 12.96% respectively, said a report by the Directorate General of Commercial Intelligence and Statistics.
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Total number of registered enterprises on Udyam and UAP crosses 4 crore, a major milestone for formalization initiative undertaken by the Ministry
Press Information Bureau, 15 March 2024
On 15th March, 2024, the total number of registered enterprises on Udyam and Udyam Assist Platform (UAP) crossed 4 crores, which is a major milestone for the formalization initiative undertaken by the Ministry of Micro, Small and Medium Enterprises. The Ministry launched UAP on 11th January, 2023 for enterprises not having GSTIN. In March 2023 the Government of India specified that the certificate issued on the UAP to Informal Micro Enterprises (IMEs) shall be treated at par with Udyam Registration Certificate for the purpose of availing Priority Sector Lending (PSL) benefits.
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Indian SMEs expect human interaction to remain critical within a digital corporate world: HSBC survey
The Economic Times, 21 March 2024
SMEs in India believe that the power of human interaction will continue to play a critical role in the coming decade, even as technology such as AI, robotics and quantum computing dramatically reshapes entire sectors and business models, according to a new HSBC report – “Digital Horizons: How emerging tech will shape tomorrow’s business”.
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Niti Aayog comes up with roadmap to boost exports from MSME sector
Business Standard, 13 March 2024
Niti Aayog has made a case for a single information portal for exporters to promote e-commerce exports and improve access to finance, especially for MSMEs. In a report titled 'Boosting Exports from MSMEs', the Aayog said India has several portals that help exporters to access information, but most offer incomplete or outdated information. "Therefore, creating a one-stop information data intelligence portal, using an Al-based interface will be essential to impart information to MSMEs," the report said.
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50% of women-owned MSMEs are from five States
The Hindu Business Line, 29 February 2024
Women–owned MSMEs constitute 20.5% of the total registered MSMEs in India, but their contribution to employment (18.73%) and investment (11.15%) is slightly lower, indicating potential room for growth and increased impact. Similarly, their contribution to the total turnover of Udyam-registered MSMEs stands at 10.22%, suggesting potential for further economic contribution. The data raises critical questions from a gender perspective indicating barriers or challenges that hinder women entrepreneurs’ full economic participation.
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Commercial credit portfolio of Indian MSMEs grew 11% on-year in Jul-Sep: SIDBI, TransUnion Cibil report
The Economic Times, 28 February 2024
The commercial credit portfolio of Indian MSMEs grew 11% on-year in July–September, as accelerating economic activity boosted demand for commercial loans, TransUnion Cibil and the Small Industries Development Bank of India said.
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Internationally Recognized Kladana Cloud ERP Takes SMEs to New Heights in India
Business Standard, 22 February 2024
Kladana is cloud-based software that automates business processes for small and medium-sized businesses. It's all-in-one ERP: entrepreneurs can manage stock, produce goods, and sell them using the integration with Shopify. Also, integrations with Zoho add accounting & CRM capabilities. Kladana is simple yet feature-rich, affordable, and flexible so that many business routines can be customized.
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For MSMEs, social commerce is the new star in e-commerce
The Economic Times, 6 February 2024
Social commerce has brought about revolutionary changes to the e-commerce landscape in India by integrating social media and online shopping. Social media users can seamlessly discover, explore and purchase products within the interface on platforms such as Instagram and Facebook, making these e-commerce hubs.
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MSMEs to gain from the 7% projected growth for FY 24; expect to make more Capex, says report
The Economic Times, 5 February 2024
MSMEs are increasingly realizing that getting formal recognition is vital to grow, which will help them receive credit from formal institutions (banks and NBFCs) and the various benefits offered by ongoing and future schemes from the government. This was stated in a
joint report by U GRO Capital and Dun & Bradstreet, ‘MSME Sampark Bi-annual report on the latest in MSME lending ecosystem.' The report said that since the inception of UDYAM in 2020, MSME registrations on the platform have increased 2.4 times and generated 1.6 times more employment opportunities by FY23.
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Fintech Tide Formalizes 200,000 SMEs in India through its Digital Platform; Micro & Solopreneurs Lead Adoption for 'Ease of Doing Business'
Business Standard, 16 January 2024
Tide, the UK's leading business financial platform, has reached a significant milestone by onboarding more than 200,000 SMEs (members) in India since its market entry just over a year ago. Tide's rapid growth in India since December 2022 shows how SMEs are leapfrogging to digitize their finances. Tide takes a member-first approach, focusing on removing the pain points for small businesses, starting with the Tide account and card.
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CredAble, Aditya Birla Finance Limited announce financing solutions for MSMEs
The Economic Times, 17 January 2024
Fintech firm CredAble and Aditya Birla Finance Limited (ABFL) announced a strategic partnership aimed at transforming MSME lending in India by leveraging technology and advanced analytics. With CredAble's solution, ABFL has witnessed an increase in lead flow, with nearly 80,000 leads sourced in the past 6 months. Additionally, it has enabled the creation of a significant database for a large NBFC such as ABFL, enhancing analytics for cross-selling various products like merchant financing, top-up loans, and equipment financing.
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Govt to launch portal to push exports by MSMEs, startups
Mint, 16 January 2024
Union commerce minister Mr Piyush Goyal announced the launch of the Trade Connect ePlatform to increase the participation of MSME, and startups in exports, a move aimed at promoting exports with the involvement of small and medium traders. The platform will be available for traders in the next three to four months, the minister said. Trade Connect ePlatform is an intermediary platform providing the facility to connect Indian exporters and entrepreneurs with various stakeholders in international trade.
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States Startup Ranking: Gujarat retains ‘Best Performer’ spot; Maharashtra, Delhi not among best ecosystems
Financial Express, 16 January 2024
Gujarat has retained its position as the ‘Best Performer’ startup state in the country, according to the 2022 States Startup Ranking. Since 2018, Gujarat, among the most prosperous states in India, has bagged the ‘Best Performer’ award.
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Phenomenal growth seen in industries, infrastructure in Andhra Pradesh
The Hindu, 14 January 2024
Andhra Pradesh has witnessed phenomenal growth in the Industries and Infrastructure sectors, apart from employment generation. In the past 55 months over 311 major industries were set up, creating over 1.3 lakh job opportunities. As many as 386 MoUs for investments worth ₹13.11 lakh crore were signed at the Global Investors Summit, and are expected to create another 6 lakh jobs.
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MSMEs confident about India’s economy in 2024, project spike in profits: Report
The Economic Times, 12 January 2024
A recent study has revealed that 90% of MSMEs are confident that India’s economy will be resilient or will further improve in 2024, creating an enabling environment to conduct business. Further, supported by government initiatives to enhance ease of doing business and a strong consumer demand, 91% expect their profits to increase in 2024.
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Nine out of 10 MSMEs expect to make profits this year, says report
Business Standard, 10 January 2024
Nine out of 10 MSMEs expect to book profits during the ongoing calendar year on the back of strong consumer demand and ease of doing business, according to a report by NeoGrowth. MSMEs also said they have benefited from government schemes. The report added that 60% of the MSMEs met their business targets last year.
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Top 3 States contribute 40% of registered MSMEs in India: report
The Hindu Business Line, 9 January 2024
Maharashtra, Tamil Nadu, and Uttar Pradesh collectively contribute nearly 40% of all registered MSMEs in India, per a CBRE-CREDAI report. As of December 2023, there are over 3 crore MSMEs registered in the country, according to government data. Uttar Pradesh has secured a significant position among the top three States, holding a 9 per cent share in the national MSME landscape.
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From its strategic location to low operational costs, SMEs hail Indore’s enabling business ecosystem
The Economic Times, 6 January 2024
Indore has always been a cosmopolitan place with diverse ethnicity, says Mr Gaurav Pahwa, Director, Lotus Electronics. Some reasons that have made the city a great hub for small businesses include its central India location, lower operational costs, and supportive infrastructure, says Mr Anubhav Dubey, Co-Founder and CEO of Indore-based tea-chain Chai Sutta Bar.
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At 23%, Gujarat has 2nd highest SME mcap share
The Times of India, 19 December 2023
Touted as the MSME hub of the country, Gujarat's small and medium enterprises (SMEs) have shown a sizeable growth over the years. The state's SMEs command 23% share— the second highest after Maharashtra—in the total SME market capitalization across India, suggests data by stock exchanges. According to stock market experts, several SMEs are launching IPOs to achieve credibility and faster growth.
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Rs 50,000 crore Self-Reliant India fund: Equity investment in MSMEs nears Rs 6,500 crore
The Financial Express, 15 December 2023
The Rs 50,000-crore Self-Reliant India (SRI) fund by the MSME Ministry and managed by the public lender State Bank of India’s (SBI) private equity arm SBICAP Ventures (SVL) has invested Rs 6448 crores in MSMEs as of November 30, 2023.
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Over 1 lakh MSMEs have registered for the ZED scheme in India: Quality Council of India’s Maheswari
The Economic Times, 14 December 2023
Standardization can help bring the unorganised MSMEs into the formal economy, says Mr Rajesh Maheshwari, Secretary General, Quality Council of India. The Zero Defect, Zero Effect (ZED) scheme, a flagship initiative by the Ministry of MSME, plays a crucial role in this transition. It focuses on zero defects in products and zero adverse environmental and social impacts. More than 50,000 MSMEs have received ZED certifications and more than 1 lakh MSMEs have registered for it. These certifications have enhanced brand reputation, saved costs, expanded market access and increased employee morale.
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MSMEs contributed 45% to India’s exports as of September: Govt data
Financial Express, 12 December 2023
The share of MSME-related products in all-India exports stood at 45.56% as of September in the current financial year. Importantly, India’s overall exports (merchandise and services combined) in April– September 2023 exhibited a negative growth of 2.97% over April–September 2022. The exports during the six-month period in 2022 amounted to $387.8 billion vis-a-vis $376.29 billion till September in the current fiscal, data from the commerce ministry showed.
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MSME contribution to India's GDP lags pre-pandemic highs, shows data
Business Standard, 12 December 2023
The share of MSME in India’s gross domestic product (GDP) in 2021–22 was 29%, lower than the sector's pre-pandemic highs. The share of MSMEs in the country’s total output, in terms of gross value added, touched 31% in 2018–19 before declining during the pandemic, as per data tabled in the Parliament on 12 December 2023.
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31.6 million MSMEs registered between July 2020 and Dec 2023: Govt
Business Standard, 11 December 2023
A total of 3,16,05,581 MSMEs were registered in India between July 1, 2020, and December 4, 2023 on the Udyam Assist Platform, the Central government told the Rajya Sabha on 11 December 2023. Citing data uploaded on the Udyam Registration Portal, Minister of State for MSMEs Mr Bhanu Pratap Singh Verma said the number included informal micro-enterprises.
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BSE issues fresh guidelines for SMEs looking to migrate to main board
Business Standard, 26 November 2023
BSE has put in place fresh guidelines for small and medium enterprises looking to migrate from its SME platform to the main board, whereby the applicant will be required to have a net worth of at least Rs 15 crores for the preceding two financial years. Under the guidelines, the applicant firm needs to be listed on the SME platform for at least three years; 250 public shareholders before shifting to the main board; and a positive operating profit for at least any two out of three financial years with a positive profit after tax (PAT) in the immediate financial year of making the migration application to the bourse.
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Tamil Nadu has tripled its registered startups count from 2021: MSME minister
The Times of India, 25 November 2023
Tamil Nadu has witnessed a remarkable surge in the number of startups, from approximately 2300 registered startups in March 2021 to over 7400 at present, announced state MSME minister Mr T M Anbarasan on 24 November 2023 during the launch of Startup Tamizha, a business reality TV show designed to identify and support 50 startups from across the state with funding from angel investors.
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ADB’s USD 125 million loan to L&T Finance aims at empowering women, farmers and MSMEs in India
The Financial Express, 24 November 2023
The Asian Development Bank (ADB) has entered into a collaboration with L&T Finance, signing a USD 125 million loan agreement aimed at enhancing financial access for women, farmers, and MSMEs in rural and peri-urban areas of India. The funding package, consisting of a USD 125 million loan from ADB and an agreement to syndicate an additional USD 125 million in co-financing from other development partners, underscores the commitment to supporting sectors vital to India’s rural landscape.
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HSBC India and UK Export Finance partner to support Indian MSMEs
The Hindu Business Line, 23 November 2023
HSBC India and UK Export Finance (UKEF), the United Kingdom’s export credit agency, intend to establish a financing programme of up to £100 million to support Indian MSMEs and corporates for financing their imports from the UK. This partnership is expected to enhance the availability of credit for Indian MSMEs and boost trade ties between the two countries.
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Amazon, DGFT sign MoU to boost MSME e-commerce exports through Districts as Export Hubs initiative
The Financial Express, 23 November 2023
In order to boost exports from India’s MSME sector, e-commerce company Amazon India on Thursday announced signing an MoU with the Directorate General of Foreign Trade (DGFT), Ministry of Commerce and Industry. Under the MoU, Amazon and DGFT will co-organise capacity-building sessions, training and workshops in a phased manner for MSMEs across 75 districts identified under the ‘Districts as Export Hubs’ initiative outlined in the latest Foreign Trade Policy.
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Mastercard partners with U GRO Capital for loans to dealers, distributors, last-mile retailers, others
The Financial Express, 23 November 2023
Payments company Mastercard on 23 November 2023 announced a partnership with MSME lender U GRO Capital to offer short-term loans as a digital supply chain financing solution to dealers/distributors and last-mile retailers, among other small merchants and women entrepreneurs. While Mastercard through its vast network will bring together the demand and supply side ecosystem stakeholders to facilitate support to small businesses, U GRO Capital will leverage its proprietary underwriting and cash flow-backed assessment model to offer credit.
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SKG Assets & Holdings launches SKG India Value Fund for SMEs
The Financial Express, 3 November 2023
Financial services firm SKG Assets & Holdings announced the launch of its SKG India Value Fund focused on SMEs. The fund will focus on early-stage companies with growth potential, stock prices undervaluing their growth, companies listing for IPO that meet their criteria, and companies with first-mover advantage in niche markets. The fund will hold the stocks of the listed companies during the projected period, rather than long-term investment.
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SMEs utilizing digital technologies for various business functions: Report
Business Standard, 19 October 2023
Small and Medium enterprises (SMEs) have been utilising digital technology for various functions, with 60% of them using it for human resources, 5% for sales and marketing, and 48% for finance, according to a report by industry body FICCI. The report also revealed that the accounting software (such as Tally/ Vyapar/ Busy, etc.) and business applications like ERP and CRM were reported to be the most used digital tools by SMEs. According to the report, most of the firms have experienced improvements in productivity and reductions in operational costs as a result of incorporating digital technology into their business functions.
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Kerala launches insurance cover for MSME sector to safeguard businesses
Business Standard, 12 October 2023
In a boost to Kerala's thriving MSME sector, the state government has introduced a comprehensive insurance scheme covering MSMEs. This initiative aims to safeguard these businesses from various risks and instill confidence in them to thrive in a competitive business environment. As of now, Kerala boasts over three lakh MSMEs, out of which approximately 140,000 have registered as part of the government's Year of Enterprises initiative. However, only around 15,000 of them have insurance coverage against various risks.
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Vivad se Vishwas - I scheme: Govt grants Rs 256 crore in relief to MSMEs
Business Standard, 26 September 2023
The finance ministry announced on 26 September 2023 that more than Rs 256 crores in relief grant has been given to MSMEs under the Vivad se Vishwas-I scheme for the Covid-19 pandemic period. The government departments and ministries accepted more than 10,000 claims of MSMEs. The ministry said in a release that this move will increase the flow of bank credit by freeing up guarantees.
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G20 declaration should spur govt to give big push to MSMEs: Experts
Business Standard, 24 September 2023
The declaration of G20 nations under India's presidency should spur the government to give a big push to the MSME sector by simplifying the regulatory process and enhancing their access to affordable capital, say experts. The New Delhi Declaration in early September 2023 said the G20 recognize that startups and Micro, Small and Medium Enterprises (MSMEs) are natural engines of growth. They hold the key to socio-economic transformation by driving innovation and creating employment.
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Amazon working on a generative AI to help small businesses in India
The Hindu, 31 August 2023
Amazon India is developing a generative artificial intelligence (AI) tool called SahAI (help/assist) for its business partners to help them with the backend of any particular product. Still in trial stage, this new generative AI is aimed at breaking barriers and helping many new businesses to come on the marketplace, said Amazon during Sambhav summit in New Delhi on 31 August 2023. The SahAI tool will especially assist the small businesses with content, pictures, product details, summary and other aspects of a product.
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GoDaddy launches new solution for small businesses to create videos for better customer engagement
Financial Express, 22 August 2023
Internet domain company GoDaddy has launched a video-based digital marketing and social commerce solution Instant Video for small businesses to create videos for their social media, websites, marketing and more without any additional cost. The AI-backed solution within the GoDaddy Studio app offers various templates to create branded and professional videos for social media promotion, product demos, tutorial videos, etc., to drive customer engagement and sales.
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80% of SMEs want more govt funding initiatives to support digitalization of business: Survey
The Financial Express, 21 August 2023
In a survey by software reviews platform Capterra India, 80% of SMEs said there should be more government funding initiatives to support companies undergoing digitalization. The Digitalisation of Indian SMEs survey- Part II, studying the state of digitalization in India with respect to government funding and initiatives along with major barriers and challenges faced by SMEs, had 435 respondents of which 341 worked for SMEs, and 94 worked for enterprises companies having more than 250 employees.
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Micro biz drives MSME loan growth in Q4: Study
The Times of India, 14 August 2023
Among MSMEs, lending to the micro segment— where credit is less than Rs 1 crore—grew the fastest in the March quarter even as loans to medium-sized businesses shrank. Public sector banks led in MSME loan originations in the micro segment in the fourth quarter of FY23, according to data from MSME Pulse, brought out by SIDBI and TransUnion CIBIL.
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India makes good manufacturing practice, Schedule M mandatory for MSME pharma firms
The Hindu Business Line, 2 August 2023
India has asked pharma companies to complete and obtain a certificate for good manufacturing practices (GMP) over the next 6–12 months beginning August 1. Of the 10,500 manufacturers in India, including MSMEs, only 2000 of them— mainly exporters— have a good manufacturing practice certificate. The move comes in the backdrop of WHO raising concerns about some of the cough syrups being sold overseas, leading to the death of children across countries such as Gambia, Uzbekistan, Cameroon, Marshall Islands, and Federated States of Micronesia.
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Bank credit to MSMEs jump 14% YoY in Apr-Dec FY23; micro units major beneficiaries: RBI annual report
The Financial Express, 30 May 2023
Credit to MSMEs by scheduled commercial banks increased by 14.2% year-on-year during the April–December period of the financial year 2022–23 from 11.7% in the corresponding period of the previous year, according to RBI annual report for FY23. Bank credit to MSMEs till the end of December in FY23 stood at Rs 21.5 lakh crores to 2.13 crore loan accounts vis-a-vis Rs 18.8 lakh crores to 2.47 crore accounts till December FY22.
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Aim to increase SME mix to 30%, says DBS Bank India ED
The Financial Express, 30 May 2023
DBS Bank India is looking to increase its SME mix to 30% of the overall loan portfolio in next five years from 10% currently. In recent years, the bank has launched various products for SMEs like bank statement-based digital loans, GST-based SME loans and alternate lending through trade.
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Over 60% of Indian small businesses use website, e-store or e-commerce to grow; above global average: Report
The Financial Express, 29 May 2023
According to a report by domain registrar GoDaddy, 62% of Indian small businesses use a website, online store or e-commerce platform as their main sales channel to grow their business. This was above the global average of 61%, according to the report Small Business Data Observatory 2023 based on a global survey of small businesses in March 2023.
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Strategic move: Centre to incentivize MSME industrial parks on private land
Mint, 28 May 2023
The Union ministry of MSME is working on a draft to do away with certain regulatory requirements and relaxing guidelines for the setting up of industrial parks on private land in order to create an ecosystem for MSMEs to expand their operations and attract more investments.
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TradeIndia.com launches a platform to provide unsecured loans to MSMEs
The Financial Express, 25 May 2023
TradeIndia.com, the B2B platform connecting sellers and buyers, announced the launch of its MSME financing platform TradeUdhaar. The platform will lend working capital term loans starting from Rs 50,000 and going up to Rs 50,00,000 to MSMEs to help them meet their short-term financial requirements. The company aims to disburse Rs 800 crores to MSMEs in the next two years.
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DBS Foundation to recognize and support Asia’s social enterprises, SMEs via its 2023 Grant Award
The Economic Times, 22 May 2023
DBS Foundation has announced the Business for Impact Grant Award for social enterprises and small-and-medium enterprises (SMEs) that are developing innovative solutions to address pertinent social and environmental issues. Now in its ninth year, the award is designed to recognize and catalyse the growth of businesses that have successfully integrated both social or environmental impact and financial profit into their business models, and are strongly positioned for long-term growth. SMEs and social enterprises can submit their applications until 15 June 2023.
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DBS Foundation to recognize and support Asia’s social enterprises, SMEs via its 2023 Grant Award
The Economic Times, 22 May 2023
DBS Foundation has announced the Business for Impact Grant Award for social enterprises and small-and-medium enterprises (SMEs) that are developing innovative solutions to address pertinent social and environmental issues. Now in its ninth year, the award is designed to recognize and catalyse the growth of businesses that have successfully integrated both social or environmental impact and financial profit into their business models, and are strongly positioned for long-term growth. SMEs and social enterprises can submit their applications until 15 June 2023.
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AB Capital launches platform for MSMEs
The Times of India, 18 May 2023
Aditya Birla Capital, through its lending company Aditya Birla Finance, has launched Udyog Plus, a one-stop business platform designed for MSME customers. The new B2B digital platform offers MSMEs financing, protection, investments, advisory, and value-added services for managing and growing their businesses.
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Maximizing hyperlocal marketing potential for Indian start-ups and SMEs through Google My Business
The Times of India, 18 May 2023
Hyperlocal marketing is a targeted approach that allows start-ups to focus their marketing efforts on specific geographic areas or communities. By doing so, they can reach their target audience without investing in expensive marketing campaigns. One of the most effective ways to implement hyperlocal marketing strategies is by using Google My Business (GMB). By creating a GMB profile and optimizing it for local search, start-ups can improve their visibility, attract more customers, and ultimately build brand awareness.
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70% MSMEs believe UPI will be the driver of retail sales
The Economic Times, 16 May 2023
Seventy per cent of MSMEs believe more than half of their retail sales will be via UPI, according to a study titled ‘Decoding Digital Payments: A Retailer Perspective’, released on 16 May 2023 by NeoGrowth, an MSME-focused digital lender in India. The study was based on a comprehensive assessment of NeoGrowth's customer data set of nearly 3000 retailers along with a survey of about 1000 retailers across the nation. The study covered the digital payments adoption behaviour of Indian retailers across over 25 cities and more than 70 industry segments.
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SMEs require greener solutions to achieve the country’s sustainable development goals
The Financial Express, 15 April 2023
MSMEs and small businesses play a crucial role in achieving the UN sustainable development goals (SDGs), as they are one of the primary drivers of employment, reducing poverty and accelerating economic growth. As per the latest reports by the Udyam portal, in India, over 9.31 crore people, including 2.18 crore women, are engaged in about 1.28 crore registered MSME enterprises. MSMEs also play a critical role in closing the gender gap, ensuring effective women’s participation in the economic activities of society.
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Small businesses are critical to achieving India’s climate leadership ambitions
The Financial Express, 8 April 2023
It is critical that MSMEs reduce their carbon footprint at the speed and the scale required to effectively reach net zero and help limit the worst impact of climate change, which disproportionately affects SMEs themselves. In India alone, there are over 60 million MSMEs employing over 110 million people. In a recent survey conducted by the SME Climate Hub, Indian SMEs reported having a strong will to create a better future for their business and for the planet.
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Apple Online store launches support for SMEs in India
The Hindu Business Line, 6 April 2023
The Apple Store online has launched support for SMEs in India with a dedicated business contact centre team to advise and support purchases of Apple hardware, software, and services. SMEs can now also access all the benefits of shopping at Apple Store Online. This includes custom building Macs, free engraving on iPads, AirPods, AirTags, or Apple Pencil, instant cashback on selected products with HDFC Bank credit cards, no cost EMI available for three and six months for most leading banks, and AppleCare+ for ongoing support direct from Apple
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Indian SMEs prefer consolidated IT tools for cost savings, survey says
Mint, 5 April 2023
At least 93% of SMEs in India prefer consolidated IT tools to enhance productivity and cut saving, an IT management company GoTo has reported in its recent survey. The survey delves into the current state of IT priorities for small and SMEs in the country and evaluates the global trends of IT decision-makers at companies with less than 1,000 employees. The study noted that IT decision makers are looking to reduce costs and increase operational efficiency by using consolidated IT tools.
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Indian MSMEs’ bottomlines hit by volatile commodity prices, exports face headwinds: CRISIL
The Economic Times, 3 April 2023
The profitability of Indian MSMEs was impacted by volatile commodity prices in the previous financial year, leading to credit rating downgrades, rating agency CRISIL said on 3 April 2023. In the second half of FY23, around 60% of the downgrades by CRISIL were in the sub-investment grade category and these largely comprised MSMEs.
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Indian tech SME sector projected to reach $40bn by FY30: Nasscom-ProHance report
The Economic Times, 28 March 2023
Indian tech SMEs are rapidly digitizing and contributing to the country's tech sector growth. Industry body NASSCOM, in collaboration with ProHance has launched a report titled ‘India’s Tech SMEs: Rising in the Global Digital Arena’. The report showcases the growing expectations from the tech SME segments and highlights how the sector is leveraging digitalization and offering new-age digital solutions to their customers, globally.
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Money raised by SMEs via IPO route jumped 130% to Rs 2,229 crore in FY23
The Economic Times, 31 March 2023
India’s SMEs collected Rs 2,229 crores via the initial public offering (IPO) route in the financial year 2022–23, witnessing over a 130% year-on-year jump in the amount raised from the primary markets. In terms of performance, they eclipsed their larger counterparts who witnessed a 53% drop in the collection during this period.
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ET MSME Awards 2022: Announcing the 26 winners of India’s most comprehensive and influential MSME awards
The Financial Express, 3 March 2023
The EconomicTimes.com announced the winners of the ET MSME Awards 2022, India’s most comprehensive and influential awards, at the Grand Finale and Felicitation Ceremony held in New Delhi. The dignitaries and speakers at the Grand Finale event of the third edition of the ET MSME Awards felicitated the 26 MSME winners – all of whom represent the strength, resilience, and immense potential of the Indian MSME sector in propelling India’s Amrit Kaal vision of becoming a developed nation by 2047.
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MSME Minister Narayan Rane launches FIRST to support MSME digitisation in India
The Economic Times, 3 March 2023
Union MSME Minister Mr Narayan Rane on 3 March 2023 announced the launch of FIRST, the Forum for Internet Retailers, Sellers, and Traders in the presence of over 400 retailers and seller organizations. The aim of FIRST is to create awareness and support MSMEs across India on the opportunities that will help them go digital and become self-reliant. Over 17,200 enterprises based in India across the retail, trade and commerce sector, selling goods and services, have registered with the Forum.
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Public Procurement Policy for MSMEs shows positive impact on aspects such as turnover, individual reputation, employment growth, and production capacity expansion
Press Information Bureau, 13 February 2023
The Entrepreneurship Development Institute of India has conducted a third-party study of Public Procurement Policy for Micro and Small Enterprises Order, 2012. According to the study, the impact of the Policy is positive on aspects such as, turnover, individual reputation, employment growth, and production capacity expansion.
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MSME Innovative Scheme under MSME Champions Scheme being implemented for developing and nurturing innovative ideas
Press Information Bureau, 13 February 2023
As per the information provided by NITI Aayog on, there has been a rise in the number of Atal Incubation Centres (AIC), from 13 in 2017 to 69 in 2022. Further, the Ministry of MSME is implementing MSME Innovative Scheme under MSME Champions Scheme for developing and nurturing innovative ideas. Since the scheme’s launch, 632 Host Institutes (HIs) have been recognized to act as Business Incubators.
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EasyPay joins hands with MyShubhLife to offer a line of credit to its customers
The Economic Times, 13 February 2023
MyShubhLife, a digital lending and full-stack financial service platform, and EasyPay, the Digital Banking platform for the MSME sector in India, have partnered to offer a line of credit to EasyPay merchants. The collaboration will allow MyShubhLife to utilize its technology and quick processes to tap into the EasyPay customer base and enable quick loan disbursals. The partnership intends to serve the unorganised domestic retail sector.
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Employment opportunities created in MSMEs under the PMEGP Programme of KVIC for assisting entrepreneurs in setting up of new units in the non-farm sector
Press Information Bureau, 13 February 2023
Ministry of MSME, through Khadi and Village Industries Commission (KVIC), is implementing Prime Minister’s Employment Generation Programme (PMEGP) for assisting entrepreneurs in setting up of new units in the non-farm sector. It aims to bring together widely dispersed traditional artisans/ rural and urban unemployed youth and give them self-employment opportunities to the extent possible, at their doorstep. Under PMEGP, General Category beneficiaries can avail of Margin Money (MM) subsidy of 25% of the project cost in rural areas and 15% in urban areas.
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Haryana plans mini clusters for MSME push
The Tribune, 11 February 2023
Inspired by the Centre’s ambitious MSE cluster scheme, Haryana had formulated the State Mini Cluster Development Programme, under which a 90% grant-in-aid is provided for setting up common facility centres. At present, the process of setting up 43 mini clusters is going on in Haryana, out of which 25 clusters have started.
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Insurance companies can now participate in TReDS: RBI
The Financial Express, 10 February 2023
To increase MSMEs participation on invoice discounting platform Trade Receivables Discounting System (TReDS) and enhance their working capital flow, the central bank permitted insurance facility for invoice financing under the platform. It further mentioned that all the entities or institutions eligible to undertake factoring business under the Factoring Regulation Act will be permitted to participate as financiers in TReDS. Also, secondary market operations will also be enabled on TReDS platforms which would allow financiers to offload their existing portfolio to other financiers within the same TReDS platform, if required.
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Budget 2023-24 gives a boost to fund-starved sectors: MSME Secy
The Financial Express, 9 February 2023
The government in the Union Budget 2023-24 has given a boost to the fund-starved MSME sector by enabling higher credit flow and simplifying compliances, said Mr B B Swain, Secretary to the Union Ministry for MSME. The launch of a revamped credit guarantee scheme worth Rs 9,000 crore for MSMEs in the Budget would enable collateral-free credit of Rs 2 lakh crores of loans to small businesses.
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RupeeBoss Financial Services launches “MSME Bharat Manch” – A Nation-wide Initiative to Empower MSMEs
The Hindustan Times, 8 February 2023
In a major development in the MSME ecosystem, Rupeeboss.com—an MSME loan Fintech which is a National distributor for 100-plus banks and NBFCs for MSME loans—has launched MSME Bharat Manch, a nation-wide initiative to create an empowering ecosystem for scaling up the MSME sector.
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Union Budget 2023: MSME sector lauds revamped credit guarantee scheme, hails measures to revive the fund-starved sector
The Economic Times, 3 February 2023
MSME stakeholders have lauded the sector-centric announcements in the Union Budget 2023–24, such as the announcement of the launch of a revamped credit guarantee scheme worth Rs 9,000 crore for MSMEs. In her Budget speech, the FM asserted that the move was expected to boost fund flow to the distressed and fund-starved smaller firms.
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Cut in customs duty, support to MSMEs in Budget to help boost manufacturing, exports: Exporters
The Economic Times, 3 February 2023
The announcements for tweaking customs duties in certain sectors and measures to support MSMEs will help in boosting domestic manufacturing and the country's outbound shipments, according to exporters. Increase in capital investment outlay by 33% to Rs 10 lakh crore, 50 years’ interest free loan to states to incentivize infrastructure investment, highest-ever capital outlay for railways, and several infrastructure projects in ports, coal, and steel will have a multiplier effect on economy and employment.
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Singapore chamber says pro-SME budget offers opportunities in India
Business Standard, 3 February 2023
Describing India's budget for the financial year 2023-24 as a pro-business and pro-SME friendly, the Singapore Indian Chamber of Commerce and Industry (SICCI) said it provides many collaborative opportunities in developing close business ties with the small and medium enterprises of both Singapore and India.
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Indian MSME market outlook appears positive despite softening global economy: Kantar's ITOPS 2022 study
The Financial Express, 31 January 2023
Kantar, which recently completed 27 years of tracking MSME market in India across 48 cities, has released its ITOPS 2022 study, which highlights that the pandemic had hit the MSME businesses hard, but the segment has bounced back. Further, it states that the Indian economy and the MSME business outlook appear extremely positive despite the worry of the global economic scenario.
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Indian cos raise Rs 5.06 lakh crores via equity, debt during Apr-Nov 2022: Eco Survey
The Economic Times, 31 January 2023
Indian companies mobilised Rs 5.06 lakh crores through the equity and debt routes during April–November 2022, a drop of 8.5% from the year-ago period, according to the Economic Survey 2022-23. Fund mobilization through debt contributed a lion's share to the overall fund-raising during the period under review.
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Centre's ECLGS scheme saved 14.6 lakh MSMEs: SBI
Fortune India, 23 January 2023
As the MSME sector charts a new story post-pandemic, the credit growth to MSMEs has also been distinctly and consistently higher on both, YoY basis as well as in comparison with credit growth to large industries, SBI Research says in its latest report titled 'The rise of the prodigal: How the MSME Sector is charting a new story post pandemic'. Incentives provided by the Emergency Credit Line Guarantee Scheme (ECLGS), coupled with lower Gross Non-Performing Assets (GNPA) ratios, appear to have helped in boosting credit to MSMEs. The Centre's ECLGS scheme helped boost credit flow to MSMEs, thus saving around 14.6 lakh MSMEs accounts, the data shows.
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M1xchange to help MSME exporters finance their invoices via new ITFS platform
Financial Express, 22 January 2023
Reserve Bank of India (RBI)-licensed trade financing platform M1xchange is testing the International Trade Financing Services (ITFS) platform international version of the trade financing service TReDs. M1xchange said ITFS will allow MSMEs to avail early payment at interest rates as low as 4–9% against their invoices after exporting their goods and services to the US, Europe, Middle East and Singapore markets from various financiers on boarded with ITFS.
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Research institute TERI plans to introduce low-carbon technologies in AP’s MSMEs with Japan’s assistance
The Financial Express, 16 January 2023
The New Delhi-based research institute, TERI, is planning to introduce low-carbon technologies in Andhra Pradesh-based MSMEs with the assistance of the Japanese government, said a report by The Hindu. TERI after due consultation and consent from Bureau of Energy Efficiency (BEE) and other concerned departments will be able to bring in these technologies from Japan.
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ESG adoption can help MSMEs play big role in reducing carbon emissions: Experts
The Financial Express, 17 January 2023
With sustainability gaining ground world over, India’s MSMEs can play a huge role when it comes to saving the environment from increasing carbon emissions by embedding environmental, social, and governance (ESG) measures into their business models, industry experts said at an event discussing the role of grassroot entrepreneurs for sustainable development.
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Central Bank of India enters into co-lending partnership for MSME loans
Business Standard, 12 January 2023
Central Bank of India said that it has entered into a strategic co-lending partnership with Mamta Projects (MPPL) to offer MSME loans at competitive rates. Mamta Projects is a new-age, tech and risk-analytics focused lending institution.
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Centre has earmarked Rs 76,000 crores to boost investment in MSMEs in the northeast region: MSME Minister Narayan Rane
The Financial Express, 9 January 2023
MSME Minister Mr Narayan Rane said that the central government has set aside Rs 76,000 crores to expedite investment in the MSME sector in the Northeastern states of the country. The funding of MSMEs has substantially increased from Rs 68,000 crores sanctioned for the financial year 2021–22.
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South Indian Bank launches MSME online portal
The Hindu Business Line, 9 January 2023
The South Indian Bank launched an MSME online portal providing instant online ‘In Principle’ approval of up to ₹1 crore. This initiative will help thousands of micro and small businesses avail loans quickly.
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Kerala Govt’s Year of Enterprises project gets recognition for ‘best practice model’ to promote MSMEs
The Financial Express, 9 January 2023
The Kerala government’s Industries department got recognition from the centre for its Year of Enterprises project which was selected as one of the best practices in the ‘Thrust on Micro, Small and Medium Enterprises (MSMEs)’ category. Under this project, more than one lakh enterprises were set up in eight months in the state of Kerala.
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BSE partners with Goa govt to encourage listing among state MSMEs
The Financial Express, 8 January 2023
Stock exchange BSE has partnered with the Goa government to create awareness among SMEs in the state on the benefits of listing and also guide them on raising capital through equity infusion. Under the memorandum of understanding (MoU) signed between BSE and the state government, the Department of Industries and Commerce, Goa will support in “mobilizing the SME representatives through the District Industries Centre as well as the state/regional associations/chambers encouraging their SME members to attend capacity-building programs organized by the Exchange.”
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Coming soon: Udyam-like registration portal for MSMEs
The Financial Express, 29 December 2022
MSMEs will have another official portal, apart from the existing Udyam Registration portal, to register themselves and avail the benefits of priority sector lending. The upcoming portal Udyam Assist Platform (UAP) by SIDBI will cater to the registration of informal units as part of the endeavour by the government and SIDBI to enhance the formalization of the MSME sector. Apart from making the registered entities eligible for benefits under government schemes, they can also be seamlessly connected to the fast-emerging digital ecosystem including platforms like GeM, TReDS, Invoicemart, other digital marketplaces, etc.
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Redefining business growth for Indian MSMEs with a hybrid model
The Financial Express, 24 December 2022
Adoption of technology and innovative business models has always been the gradual next step towards progress for MSMEs. The year 2022 witnessed numerous companies adopt the hybrid model wherein many entities were able to possess an omni channel presence across both offline and online mediums. This not only helped MSMEs to pivot their businesses and adapt to the consumers’ growing preferences and inclination towards online buying, but also enabled them to enhance transparency and consumer trust in the process.
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Drip Capital and Vayana TradeXchange partner to provide export finance solution for SMEs
The Financial Express, 21 December 2022
Digital trade finance companies Drip Capital and Vayana TradeXchange announced their partnership to provide export finance solutions to SMEs. Drip Capital said the partnership will allow it to leverage Vayana’s ITFS (International Trade Finance Services) platform to provide financing solutions to SMEs by converting their trade receivables into cash and easing working capital for them.
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Fintech app UpScale launches e-invoicing solution for SMEs
The Financial Express, 19 December 2023
Credit and cash flow management app UpScale by fintech platform CredAble announced the launch of its new e-invoicing solution to help SMEs with financial operations management. The company said with e-invoicing, organizations would be able to streamline their invoice processing cycles, further reducing the man-hours required for invoice processing, approval, tracking, and chasing invoices and human errors, thus resulting in a much faster turnaround time.
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ZED scheme: This many MSMEs are ‘gold’ standard for sustainability in India
The Financial Express, 15 December 2022
The MSME Sustainable (ZED) Certification scheme launched by the government in April 2022 to encourage MSMEs to improve their manufacturing processes and systems to enhance quality and move towards sustainability has registered more than 22,000 enterprises so far. According to the data shared by the minister of state for MSMEs in a written reply to a question in the Lok Sabha, out of total registrations, 734 MSMEs were awarded bronze certification while 32 MSMEs won silver certification and 25 were awarded gold certification.
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Accelerating credit flow to MSMEs essential to $5 trillion economy dream by 2025: KPMG report
The Financial Express, 27 November 2022
Accelerating the flow of credit to small enterprises is essential for India to achieve its $5 trillion economy dream by 2025 as the MSME sector has a been major driver in the country’s rise as the world’s fifth largest economy, said industry body KPMG in its latest November 2022 report on non-banking financial companies (NBFCs) and housing finance companies (HFCs). The MSME loan market has expanded from Rs 31 lakh crores in March 2020 to Rs 33 lakh crores in March 2021, Rs 35 lakh crores in March 2022, and Rs 36.4 lakh crore as of June 2022, with 88% of registered borrowers belonging to micro segment, 10% to small segment and only 2% to medium segment, the report showed.
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Tamil Nadu retains top spot among states in number of factories; 10k more than Gujarat: RBI report
The Financial Express, 21 November 2022
Tamil Nadu has remained the top state in India with the maximum number of factories including micro, small and mid-sized units followed by Gujarat, Maharashtra, Andhra Pradesh, and Uttar Pradesh in the top-five bracket on a list of 36 states and union territories across India, according to the seventh edition of RBI’s annual report Handbook of Statistics on Indian States 2021–22.
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16–18% MSME credit growth likely this fiscal and next vis-a-vis 10-12% growth in corporate credit: Crisil
The Financial Express, 15 November 2022
Bank credit to MSMEs is expected to grow at a “reasonable clip” of 16–18% during the current fiscal and FY24 given the MSMEs’ role in Atmanirbhar Bharat initiative, and the flow-through impact of schemes such as the Productivity Linked Incentive (PLI) scheme should sustain credit demand, according to credit rating agency Crisil.
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Nearly 9 crore people employed by this many MSMEs registered on Udyam portal: Govt data
The Financial Express, 13 November 2022
The Udyam Registration portal’s data disclosed by the MSME Ministry over two years after the launch of the portal showed 8.81 crore people employed by 1.19 crore MSMEs registered on the portal. Out of the total employment, 2.05 crore were women, the latest data published on the portal at the time of publishing this report showed. The portal had 1.48 lakh exporting units registered with an export value of Rs 9.55 lakh crore. In terms of business activity, over 34,000 enterprises registered on the Udyam portal were in manufacturing in comparison to 84.74 lakh service MSMEs.
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FISME joins hands with South Korea’s Yangsan Chamber of Commerce and Industries to support MSMEs in both the countries
The Financial Express, 10 November 2022
Federation of Indian Micro, Small and Medium Enterprises (FISME) signed a Memorandum of Understanding (MoU) with Yangsan Chamber of Commerce and Industries (YCCI) of South Korea to support and strengthen MSMEs in both the countries. As a part of this agreement, FISME will help the entrepreneurs based in Yangsan city to form business ties with the Indian SMEs.
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Manufacturers want more credit flow to SMEs, interest rate cap, among measures to boost growth: FICCI survey
The Financial Express, 7 November 2022
Over 300 SME and large units across major sectors have suggested more credit to SMEs and interest rate caps among measures required for manufacturing growth, in the latest quarterly survey on manufacturing by industry body FICCI on 7 November 2022.
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SMEs struggle most with digital marketing, order management, payments in online sales: BCG survey
The Financial Express, 2 November 2022
Even as awareness and adoption of digital tools are gradually increasing among SMEs to sell more online and grow faster, there are multiple aspects of digital sales where enterprises have been struggling. While more than 60% of SMEs expect their online sales will further increase in the future, digital marketing was the major area of challenge for 78% of them, said a BCG India MSME Survey 2022 of over 1,000 MSMEs by Boston Consulting Group.
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MSME Ministry and IIT Kanpur give grants to seven micro enterprises under MSME Design Innovative Scheme
The Financial Express, 19 October 2022
The Ministry of MSME joins hands with Indian Institute of Technology (IIT) Kanpur’s technology based incubator, Startup Incubation and Innovation Centre (SIIC) to facilitate the MSME Design Innovative Scheme. The partnership will leverage design expertise and the design fraternity to improve India’s manufacturing sector. Under this arrangement, selected small companies would be given grant-in-aid for developing prototypes. The MSME Ministry’s Design Innovative scheme offers grants to the final year Undergraduate and Postgraduate students engaged in design development and MSMEs working in the design domain. These funds are awarded for one year for the development of select prototypes.
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SIDBI and Dun & Bradstreet India launch Sustainability Index dedicated to MSMEs
The Financial Express, 3 October 2022
SIDBI and Dun & Bradstreet signed an MoU to create the SIDBI–D&B Sustainability Perception Index (SIDBI –D&B SPeX). The index will be presented as a quantitative measurement for policy makers and enablers to nudge businesses towards adopting an ESG framework in their business strategy over the coming years.
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E-commerce opportunities set to grow for SMEs under 'new normal': FedEx
The Economic Times, 29 September 2022
The latest e-commerce trends from a research commissioned by FedEx Express shows that SMEs as well as consumers agree that there is room for further growth in the already booming e-commerce sector. 83% of Indian consumers have purchased more from e-commerce platforms in the last three years and this momentum is likely to continue.
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MSMEs’ business spends market is pegged at around $1 – $1.5 trillion: Report
The Financial Express, 27 September 2022
The current business spends market in India for MSMEs is estimated to be in the range of $1 – $1.5 trillion, reveals the report ‘Rising Digital Business Spends: Managing a $15 Trillion India Opportunity’ from spends management firm EnKash and management consulting firm Kearney. The study pegs the overall business spends market in India at $7 trillion with the potential to reach $15 trillion by 2030. It found that the window of opportunity for growth lies in the small to medium-sized businesses given their large volume in the country.
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Japan to bring its SMEs, startups to India in a bid to ramp up number of Japanese companies: Report
The Financial Express, 6 September 2022
Japan is planning to bring its small and mid-sized companies and startups to India to increase the number of Japanese companies here, said a report by Asian Community News Network. The country is looking to invest in new opportunities in non-conventional areas such as processed foods, agro-tech, e-commerce, fresh fruits, retail, healthcare, electronics, space, co-research and R&D.
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IIoT adoption remains low in SMEs: Deloitte India and CII
The Hindu Business Line, 30 August 2022
The global Industrial Internet of Things (IIoT) market is expected to reach $1.1 trillion by 2028, with a compound annual growth rate (CAGR) of 22.7%, but IIoT adoption remains relatively lower in small and medium-sized manufacturing firms compared to large-scale manufacturing firms, according to the latest study by Deloitte India and the Confederation of Indian Industry.
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India, Mauritius sign MoUs for cooperation to boost MSME sector; discuss B2B meets, training programmes
The Financial Express, 25 August 2022
The MSME Ministry on 25 August 2022 announced two memorandums of understanding (MoUs) signed between India and Mauritius on cooperation in promoting the MSME sector of the two countries.
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80% SMEs expect jump in order books in Q3 as demand revives: Survey
The Financial Express, 24 August 2022
The business confidence of SMEs in India has improved with 80% of enterprises expecting an increase in their domestic order books in the third quarter of 2022 with pick-up in demand, up five percentage points from the second quarter, according to the Small Business Confidence Index survey released by industry body Assocham and analytics company D&B on 24 August 2022.
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Telangana govt’s WE Hub incubator partners with UK’s neobank Tide to support women-led SMEs
The Financial Express, 24 August 2022
Telangana government’s incubator for women entrepreneurs WE Hub said it has partnered with the United Kingdom-based SME-focused neobank Tide for a year to help women entrepreneurs in India start and grow their businesses. The incubator said the collaboration will help women entrepreneurs overcome administrative challenges in establishing and scaling their businesses.
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Defence ministry to review No Cost No Commitment trials to increase MSME participation
Financial Express, 23 August 2022
The Ministry of Defence is contemplating to review the ‘No Cost, No Commitment’ trial, where the government neither bears the cost of trials nor is obliged to purchase the equipment post-trial, to offer a level playing field for small businesses and start-ups in the defence sector. The move will encourage MSMEs and start-ups in the business sector to apply for the bids by the ministry.
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Listed SMEs have better profitability ratios, higher return on assets but lower liquidity: RBI paper
Financial Express, 16 August 2022
Even as SMEs listed on the two SME exchanges in the country, BSE SME and NSE Emerge, have better profitability ratios, higher return on assets and asset utilisation ratios and also debt-equity ratio in comparison to the smallest 25 per cent of firms listed on main boards, they have lower liquidity as reflected in a lower quick ratio, current ratio and cash to current liabilities, a working paper by the RBI noted.
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Indian MSME exporters facing demand squeeze in global markets
The Hindu Business Line, 11 August 2022
MSME exporters are facing slowdown in demand in the global markets due to the ongoing war between Russia and Ukraine and they have sought immediate intervention of the government to deal with the situation. Exports dipped, though marginally, for the first time in 17 months in July, while trade deficit tripled to a record $31 billion fuelled by over 70 per cent rise in crude oil imports.
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Government offers use of 5G test bed free of cost for SMEs, start-ups
The Indian Express, 9 August 2022
In a bid to boost the 5G ecosystem in the country, the government has decided to offer the indigenous 5G test bed to use free of cost to the recognised start-ups and MSMEs for the next six months up to January 2023. For other stakeholders, this service will be available at a very nominal rate.
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18.34 lakh MSMEs established in FY21-22 employ 1.16 crore people, according to Udyam data
The Financial Express, 2 August 2022
Haryana has got the highest number of MSMEs registered during the financial year 2021–2022 with 66,767 MSMEs that employed 3.36 lakh jobs. Of these MSMEs, 66,442 are micro-enterprises, 318 are small enterprises, and 7 are medium enterprises.
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Google-backed Open plans to on-board 10 million small businesses in three year
Business Standard, 2 August 2022
Open, the Google and Tiger Global-backed neo bank, is planning to on-board about 10 million small businesses in three years as it aims to solve a series of challenges faced by SMEs for managing their business finances, using technology. Open offers a business account in partnership with banks that help SMEs automate and run their finances effectively. It is now serving more than 2.3 million SMEs and processing $30 billion in transactions annually.
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MSME sector among emerging areas of cooperation between India and Uzbekistan: Piyush Goyal
Financial Express, 1 August 2022
Commerce Minister Mr Piyush Goyal has underlined the MSME sector as one of the seven focus areas to enhance cooperation between India and the Central Asian nation Uzbekistan. Terming India-Uzbekistan relations as key to India’s vision of an ‘integrated extended neighbourhood’, Mr Goyal noted digital payments, space cooperation, agri and dairy, pharma, gems and jewellery, and Inter-regional cooperation apart from MSME as the seven emerging areas of cooperation between both the nations.
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SIDBI partners with SVC Bank for empowering MSMEs
The Economic Times, 1 August 2022
SVC Co-operative Bank Ltd and SIDBI have announced that they are entering into a partnership whereby SIDBI will extend refinance facility to SVC Bank to facilitate an improved flow of credit to MSMEs.
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MSMEs’ share in Indian GDP falls by 4% during FY21
SMES Futures, 1 August 2022
Economies across the globe are dealing with the post-pandemic impacts in the forms of inflation, recession. The same goes for India’s MSME sector as, according to the data, Indian MSMEs‘share in the total GDP had fallen from 30.50% during the financial year 2018–19 and FY20 to 26.83% during the first year of the Covid-19 pandemic, i.e., FY (fiscal year) 2020–21.
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Oppo to invest $60 million in Indian SMEs to boost local smartphone supply chain
Mint, 29 July 2022
Oppo will invest $60 million (approx Rs 476 crores) in SMEs and MSMEs in India to “strengthen" the “local supply chain" network for smartphones. The investment will be made in phases over a period of five years under project ‘Vihaan,’ Oppo added. Oppo said it has collaborated with the government and industry to help 30 “Tier-1 suppliers" set up operations in India employing “tens of thousands" of Indians. Oppo said it has also developed a strong network of 1,000 distributors since it started operation in the country.
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Technology key to building MSMEs’ competitiveness; need to identify ‘sectors of excellence’ for growth: Experts
The Financial Express, 22 May 2022
MSMEs are critical to India’s overall ability to be a dominant player in global trade. In 2021, India was ranked 43rd among 64 nations on the annual World Competitiveness Index compiled by the Institute for Management Development (IMD). However, the country has been ranked at that position for three years consecutively. To improve the competitiveness of Indian businesses, experts believed technology to be the key enabler.
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Pharma excipients manufacturer Sigachi Industries bags top 100 SME Award 2022
The Financial Express, 19 April 2022
Pharma excipients manufacturer Sigachi Industries has bagged top 100 SME Award 2022 from India SME Forum for manufacturing world-class products and providing excellent services to customers globally. The award was given by Mr Bhanu Pratap Singh Verma, Minister of State for MSME, Government of India in the recently concluded 9th edition of the India SME 100 Awards 2022.
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DBS launches new grant programme offering SMEs up to $100k to go green
The Straits Times, 18 April 2022
Grants worth up to $100,000 will be made available for small and medium-sized enterprises (SMEs) that are creating innovative sustainability solutions, under a new programme launched by DBS Foundation. The programme aims to support companies that propose to address challenges in one of three areas: reducing energy consumption, reducing waste or creating sustainable supply chains. Besides the financial help, the companies can also get structured mentorship and advisory support. The firms will also get help in scaling their businesses, including a range of solutions related to working capital, supply chain financing and digital transformation. The SMEs must be incorporated in Singapore, Hong Kong, Taiwan, India or Indonesia.
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Lendingkart: Loans disbursed to MSMEs jump 150% in FY22 from previous year
The Financial Express, 17 April 2022
Loan disbursements on MSME-focused digital lending platform Lendingkart has enabled the disbursement of Rs 2747 crores in unsecured loans in the last financial year, up 150% from Rs 1098 crores disbursed in FY21, and 16% from Rs 2365 crores in FY20. The total disbursements since the launch of the company in FY15 stood at around Rs 9108 crores to around 1.70 lakh MSMEs from over 15 lakh loan applications received in eight years.
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Over 30,000 small, medium brands in retail catering to 80% of India’s population: CAIT
The Financial Express, 17 April 2022
Over 30,000 regional-level small and medium enterprise (SME) brands in the country are catering to India’s retail trade in comparison to around 3000 corporate brands present particularly in the fast-moving consumer goods (FMCG), consumer durables, cosmetics, and other segments, according to Confederation of All India Traders (CAIT). While corporate brands meet the demand of almost 20% of India’s population, the remaining 80% is catered to by small and medium-sized brands selling products in loose quantity
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Over 30,000 small, medium brands in retail catering to 80% of India’s population: CAIT
The Financial Express, 17 April 2022
Over 30,000 regional-level small and medium enterprise (SME) brands in the country are catering to India’s retail trade in comparison to around 3000 corporate brands present particularly in the fast-moving consumer goods (FMCG), consumer durables, cosmetics, and other segments, according to Confederation of All India Traders (CAIT). While corporate brands meet the demand of almost 20% of India’s population, the remaining 80% is catered to by small and medium-sized brands selling products in loose quantity
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Retail, MSMEs push credit growth rate to near double-digits
The Indian Express, 19 April 2022
Credit growth in the banking sector is set to hit the double digits with offtake by borrowers rising by 9.6 per cent as on 25 March 2022, signalling the economy could be showing signs of a comeback on the back of a big capital expenditure push by the government. With Covid pandemic hitting the economy, credit growth had dipped to 5.6 per cent in the same period last year, according to the latest Reserve Bank data. In absolute numbers, credit offtake almost doubled by Rs 10.43 lakh crore as of March 2022 as against Rs 5.78 lakh crore last year.
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SMEs facing elevated working capital pressures largely due to rising receivables: India Ratings
The Financial Express, 8 April 2022
SMEs in the country are going through elevated working capital pressures largely due to rising receivables with their buyers and lack of a similar increase in creditors, said ratings and research firm India Ratings & Research (Ind-Ra). According to the data of the top 1500 non-financial large corporates analysed by Ind-Ra, the payables by top 10 large corporates to SMEs, as a share of their total payables, had jumped to 1.24 per cent in FY21 from 0.35 per cent in FY18, and 0.1 per cent in FY12. The rise in payables was sharpest among the top 51–100 corporates to 2.76 per cent in FY21 from 0.12 per cent in FY15.
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Stand Up India: 1.33 lakh new entrepreneurs supported with Rs 30k crores loans, says FM Nirmala Sitharaman
Financial Express, 5 April 2022
More than 1.33 lakh new entrepreneurs have been facilitated under the Stand Up India scheme including more than 1 lakh women promoters during the six years of its operation, Finance Minister Ms Nirmala Sitharaman said on 5 April 2022. The scheme was launched by Prime Minister Narendra Modi on 5 April 2016, to support women and scheduled caste & scheduled tribe (SC/ST) entrepreneurs in setting up greenfield enterprises.
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Women-led MSMEs in India rise 75% to 8.59 lakh units in FY22: Govt data
The Economic Times, 31 March 2022
The number of women-led MSMEs in India has increased by over 75% in FY22 to 8.59 lakh units, against 4.9 lakh units in the previous fiscal, Parliament was informed on 31 March 2022.
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Fintech platform CredAble disburses record $3 bn to 1,50,000 SMEs in 12 months
The Financial Express, 30 March 2022
Working capital financing platform CredAble said it has disbursed a record $3 billion to 150,000 cash-strapped SMEs in the past 12 months. The disbursements were enabled via capital sourced from over 30 financial partners including private banks, non-banking financial companies (NBFCs), and large multinationals. The company said it disburses working capital at a monthly run rate of approximately $450-500 million.
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MSME Ministry to set up Global Market Intelligence Network for MSME exports
The Economic Times, 29 March 2022
At an event co-organized by the Ministry of MSME and Entrepreneurship Development Institute of India (EDII), MSME Minister Mr Narayan Rane said, that the MSME Ministry will come up with a Global Market Intelligence Network to help MSME exports.
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Govt data: Number of people employed by Udyam MSMEs doubled in FY21 from previous year despite Covid
The Financial Express, 16 March 2022
The number of people employed by Udyam-registered MSMEs increased massively during Covid, according to the government data. In fact, the number of people employed in FY21 by MSMEs had more than doubled from pre-Covid FY20 and was also significantly higher than the expected number of job losses in the sector because of the pandemic.
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Govt launches Innovative Scheme to provide incubation, improve design, commercialize patents for MSMEs
The Financial Express, 10 March 2022
The MSME Ministry on 10 March 2022 launched the MSME Innovative Scheme with the combination of existing sub-schemes around incubation, design, and intellectual property rights (IPR) for MSMEs. The new scheme would act as a hub for innovation activities facilitating and guiding the development of ideas into viable business propositions that can benefit society directly and can be marketed successfully.
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Digitalization Helped MSMEs Sustain During Crisis: ICRIER Study
India Education Study, 07 March 2022
Digitalization was a key coping mechanism for MSMEs to overcome mobility restrictions during the pandemic. COVID led to a surge in the share of online sales of MSMEs that are integrated with e-commerce platforms, thereby boosting their revenues and spurring hiring, finds a survey-based report by ICRIER, one of India’s premier economic think tanks. The report presents a synthesis of the findings from a survey of 1537 MSMEs across 10 states. It captures the impact of e-commerce on the volume of business, supply chain linkages and employment of MSMEs integrated with e-commerce platforms.
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Digitalization Helped MSMEs Sustain During Crisis: ICRIER Study
India Education Study, 07 March 2022
Digitalization was a key coping mechanism for MSMEs to overcome mobility restrictions during the pandemic. COVID led to a surge in the share of online sales of MSMEs that are integrated with e-commerce platforms, thereby boosting their revenues and spurring hiring, finds a survey-based report by ICRIER, one of India’s premier economic think tanks. The report presents a synthesis of the findings from a survey of 1537 MSMEs across 10 states. It captures the impact of e-commerce on the volume of business, supply chain linkages and employment of MSMEs integrated with e-commerce platforms.
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Bank credit to micro, small enterprises up nearly 5% YoY in January despite third wave: RBI data
The Financial Express, 01 March 2022
The year-on-year growth in deployment of gross bank credit to micro and small enterprises (MSEs) during January 2022 remained positive at 4.8 per cent, though down from 6.8 per cent during the year-ago period, latest data on sectoral deployment of bank credit by the Reserve Bank of India (RBI) showed. Banks deployed Rs 12.44 lakh crores to MSEs in January 2022, up from Rs 11.87 lakh crores in January 2021. The growth had come amid the third wave of the pandemic, indicating negligible impact on businesses.
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Union Bank of India partners with Ambit Finvest for co-lending to MSMEs
Mint, 01 March 2022
Ambit Finvest Private Limited (Ambit Finvest) has signed a co-lending agreement with Union Bank of India (UBI) for lending to MSME customers. This alliance will ensure underwriting for originations, positively impacting the creditworthiness of MSMEs, in 11 states that are currently covered by Ambit Finvest.
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Clear launches invoice discounting for SMEs
The Times of India, 1 March 2022
Clear (formerly ClearTax) has launched invoice discounting product for enterprises, marking its foray into SME credit and B2B payments. The invoice discounting product will be available to Clear’s existing 3,000-plus enterprise customers to provide working capital solutions to their suppliers and help grow their businesses.
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Biz2X-Powered Made-in-India Middleware Platform 'Maadhyam' launched for Lenders, Aggregators and SMEs
ANI, 28 February 2022
In line with the government's mission of making India ‘Aatmanirbhar’, Biz2X launched first-of-its-kind middleware platform ‘Maadhyam’. It is built to grow an ecosystem of Lenders, Industry Aggregators, and SMEs. With Maadhyam, all three stakeholders can be brought to a single platform; it will reduce the credit gap and bring in financial inclusion among SMEs across India.
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KVIC urges Piyush Goyal to lift export restriction on bamboo charcoal to boost profitability of MSME units
The Financial Express, 27 February 2022
Khadi and Village Industries Commission (KVIC) Chairman Mr Vinai Kumar Saxena has written to Commerce and Industries Minister Mr Piyush Goyal seeking to lift the export restriction on bamboo charcoal for optimum utilization of raw bamboo and higher profitability in the bamboo industry.
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Union Bank launches MSME RuPay Credit Card
The Hindu Business Line, 25 February 2022
Union Bank of India (UBI), in association with National Payments Corporation of India (NPCI), on 25 February 2022 launched ‘Union MSME RuPay Credit Card’ for meeting business related operational expenses of MSMEs. This Card comes with interest free credit up to 50 days. MSMEs will also get specially curated business services on this Card which will help them in taking their business on most of the digital platforms, per the statement.
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FedEx ‘SME Connect’ Empowers Small Businesses to Leverage Global E-commerce Opportunities
APN News, 25 February 2022
FedEx Express launched the fifth edition of ‘SME Connect’, as a part of its ongoing commitment to support the growth of SME in India. The virtual ‘SME Connect’ series is a thought leadership and knowledge sharing platform for SMEs to interact with industry and subject matter experts for solution-oriented discussions that benefit their business.
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Meesho to help digitize MSMEs across India
KNN, 23 February 2022
E-commerce platform Meesho has launched its latest campaign, ‘India bhar pe chayega’ which highlights how sellers can grow their business with Meesho. With this campaign, it aims to encourage MSMEs to digitize their business. This campaign aims to create awareness on how small and medium businesses can grow their business by providing them access to millions of customers. Sellers can take advantage of the wide customer base, pan-India logistics, safe payments and customer support capabilities that will help them run their businesses with Meesho.
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Highest capex allotment in budget 2022 will fast-track MSME sector development
The Economic Times, 21 February 2022
As India emerges from the shadow of the COVID-19 pandemic with a retreating third wave, the finance minister’s economic recovery strategy presented in Budget 2022 hinges on a steep increase in government expenditure which in time will spur private investments that have so far remained stalled. The big focus appears to be on capital spending, which seems more or less along the lines of the previous year’s budget minus the loud push for reform.
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Polytrade an agent of change in trade finance industry, helps SME borrowers gain access to funds
The Economic Times, 21 February 2022
Polytrade, a decentralised trade finance platform backed by blockchain technology, has been awarded the ‘Best Financial Institution of the Year’ for supporting and empowering SMEs. The award ceremony was jointly convened by the SME Chamber of India and Maharashtra Industrial and Economic Development Association on 13 February 2022.
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'SMEs and startups will benefit from India-UAE CEPA', says FICCI
Business Standard, 19 February 2021
The Comprehensive Economic Partnership Agreement (CEPA) signed between India and the United Arab Emirates on 18 February 2022 will lead to opening doors to new opportunities for trade and investments between the two countries and benefit SMEs and startups, industry body FICCI said on 19 February 2022.
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Gxpress helping SMEs set their foot across the globe
The Hindustan Times, 18 February 2022
Gxpress Solutions India Pvt. Ltd, a global logistics company and one of the top ten start-ups in Jaipur, helps Indian SMEs go global and market their products overseas. Gxpress is an innovative company that provides shippers in the United States, the United Kingdom, Canada, the United Arab Emirates, and around the world with dependable and tailored solutions. The company has deep-rooted access to strong warehousing facilities, drop shipping, relabeling, and return management capabilities at every center across the globe.
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TransUnion partners FICCI for MSME consumer education programme
The Times of India, 18 February 2022
TransUnion CIBIL has partnered with FICCI to launch a unique nationwide MSME consumer education programme for spreading awareness about credit management, CIBIL rank and commercial credit information. The objective is to empower MSMEs with knowledge on how to build a good credit history and CIBIL rank to avail easier and faster access to finance, TransUnion CIBIL said. This programme will kick off with MSME clusters in Maharashtra, Assam and Tripura. It aims to reach thousands of enterprises across key MSME clusters in India.
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MSME Minister Narayan Rane unveils Amazon’s One District One Product storefront
The Financial Express, 14 February 2022
Amazon India launched a dedicated storefront on its marketplace to showcase unique regional products from artisans and small businesses based in different districts of the country. The storefront called One District One Product (ODOP) Bazaar was launched in collaboration with the national investment promotion and facilitation agency Invest India and MSME body Indian Industries Association (IIA). Amazon said the storefront will feature hundreds of ODOP and Geographical Indication (GI) products with a special focus on handlooms and handicrafts and locally produced agricultural specialities.
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How MSMEs can benefit from Rs 6,000-cr RAMP programme by World Bank, Govt of India
The Financial Express, 14 February 2022
Finance Minister Ms Nirmala Sitharaman in her 2022 budget speech had announced the rollout of the Raising and Accelerating MSME Performance (RAMP) programme in the coming five years. RAMP is a central government scheme in partnership with the World Bank for five years – FY22 to FY26 to boost productivity and financing for Covid-hit MSMEs. It was announced in 2021 with a total project cost of Rs 6,062.45 crore, of which World Bank’s contribution was earmarked at Rs 3,750 crore under the Credit Linked Capital Subsidy and Technology Upgradation Scheme.
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Banks sanction loans worth Rs 3.1 lakh crore to MSMEs under ECLGS, says FM Nirmala Sitharaman
The Financial Express, 11 February 2022
Finance Minister Ms Nirmala Sitharaman on 10 February 2022 said banks have sanctioned loans worth Rs 3.1 lakh crore under the Emergency Credit Line Guarantee Scheme (ECLGS) for the MSME sector that was impacted by disruptions due to the coronavirus (COVID-19) pandemic. The scheme has been extended till March 2023.
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RBI measures for MSMEs, contact-intensive sectors augur well for economy, say financial experts
The Economic Times, 11 February 2022
A status quo in repo rate underlines RBI's priority in supporting GDP growth amid the lingering impact of the pandemic, while additional measures for MSMEs, contact-intensive sectors and digital transactions augurs well for the overall economic health, financial market participants said on 10 February. For the 10th time in a row, the six-member rate setting Monetary Policy Committee (MPC) of the Reserve Bank of India (RBI) kept the key repo rate unchanged at 4 per cent, mainly to support growth as well as to manage inflationary pressure.
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RBI Policy increases NACH mandate for MSMEs
The Economic Times, 10 February 2022
The RBI Monetary Policy Committee on 10 February 2022 announced steps to help the beleaguered MSME sector by enabling better infrastructure for receivables financing. Governor Mr Shaktikanta Das said it will increase NACH (National Automated Clearing) mandate limit for Trade Receivables Discounting System (TReDS) settlements from Rs 1 crore at present to Rs 3 crore. Transactions in TReDS are settled through the NACH system. This was proposed keeping in view the requests received from stakeholders and to further enhance the ease of financing and the growing liquidity requirements of MSMEs.
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MSME credit: Now Amazon India sellers can get working capital loans from digital lender Lendingkart
The Financial Express, 8 February 2022
Digital MSME lender Lendingkart announced a partnership with Amazon India for providing performance-based working capital credit to marketplace sellers. Lendingkart said the credit to Amazon India’s sellers would be available with minimal documentation and flexible repayment options. Sellers will have to provide their contact information to complete the loan application process.
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MSME Ministry Study Confirms Lockdown Battered Small Businesses in India
The Wire, 7 February 2022
The study, done by Small Industries Development Bank of India (SIDBI), sampled 1,029 MSMEs spread across the 20 states and two Union territories. SIDBI was directed to assess the impact of change in MSME classification on the sector. The report of the study submitted on 27 January 2022, reveals that 67% of the respondent MSMEs were temporarily closed for up to a period of three months and more than 50% of the respondent units witnessed a decline of more than 25% in their revenues during the FY 2020-21.
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5,000 MSMEs likely to benefit from govt’s Rs 50,000 cr Self Reliant India fund: Narayan Rane
The Financial Express, 6 February 2022
Around 5000 MSMEs are expected to benefit from the government’s Rs 50,000-crore Self Reliant India (SRI) fund. Announced by Finance Minister Ms Nirmala Sitharaman back in May 2020, the fund, once operationalized, will make equity investments in MSMEs for their growth, listing on stock markets, and global expansion.
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Decentro partners with SME platforms to help MSMEs access financial services
KNN, 4 February 2022
Decentro, an API platform for banking integration, aims to empower India’s wholesale food, grocery, and retail category SME facing platforms, with its embedded API banking modules. The ideas include enabling Kirana store owners with simplified QR/UPI payments, instant settlements for suppliers & agents, and most notably opening and linking business bank accounts directly via APIs. Further, Decentro also enables an embedded finance offering for availing credit by these SMEs via any NBFC that can be plugged in the backend again via APIs.
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President Kovind: MSMEs backbone of India; ECLGS gave fresh lease of life to 13.5 lakh units
The Financial Express, 31 January 2022
The Emergency Credit Line Guarantee Scheme (ECLGS) launched during the Corona period to protect MSMEs from the crisis as evident from recent studies has given a fresh lease of life to 13 lakh 50 thousand MSME units and also secured 1 crore 50 lakh jobs, said President Mr Ram Nath Kovind on 31 January 2022. He also noted that the government has permitted wholesale and retail traders, as well as street vendors to get themselves registered on the Udyam portal so that they can avail benefits of Priority Sector Lending.
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SMEs lose Rs 67 lakh annually due to outdated ways of managing finances: Study
The Economic Times, 11 January 2022
To understand the challenges faced by MSMEs in managing financial operations, slow adoption of digital solutions and its impact on their businesses, RazorpayX had commissioned an IDC Infobrief study on 'SME Banking is Broken: Will India’s Promising Neobanks Fix it?’. The study highlights the urgent need for SMEs to digitally transform their finance function, as the offerings of traditional banking organisations do not align with their evolving needs.
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After big-ticket recoveries, SBI turns to MSME and retail borrowers
Business Standard, 23 November 2021
India's biggest lender State Bank of India is shifting focus to recoveries and resolution in the small business and retail segment. It will boost the use of call centres for recoveries of retail and MSMEs loans and also plans to enlist business correspondents for such tasks in semi-urban and rural areas.
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EESL partners MSME ministry, UNIDO, GEF to deploy 35 energy-efficient techs
Mint, 22 November 2021
State-run Energy Efficiency Services Limited (EESL) has partnered with the Ministry of MSME, UNIDO and GEF to deploy 35 energy-efficient technologies in MSMEs. EESL, an energy service company (ESCO), is among the earliest entrants in India's energy efficiency market estimated at around Rs74,000 crores and is presently running the world's largest domestic lighting programme.
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SBICap Ventures' SME-focused fund invests in Chakr innovation combating air pollution
The Financial Express, 22 November 2021
Sustainability and SME focused Neev Fund II, managed by SBI Group's alternative asset manager SBICap Ventures, announced an undisclosed investment in Series B funding of emission control device manufacturing company Chakr Innovation. Launched in 2016, Chakr Innovation's emission control device mitigates pollution at source and captures harmful particulate matter emissions.
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Meta launches an online resource centre 'Grow Your Business Hub' to support India's small businesses
The Financial Express, 20 November 2021
Meta India's two new digital tools for small businesses, Grow Your Business Hub and Grow Your Business Playbook, were launched at a virtual event on 09 November 2021. The Hub is a one-stop shop for businesses to find relevant information, tools, and resources curated to cater to the business goals; the Playbook would help early-stage businesses start their journey on Meta apps and will have a wide array of creative guidance, from best practices on how to choose profile pictures to creating the first post.
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Google to chip in Rs 110 cr for MSME lending project in pact with SIDBI
Business Standard, 18 November 2021
SIDBI has inked a pact with Google for pilot social impact lending with financial assistance up to Rs one crore at subsidized interest rates to micro enterprises. Google India Pvt Ltd GIPL brings a corpus of $15 million (approx. Rs 110 crore) to micro enterprises as a crisis response related to Covid-19 to reinvigorate the MSME sector in India. The partnership envisages a loan programme targeted at micro enterprises (having turnover of up to Rs 5 crores), with loan sizes ranging between Rs. 25 lakh to Rs. 1 crore.
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Under co-lending tie-up, SBI and U GRO aim to disburse Rs 500 cr to MSMEs by March 2022
The Hindu Business Line, 17 November 2021
U GRO Capital, a technology-focused small business lending platform, has entered into a co-lending partnership with SBI to provide credit to MSMEs. The agreement has been signed under the alternative option of Reserve Bank of India's revised co-lending guidelines, which involves post-disbursal takeover of the bank's share in the loan on a back-to-back basis.
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CredAble launches credit, cash flow management app for SMEs
The Financial Express, 11 November 2021
CredAble has introduced UpScale, a platform that enables growth and financial inclusion for MSMEs in India. CredAble disbursed Rs 3,500 crores to more than 100,000 small businesses, and with UpScale, CredAble will penetrate deeper into the ecosystem with tailor-made solutions for small business owners.
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MSME margins badly hit by commodity price surge: PHDCCI
The Hindu, 3 November 2021
PHD Chamber of Commerce and Industry said skyrocketing commodity prices are severely impacting the price cost margins of businesses, especially MSMEs, observing that the RBI has a crucial role to play in balancing inflation and maintaining currency stability. The assertion is a part of the chamber's five suggestions outlining the focus areas for RBI Governor Mr Shaktikanta Das during his second term.
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BSE joins hand with HDFC Bank to promote start-up, SME listing
The Financial Express, 02 November 2021
Leading stock exchange BSE is collaborating with HDFC Bank to further encourage and promote the listing of start-ups and SMEs across India. HDFC Bank will identify potential start-ups as well as SMEs and help them to partner with intermediaries like merchant bankers, chartered accountants and lawyers to list on BSE. Both the parties have agreed to conduct and participate in joint outreach activities and contribute to each other's publications on the start-up ecosystem in India.
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Nearly 1 lakh jobs created by over 11,000 MSMEs on Udyam portal in Manipur
The Financial Express, 31 October 2021
Nearly one lakh jobs were created by over 11,000 MSMEs registered in Manipur till July-end 2021. As per the latest official data among eight North Eastern states, Assam led the tally in MSME registration with 56,658 units registered on the Udyam portal. 5,135 MSMEs were registered in Tripura followed by 2,283 in Mizoram, 2,156 in Nagaland, 1,841 in Arunachal Pradesh, 1,568 in Meghalaya, and 1,109 in Sikkim.
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FinMin reforms public procurement to fast-track projects, help MSMEs
Business Standard, 30 October 2021
The finance ministry has initiated reforms in public procurement and project management to execute projects and provide payments to the MSMEs on time. The revised guidelines permit alternative methods for selection of contractors, which can improve speed and efficiency in execution of projects. In appropriate cases, quality parameters can be given weightage during evaluation of the proposal in a transparent and fair manner. This can be done through the quality-cum-cost based selection (QCBS) as an alternative to the traditional L1 system.
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SME trade finance company Drip Capital raises $175 million to expand domestic, international businesses
The Financial Express, 28 October 2021
Drip Capital, the cross border trade financing platform for SMEs, announced a $175 million funding including $40 million investment in Series C round and a separate $135 million in warehouse debt facilities. The latest round takes the company's total investment to around $525 million in a mix of equity and debt.
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E-commerce portals helped UP MSMEs increase export by 38%
The Times of India, 27 October 2021
Exports by MSMEs in Uttar Pradesh have risen by 38% since the government provided them with a platform on e-commerce websites, said additional chief secretary (MSME) Mr Navneet Sehgal on 26 October 2021 at a dialogue organised by CII and Amazon Global Selling on 'Boosting Uttar Pradesh's MSMEs International Trade & Exports through E-Commerce'.
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Dun & Bradstreet, PLEXCONCIL to foster MSME exporters' growth in India
The Economic Times, 27 October 2021
Dun & Bradstreet Information Services India signed an MoU with the Plastics Export Promotion Council (PLEXCONCIL) to create an ecosystem for promoting, aiding and fostering the growth of SMEs exporters in the country. This partnership will help SMEs in India to increase their visibility, expand access to global markets, find potential customers, uncover new suppliers and channel partners, manage risk and identify growth opportunities.
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The $158-billion hole in financing women-owned SMEs
The Economic Times, 27 October 2021
About 90% of women-owned SMEs (WSMEs) in the country still rely on informal financing and 66% WSMEs do not have a bank account, said Mr Qamar Saleem, Regional Manager-Asia & Pacific, Financial Institutions Group, International Finance Corporation (IFC). Pointing out that there is a business case for financial institutions to reorient themselves to serve women entrepreneurs better, he explained the challenges and market opportunities that exist for women entrepreneurs and WSMEs in India.
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5,000 SMEs to suffer huge losses if coal crisis not addressed for primary aluminium industry: IIVCC
The Financial Express, 26 October 2021
More than 5000 SMEs, part of the aluminium value chain, are at the risk of suffering huge losses if the present coal crisis confronting the primary aluminium industry is not urgently addressed, according to the Indian Industrial Value Chain Council (IIVCC). The development assumes significance in the wake of Coal India, which accounts for more than 80% of domestic coal output, prioritizing fuel supply temporarily to the power sector in view of the low stock position at thermal power plants.
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Vital rolls out affordable, comprehensive group health coverage for SMEs
The Times of India, 26 October 2021
Vital has rolled out affordable comprehensive group health coverage for SMEs at Rs 289 per month for an employee. Even the employee's family will receive a minimum cover of Rs 3 lakh. The one-stop healthcare insuretech platform's group health plan aims at providing an overall health and wellness package to the professionals associated with small businesses or newly established startups.
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Need for a separate ministry focusing on micro enterprises with dedicated policy support: CIA
The Financial Express, 24 October 2021
CIA (Consortium of Indian Associations), a prominent MSME body representing around 50 MSME associations across the country, has urged the government to create a separate ministry for micro enterprises for better focus and policy support catering to micro entrepreneurs. The demand stems from the fact that over 99% of enterprises in the MSME category are micro units, which have turnover less than Rs 5 crores, that are not comparable to businesses with turnover up to Rs 250 crores.
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Shopmatic waives off hosting fee for SMEs to embrace e-commerce
The Economic times, 13 September 2021
E-commerce enabler Shopmatic has decided to tweak its transaction model to remove the monthly hosting fees for subscribers. The platform will now only charge 3% transaction fees to merchants going online, making it easier for businesses to embrace ecommerce. This will encourage aspiring entrepreneurs to take their business online, through four different ways to do ecommerce, basis their preference—Webstore selling, Chat selling, Social selling and Marketplace selling - and gear up for the festive season sales, that is around the corner.
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MSME manufacturers seek speedy policy implementation, lower interest rates to boost recovery: FICCI survey
The Financial Express, 12 September 2021
Manufacturers across multiple sectors have sought support for their MSMEs among measures proposed to revive and accelerating growth. According to FICCI's latest quarterly (Q2) survey of over 300 SME and large manufacturers, capital goods businesses have suggested supporting MSMEs with respect to the business environment, improving and rigorously implementing Make in India policies, and taking immediate steps to boost demand. Likewise, manufacturers in metal and metal products have suggested increasing pace of reforms and speedy implementation of various government projects along with a cap on the maximum interest rate that can be charged by banks to MSMEs.
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SBM Bank India partners fintech startup Lendingkart
Mint, 9 September 2021
Indian MSMEs being catered to by Lendingkart, can avail the unique overdraft facility powered by SBM Bank India on Lendingkart platform. SBM Bank India has partnered Lendingkart, a fintech start-up in the working capital space, and launched a customized overdraft facility for over one lakh customers of the fintech. In the current ecosystem for this customer segment, overdraft facilities offered by most lenders require borrowers to furnish collaterals such as property, fixed deposit and business inventories, which most small businesses are unable to provide. With this collaboration, the Indian MSMEs being catered to by Lendingkart can avail the unique overdraft facility powered by SBM Bank India on Lendingkart platform.
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Gujarat Govt join hands with Amazon to build capacities of MSMEs in e-commerce
Elets News Network, 9 September 2021
In an effort to aid MSMEs in the state, the Government of Gujarat has inked a MoU with e-commerce giant Amazon to facilitate e-commerce exports from the MSME units. According to the state government, Amazon will hold capacity building training programmes, webinars and onboarding workshops for the MSME clusters in Ahmedabad, Vadodara, Surat, Bharuch, Rajkot and other cities. As per the pact, the American e-commerce giant Amazon will work on building capacities of MSMEs in Gujarat on Amazon Global Selling and enable them to sell their unique 'Made in India' products to millions of Amazon customers across over 200 countries and territories.
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PLI scheme for textiles: Rs 10,683 crore scheme to help MSMEs invest, export, employ more: Experts
The Financial Express, 8 September 2021
The government on 8 September 2021 approved the Production Linked Incentive (PLI) scheme for the textile sector. According to a statement from the Ministry of Textiles, the scheme was approved for man-made fibre (MMF) apparel, MMF fabrics, and 10 segments of technical textiles with a budgetary outlay of Rs 10,683 crore. The incentive structure has been so formulated that industry will be encouraged to invest in fresh capacities in these segments. This will give a major push to growing high-value MMF segment which will complement the efforts of cotton and other natural fibre-based textiles industry in generating new opportunities for employment and trade. MSMEs, which make up the majority of businesses involved in the textile sector, and experts have hailed the government's decision.
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Flipkart launches 'Flipkart Boost' for digital-first consumer brands
The Hindustan Times, 7 September 2021
Walmart-owned Flipkart on 7 September 2021 launched 'Flipkart Boost', a new programme aimed at helping digital-first consumer brands to grow their business. Through a service fee model, Flipkart Boost will provide end-to-end support covering planning, advertising, cataloguing, logistics, quality control and mentoring to emerging 'Made in India' brands, a statement said. The move is also expected to help MSMEs. The Flipkart Boost programme will shortlist brands based on a set of pre-decided objective criteria, which includes their growth potential, sustainable revenue run rate, focus on quality, commitment to building a long-lasting brand, strong product mix and customer orientation, it added. The selected brands will also have the opportunity to secure potential funding from a network of venture capital funds and active investors in the D2C space.
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State seeks grant for energy efficiency initiatives in MSMEs
The Indian Express, 6 September 2021
With an objective to tap the energy saving potential and provide cost-effective solutions to improve energy performance in MSMEs, the Andhra Pradesh government has requested the Union Ministry of Power to extend financial grant to take up energy efficiency measures on a large scale in MSME clusters in the state.
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MSME jobs: Workforce at units registered on new Udyam portal in 12 months make up 30% of employment
The Financial Express, 5 September 2021
The people employed with MSMEs registered on the new Udyam Registration portal now make up 30% of the total employment in the MSME sector. As of 30 June 2021, 35,29,084 MSMEs registered with the new portal had 3,35,90,084 (3.35 crore) people employed, according to the latest government bulletin analysing the Udyam Registration's data, out of 11.09 crore emplyed with 6.33 crore MSMEs in India.
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Andhra Pradesh Govt Releases Rs 1,124 Crores as Incentives to MSMEs, Textile Units
News18, 3 September 2021
The Andhra Pradesh government on Saturday released Rs 1,124 crores as incentives for MSMEs and textile units across the state to benefit 97,423 units and over 12 lakh employees. According to the government, the state had spent a total of Rs 2,086 crore on the MSME sector, which includes clearing the pending arrears left by the previous government totalling around Rs 1,588 crore.
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PayPal aims to become a super app for businesses that sell globally
The Financial Express, 01 September 2021
The US-based digital payment solutions provider PayPal announced its ambition to become a commerce organisation that enables small business to sell online on multiple channels while getting access to customers across borders. PayPal in India has been focusing on enabling small businesses to buy and sell globally, and the idea is to have an integrated app that offers all the services a merchant would need to sell across multiple geographies: setting up the business, curating inventory, cataloguing products, clearing customs, managing returns amongst others.
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FM launches Ubharte Sitaare Fund; says MSMEs are the backbone of the economy
The Hindu, 21 August 2021
Union Finance Minister Ms Nirmala Sitharaman on 21 August 2021, addressing the launch of the 'Ubharte Sitaare Fund' said MSMEs are the backbone of the economy, and that the government has given the sector its rightful place. The 'Ubharte Sitaare Fund' has been set up by Exim Bank and SIDBI. The fund is expected to identify Indian enterprises with potential advantages by way of technology, products or processes along with export potential, but which are currently underperforming or unable to tap their latent potential to grow. Accordingly, India Exim Bank's Ubharte Sitaare Programme (USP) identifies Indian companies that have the potential to be future champions in the domestic arena while catering to global demands. The fund is a mix of structured support, both financial and advisory services through investments in equity or equity like instruments, debt (funded and non-funded) and technical assistance (advisory services, grants and soft loans) to the Indian companies.
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Nurturing entrepreneurship among MSMEs holds key to India's problems: GAME
The Economic Times, 21 August 2021
To overcome the job crisis and tackle the economic challenges facing the country, India needs to exponentially increase the number of job creators and this would entail more robust participation of the MSME sector which is the hotbed for entrepreneurship in India, asserted Mr Madan Padaki, co-founder, Global Alliance for Mass Entrepreneurship (GAME). He added that India needs to nurture an entrepreneurial mindset, map career pathways based on skills, passion and opportunities, design structured internship models, enable access to financing and build structured mentoring programs.
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Facebook Launches 'Small Business Loans Initiative' In India
Outlook, 20 August 2021
Facebook India has launched 'Small Business Loans Initiative' to help small and medium businesses (SMBs) in India—the first country where this program is being rolled out. It will help SMBs that advertise on Facebook's platform to get quick access to credit through independent lending partners. The programme is open to businesses registered across 200 towns and cities of India.
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Indian MSMEs have shown more resilience during second wave: Study
The Hindu, 4 August 2021
India's MSMEs have shown better resilience during the second wave of the COVID-19 pandemic as their businesses on an average declined only 11% as compared to almost half (46%) after the national lockdown in 2020, as per a mid-year COVID-19 impact analysis released by fintech start-up Khatabook on 4 August 2021. According to the analysis, tier 1 and 2 cities experienced slightly less business impact of the pandemic during the second wave, as compared to metros, tier 3 and tier 4 towns. Also, large businesses were more sensitive towards the pandemic-induced restrictions than medium and small businesses.
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Razorpay acquires TERA Finlabs to strengthen SME lending business
The Hindu Business Line, 19 July 2021
Fintech unicorn Razorpay has acquired TERA Finlabs, a consumer lending and risk assessment start-up. The fintech company had started Razorpay Capital to solve liquidity and cash-flow challenges of SMEs, by offering instant settlements and business loans. The core advantage of TERA lies in its AI-based risk management and lending platform. This acquisition will help Razorpay in strengthening its capabilities in credit underwriting, data-driven risk management, and capital solutions.
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Big companies gain market share, but small businesses in distress
The Hindustan Times, 19 July 2021
Analysts said the distress faced by small and unorganized companies during the second Covid wave and gains in market share of the bigger firms who remained largely unscathed would reflect in their June quarter earnings. The smaller firms suffered under the weight of localized and uneven lockdowns and shorter business hours in the fiscal first quarter, affecting operations as well as consumer demand.
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Around 1.09 crore MSME borrowers gets guarantee support under ECLGS
The Economic Times, 19 July 2021
Around 1.09 crore MSME borrowers have been provided with guarantee support amounting to Rs 1.65 lakh crores as of 2 July 2021 under the ECLGS (Emergency Credit Line Guarantee Scheme). The scheme is part of the Aatmanirbhar Bharat Abhiyaan package announced by the government to mitigate the distress caused by the lockdown due to COVID-19 by providing credit to different sectors, especially MSMEs.
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Digital lending to small businesses see uptake post Covid disruption last year: MSME lenders
The Financial Express, 14 July 2021
Adoption of digital lending platforms among small businesses post-Covid has accelerated even as traditional banking channel has remained a challenge for a vast number of credit- hungry MSMEs in the country. The digital route to secure instant credit has helped the MSME loan book of digital platforms to swell from 2020. Internet penetration and growing adoption of affordable smartphone devices coupled with digital lenders plugging the information asymmetry gap have also pulled traditional and new age borrowers from metro cities and India's hinterland towards the digital channel.
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MSMEs' reverse migration issue to be addressed by cluster mapping, cluster-based skill development: Study
The Financial Express, 12 July 2021
In order to address the challenge of reverse migration of migrant workers for MSMEs, which emerged during the Covid pandemic, cluster mapping, and a major cluster-based skill development approach is required, said a study by Grant Thornton Bharat and SIDBI that carried out a rapid profile of migrant labour in 11 states to suggest solutions. The report highlighted digitisation of financial and non-financial services, setting up of digital platforms to provide access to e-business services for existing enterprises, involvement of technical institutions as solution centres among other recommendations.
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MCCIA launches chat bot helpline for MSMEs
The Times of India, 11 July 2021
The MCCIA (Mahratta Chamber of Commerce, Industry, and Agriculture) has launched an AI-powered helpline chat bot primarily for use of MSME operators, players in agriculture, and others, to help them receive information about government schemes. The MCCIA has used the messaging app WhatsApp to deploy the chat bot, with an introductory text to the helpline (8806109000), leading users through a list of options available, both to members and non-members of the chamber.
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Amazon launches 'Digital Kendra' to onboard new MSMEs
Mint, 8 July 2021
In line with its mission to digitize 10 million small and medium businesses in India, Amazon India on 8 July 2021 announced the launch of its first brick-and-mortar resource centre, 'Digital Kendra' in Surat, Gujarat. Amazon 'Digital Kendras' will act as walk-in establishments and provide MSMEs the opportunity to learn about the benefits of e-commerce and avail a range of third-party services such as shipping and logistics support, cataloguing assistance, digital marketing services, GST and taxation support.
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FlexiLoans, GooglePay partner to provide instant loans to SMEs
Mint, 07 July 2021
MSME-focused digital lending platform FlexiLoans.com announces its collaboration with Google Pay to offer flexible loans to their merchant base. The collaboration will address the credit gap by offering instant loans to small merchants and entrepreneurs across India that are unable to access formal credit. FlexiLoans is aiming at disbursing loans to over 50,000 small businesses in the next 12 months from this collaboration.
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SBM Bank India collaborates with Drip Capital to empower MSME exporters
The Financial Express, 6 July 2021
Fintech Company Drip Capital has announced its collaboration with SBM Bank India to offer trade financing solutions customized for small and medium-sized exporters in India. Owing to this partnership, MSME exporters will be able to avail collateral-free working capital at competitive rates.
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Digital adoption by MSMEs see twofold rise
The Times of India, 6 July 2021
Digital adoption by MSMEs has seen a twofold rise, driven by first-time digital adoption from small businesses in tier-2 and 3 towns. Fintech companies say there has been a significant demand for various digital business management services like e-invoices, cloud-based bookkeeping, integrated interface to file GST returns, and creating payment vouchers for vendors and salary slips for employees. It is primarily driven by traders, retailers, wholesalers and other small businesses.
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Amazon expands global programme for SME sellers to protect their brands, fight e-commerce fakes to India
The Financial Express, 4 July 2021
Sellers on Amazon in India would now have access to intellectual property experts and law firms to protect their brands and fight counterfeit goods. Amazon on 4 July 2021 expanded its IP Accelerator (Intellectual Property Accelerator) Program available in the US, Europe, Japan, Canada, and Mexico to India for sellers who are also brand owners including small and medium-sized to secure their trademarks, protect their brands and tackle infringement on Amazon.in and Amazon websites globally.
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FIEO partners with Aramex India to support MSME exporters in India
The Financial Express, 3 July 2021
The FIEO (Federation of Indian Export Organisations) said it has inked an MoU with logistics service provider Aramex India to support MSME exporters in India. Under the MoU, Aramex will provide preferential pricing to FIEO members, as well as access to online services for cross-border express shipments.
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Govt brings retail, wholesale trade under MSME
The Times of India, 3 July 2021
Four years after excluding it from the MSME segment, the government reinstated retail and wholesale trade in the category, making entities eligible for priority sector funding and special liquidity scheme from banks.
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RBI rings warning bell on rising bad loans, stress among MSMEs
The Indian Express, 2 July 2021
The RBI has cautioned that bad loans of the banking system are expected to hit 11.22% of the advances under a severe stress scenario. The central bank also warned about the incipient signs of stress among medium and small units. The Financial Stability Report of the RBI said macro stress tests indicate that the gross non-performing asset ratio of banks may increase from 7.48% in March 2021 to 9.80% by March 2022 under the baseline scenario and to 11.22% under a severe stress scenario.
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Digital CoE in Purvanchal to incubate 3,500 SMEs
The Times of India, 1 July 2021
To promote entrepreneurship among people of Purvanchal, especially in rural areas, a digital centre of excellence (CoE) is coming up in Deoria. The CoE aims to incubate 3500 local small and medium enterprises, and provide technology support to 20,000 other companies. Jagriti, a non-profit working to promote entrepreneurship in small towns and rural areas, has partnered with Zoho Corp, a global technology company, for the move.
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MSMEs hold promise for sustainable, inclusive recovery: Survey
The Hindu Business Line, 1 July 2021
Covid-19 pandemic may have struck Indian entrepreneurs/MSMEs hard, but they hold significant promise for a sustainable and inclusive recovery, fuelling the drive to become a $5-trillion economy by 2025. This is the consensus view of a paper 'Entrepreneurship after Covid-19: An assessment of the short and long-term consequences for Indian small business'. The study is part of a larger global study carried out across 23 countries representing three-fourth of world's economic output.
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Kerala govt to come out with second package for MSMEs
The Financial Express, 1 July 2021
The Kerala government would be coming out with a second package for MSMEs under which KSIDC (Kerala State Industrial Development Corporation) would be giving loans at five per cent interest, besides an additional three-month waiver on repayments after the existing moratorium ends. Under the package some of the focus groups would be women, especially widows, youth and pravasis returning to India. The government also intends to promote in a big way the industries unique to Kerala, like agro-based and fish processing.
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Walmart launches Vriddhi Cares to help MSMEs with Covid-19 support
The Times of India, 30 June 2021
Global retail major Walmart on 29 June 2021 announced the launch of Vriddhi Cares, to extend COVID-19 support to MSME employees and their family members in the country. Under this, the company will help MSMEs to support employees and their family members with telecare services and health advice, according to a statement. It will also provide access to pandemic-related business advice and resources, the statement added.
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Nitin Gadkari launches Indian Bank's 'MSME Prerana' in Maharashtra
Mint, 28 June 2021
Indian Bank has launched its flagship Business Mentoring Program 'MSME Prerana' in the state of Maharashtra. MSME Prerana is a novel, unique and innovative business mentoring program. Indian Bank is providing financial support to 20 lakh MSMEs with credit exposure of over Rs 70,180 crores.
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Raw material prices affecting business, Centre must intervene: MSMEs
The Times of India, 28 June 2021
The exorbitant increase in raw material prices is hurting MSMEs and the Centre needs to immediately intervene through policy decisions, said GSIA (Goa State Industries Association). GSIA, along with 170 MSME associations across the country, have written to Prime Minister Mr Narendra Modi, expressing concern over the “volatile situation” which can cause “permanent damage” to the MSME sector.
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73% SMEs didn't make any profit during FY21 amid Covid; majority insecure about future: CIA survey
Financial Express, 24 June 2021
A survey by CIA (Consortium of Indian Associations), which represents multiple trade associations in India, said 73% of Indian SMEs couldn't make a profit during the last financial year (FY21) while only 13% broke even amid Covid impact. SMEs in most of the sectors such as retail, travel and hospitality, aviation, automobile, real estate, etc., were crippled during the first wave of the pandemic in 2020 and the second wave in 2021.
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170 MSME bodies join hands at AICA
The Times of India, 24 June 2021
AICA (All India Council of Association) of MSMEs has announced that 170 industry associations have joined together to address post-Covid issues faced by two lakh MSMEs across India.
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Govt notifies accounting standards for SMEs under Companies Act, 2013
Business Standard, 23 June 2021
The government has notified the accounting standards for small and medium companies that revise the turnover and borrowing limits as well as help in making disclosure requirements less onerous. Besides, the definition of Small and Medium Sized Companies (SMCs) under the standards has been revised.
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SIDBI revamps term loan scheme LIQUID for Covid-hit MSMEs; enables credit up to 20% of highest outstanding
The Financial Express, 22 June 2021
India's principal financial institution for MSMEs, SIDBI, launched the revamped version of its liquidity scheme for Covid-hit MSMEs: Liquidity Support by Urgent Infusion of Funds Through Direct Finance Window (LIQUID) 1.0. Under LIQUID 2.0, SIDBI will enable term loan for its existing customers for the purpose of executing new orders, purchase of raw materials, machines, and equipment, clearing unpaid creditors, etc.
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Second wave: 60% addition to bad loans from MSMEs
The Indian Express, 21 June 2021
The second wave of Covid has thwarted the recovery process underway across sectors, with the lockdowns in states and the spread of disease overwhelmingly impacting the MSME and service sectors, according to fresh data coming in on loan slippages with banks and micro-lenders. MSMEs and micro enterprises have been the most impacted with nearly 60% of addition to NPAs in April and May coming from MSMEs. The elements of the defaults are labour constraints, transportation issues due to lockdown, non-availability of raw material and uncertain cash flows.
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World Bank approves $500-million program to support the MSMEs in India
Mint, 7 June 2021
The World Bank said it has approved a $500 million program to support MSMEs in India to increase liquidity access for viable small businesses impacted by COVID-19. The program targets improvements in the performance of 555,000 MSMEs and is expected to mobilize financing of $15.5 billion, as part of the government's $3.4 billion MSME Competitiveness – A Post-COVID Resilience and Recovery Programme (MCRRP).
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Indian MSMEs faced with $240 billion credit deficit: Report
The Week, 7 June 2021
MSMEs, which contribute 28.8% to the country's GDP, continue to bear the brunt of the COVID-19 pandemic and its subsequent wave of lockdown. MSMEs continue to lack access to formal credit, besides other challenges such as getting better market access and improving their overall productivity. As per a recent report by the ACCA (Association of Chartered Certified Accountants), the Indian MSME sector faces a credit deficit of $240 billion.
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NI-MSME: 150% jump in trainees trained amid Covid at govt's premier MSME development institute in FY21
The Financial Express, 02 May 2021
The NI-MSME (National Institute of Micro, Small and Medium Enterprise), which trains MSMEs, individuals, and professionals for entrepreneurship development, capacity building, marketing, innovation, infrastructure development, quality management, and more under the Ministry of MSME, has witnessed nearly 150% jump in the number of trainees trained during FY21 despite a lower number of programs conducted amid Covid vis-à-vis preceding financial year.
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Modi govt's relief on GST late fee, tax payment to help MSEs but further extension still needed: Experts
The Financial Express, 02 May 2021
Even as the MSME community continues to urge the government to extend GST payment and return filing deadlines by 2–3 months, the Ministry of Finance has offered taxpayers a late fee waiver for filing GSTR-3B monthly returns for March and April and reduced interest rates for late payments.
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SME IPOs reach an all-time low with 28 listings in FY 2021
The Financial Express, 27 April 2021
The last one-and-a- half years have been tough for the small and medium-sized businesses due to the pandemic, and IPOs by SMEs have taken a hit. In the financial year 2021, SME IPOs were at an all-time low with only 28 companies that went public. These 28 firms together raised Rs 244 crore, 44% less than the Rs 435 crore raised by 45 SMEs in FY2020.
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Over 82% small businesses had negative Covid impact; lack of market access top challenge: Survey
The Financial Express, 22 April 2021
Over 82% of more than 250 small businesses in India said that they had a negative Covid impact, while 70% believed their pre-Covid level recovery to take nearly a year, according to a survey by Dun & Bradstreet. Lack of market access (42%), overall productivity improvement (37%), and access to more finance (37%) were the top three challenges cited by MSMEs in the survey titled 'Impact of COVID-19 on Small Businesses in India and the Way Ahead'.
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Udyam Registration: 26 lakh MSME registrations so far on Modi govt's new portal not exciting, say experts
The Financial Express, 20 April 2021
Even as the number of MSMEs registered on the new Udyam registration portal, which replaced the erstwhile process of filing for UAM (Udyog Aadhaar Memorandum) in July 2020, has scaled to 26.42 lakhs as of April 20, 2021, as per the MSME Ministry data, the growth is not very encouraging, according to experts.
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Microsoft announces availability of business management solution for SMEs
The Economic Times, 20 April 2021
Microsoft India has announced the general availability of Dynamics 365 Business Central, a comprehensive business management solution for small and medium-sized businesses. It is a one-stop cloud solution that helps companies connect sales, service, finance, and operations teams. The app can be accessed from any mobile device.
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Amazon announces $250 million fund for SMEs
The Times of India, 15 April 2021
E-commerce giant Amazon on 15 April 2021 announced a $250 million (around Rs 1,873 crores) fund that will focus on digitizing small and medium businesses, and drive innovation in the areas of agri-tech and health-tech.
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IBBI notifies regulations for pre-packaged insolvency resolution process
Money Control, 09 April 2021
IBBI on 09 April 2021 notified the regulations for the pre-packaged insolvency resolution process, which has been introduced for stressed MSMEs. By way of an ordinance on April 4, the government amended the IBC (Insolvency and Bankruptcy Code) to introduce the pre-pack resolution process for MSMEs.
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U GRO Capital partners with SBM Bank India to launch credit card for MSMEs
The Economic Times, 08 April 2021
Lending fintech platform U GRO Capital on 08 April 2021 announced its partnership with SBM Bank India towards the launch of 'GRO Smart Business' credit card, powered by RuPay, along with EnKash. These are a range of secured credit cards specially designed for under-banked MSMEs. These can be availed by the U GRO Capital borrowers against a fixed deposit with SBM Bank India. The credit card offers a gateway to smart banking features with the aim to empower MSME entrepreneurs to solve multiple financial challenges.
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PayPal enables collateral-free loans up to Rs 1 cr for MSMEs, others via small business lender FlexiLoans
The Financial Express, 07 April 2021
Digital payments company PayPal will now offer collateral-free business loans to Indian merchants who sell cross border using its services. The company will enable credit to MSMEs, women entrepreneurs, sole proprietors, and freelancers through the digital lending platform focused on small business FlexiLoans. The working capital loans from Rs 50,000 to Rs 1 crore would be offered to MSMEs and others for business expansion, purchasing stock, inventory, and other business-related expenditures while the loan tenure will range from six months to 36 months.
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Centre sets Rs 10 lakh trigger for MSME rescue scheme
Mint, 07 April 2021
The Central government on 07 April 2021 set a payment default of Rs 10 lakhs as the trigger for bankruptcy proceedings of small businesses under the new simplified scheme called pre-packs. The finance ministry said in a tweet that this would be the minimum threshold of payment default for MSMEs under the pre-pack scheme.
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MSMEs get new insolvency route
The Times of India, 06 April 2021
The Centre has promulgated an ordinance to speed up the insolvency resolution process for MSMEs, which are expected to be the hardest hit by the pandemic. The ordinance, promulgated on 04 April 2021, provides for a pre-packaged insolvency resolution process, something not available so far.
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US agencies to offer $41 million loan for India SMEs to invest in green energy
Mint, 18 March 2021
The USAID (United States Agency for International Development) and the US DFC (International Development Finance Corporation) are together sponsoring a $ 41 million loan portfolio guarantee to aid investments by SMEs in renewable energy in India, a statement from the US embassy said on 18 March 2021. These include rooftop solar installations, and the loans will enable SMEs to access reliable power and cut costs, the statement said.
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Flipkart expands B2B marketplace; allows MSMEs to procure grocery products of HUL, ITC, Nestle, others
The Financial Express, 03 February 2021
Walmart-owned Flipkart's business-to-business (B2B) marketplace for MSMEs and kiranas, Flipkart Wholesale has added the grocery category to its app around five months after it went live in September 2020 with the fashion segment. MSMEs and kiranas also have access to credit facility from Flipkart to manage their cash flow along with micro-market level B2B and B2C insights to understand local customer demands and buy from Flipkart Wholesale accordingly.
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Rs 15,700 cr provided for MSME sector in Union Budget
The Economic Times, 01 February 2021
Union Finance Minister Ms Nirmala Sitharaman has made a provision of Rs 15,700 crore for the MSME sector in the Union Budget 2021–22. "We have taken a number of steps to support the MSME sector in this budget. I have provided Rs 15,700 crore, more than double the previous year," said Sitharaman while presenting the Union Budget in the Parliament.
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Pune SMEs welcome Budget announcement on vehicle scrapping policy
Indian Express, 01 February 2021
Union Finance Minister Ms Nirmala Sitharaman's announcement of a voluntary vehicle scrapping policy was cheered by the automobile and auto ancillary sector in Pune. For Pune and Pimpri Chinchwad small and medium scale industries, the scrapping policy would mean a much needed boost for their business. As automobile OEMs churn out more replacements, the need for components would increase and thus would mean more business for them. Recycling of raw materials, they hope, will also provide cheaper raw materials.
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68% start-ups, MSMEs didn't benefit from Centre's COVID-19 schemes, claims survey
Business Today, 29 January 2021
A clutch of MSME and start-up schemes of the Centre, which were meant to help them tide over COVID-19 crisis, may not have helped, an online poll by community social media platform LocalCircles says. LocalCircles' annual 'Pulse of the start-ups and MSMEs' survey finds that 68% respondents did not benefit from the government's schemes like Startup India, MSME Samadhan, no or low interest loans, Make in India, Atmanirbhar Bharat, etc., in the past 12 months.
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Karnataka, Amazon India ink MoU to help MSME export goods
The Hindu Business Line, 28 January 2021
The Karnataka government has signed a memorandum of understanding (MoU) with global e-commerce giant Amazon India to help drive e-commerce exports from the state. As part of the MoU, Amazon is expected to train and onboard MSMEs from the state on Amazon Global Selling, its Exports Program, enabling them to sell their unique Made in India products globally to millions of Amazon's global customers.
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MSME loans emerging as one of the preferred lending options for entrepreneurs
Mint, 27 January 2021
MSMEs contribute to almost a third of India's total GDP and employ a large section of the population. MSMEs are therefore vital to the country's economic growth. And with new technology opening up more avenues in the MSME sector, entrepreneurs today have a lot of opportunities to look forward to. As the pandemic-hit economy moves back to normalcy, a key factor that can help MSMEs leverage these opportunities is the availability of financing. Small and medium enterprises need funds to buy equipment, refill inventory, expand operations, increase working capital and more.
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YES BANK new initiative for MSME: ₹5 crore loan without collateral for startups, other features
Mint, 20 January 2021
To strengthen the MSMEs, Yes Bank has recently launched Yes MSME an initiative that will facilitate "speedy and easy access to funds" to MSME sector. The bank will provide "curated offerings to address both business and individual needs of MSMEs, nurture new age entrepreneurs and maximise their potential," the lender said.
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SMEs, real estate to drive asset quality deterioration in India, China: S&P
Business Standard, 20 January 2021
Against the backdrop of the COVID-19 pandemic and its aftermath, SMEs will lead asset-quality deterioration, particularly for countries like Turkey, South Africa, India, China, Indonesia, and Thailand. Tourism and export-oriented SMEs are more vulnerable in this challenging environment, according to rating agency Standard and Poor's (S&P).
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NSIC, Airtel team up to drive digital transformation of MSMEs
The Economic Times, 11 January 2021
Telecom Company Bharti Airtel and NSIC (National Small Industries Corporation) have teamed up to drive the digital transformation of MSMEs in India. Airtel's solutions for MSMEs include connectivity, landline, mobile, conferencing, and cloud, security solutions for businesses, Internet of Things, and cloud communication suite to transform customer engagement.
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CBIC introduces liberalised Authorised Economic Operator package for MSMEs
Mint, 07 January 2021
The CBIC (Central Board of Indirect Taxes & Customs) has introduced a liberalized Authorised Economic Operator package for MSMEs for swift customs clearances. In order to attract MSMEs to become AEOs (Authorized Economic Operators) and avail various benefits, the CBIC has relaxed the compliance criteria provided the MSMEs have a valid certificate from their line-ministry.
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Now MSME customers of 3rd largest PSB too can use SIDBI's DIY portal to submit restructuring proposals
The Financial Express, 06 January 2021
After covering MSME customers of Indian Bank and Central Bank of India under its web-based asset restructuring module, SIDBI (Small Industries Development Bank of India) has included MSME customers of Bank of Baroda as well. The asset restructuring module for MSMEs (ARM-MSME) is an automated portal for businesses to self-create their loan restructuring proposal with financial viability projections by iteration of multiple scenarios and relief options.
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Tata Power teams up with SIDBI to provide solar financing to MSMEs
Business Today, 5 January 2021
Tata Power announced its partnership with SIDBI to provide a finance scheme to the MSME players in the rooftop solar segment. Tata Power and SIDBI have joined hands to design a solar financing solution to help MSME players with financial aid without any collateral at an interest of less than 10%. The scheme will also be complimented with a sanction time of seven days and disbursal of money in four days.
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MSME e-commerce enabler Shopmatic sees 40% revenue growth amid Covid; aims to turn cash positive in 2021
Financial Express, 12 January 2021
E-commerce enabler Shopmatic, which focuses on small businesses and entrepreneurs across India and other markets such as Malaysia, Hong Kong and Singapore, has registered over 40% growth in revenues amid COVID for the April–December period. The company posted more than $7 million in revenue for the nine-month period of FY21 ended December 2020, riding on an upward trajectory with its recently launched range of tech-enabled solutions for the countries' SMEs and entrepreneurs.
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ADB makes $10m equity investment in Tata Capital to support SMEs in India
Devdiscourse, 19 January 2021
The ADB (Asian Development Bank) has made a $10 million equity investment in TCGF II (Tata Capital Growth Fund II) LP. TCGF II is a private equity fund targeting growth capital investments in middle-market companies in India, including SMEs. TCGF II aims to invest in a portfolio of between 8 and 10 companies in sectors including financial services, health care, manufacturing, and technology.
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Telangana, SAP India ink pact to help MSMEs
The Hindu, 24 December 2020
Telangana government and the Indian arm of German software group SAP have entered into an MoU to equip MSMEs in the Telangana with digital skilling and technologies. Their partnership will work towards promoting entrepreneurship for the enterprises by onboarding them on SAP Ariba Discovery global marketplace, offering digital skilling programmes for their workforce and providing access to affordable enterprise technology.
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PM Modi's Standup India scheme nears 1 lakh loan sanctions; up nearly 8% in FY21 so far
The Financial Express, 15 December 2020
PM Modi's scheme to promote entrepreneurship and self-employment—Standup India— has sanctioned 98,454 loan applications so far, according to the government data sourced from Standup India portal. This is 7.8% up from 91,319 applications sanctioned as of March 10, 2020, according to the data shared by the MoS Finance Mr Anurag Thakur in the Rajya Sabha in March. The total number of applications received so far was over 1.15 lakh involving Rs 27,467.04 crore while sanctioned applications involved an amount of Rs 22,136.21 crore.
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Indian startups, SMEs most vulnerable to cyber attacks: Report
Telangana Today, 26 October 2020
While digital transformation has been a great boon for SMEs and startups in 2020 as more businesses come online, it has also opened up opportunities for cyber criminals to target weak or non-existent cyber security infrastructure which smaller businesses tend to generally have in India. As per findings in the recent handbook titled “Cybersecurity for SMEs & Startups” by CPF (CyberPeace Foundation), startups and SMEs remain the most vulnerable segment in India when it comes to cyber attacks. This eBook reveals key findings of cyber security vulnerabilities in the Indian startup & SME ecosystem and also recommends best practices to avoid the same.
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COVID-19: 78% MSMEs and startups in India reduced workforce in last 8 months, says survey
National Herald, 20 October 2020
As per a survey by LocalCircles, only 22% of startups and MSMEs have the same or increased workforce as compared to the pre-COVID levels. With revenues and operations getting impacted for most businesses, many end up cutting costs and some even shut down temporarily or permanently. The survey received over 7,000 responses from startups, MSMEs and entrepreneurs spread across 104 top business districts of the country.
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Zenpay, RBL Bank join hands to digitalise salary accounts for SMEs, MSMEs
Business World, 20 October 2020
Zenpay Solutions on 19 October 2020 announced its partnership with RBL bank and YAP to drive financial inclusion to issue salary cards to its customers across India. The corporate expense and salary payment solution will help blue collared employees working with SMEs and MSME to receive digital payments via a salary account. Zenpay will also offer customers a digital salary card and mobile application, which will help them manage their finance efficiently with the help of the interactive dashboard. According to an official release, various benefits of the partnership include instant activation, easy KYC, zero paperwork, salary card and enhanced customer experience.
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Telangana govt steps up support for MSMEs' credit need; partners with BSE for ease of listing, more
The Financial Express, 19 October 2020
In a bid to encourage more MSMEs to go public to meet capital requirements, the Telangana government along with networking portal for small businesses GlobalLinker on 19 October 2020 partnered with BSE. Apart from helping address finance-related issues and enhancing credibility for MSMEs, BSE would also offer 'intellectual and manpower support to create awareness about the importance and benefits of listing,' the exchange said.
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ETRISE top MSMEs ranking: REConnect Energy and Clairvoyant India bag top honours
The Economic Times, 16 October 2020
The quest to find India's finest MSMEs under the ETRISE Top MSMEs Ranking has yielded joint winners—EConnect Energy Solutions and Clairvoyant India. Indore-based Reconnect Energy Solutions has created a digital energy platform grid connect to enable electric utilities to optimize grids and asset management. Clairvoyant India is a Pune-based global technology consulting and services company that helps organizations to build innovative products and solutions using big data, analytics and the cloud. The firm's data security product Kogni provides compliance, audit and security teams the ability to discover and take care of sensitive data.
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MSME lender Lendingkart's disbursement jumps 85% in FY20; backs Covid-hit firms under govt's CGTMSE
The Financial Express, 15 October 2020
MSME lender Lendingkart on 15 October 2020 said that its disbursement for the financial year (FY) 2020 has increased around 85% to about 53,000 loans involving Rs 2,500 crores from FY19. Founded in 2014, Lendingkart has made cumulative disbursals totalling Rs 5,500 crores since inception to over 90,000 MSMEs. It also leveraged the government's Credit Guarantee Fund Trust for Micro and Small Enterprises (CGTMSE) for lending to MSMEs.
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MSMEs can now go online in a jiffy to tap into e-commerce spurt; get e-payments via Mswipe's new tool
The Financial Express, 15 October 2020
Small businesses can now use a 'free-to-use business website' offered by financial services platform Mswipe to go live online with their own microsite within minutes. Merchants and retailers having an account on Mswipe would be able to create their own website through the existing account and add photos along with social media links to go live. Mswipe would also offer Search Engine Optimisation (SEO) of SMEs' microsites to enable their visibility online. The company had recently launched PayByLink that SMEs can share with customers to access the digital bill and complete the purchase.
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Mastercard and CAIT partner to launch the Small Business Support Coalition
India Education Diary, 14 October 2020
To support businesses that are struggling to stay open and resume operations while grappling with new norms of safety and health protection, Mastercard and CAIT have partnered with Indian NGO ACCESS to launch the Small Business Support Coalition, which will work towards educating small merchants and kirana store owners on government approved protocols for improved safety and hygiene, and will also provide them with the necessary tools and services to put them in practice.
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Surge in requests to snip power supply shows SMEs are bleeding
The Times of India, 14 October 2020
An increase in applications to either disconnect power supply or reduce the electricity load has thrown light on the challenges that SMEs are facing to stay afloat in the aftermath of the lockdown. Officials in the UPPCL (Uttar Pradesh Power Corporation Limited) confirmed that the number of such requests had gone up several times in the period between July and September 2020.
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AMNS to expand retail network for MSMEs in India
The Economic Times, 14 October 2020
Domestic steel maker ArcelorMittal Nippon Steel India (AMNS) on 13 October 2020 said it is looking to expand its offline retail network by adding 32 outlets by 2021. Currently, there are about 18 Hypermarts across various locations in India, AMNS () India said in a statement. The firm added that Hypermarts contribute 20% to AMNS India's revenues; and the share is expected to rise to 30% with the expansion.
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Relief for MSMEs: Centre waives off compound interest on loans during pandemic
Deccan Chronicle, 3 October 2020
In a relief to individual borrowers and medium and small industries, the Centre has agreed in the Supreme Court to waive compound interest (interest on interest) charged on loans of up to Rs 2 crores for a six-month moratorium period announced due to the COVID-19 pandemic. It said the government will seek due authorisation from Parliament for making appropriate grants in this regard and the endeavour shall be over and above the support of Rs 3.7 lakh crores to MSMEs, Rs 70,000 crore for home loans etc. already extended through the Garib Kalyan and Aatma Nirbhar packages announced by government earlier.
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Google ties up with platforms to help small biz go digital
Mint, 01 October 2020
Google India on 30 September 2020 said it has partnered with third-party online platforms such as Instamojo, Zoho, Swiggy and Dunzo to help SMBs (small and medium businesses) build their digital presence as more and more consumers turn to online purchases amid the pandemic. As part of the initiative, Google has brought on board two delivery platforms Dunzo and Swiggy to help small-scale restaurants do business online. They will provide additional support to small businesses to start accepting orders online and enable delivery logistics.
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Good news for SMEs! Yes Bank joins hands with BSE to empower small business companies
Zee Business, 29 September 2020
Yes Bank has signed an MoU with BSE India's premier exchange and the world's fastest stock exchange to empower the SME segment through awareness and knowledge-sharing programmes. Under this MoU, both BSE and Yes Bank will conduct knowledge events for SMEs, export promotion of SME scale companies, in addition to providing banking and financial solutions. The Bank will also offer customized services and products to the listed SME members of the platform and advisory solutions to EXIM potential listed SMEs.
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Govt forms five task forces to make Indian MSMEs future-ready: Secy
The Financial Express, 24 September 2020
The government has constituted five task forces to make India's MSMEs future-ready and formulate a concrete strategy towards making the country a leading exporter. The Secretary, Ministry of MSME Mr A K Sharma added that one of the five areas identified is Industry 4.0, including elements like artificial intelligence, 3D and virtual reality, and this task force has been formed with the objective of making India a global leader in Industry 4.0.
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Nearly 95% of SMEs uninsured: Irdai
The Times of India, 24 September 2020
Insurance regulator IRDAI has said that the Covid-19 pandemic has highlighted the need for insurance in the MSME sector where only 5% of the businesses are insured. To make up for this shortcoming, IRDAI will be directing insurance companies to mandatorily offer a standardiZed cover for this segment. Mr Subhash Chandra Khuntia, Chairman, IRDAI said such group products were necessary in the interest of workers and also to instill confidence in them at a time when they are afraid to come to the workplace.
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Shipsy launches Network Module for Indian MSMEs/ SMEs amid pandemic
United News of India, 22 September 2020
Shipsy, a SaaS based venture on 22 September 2020 announced extending its platform free of cost to MSMEs in India under its 'Network Module' that will provide them access to connect with verified agents and get access to very competitive rates as well as much better service levels. The platform offers a bouquet of services like Price Procurement, Documentations handling and container tracking, to improve on-time satisfactory delivery of goods which enhances customer delight and will benefit the MSMEs' brand name too.
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Facebook launches grants programme for SMEs in India
The Economic Times, 15 September 2020
To help SMEs across the world stay afloat Facebook had announced a $100 million grant programme to support around 30,000 SMEs in more than 30 countries. The money from the Facebook Small Business Grants Programme can be used to retain staff, pay the rent and come together to be a part of the SME community. The company has partnered with Goodera for this venture.
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India-MSME Ministry writes to CMDs of top 500 Corporate Enterprises over delayed payments
MENAFN - KNN India, 14 September 2020
In another major step towards payment of MSME dues by different sectors, the Union Ministry of MSME has now impressed upon the private sector enterprises of the country to take measures for release of payment of MSME dues on priority. While announcing the Aatmanirbhar Package, it was mentioned that MSME receivables and dues should be paid in 45 days. The Ministry has now directly taken up the issue of pending dues to MSMEs with the top 500 corporates groups of the country.
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Shadow of ITeS contraction over small, medium units: CRISIL SME Tracker
Business Standard, 14 September 2020
CRISIL Research expects India's information technology-enabled services (ITeS) exports to contract for the first time in over a decade this fiscal year, shrinking 1–5% year-on-year in constant currency dollar terms to about $36 billion. Exports constitute more than 85% of the industry's revenue, and given the Covid-19-induced economic slowdown across the world, especially in the US and EU which account for about 80% of total export revenue, exports are at risk. The impact of the pandemic on high-value knowledge services, especially in the cloud and analytics sub-segment, is expected to be lower. However, the traditional voice segment, where SMEs accounting for over 40% of industry revenue are concentrated, is set to witness a severe volume contraction.
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Banks lend 5% more to MSMEs in July from year-ago period even as credit growth contracts in FY21 so far
The Financial Express, 13 September 2020
Gross bank credit to MSE (micro and small enterprises) in July 2020 was up 5.1% to a little over Rs 11 lakh crores from Rs 10.47 lakh crore in July 2019, according to the data from Reserve Bank of India. However, the growth had contracted in terms of the financial year so far. The credit growth stood at minus 4.2% in July from Rs 11.49 lakh crores deployed as on March 27, 2020, according to the RBI's September bulletin.
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Govt launches Aatmanirbhar Bharat ARISE-Atal New India Challenges programme for MSMEs, start-ups
The Financial Express, 09 September 2020
The Centre on 09 September 2020 launched the Aatmanirbhar Bharat ARISE-Atal New India Challenges programme to support MSMEs and start-ups for making India innovative, resilient, tech-driven, and R&D-oriented. The Niti Aayog's Atal Innovation Mission (AIM), in collaboration with ISRO and four ministries, will focus on challenges in 15 sectors through the programme. Mr Amitabh Kant Niti Aayog CEO said at the launch it will provide a great opportunity for the government to become the first buyer of indigenous Made in India technology solutions.
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Mastercard to invest Rs 250 cr to help Indian SMEs amid COVID-19 crisis
The Financial Express, 9 July 2020
Global cards major Mastercard announced an additional Rs 250-crore investment to help small businesses in the country, amid the COVID-19 pandemic. The investment, which is over and above the USD 1 billion committed for the Indian market till 2025, will be focused on helping small businesses go digital, making access to credit easier and also supporting women entrepreneurs.
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Indian small businesses more confident than Asian peers in post-Covid recovery on back of tech adoption
The Financial Express, 9 September 2020
Indian small businesses are a resilient lot. Having survived the challenges post-demonetization and GST in the past, they are now confident of surviving the existential crisis following the Covid breakout and lockdown. According to a study by technology company HP focusing on small and medium enterprises' outlook for the post-Covid scenario, 73% of SMEs said that they would survive the current downturn in comparison to the average 60% of SMEs in Asia. In fact, a healthy 61% of SMEs claimed that they would thrive in their operations in the post-Covid world. The study titled HP Asia SMB Report 2020 captured sentiments of 200 SMEs in each of the eight countries including Australia, India, Indonesia, Japan, Singapore, South Korea, Thailand and Vietnam during May and June 2020.
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MSMEs can now get loans for expenses before customer payments; Razorpay offers up to this much credit
The Financial Express, 8 September 2020
Tiger Global and Y Combinator-backed payment gateway startup Razorpay has added a new product to their digital lending solutions for MSMEs as it looks to further tap into the credit needs of small businesses looking to recover from the Covid and overall economic gloom. Six-year-old Razorpay has launched 'Cash Advance' – an unsecured line of credit for MSMEs to manage cash requirements prior to their customer payments. Currently, there are more than a dozen startups offering credit to MSMEs including Capital Float, Aye Finance, Indifi Technologies, Lendingkart, FlexiLoans etc in India.
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SBI, PNB lead PSBs' tally in disbursing credit to Covid-hit MSMEs
The Financial Express, 07 September 2020
India's largest lender State Bank of India, followed by Punjab National Bank, Canara Bank, Bank of Baroda and Union Bank of India, are the five leading credit lending public institutions to Covid-hit MSMEs under the Rs 3 lakh crores ECLGS (Emergency Credit Line Guarantee Scheme), according to the government data. As on September 3, 2020, 12 public sector banks have cumulatively disbursed Rs 62,025.79 crore into 21,28,010 MSME accounts, as per the data tweeted by the Finance Minister Nirmala Sitharaman's office on Monday. The overall credit disbursement including 24 private banks and 31 non-banking financial companies was Rs 1,13,713.15 crore into 24,70,312 MSME accounts.
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Small businesses bear maximum Covid brunt as net sales' growth plunges in Q1 FY21
The Financial Express, 07 September 2020
Small businesses in India witnessed a sharp contraction in net sales growth during Q1 FY21 from the year-ago period due to the Covid pandemic and the following lockdown that was enforced by the government on 25 March 2020. According to the Q1 performance analysis of 747 small businesses by Care Ratings, their net sales saw negative growth of minus 66.7% from Q1 FY20.
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Digital India: New portal for MSME registration sees early traction
The Financial Express, 02 September 2020
The MSME registration portal Udyam Registration launched by the government for small businesses to register online, and as per the revised MSME definition, has already seen nearly 4 lakh registrations, MSME Ministry said on 02 September 2020. The portal became operational on 01 July 2020. Apart from new entrepreneurs who want to register their units as MSMEs, businesses which are registered are EM (Entrepreneurs Memorandum) part II or Udyog Aadhaar Memorandum (UAM) can also migrate to Udyam by re-registering themselves. The government had introduced the portal for paperless and free of cost registration of MSMEs based on self-declaration in an effort to boost ease of doing business.
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RBI to MSMEs: No need to re-register under Udyog Aadhaar for reclassification as per new definition
The Financial Express, 25 August 2020
The Reserve Bank of India has issued a circular with clarifications for MSMEs around the registration of existing units under Entrepreneurs Memorandum (EM) part II and Udyog Aadhaar Memorandum (UAM). The circular, which has been issued on the advice of the MSME Ministry, said that existing EMs part II and/or UAMs of MSMEs obtained before June 30, 2020, will continue to remain valid till March 31, 2021.
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Facebook, Jio tie-up will bring 25 million SMEs online: Ajit Mohan
Business Standard, 27 August 2020
Reliance Industries-backed Jio Mart, and Facebook through its instant messaging platform WhatsApp, will aim to bring 20–25 million small businesses online in the near future. The move will fundamentally change the consumer behaviour in India and help shift a large chunk of consumers to digital payments from physical cash.
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Beyond ease of transactions, digital payments to help MSMEs ride wave of economic recovery
The Financial Express, 18 August 2020
At a time when physical proximity and contact have to be minimized, digital payments have proved to be a much-needed panacea. According to a recent survey done by a merchant payment solutions company, 57% of respondents used digital payments 5–6 times a week in July 2020 while 21% claimed to use it thrice. This should come as no surprise considering that India is estimated to see the fastest growth in the transactions of mobile payments in terms of value, with a CAGR of over 20% between 2019 and 2023.
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Proactive cyber-security solutions for SMEs gain currency, but high costs a major impediment
The Indian Express, 17 August 2020
The demand for proactive cyber-security solutions has risen in the last three months as companies across sectors continue to opt for letting employees work from home, according to experts. Among those which could be impacted the most are SMEs, which mostly do not have the resources to ward off such attacks, global cyber-security expert agency Sophos said in a report.
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Amid 'Vocal for Local', government buys more from small businesses than required
The Financial Express, 05 August 2020
CPSE (Central Public Sector Enterprises), central ministries and departments have procured goods and services worth over Rs 13,000 crores out of which procurement from MSE (micro and small enterprises) stood at Rs 4,203 crores in the financial year 2020–21 so far, according to the government data. Annual procurement by public sector enterprises, 25% of which has to be from MSEs as mandated by the government, is already maintaining a healthy rate of 32.22% currently.
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Now AI will assess credit risk of small businesses as UK's Wiserfunding enters India to tap MSME market
The Financial Express, 04 August 2020
The UK-based fintech company Wiserfunding, which assesses credit risk of SME, has forayed into India. The company, co-founded by the veteran in credit risk analytics and inventor of the Z-score formula for predicting bankruptcy Dr Edward Altman, has launched its AI-backed cloud-based credit risk assessment tool for SMEs. Wiserfunding will look to invest $3-5 million over the coming three years to tailor credit risk models for SMEs. Wiserfunding is planning to tie-up with three-four banks and around eight to 10 NBFC and cover 8.5 million SMEs in India through its models by end of FY21. The investment will also be made for developing technology to access multiple public and private databases to get all inputs it requires for credit risk models and to automate them similar to how the company has done in Europe.
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After a record-breaking quarter, Amazon at work on digitizing SMEs
The Economic Times, 01 August 2020
Amazon has reiterated its focus on digitizing MSME businesses in India and said it was launching new features to support these efforts. This comes at a time when large players such as Reliance Industries' JioMart and Walmart-owned e-commerce company Flipkart are also stepping up on onboarding neighbourhood stores to build more hyper-local supply chains for their e-tail businesses.
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Mastercard to invest Rs 250 cr to help Indian SMEs amid COVID-19 crisis
The Financial Express, 9 July 2020
Global cards major Mastercard announced an additional Rs 250-crore investment to help small businesses in the country, amid the COVID-19 pandemic. The investment, which is over and above the USD 1 billion committed for the Indian market till 2025, will be focused on helping small businesses go digital, making access to credit easier and also supporting women entrepreneurs.
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99% businesses in India now in MSME category
The Times of India, 8 July 2020
A change in definition of MSME has turned India into a country of small businesses as nearly 99% of the entities now fall under the category based on the twin parameters of investment and turnover. An entity can be classified as a micro enterprise if investment is up to Rs 1 crore and turnover does not exceed Rs 5 crore. The corresponding figures are Rs 10 crore and Rs 50 crore for small and Rs 50 crore and Rs 250 crore for medium enterprises. Government sources said that numbers with the GST authorities show that 99% of the entities have a turnover that fits into the MSME definition.
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'Global Bharat': SAP's new tech initiative to make MSMEs globally competitive
Financial Express, 8 July 2020
The enterprise software maker's 'Global Bharat' program is designed to enable MSMEs to augment business operations and re-access critical processes that overcome inefficiencies and make them globally competitive by equipping them with digital technologies. In association with Nasscom Foundation, UNDP (United Nations Development Programme) and Pratham InfoTech Foundation, the programme compliments the government's vision to empower MSME sector by providing them access to global marketplace, digital skilling for the workforce and transforming business processes.
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Wadhwani Foundation launches 'Sahayata' initiative, commits investment of Rs 200 crore
The Economic Times, 7 July 2020
The Wadhwani Foundation has announced the Sahayata Initiative to help distressed SMEs affected by the economic crisis and public health workers improve COVID-19 knowledge and skills. Wadhwani Foundation has committed Rs 200 crore and is building an ecosystem of partners, including government ministries and agencies, banks, and consulting firms, to help operationalize this large and complex initiative.
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SBI readies Rs 1k-cr B2B e-market only for MSMEs
The Times of India, 7 July 2020
State Bank of India (SBI) is set to invest USD 100–150 million (Rs 750–1,000 crores) and leverage its YONO platform to set up a B2B (business-to-business) e-commerce marketplace for MSMEs. The country's largest lender hopes this will also help it better manage financing of small businesses. The plan, which has been cleared by the bank's executive committee, entails getting MSMEs on to the platform and providing funds based on the transactions that take place. The bank is hoping that it will not only help assess risk better but will also give it greater grip over receivables.
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Blue Ashva Capital raises Rs 454 crore for SME-focused fund
The Hindu Business Line, 6 July 2020
Blue Ashva Capital, an investment firm founded by Mr Satya Bansal, former CEO of Barclays Private Bank in India, has marked the first close of its maiden fund with commitments of Rs 454 crore ($60 million). The Blue Ashva Sampada Fund, focused on SMEs and start-ups, is a SEBI-registered Category II Alternative Investment Fund. It proposes to raise Rs 400 crore, with a greenshoe option of Rs 200 crore. It has exercised a part of the greenshoe option at the initial close. The fund is committed to nurturing profitable and sustainable SMEs and start-ups for a better India.
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Udyam registration to boost MSMEs
The Times of India, 5 July 2020
As part of facilitating the ease of doing business initiative and reduce the transaction time and costs, the Centre has come up with Udyam registration for the MSMEs. The Centre's new portal is expected to give more fillip to the entrepreneurs in the state as majority of the business initiatives in the state come under the category of MSMEs.
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Banks sanction 36.7% of govt's MSME package, lag in disbursals
The Indian Express, 5 July 2020
With four more months left for the deadline, banks have sanctioned 36.7% of the targeted Rs 3 lakh crore under the Emergency Credit Line Guarantee Scheme (ECLGS) scheme for stressed MSMEs, as per Finance Ministry data. As per the scheme, banks can lend Rs 3 lakh crore till 31 October 2020, of which Rs 1.10 lakh crore has already been already sanctioned by banks to 34.69 lakh borrowers till 1 July 2020, according to official data.
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Modi govt eases registration for MSMEs; launches portal for setting up business with only Aadhaar
The Financial Express, 2 July 2020
To improve ease of doing business for new MSMEs, the government has launched a new process for registration and classification of enterprises in a new portal Udyam Registration. Registering as MSME on the portal will be completely paperless and based on self-declaration. Small businesses won't have to upload any documents or proof except the Aadhaar number for registration. The MSME Ministry has also organized a single-window system at Champions Control Rooms (set up at MSME Development Institutes across India) and district industries centres for facilitating the process. The portal will provide units with a registration number following which an Udyam Registration certificate will be issued to enterprises.
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MSMEs to get $750 million boost from World Bank as India looks to become Atma Nirbhar
The Financial Express, 1 July 2020
Over 15 crore Indian MSMEs will get a $750 million boost from the World Bank as the latter has extended help amid the coronavirus crisis. The funding will also help the government's cause to protect India's MSME sector. The lender had earlier approved a funding of $1 billion each for the social and health sector as the world grapples with the outbreak of coronavirus. The latest fund announcement will help impacted small businesses to get increased liquidity access. Mr Junaid Ahmad, World Bank Country Director in India said the funding is under the multilateral lender's Development Policy Law, which is a direct budget support.
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Google survey says close to two-thirds of SMEs in India are undergoing revenue loss
The Economic Times, 01 July 2020
Close to two-thirds of the SMEs in India are undergoing revenue loss due to lower demand and fewer customers, while over half of the businesses are facing challenges in meeting fixed costs, said a survey by Google India with research firm Kantar to assess the impact of Covid-19 on SMEs. It added that close to 93% businesses are facing customer related challenges and 50% businesses are facing a revenue loss due to consumers buying smaller quantities. Meanwhile around one-third of the businesses are open to adopting digital changes in order to boost their business in these challenging times.
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WWF report says inadequate policy support for clean energy startups and SMEs in India
The Economic Times, 25 June 2020
While India's move towards clean energy transition has led to the emergence of various startups and SMEs, there are only a handful of policies that help accelerate the growth of these companies to meet India's clean energy demands, according to a new report by World Wild Fund for Nature (WWF) India and cKinetics. The report delves into six segments including solar rooftop, electric mobility, energy efficiency, smart energy, waste-to-energy and energy access, that are expected to have a considerable impact across key sectors such as industries, buildings, and transportation.
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MSME sector gets another push from govt; distressed MSMEs to get Rs 20,000 crores guarantee cover
Financial Express, 24 June 2020
India's distressed MSME sector got another push from the government on 24 June 2020 with the launch of a Credit Guarantee Scheme to help the country's MSMEs. Union Minister Mr Nitin Gadkari rolled out a subordinate debt scheme to provide Rs 20,000 crore guarantee cover to two lakh micro, small and medium enterprises. This also entails a sub-debt facility to the promoters of those operational MSMEs that are distressed or have become non-performing assets as on 30 April 2020. It also guarantees cover to the promoters who can take debt from the banks to further invest in their stressed MSME units as equity.
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SMEs go digital during pandemic, but cautiously
Mint, 18 June 2020
According to IT service provider IBM, before covid-19 itself there had been some accelerated adoption of public cloud by small and medium businesses. In the post-covid-19 scenario, they have been forced to scale faster to meet the demand of a decentralized workforce. SMEs are now covering digital transformation journeys, that usually require years, in a couple of weeks.
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PSBs disburse Rs 12,201-cr loan to MSMEs under emergency credit line scheme
The Economic Times, 11 June 2020
The Finance Ministry on 11 June 2020 said that of the loans worth Rs 24,260.65 crore sanctioned by public sector banks (PSBs) from June 1 under the Rs 3-lakh crore Emergency Credit Line Guarantee Scheme (ECLGS) for the MSME sector, Rs 12,200.65 crores have been disbursed till 9 June 2020. Bank-wise, market leader State Bank of India (SBI) has sanctioned Rs 13,363 crores, while disbursement was nearly half at Rs 7,517 crore at the end of 9 June 2020.
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Govt. to review if private banks taking part in MSME revival
The Hindu, 9 June 2020
While PSBs have stared sanctioning loans under the credit guarantee scheme for MSMEs, the government now wants to know if private lenders are also participating in the scheme. This is because the private sector banks have a significant exposure to MSME credit. With the total loan outstanding to the MSMEs at Rs 17.75 lakh crore, India's largest private lender HDFC Bank's share is about 13%. The balance is shared between other private lenders, PSBs and NBFCs.
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Economic package for NBFCs, MSMEs needs speedy implementation: India Ratings
Mint, 20 May 2020
Speedy implementation of the economic package announced by finance minister Ms Nirmala Sitharaman would be key in providing relief to NBFCs and MSMEs, said rating agency Ind-Ra (India Ratings and Research). According to the report, lower-rated NBFCs are not active in the bond market and hence investments through non-convertible debentures could create challenges.
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FM provides Covid-19 relief, no fresh insolvency proceeding against MSMEs for 1 year
The Economic Times, 17 May 2020
Delivering the fifth tranche of the economic package, part of Atmanirbhar Bharat Abhiyaan, Finance Minister Ms Nirmala Sitharaman announced measures to enhance Ease of Doing Business through IBC-related measures concerning MSMEs. The government has raised the minimum threshold to initiate insolvency proceedings to Rs 1 crore from Rs 1 lakh, which largely insulates MSMEs. The Finance Minister added that the insolvency proceedings will not be initiated up to 1 year. The second important measure announced is a special insolvency resolution framework under Section 240A of the IBC which will be notified soon.
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Uttar Pradesh launches portal for giving loan to MSMEs
The Financial Express, 15 May 2020
Close on the heels of the Union government's Rs 3-lakh crore credit guarantee to reboot MSMEs, Uttar Pradesh launched an online loan portal for the MSME sector on 14 May 2020. Loans up to Rs 2002 crore were disbursed to 56,754 entrepreneurs, expected to provide an additional employment to more than two lakh people. Uttar Pradesh, which has approximately 90 lakh MSMEs, is expected to be the largest beneficiary of the MSME package announced by the Centre.
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The MSME economic package may turn out to be beneficial for some startups
The Economic Times, 15 May 2020
Finance Minister Nirmala Sitharaman on 13 May 2020 delivered the much-awaited economic package for bringing relief to the MSME sector, one of the worst-hit during the pandemic in the country. Some of the notable measures announced included Rs 3 lakh crore collateral-free automatic loans, Rs 20,000 crore subordinate debt, and revised definitions of MSMEs. While the benefits may not be applicable for startups, many of them catering to the SME sector have welcomed the move and believe the measures will help streamline their operations.
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Government set to guarantee up to Rs 3 lakh crore loans to MSMEs
The Times of India, 13 May 2020
The government's much-awaited stimulus for micro, small and medium-sized businesses is expected to include a provision for additional loans of up to Rs 3 lakh crore or 20% of the bank exposure to the sector, along with a more liberal dispensation for government contracts. In addition, more funding for Mudra loans, meant for tiny businesses, are on the anvil. The finance ministry has floated a proposal for the cabinet to guarantee fresh working capital limits to small units through the National Credit Guarantee Trustee Company so that small businesses are not starved of working capital.
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Govt changes definition of MSMEs, revises investment limit
The Times of India, 13 May 2020
The Centre revised the investment limit of MSMEs upward and introduced an additional criterion of 'turnover' as it revised the definition of the sector. The government has also done away with the distinction between manufacturing and services sector. As per the revised definition, any firm with investment up to Rs 1 crore and turnover under Rs 5 crore will be classified as 'Micro'. A company with investment up to Rs 10 crore and turnover up to Rs 50 crore will be classified as 'Small' and a firm with investment up to Rs 20 crore and turnover under Rs 100 crore will be classified as 'Medium'.
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Government has taken care of India's largest employers, through aid for MSMEs
Mint, 13 May 2020
The Finance Minister has outlined the first bouquet of the stimulus package and has promised to come with the subsequent package details over the coming days. The key focus of the announcements has been aimed at protecting employment, providing liquidity and ensuring business for the MSMEs. MSMEs have a large role to play in the Indian economy and are the largest employers. It is also a sector that has experienced maximum pain beginning from the days of demonetization, GST blues and now Covid 19. The sector needed serious support and the government has announced measures that are likely to give the necessary balm to the entrepreneurs in this segment. Out of the 15 measures announced, there were 6 for the MSME sector. The other two measures related to NBFCs/MFIs/HFCs would also indirectly help the MSMEs.
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After local shops, Amazon extends support to Covid-hit small, medium logistics partners with new fund
The Financial Express, 29 April 2020
E-commerce firm Amazon is looking to help its small and midsize logistics partners, which are impacted due to the Covid-19 lockdown, financially through a new Partner Support Fund. The company will provide one-time disbursement to package delivery businesses known as Delivery Service Partners and 'select' transportation partners associated with Amazon. This will enable them to provide financial aid to close to 40,000 of their staff for the month of April, Amazon said. The fund will also help these SMEs in their critical fixed infrastructure costs, and support liquidity and cash flow as they resume business post-lockdown.
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Locus launches 'QuickStart ' for SMEs & startups to help manage their logistics operations efficiently
Analytics India Magazine, 29 April 2020
Locus, a global B2B SaaS company, has announced the launching of a free tool 'QuickStart,' which is a self-serve lite version of the product suite for startups and SMEs to improve their supply chain efficiency amid COVID-19 pandemic. Startups and SMEs are in a precarious situation now, and companies are struggling to manage volatile demand, fleet and resource efficiency, and rising costs due to the COVID-19 pandemic.
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Enabling credit to SMEs, the CreditEnable way
The Hindu Business Line, 27 April 2020
In these trying Covid-19 times, the UK-headquartered CreditEnable, an AI-driven SME credit marketplace, wants to ramp up its activities in India and support more SMEs in accessing business loans, especially working capital financing. This fintech, which has been operating in India since 2017, partners large private sector banks and NBFCs to digitally arrange credit to SMEs with loan requirements ranging from Rs 10 lakh to Rs 30 crore. CreditEnable's India marketplace currently caters to as many as 20 leading lenders. It has now launched a free business stability health check initiative for SMEs in India looking to cope with Covid-19-induced business challenges.
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Corona carnage: Whopping 74% small businesses, startups may shutdown, scale down in next few months
The Financial Express, 27 April 2020
A whopping 74% of small businesses and startups in the country are staring at shutdown or scaling down of their operations in the coming six months due to the impact of the Covid-19 pandemic, according to a survey of startups and SMEs based in more than 90 districts in India. The Coronavirus outbreak and subsequent lockdown announced by the government in March 2020 have hit small businesses and startups hard, crippling their cash flows and increasing their credit requirements even as many of them have been facing manpower challenges on the ground.
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47% of Indian startups and SMEs have less than a month of cash left: Survey
Mint, 27 April 2020
The impact of covid-19 can be seen on businesses, as several startups including Swiggy, Oyo, Meesho, Udaan and VOGO have either laid off or furloughed their staff. And now, with the lockdown impacting business and revenues, many small startups have reported saying that the capital in the bank has started to dry up. According to a new survey conducted by social media and community platform LocalCircles, 47% of startups and SMEs who participated in a survey said that they have less than one month to no capital left to operate.
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Alibaba offers $30 mn worth cloud credits to digitize SMEs In India, globally
Inc42 Media, 23 April 2020
Predicting altered choices and consumption patterns after the Covid-19 outbreak, Chinese tech major Alibaba has launched a Global SME Enablement program to provide cloud technology to digitize SMEs. Under this program, Alibaba Cloud, the data intelligence unit of Alibaba Group, will offer $30 million worth credit of cloud assets to new and existing SME clients around the world. SMEs across the world can apply for Alibaba Cloud credits till June 22.
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More than a third of SMEs now trading below issue price: PRIME Database
The Financial Express, 19 April 2020
More than a third of the 427 SMEs listed on the exchange platform since 2012 are trading in the red. As many as 76 of these companies have shed more than 75% of their value over their offer price, data from PRIME Database shows. Among the 247 actively traded scrips, 17 have shed more than 50% this calendar year. About 40% have slid more than the Sensex, which is down 23% year-to-date.
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SIDBI Launches COVID-19 Startup Assistance Scheme
BusinessWorld, 8 April 2020
Startups across the country are facing cash flow issues leading to layoffs and cost-cutting. Small Industries Development Bank of India (SIDBI) has introduced a financial assistance scheme called COVID-19 Startup Assistance Scheme (CSAS) to ease the liquidity issues faced by the startups across the country. Under CSAS, startups can take a loan of up to Rs 2 crore with 36 months of tenure including the 12 months moratorium. The startups which have positive unit economics are eligible to apply for the loan.
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Govt's subordinate debt scheme for MSMEs a welcome move but success depends on due diligence process
The Financial Express, 26 February 2020
One of the major causes for low availability of bank finance to MSME sector is the high-risk perception of the banks in lending to MSMEs and consequent insistence on collaterals that are not easily available with these enterprises. Finance Minister Ms Nirmala Sitharaman in Budget 2020 has proposed to launch a scheme for giving subordinate debt to MSMEs stressing on the working capital challenge faced by them. Subordinated debt is an unsecured loan or bond that ranks below other more senior loans or securities with respect to claims on assets or earnings. In the case of borrower default, creditors who own subordinated debt will not be paid out until after senior bondholders are paid in full.
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Ministry of MSME to establish 15 new Technology Centres under PPP mode
Knowledge & News Network, 18 February 2020
Ministry of MSME has decided to augment the network of 18 existing technology centers and set up 15 new technology centres under the World Bank assisted Technology Centre Systems Programme (TCSP). These technology centres will be established in PPP mode in a time span of three years, and will provide various technology, skilling, incubation and consultancy leading to enhance the competitiveness of MSMEs, employability of job seekers as well as creation of MSMEs in the country.
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RBI manna for MSME sector can spur demand, says CRISIL SME Tracker
Business Standard, 17 February 2020
The Monetary Policy Committee (MPC) of Reserve Bank of India (RBI) made several announcements to spur credit flow to the MSME sector. First, the Union Budget for 2020-21 had extended the option of one-time restructuring of MSME loan accounts without classifying these as non-performing assets (NPA) by one more year, until March 31, 2021. The benefit would be available to MSME loans that were in default but 'standard' as on January 1, 2019. The MPC has further extended the scheme to MSME accounts that were in default as on January 1, 2020, and the said restructuring needs to be implemented by December 31, 2020. Second, the MPC permitted incremental lending (until July 31, 2020) to MSMEs, automobiles and residential housing without the requirement of cash reserve ratio (CRR), for a period of five years from the date of origination or tenure of the loan, whichever is earlier.
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RBI notifies extension of MSME debt recast window
Mint, 11 February 2020
The Reserve Bank of India (RBI) on 11 February 2020 notified extension of the deadline for a one-time restructuring scheme of small business loans by another nine months to 31 December. The central bank said that the aggregate exposure, including non-fund based facilities, of banks and NBFCs to the borrower should not exceed Rs25 crore as on 1 January, 2020.
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RBI measures for MSMEs to help growth revival in employment-oriented sectors: EEPC India
The Economic Times, 06 February 2020
Reserve Bank of India (RBI) measures to provide one-time restructuring window for advances to the MSMEs would help growth revival in the employment-oriented sectors, said EEPC India chairman Mr Ravi Sehgal. The MSMEs contribute significantly to the country's exports. With global markets being subdued, exporters, particularly MSMEs, are facing challenges. Through loan restructuring and providing CRR incentives to the banks to lend to MSMEs, the RBI measures would certainly help the exporting sector.
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MSMEs grapple with stress even as govt grants more time for restructuring
Business Standard, 4 February 2020
With MSMEs grappling with the problem of delayed payments and slowdown in demand, the sector remains under major stress, even as the government has extended the restructuring deadline by a year. Data from Reserve Bank of India suggests that in the micro and small segment, credit growth has been negative at (-) 3.4 per cent in the first eight months of the current financial year (till November end). For medium enterprises it was (-) 3.6 per cent.
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Govt invites ideas from Start-ups, MSMEs for incubation and funding
Inc42, 3 February 2020
The ministry of MSMEs has invited ideas from start-ups, innovators, technocrats, MSMEs and others for funding support up to INR 15 lakhs per approved idea through the business incubators chosen by them. Under the scheme for Support for Entrepreneurial and Managerial Development of MSMEs through Incubators, the incubators or host institutions (HI) approved for the scheme will be supported by the office of the Development Commissioner, MSME.
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Credit Saison, Capital Float to provide digital financing to Indian SMEs
Business Standard, 22 January 2020
Credit Saison, one of Japan's largest financial institutions, has partnered with Capital Float, a fintech NBFC, to deliver working capital financing to MSMEs across India. The two companies have jointly developed a unique co-origination model through which they will both contribute capital to deliver last-mile credit to MSMEs across the country. The companies said the MSMEs will be able to apply for these loans online and receive approvals within the quickest turnaround time in the industry, powered by Capital Float's technology and credit underwriting platform integrated with Credit Saison's systems.
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Betting on small businesses: Digitising MSMEs to create market for technology providers
The Financial Express, 12 December 2019
Adoption of digital technology, though gradually, among MSMEs is perhaps among the definitive move happening in around 75 million strong Indian MSME sector. The opportunity, hence, for technology providers and enablers, is also rising. From estimated $30 billion in 2019, the market opportunity rising from digital technology adoption among MSMEs will grow at around 25 per cent CAGR to around $85 billion in 2024, a recent Zinnov report said.
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Amazon India to host 'Smbhav' for small businesses in India
Everything Experiential, 5 December 2019
Amazon India announced that it will host a two-day summit 'Amazon Smbhav' for small businesses across India in New Delhi on January 15–16, 2020. Amazon Smbhav is designed as a two-days thought-leadership SMB Summit to provide small and medium businesses as well as micro-entrepreneurs in India an opportunity to engage in a constructive, open dialogue with the industry, subject matter experts as well as peers about issues hindering their growth, share learnings, understand new opportunities that e-commerce offers and have some insights into future trends.
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Credit growth to small businesses remains flat despite govt's push; here's what RBI data shows
The Financial Express, 2 December 2019
Amid the government's stress on the credit boost to micro and small businesses (MSE), the gross bank credit grew by 6.2 per cent as on September 2019 from the year-ago period even as with respect to the current financial year, the growth contracted by 1 per cent. For August 2019, the growth remained at 6.1 per cent YoY while for July 2019, it stood at 7.8 per cent. Similarly, contraction in credit remained at 1.8 per cent for the two months since the beginning of the financial year.
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Not just product delivery, logistics companies helping SMEs bring efficiency in supply chain, technology
The Financial Express, 26 November 2019
Logistics companies usually have a pan-India reach. They cover even the hinterlands of the country and are helpful to the MSMEs in these areas. Today several MSMEs are being benefited from the logistics companies to expand their businesses in rural areas or tier-III and IV cities. Knowing the importance of logistics companies, the government is trying to push the sector and is optimistic that the transport infrastructure in the country will improve with the help of government schemes such as Sagarmala, BharatMala, and UDAN.
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79.6 lakh MSMEs registered on Udyog Aadhaar Portal
SME Times, 21 November 2019
Nearly 80 lakh MSMEs have registered on Udyog Aadhaar Portal, an official statement said on 21 November 2019. The Government has taken several measures to spread awareness among entrepreneurs of MSMEs to register on Udyog Aadhaar Portal like Easy self-registration by entrepreneurs, Active facilitation of MSME registration by MSME field offices.
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Flipkart, FICCI joins hand to help MSMEs grow
The Economic Times, 21 November 2019
Walmart-owned e-commerce marketplace, Flipkart has partnered with FICCI to launch a workshop series across India for MSMEs to help them leverage e-commerce to grow their business. Starting with Ahmedabad on November 21, 2019, Flipkart and FICCI will host a series of workshops on the theme of 'Winning big with e-commerce,' wherein MSMEs can understand how the e-commerce marketplace can help them build their businesses and increase brand visibility.
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Kerala govt grants relaxation in license requirements for MSME entrepreneurs of state
Business Standard, 20 November 2019
In a bid to boost investment in the state, Kerala Assembly on 20 November 2019 passed a bill, which will allow entrepreneurs to start micro, small and medium industry with an investment of up to Rs 10 crore without obtaining any license from the government. Industries Minister Mr EP Jayarajan said that the landmark bill would boost the investors' confidence. It will ensure single-window clearance and enhance the ease of doing business in the state.
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9.2 million MSMEs to benefit from fintech era, 49% of them still prefer traditional lending over digital: Survey
The Economic Times, 19 November 2019
An estimated 9.2 million MSMEs registered under GST could be a potential market for advanced offerings from the Fintech stable, given that 47% of these MSMEs have adopted digital tools for business processes, payments, and online sales in India, revealed a pan-India survey by MSME tech startup Instamojo. As per the study by the Bengaluru-based digital payments and services start-up of 400 MSME entrepreneurs surveyed, 49% of Indian MSMEs still prefer traditional lending channels over digital. A vast majority of respondents (75%) believe that technology helps solve many of the challenges.
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Small businesses ditch banks; over half of Indian SMEs take digital loans
The Financial Express, 19 November 2019
The government of India push to MSMEs towards digital technology adoption is finding acceptance. A majority, 51 per cent of small businesses in India have adopted digital means such as online B2B lending, peer-to-peer lending etc., even as the remaining 49 per cent have remained committed to traditional routes including raising capital from friends and family, bank loans, pawnbrokers etc., according to a survey of 400 MSMEs by payment gateway firm Instamojo.
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India SME Forum to showcase export prospects for SMEs
The Hindu Business Line, 18 November 2019
India SME Forum, with the support of MSME Ministry, has launched a programme to showcase export opportunities for MSMEs across the country. At present, the number of SMEs participating in exports is 1.27 lakh and the government proposes to increase the number to five lakhs and double their export output, said Mr Vinod Kumar, president, India SME Forum. In spite of the government's focus on SMEs and exports, less than 0.01 per cent of 65 million SMEs in the country currently participate in global trade, Kumar said. India SME Forum has decided to train around four lakh SMEs for exports in the next four years.
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A slew of measures to ease the pain of payment delays faced by MSMEs
Business Standard, 02 November 2019
The 2019–20 Budget had proposed a new payment platform for MSMEs defined as enterprises whose investments are under Rs 10 crore in the cases of manufacturing units and under Rs 5 crore in the case of service units to enable filing of bills and online tracking of payments from government agencies, a major source of their cash flow. But to make the new platform effective, some problems with the existing online systems must be addressed. Delayed payments often push MSMEs into a debt trap, sickness and failure, shows our analysis of National Sample Survey data.
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New definition of MSMEs will be linked to turnover
The Times of India, 29 October 2019
The government is finalising a new definition for MSMEs, which will be linked to turnover and do away with the current system of classifying units based on the capital deployed in plant and machinery. The MSME ministry, which is finalising the proposal, is seeking to end the difference between the manufacturing and services sector that the current investment-based definition makes. The move requires an amendment to the Micro, Small & Medium Enterprises Development Act, which is being finalised.
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India's Ease of Doing Business rank no cheer for MSMEs
The Financial Express, 24 October 2019
The Sinha Committee recommendation for an impersonal, digital Information Utility is our best bet to improve the payments culture, not additional compliances. India has made a significant rise in the global ranking from 142 to 77 over the past six years, thanks to concerted efforts from the government. Unfortunately, a significantly higher rank now may get a lukewarm response from businesses in general, and MSMEs in particular.
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Bank of Baroda boosts lending to MSMEs, partners with NBFC to offer small ticket loans
The Financial Express, 03 October 2019
Public sector lender Bank of Baroda (BOB) has partnered with NBFC Paisalo Digital to co-originate loans to MSMEs and agribusinesses. Prospective customers will be reached out to by the bank and Paisalo followed by the due diligence to offer loans between Rs 10,000 and Rs 40,000. The agreement will focus on empowering small businesses particularly in the state of Uttar Pradesh (UP).
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EST Group plans to invest $250 mn into Indian startups in next 18 months
The Economic Times, 27 September 2019
Swiss-based EST Group said it is planning to invest $250 million (around Rs 1,770 crore) in next 18 months into Indian start-ups that are focused on fintech applications and related business models. The group is very bullish about India market and believes that when markets are slow they provide new opportunities, its chief executive officer and director Mr Sindhu Bhaskar said.
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Edelweiss arm ties up with SBI for MSME co-lending
The Financial Express, 6 September 2019
India's largest lender State Bank of India (SBI) has partnered with ECL Finance, a subsidiary of Edelweiss Financial Services (an NBFC), for business loans to MSMEs ranging from Rs 3 lakhs–50 lakhs. Edelweiss had earlier partnered with public-sector lenders, Central Bank of India and Bank of Baroda to co-lend to MSME customers.
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Govt launches updated Credit linked Capital Subsidy Scheme for MSMEs
Business Standard, 5 September 2019
The government has launched the updated Credit linked Capital Subsidy Scheme (CLCSS) to allow MSMEs access to capital. The scheme provides an upfront subsidy of 15 per cent on institutional credit up to Rs 1 crore for MSMEs in the specified 51 sub-sectors.
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Banks start approving retail loan proposals on 'PSB Loans in 59 Minutes' portal
Mint, 5 September 2019
Public sector banks (PSBs) have started giving in-principle approval of home and personal loan applications on the 'PSB Loans in 59 Minutes' web portal, launched in 2018 to facilitate quick loans for MSMEs. Applicants can now get in-principle approvals from 19 PSBs, including State Bank of India, Punjab National Bank, Bank of Baroda and Union Bank of India.
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UP to create Rs 200 crore venture capital fund for MSME start-ups
Business Standard, 5 September 2019
Uttar Pradesh government will set up a Rs 200 crore venture capital fund to promote MSMEs start-ups, especially pertaining to traditional industries in the state. The government will sign an MoU with SIDBI in this regard. The fund would give preference to MSMEs that are involved in manufacturing traditional products and crafts under the aegis of state's flagship 'One District, One Product' (ODOP) scheme. While 25% or Rs 50 crore would be provided by the state government, the larger share of 75% or Rs 150 crore would be contributed by SIDBI for creating the venture capital fund to handhold and finance start-ups and enterprises.
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RBI makes it mandatory for banks to link retail, SME loans to external benchmark
The Economic Times, 4 September 2019
With a view to allowing faster transmission of rate cuts to consumers, the Reserve Bank of India said banks must mandatorily link retail and SME loans to an external benchmark from 01 October 2019. Existing loans and credit limits linked to the MCLR/base rate/BPLR will continue till repayment or renewal. Interest rate under external benchmark will be reset at least once in three months, the apex bank said.
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Cashflo raises $3.3 million in Series A Funding
Mint, 4 September 2019
CashFlo, India's first integrated, multi-funder marketplace, raised $3.3 million in series A funding from SAIF Partners, and select angel investors that include Mr Ashish Iyer (previously senior partner at BCG) and Mr Arpan Sheth (partner at Bain & Company), among others. Targeting the $100+ billion untapped category in the SME lending market, that is currently operating in a highly traditional manner, Cashflo helps democratize access to credit in a fair and transparent manner.
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WhatsApp, Dell, Intel, others offer technology support to MSMEs; partner with govt, CII
The Financial Express, 2 September 2019
Global technology corporations including WhatsApp, Dell, Intel, HP, and Vodafone Idea have partnered with industry body CII, the Ministry of MSME, and banking partner YES Bank to facilitate India's MSMEs with technology adoption and handhold them in its deployment at multiple industrial clusters across the country. The partnership is part of CII's TechSaksham project. The project aims to help more than 10,000 MSMEs with technology usage even as it looks to impact over 5 lakh MSMEs through its various e-learning modules.
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Gadkari launches CII TechSaksham to support MSMEs' technology adoption
The Economic Times, 29 August 2019
Mr Nitin Gadkari, Minister for MSMEs and Road Transport & Highways, launched 'CII TechSaksham', a project focused on supporting MSMEs in India to become tech-enabled. The initiative brings together an intersection of technology providers to enable the next wave of growth for MSMEs. The Ministry would act as a facilitator for encouraging MSMEs to develop an enabling ecosystem for their integration with the global value chain.
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Indian Bank opens MSME CPC
The Hindu Business Line, 28 August 2019
Public sector lender Indian Bank has announced the inauguration of a new MSME Centralised Processing Centre (CPC), created exclusively to cater to the needs of the existing and new MSME clients of Chennai south zone. The new CPC will bring under its fold all the 72 branches of Indian Bank in the zone. The MSME vertical and the CPC have been established by the bank to give a major thrust to the MSME portfolio.
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Regulatory hurdles dampen German SMEs investments
The Times of India, 26 August 2019
Regulatory and complex tax mazes are some of the major problems that German Mittelstands (small & medium businesses) face while investing in India. Such problems sometimes drown their enthusiasm and limit their interest to have a significant presence in the country, said Roedl & Partner, a German law firm which advises these companies on cross border services of law, taxation, audit and accounting, and is a partner of the Make in India Mittelstand (MIIM) programme.
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Government to clear MSME dues, alter definition
The Times of India, 24 August 2019
The government said it will move ahead with much delayed amendments to the law governing MSMEs, including a change in their definition, apart from announcing a slew of steps to clear their dues pending with various departments and GST authorities. FM Ms Nirmala Sitharaman said that the expenditure department had cleared pending bills of close to Rs 30,000 crores, and it will closely monitor payments in the future as well along with the Cabinet Secretariat. She has also instructed CBDT to clear pending GST refunds of MSMEs within 30 days, although her ministry did not share the amount that had to be released. Going forward, all such GST refunds have to be made within 60 days.
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WhatsApp to empower SMEs go digital in India
The Hans India, 23 July 2019
After picking five Indian start-ups who would receive nearly Rs 35 lakhs each to develop country-first products, Facebook-owned WhatsApp is now set to further empower the 50-million plus SMEs in the country. In India, 84% of SMEs think that WhatsApp helps them communicate with customers, and 80% think that WhatsApp helps them grow their business.
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Flipkart sets up teams in 13 MSME clusters, eases onboarding process for first-time online sellers
The Financial Express, 22 July 2019
In order to boost the number of sellers on its marketplace platform and make the on-boarding process more efficient, Walmart-owned e-commerce giant Flipkart has stationed 13 regional teams across India. The team members would meet and discuss the on-boarding process with prospective sellers, who might be selling goods online for the first time, at their premises. Through Flipkart's Feet On Street programme, the teams would explain the on-boarding process to sellers in individual locations, especially in 13 MSME clusters in India such as Ludhiana for sports goods, Tirupur for textiles, etc.
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NASSCOM handholds SMEs enter US market; partners with trade body to offer regulatory, legal support
The Financial Express, 21 July 2019
IT-BPM industry's trade association NASSCOM is helping SME members looking to launch in the US, through its first edition of an SME programme that offers SMEs a gateway to the US market. The programme will help promote mutually beneficial trade, investment and technological exchange opportunities. The US remains the single largest export market for India's IT industry.
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Capital Quotient launches app for MSME workforce
The Economic Times, 19 July 2019
Capital Quotient has launched a payroll-based programme aimed at helping employees of SMEs in tier II and III cities of India. IDFC Bank is their tech integration partner for nodal accounts. The app would be available in English, Hindi and Kannada. With only four per cent of MSMEs having access to formal source of finance, and even fewer with knowledge of saving options, creating awareness on the importance of saving is the need of the hour.
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EEPC India signs pact with CSIR-AMPRI to educate MSMEs on materials science and engineering
The Hindu Business Line, 19 July 2019
EEPC India has signed a pact with the Council of Scientific and Industrial Research's Advanced Materials and Processes Research Institute (CSIR-AMPRI) to educate MSMEs on materials science and engineering. This will enable them to move up value chain for sustainability and also ensure high quality standards of engineering exports. EEPC India Technology Centre organized a day-long session in this regard on usage of alternative materials.
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AP government announces new scheme for MSMEs
The Hans India, 19 July 2019
The government of Andhra Pradesh has announced a new scheme under YSR Navodayam, to support MSMEs which are facing financial crisis for the last three years. The AP government has identified around 86,000 MSME accounts district wise, and the Cabinet has decided to allow a one-time restructuring of MSMEs loans of Rs 4000 crores.
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MSME credit continues to grow at a healthy rate signalling rapid revival
The Economic Times, 18 July 2019
The sixth edition of TransUnion CIBIL- SIDBI MSME Pulse Report shows continued growth at 12.4% year-on-year (YOY) in the quarter ending Mar'19. Total debt in India has increased at a CAGR of 13.3% to reach the level of Rs 253 trillion in a five year period from Mar'15 to Mar'19. The growth in aggregate debt in the past four years is powered by a 22% CAGR growth on lending to individuals (including consumer loan, business loan to individuals and other loans), 13.4% CAGR of lending to commercial entities (including MSME and corporate entities) and a 10.6% of government debt.
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Gujarat No 1 in credit to MSMEs; much scope for lending in Bihar, UP
The Hindu Business Line, 18 July 2019
Gujarat has emerged the top performing State in extending credit to MSMEs, followed by Andhra Pradesh, Haryana, Karnataka and Delhi, according to 'TransUnion CIBIL- SIDBI MSME Pulse' report. The credit penetration has remained low in Bihar, Uttar Pradesh and Odisha, and hence the opportunity to lend is very high in these States, the report said.
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Haryana govt, NSE sign pact for growth of MSMEs
The Times of India, 17 July 2019
National Stock Exchange (NSE) signed a pact with the Haryana government to enhance the financing opportunities for MSMEs in the state, through listing on NSE's SME exchange platform, NSE Emerge. The Haryana government would facilitate the listing of MSMEs on NSE Emerge through financial assistance. Haryana government will also explore the possibility of setting up a government-sponsored equity participation fund to invest in the fast growing SMEs in the state, on the exchange platform. The stock exchange has similar arrangements with seven other states: Uttar Pradesh, Uttarakhand, Rajasthan, Punjab, Gujarat, Andhra Pradesh, and Odisha.
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ICICI Bank launches new digital platform for MSMEs
DNA, 17 July 2019
India's second-largest lender ICICI Bank has launched a new digital platform for MSMEs and self-employed customers to enable them to undertake their business banking transactions digitally. Called 'InstaBIZ', it allows customers to avail as many as over 115 products and services in a digital and secure manner on their mobile phone or internet banking platform.
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Big boost for SMEs—FIEO, Drip Capital to power Indian small business exports
Zee Business, 11 July 2019
TIn a bid to provide exporters with training in technology and invoice factoring, Drip Capital, a US-based fintech company, has signed an MoU with the Federation of Indian Export Organisations (FIEO), the apex body for export promotion set up in partnership with the government of India. The partnership aims to help SME exporters of Indian to understand the available opportunities in a better way.
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Budget 2019: ease of business to ease of living for India's MSMEs
The Economic Times, 6 July 2019
The budget speech of the Finance Minister, presented on 05 July 2019, ushers in new hope for the country's MSME sector, currently employing over 111 million people. The FM announced 10 points of the economic vision that includes the thrust on 'Make in India' with emphasis on MSMEs (especially medical devices, defence goods, automobile batteries and the maintenance & repair industry). The budget signals a firm commitment to giving a major fillip to the sector through both direct and indirect policies.
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Credit to MSMEs grows by 8.8%
The Times of India, 28 June 2019
The outstanding extended credit by Scheduled Commercial Banks to MSMEs grew by a significant 8.8% between FY 2016–17 and 2017–18: from Rs 55,245 crores to Rs 60,153 crores. The number of MSMEs availing credit facility from the SCBs went down significantly, from some 4.41 lakh units in 2016–17 to 4.19 lakh units in 2017–18.
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MSMEs, India's growth engine, face Rs 16 lakh crores credit gap
The Economic Times, 27 June 2019
Lack of access to finance and a dearth of funds for the country's MSME sector is well-known, but an IFC-Intellecap report pegs the credit gap at a humongous Rs 16.66 lakh crore. What is worse, the credit gap has increased over the last five years.
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MSME sector is largest provider of employment after agriculture: 73rd Round of National Sample Survey (NSS)
Business Standard, 24 June 2019
MSMEs are the largest provider of employment after agriculture. As per the 73rd Round of National Sample Survey (NSS) conducted by National Sample Survey Office, Ministry of Statistics & Programme Implementation during the period 2015–16, the workers in unincorporated non-agriculture MSMEs in the country were estimated at 11.10 crores.
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Mission Solar Charkha to generate one lakh jobs
Odishatv Bureau, 21 June 2019
In an ambitious move, the Ministry of MSME has decided to come up with 50 Solar Charkha Clusters across the country under the Mission Solar Charkha. A budget of Rs 550 crores has been allotted for the project for the years 2018–19 and 2019–20. The scheme is envisaged to generate direct employment for nearly one lakh persons.
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Agriculture, SME sectors: government's top priority
The Asian Age, 27 May 2019
The Centre plans to further push credit growth to small industries in an attempt to boost economic growth and create jobs. Small industries were badly hit by demonetization and in the initial rollout of the GST. To restart the growth cycle in small industries, the Centre plans to provide Rs 1 lakh crores in loans only through the Credit Guarantee Scheme to raise the flow of credit to the SME sector, which is largely ignored by banks. The government may also start work on a new scheme to encourage entrepreneurship among the youth.
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Telangana moots India's first Blockchain District in a draft policy
The Indian Express, 26 May 2019
Telangana has released a draft blockchain policy, conceptualising India's first 'Blockchain District', a physical area within Hyderabad aimed at creating 'the world's best blockchain technology ecosystem'. This 'Blockchain District' will not only house all the major blockchain companies, but also a massive incubator for startups, and a facility for promoting research, innovation and industry collaboration.
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Corporation Bank launches Corp SMESuvidha for MSMEs
The Times of India, 25 May 2019
Corporation Bank has launched 'Corp SMESuvidha', a unique product for GST-registered MSMEs. Corp SMESuvidha has competitive interest rate structure in the industry and also has various concessions suiting the developing entrepreneur. The product is designed as a part of the bank's efforts to improve the service and to provide best products to MSME sector. Corporation Bank is also actively participating in all the government's flagship programs, namely, MUDRA and Stand-up India, to provide a much-needed push to the MSME sector.
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Bank credit grows 62%; loans to SMEs dismal
Deccan Herald, 22 May 2019
The gross bank credit has grown by a whopping 61.5% in 2018–19, purely on the back of credit flow to the large industries growing 10.5 times. The MSMEs, which have been reeling under terrible stress after demonetization, constituted a minuscule 0.6% of the total new credit by the Indian banks. The total bank credit outstanding at the end of March 2019 stood at Rs 86.75 lakh crore, a jump of Rs 9.45 lakh crore (12.2%) over Rs 77.3 lakh crore at the end of 2017–18, according to data available with the Reserve Bank of India.
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Revised FDI e-commerce policy could cost India momentum gained from digitization of small businesses
The Financial Express, 12 May 2019
The new FDI e-commerce policies could potentially limit the ability of a marketplace to incentivize vendors, especially small vendors, to utilize e-commerce as a means to access new markets. This could mean losing the momentum that India has gained in promoting benefits from digitization among SMEs. KPMG estimates indicate that 43% of small businesses in India participate in online sales, recognizing e-commerce as a cost-effective measure to increase sales, expand the business, and generate profits. SMEs which have adopted internet services for business activities have earned 51% higher revenues, which amounts to 49% more profit, 4% higher employment and a 7% wider consumer base than their traditional counterparts, according to a report by FICCI.
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Singapore-based cloud-services provider Deskera partners with IIT Kanpur
The Hindu Business Line, 8 May 2019
Singapore-headquartered Deskera, a cloud-services provider, has partnered with IIT Kanpur to provide SMEs of south-east Asia and India access to research opportunities. According to the partnership deal, around 100,000 SMEs associated with Deskera will be able to benefit from modern facilities offered by IIT Kanpur for industries such as manufacturing, aviation, logistics, and supply chain. IIT Kanpur is well-equipped with cutting-edge capabilities and will provide an additional layer of research to help enterprises in improved decision-making.
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Zayed Sustainability Prize for SMEs, NGOs and high schools
India CSR Network, 6 May 2019
The Zayed Sustainability Prize has called for submissions from SMEs, non-profit organizations and high schools around the world for the 2020 edition of the UAE's pioneering sustainability award. Now in its 12th annual award cycle, the US$3 million annual Prize has, since 2018, expanded in scope to include additional sustainability categories alongside energy. It rewards organizations and high schools that demonstrate sustainable solutions across three core criteria: impact, innovation, and inspiration.
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New solutions help SMEs end paper trail
The Times of India, 5 May 2019
Startups like Khatabook, Vyapar, and OkCredit, among others, are helping micro businesses to move their finances from paper to the smartphone. They are also making the transition easier for these businesses by offering simple user interfaces and services in local languages. Eyeing a target market of over 50 million SMEs, startups are enabling kirana stores, mobile recharge shops, pharmacies, jewellers, and other stores to maintain accounts and manage finances more efficiently, thus helping them improve margins.
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RBI moves to tighten current account operating norms to check fund diversion
The Economic Times, 29 April 2019
In a move to tackle fund diversion, the RBI (Reserve Bank of India) has proposed sterner rules on opening and running of current accounts of corporate borrowers. Current accounts, according to a draft circular shared by the regulator with the banking industry, can “only be opened” with the lead bank in a lending consortium while other banks having collection accounts will have to transfer funds at the end of the day to the current account with the consortium leader. RBI has suggested that the rule would apply to accounts of corporates which have borrowed and availed credit facilities of Rs 50 crore or more from the banking system.
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Ludhiana facility to fast-track bicycle SMEs, says CRISIL report
Business Standard, 29 April 2019
India's bicycle and accessories market is expected to grow at a healthy pace over the next two years on the back of rural demand, shifting consumer preference towards premium products, export demand from Africa and Europe, and government welfare schemes. In this context, the Punjab government's announcement last December that it would set up a Hi Tech Cycle Valley” in Dhanansu village, Ludhiana, through the Punjab Small Industries and Export Corporation (PSIEC), is timely. The industry is clustered in Ludhiana, Punjab, and as many as 85-90 per cent of units are SMEs that cater to original equipment manufacturers (OEMs).
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5 platforms bringing product innovation in SME lending space
Deccan Herald, 29 April 2019
Digital lending space in the country is creating a new buzz, amidst the traditional ways of banking which result in approval of only 25-40 per cent of loan applications. A recent Omidyar-BCG report estimates that by 2023, MSME digital lending has the potential to increase between 10 and 15 fold to reach Rs 6-7 lakh crore ($80-100 billion) in annual disbursements, creating immense opportunity for both traditional lenders and digital start-ups. With tech-enabled underwriting and paperless transactions, it is now possible to provide tailor-made loans to various merchants as per their industry segments ranging from food and beverage, apparel, salon, travel agencies, automobile dealers etc.
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Razorpay launches payment pages designed to help 10,000 SMEs with custom-branded hosted pages
The Economic Times, 22 April 2019
Razorpay announced the launch of its Payment Pages on Monday. Razorpay Payment Pages is designed to help all kinds of businesses accept online payments with zero integration and minimum set-up, without any hosting costs, maintenance charges or fixed fees. India's SMEs account for 30% of the country's GDP. However, 68% of these small and mid-sized businesses do not have any web presence, especially in Tier 2 & 3 cities.
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BoM partners with M1Xchange for MSME bill discounting
The Times of India, 17 April 2019
State-owned Bank of Maharashtra (BoM) said it has partnered with M1Xchange TReDS platform for MSME bill discounting. TReDS (Trade Receivables Discounting System) is a digital platform to support MSMEs to get their bills financed at a competitive rate through an auction where multiple registered financiers can participate.
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Solo loans drive growth in credit to MSMEs
The Times of India, 12 April 2019
Micro loans availed by borrowers in their individual capacity for businesses have been the fastest growing segment in commercial credit. According to data compiled by Trans-Union CIBIL and SIDBI, micro loans to individuals have grown at 19.2% year-on-year as on December 2018 as compared to 14.4% growth in overall bank credit. There is an increasing number of small businessmen borrowing in individual capacity as access to credit improves. According to the report, total commercial sector loans stood at Rs 62.3 lakh crore with MSMEs accounting for Rs 14.8 lakh crore or 23.7% of loans. Within MSME, the micro segment comprising loans of below Rs 1 crore is the fastest growing and stands at Rs 4.5 lakh crore as on December 2018.
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In 5 years, MSME loans jump 2.5 times, NPAs move up too
The Economic Times, 13 April 2019
The outstanding loans of Indian lenders to the MSMEs expanded two-and-a-half times in five years through 2018, credit information company Trans-Union CIBIL said, while also warning about debt build-ups leading to possible stress in the quality of assets. While the outstanding credit to MSMEs grew to Rs 25.2 lakh crore at the end of 2018 from Rs 10.4 lakh crore in 2013 at a compound growth rate of 19.6 per cent, the consolidated NPAs (non-performing assets) in the sector increased to 9 per cent from 7.3 per cent, CIBIL said in a report published in association with SIDBI.
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Shopmatic makes its platform available for SMEs, aspiring entrepreneurs
The Economic Times, 9 April 2019
E-commerce company Shopmatic announced it is making its platform available for SMEs and aspiring entrepreneurs at the cost of only Rs 50 for one year. Customers set up and manage their online store and pay 3% when they make a successful sale. Shopmatic says it recognises that to leverage the opportunities from ecommerce, SMEs and aspiring entrepreneurs should have the freedom to make use of a comprehensive platform without the burden of an upfront investment or committed fees, and has launched this disruptive offering.
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MSMEs may have potential to create 1 cr jobs in 5 years: Research Firm
The Economic Times, 8 April 2019
Despite the recent sluggishness in demand, India remains an attractive consumption-oriented market with the growth of the middle class and rising disposable income. However, only 15% of what is consumed in India is made by the domestic manufacturing industry, limiting the country's ability to create employment opportunities, said NRI Consulting, an affiliate of Nomura Holdings. It said that MSME, if nurtured well, can bridge the gap and create one crore jobs in the next 4–5 years.
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Maersk Trade Finance sets target to disburse $200 m to SMEs in 2019
The Hindu Business Line, 05 April 2019
Maersk Trade Finance, part of AP Moller-Maersk, the global leader in shipping services, is targeting a loan disbursement of $200 million for India's SMEs in 2019. The company, which started operations in 2016, has disbursed $0.7 billion globally, with more than $150 million in India in 2018.
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SMEs hesitant to install rooftop solar panels: Deloitte survey
The Times of India, 3 April 2019
Several power consuming SMEs in India are hesitant to install rooftop solar panels due to perceived performance risks, according to a survey by global consultancy giant Deloitte. The survey, titled 'Scaling Up Rooftop Solar in SME Sector in India', was conducted by across 150 MSMEs in six industrial clusters rubber and plastic, pharmaceuticals, automobiles, paper, food and beverage, and textile. The finding assumes significance as India has set a target of having 40 GW of rooftop solar capacity by 2022.
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Standard Chartered to set up a digital SME platform in India
The Economic Times, 14 March 2019
To help SMEs in India grow, Standard Chartered, announced that it will be launching an open platform for them enabling them access a range of financial and business solutions. Being launched under SC Ventures, the innovation, investment and ventures unit of Standard Chartered, the technology platform will be one of the first to provide holistic solutions to SMEs in India. As an open platform, it will also integrate with other financial institutions and leading multi-channel marketplaces. The platform will be available to clients in India in the second half of 2019.
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Among 6 crore MSMEs in India, less than 200 are ZED certified: FOPSIA
KNN India, 11 March 2019
Among 6 crore MSMEs in India, the number of successful ZED (Zero Defect Zero Effect) certified companies are less than 200, said FOPSIA (Federation of Punjab Small Industries Association). President of FOPSIA, Mr Badish Jindal said the benchmark for ZED are very high and it is hard for the Indian companies to comply with such benchmarks or parameters.
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Canadian fund manager CDPQ to infuse Rs 1,800 crores in NBFC arm of Edelweiss Group
The Times of India, 5 March 2019
Canada's institutional fund manager CDPQ will invest Rs 1,800 crores in a non-banking financial company of Edelweiss group. CDPQ Private Equity Asia Pte, a wholly owned subsidiary of CDPQ, and Edelweisss Group signed an agreement for the investment of Rs 1,800 crores (USD 250 million) in ECL Finance Ltd (ECL Finance), Edelweiss said on 05 March 2019. CDPQ will partner in the long-term strategy to build a strong credit portfolio, with an increasing focus on the retail segment, it said.
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Rajasthan govt eases norms for MSMEs for starting business
KNN India, 5 March 2019
The Rajasthan Government has notified the MSME Facilitation of Establishment and Operation Ordinance, 2019 allowing entrepreneurs to start their businesses by filling self-declaration form. The ordinance proposes exemption from approval and inspection from various departments for three years, besides various legal and administrative difficulties.
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SME IPOs make a mark in 2018; record Rs 2,455 crores garnered
The Times of India, 2 March 2019
Spurred by investor interest, 145 SMEs raised a record Rs 2,455 crores through initial public offerings (IPOs) in 2018, a surge of 37 per cent from the funds raised in the preceding year. Funds raised through IPOs in 2018 were used for business expansion plans, working capital requirements and other general corporate purposes. Overall, a total of 474 firms have garnered Rs 5,825 crores since 2012, when leading stock exchanges the BSE and the National Stock Exchange (NSE) launched the SME platforms.
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Govt approves extension of CLCS-TUS scheme for MSMEs with 2,900 crores outlay
The Times of India, 13 February 2019
The government approved a three-year extension of the Credit Linked Capital Subsidy and Technology Up-gradation Scheme for MSMEs with total outlay of Rs 2,900 crores. The scheme has been approved for continuation beyond the 12th Five-Year Plan for three years from 2017-18 to 2019-20. It will facilitate technology upgradation for MSMEs, improvement in quality of products, enhancement in productivity, reduction in waste, and it will promote a culture of continuous improvement.
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HDFC Bank taps SMEs that others dumped
The Economic Times, 13 February 2019
Retail-focused HDFC Bank is ramping up its lending to small companies that would help it boost profitability. These are firms with an annual turnover of up to Rs 10 crore. In the space of six to eight months, it has disbursed loans of Rs 1,200 crore to this sector. The average size of these loans is in the range of Rs 35-60 lakh. The bank has made it easier for the borrowers, granting final approval for these loans in only three hours instead of the typical three-five days.
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Banks clear MSME loans worth Rs 30,000 crore via 59-Minute portal
The Economic Times, 12 February 2019
The psbloansin59minutes portal, a central government initiative to provide in-principle approval for small business loans of up to Rs 1 crore from public sector banks and SIDBI in less than an hour, has seen around Rs 30,000 crores worth loans sanctioned since its launch in September. The government is hopeful that credit off-take will see a further jump as banks transmit the 25 basis rate cut announced by the Reserve Bank of India earlier this month.
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State Bank of India joins Invoicemart as a Financier; To Help in MSME Lending
Indian Web2, 8 February 2019
India's largest bank, State Bank of India, just joined digital invoice discounting marketplace, Invoicemart, as a financier. This move is expected to help in unlocking working capital for more than 1,400 MSMEs that are a part of the platform. Launched in 2017, Invoicemart, a TReDS (Trade Receivable Discounting System) platform, is a digital invoice discounting marketplace by A. TREDS Ltd, a joint venture between Axis Bank Ltd and B2B e- commerce company mjunction services ltd.
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Nothing in it for SMEs: Why the interim Budget is a missed opportunity
The Economic Times, 1 February 2019
Finance Minister Mr Piyush Goyal had very little in his interim budget announcement that was new or could provide some succour to the MSME sector. According to the Economic Survey 2017-18, data on credit disbursed by banks shows that out of a total outstanding credit of Rs 26,041 billion as in November 2017, 82.6% of the amount was lent to large enterprises and MSMEs got only 17.4 % of total credit. The recent turmoil in the NBFC sector has added to the pressure.
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ICICI, Kotak, Axis among 11 to launch blockchain-linked funding for SMEs
The Economic Times, 28 January 2019
ICICI Bank, Kotak Mahindra Bank, HDFC Bank and Axis Bank are among the consortium of 11 big lenders set to launch the country's first blockchain-linked funding for SMES, an initiative that is set to transform the face of lending to default-prone tiny firms. Yes Bank, Standard Chartered Bank, RBL Bank and South Indian Bank are currently part of the consortium. IndusInd Bank, State Bank of India and Bank of Baroda are now participating in the meetings as outside members.
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ADB sets aside $200 million for SME finance in India
Deccan Chronicle, 25 January 2019
The Asian Development Bank (ADB) has set aside between one million and 200 million US dollars for SME finance in India this year. In Tamil Nadu, it would focus on those industries which are growing faster and have the biggest potential for economic generation: particularly textile, engineering, cars, leather, components and ancillary, said Mr Jurgen Conrad, principal financial sector specialist, ADB.
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BFW, Universal Robots to co-create robots for MSMEs
The Hindu Business Line, 24 January 2019
Bharat Fritz Werner Ltd (BFW), a Bengaluru-based machining solution provider, has partnered with Universal Robots, a Danish robot maker and a leader in collaborative robots, to co-create robots for the MSME sector. BFW and Universal Robots plan to redefine the production processes by deploying robotic arms through a modular, flexible and user-friendly integration solution platform — Arjun. Advanced and light-industrial robotic arms will dramatically impact productivity, quality and working conditions in MSME segment as it will automate and streamline repetitive industrial processes efficiently.
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Oriental Bank of Commerce offers lower interest rates to MSMEs with good CIBIL rank
First Post, 23 January 2019
MSMEs with a good CIBIL MSME Rank (CMR) can now avail a lower rate of interest on loans from Oriental Bank of Commerce. CMR uses machine learning algorithms to predict the probability of an MSME becoming NPA in the next 12 months. It provides a ranking to the MSME based on its credit history data on a scale of 1 to 10, CMR1 being the least risky MSME and CMR10 being the most risky MSME. Oriental Bank of Commerce will offer up to 0.25 per cent concession on interest rates to MSMEs with CMR1 to CMR3 and internal risk rating of OBC1 to OBC3.
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Over 100 Indian MSMEs to feature in Singapore export forum
The Economic Times, 23 January 2019
Over 100 Indian firms will feature in the Singapore export forum during a business conclave that aims to promote India's export-oriented industries in the strategic ASEAN region. The business forum along with an exhibition is being organized as part of the India Week, showcasing India's favourites for the global markets: Ayurveda, cinema, food, lifestyle, handicrafts, literature, music, tourism and yoga.
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Over 21,000 deals signed for MSMEs in Gujarat
The Times of India, 20 January 2019
More than 21,000 MoUs were signed by companies in the MSME sector, as part of the Vibrant Gujarat Summit. Four MoUs were signed to enable the development of industrial clusters. While the Taiwan External Trade Development Council inked an MoU with the Gujarat Electronics and Software Industries' Association, the Taipei Computer Association signed an MoU with the Federation of IT Association of Gujarat. In a major boost to 60 small and medium enterprises (SMEs) of Gujarat, the Commonwealth Enterprise and Investment Council (CWEIC) inked an MoU with the Gujarat Industrial Development Corporation and the Federation of Indian Chambers of Commerce and Industry.
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Faircent says 64% of all loans disbursed in 2018 were to SMEs
The Economic Times, 17 January 2019
The latest Research & Analysis Report 2018 by Faircent.com, has revealed that the most significant developments for the NBFC-P2P sector was that 64% of all loans disbursed through the online platform were to small and medium-sized businesses. This included both new and old enterprises that availed loans through the platform for the purpose of funding expansion plans or to meet working capital requirements for day-to-day operations. The report further reveals some of the key trends witnessed by the P2P lending platform in 2018.
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RBL, Nasscom sign MoU for credit solution to ICT MSMEs
Moneycontrol.com, 10 January 2019
The RBL Bank and Nasscom announced entering into an MoU to provide customized credit solutions to MSMEs in the Information and Communication Technology (ICT) sector. As part of the MoU, the two entities will collaborate for various activities including joint events and knowledge sharing sessions, and ensure continuous engagement with various chapters in 10 locations across India. The collaboration is aligned with the Central government's mission to promote and encourage MSMEs. The partnership will comprise key services like simplified assessment procedure and processing and competitive pricing.
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MP government amends MSME policy to provide 70% jobs to locals
The Indian Express, 10 January 2019
The Madhya Pradesh government amended the policy for MSMEs to make it compulsory to provide 70% jobs to permanent residents of the state. The new provision was added by amending the MSME Development Policy 2017. Accordingly, concessions such as cheap land and other subsidies will be given to MSMEs only if they provide 70% of the total jobs to local persons. The amendment will be applicable to only those MSMEs which start production after December 31, 2018.
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MSMEs with multiple loans more prone to default: Study
The Times of India, 9 January 2019
A study of MSMEs has shown that there is a direct correlation between borrowers taking loans from multiple lenders and the probability of default. The practice of businesses availing of credit from multiple lenders is termed as 'loan stacking'. A study of small businesses 'MSME Pulse', undertaken jointly by TransUnion CIBIL and SIDBI, has shown that NBFC borrowers are more prone to exhibit loan stacking behaviour with 23% of their borrowers exhibiting this behaviour. Also, NBFCs contributed to about 45% of loan stacking.
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82% SMEs did not get Startup India benefits: Report
The Sentinel, 5 January 2019
Around 82% of start-ups in the country are yet to receive any benefit under the Centre's Startup India initiative, according to a survey by LocalCircles, a community social media platform, among over 15,000 start-ups, SMEs and entrepreneurs in the country.
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RBI sets up panel to suggest measures for MSMEs
Deccan Herald, 4 January 2019
The Reserve Bank set up an expert committee under former SEBI chairman Mr U K Sinha to suggest long-term solutions for the economic and financial sustainability of the MSME sector. The eight-member committee will also examine the factors affecting the timely and adequate availability of finance to the sector, the RBI said in a statement. The panel has been asked to review the current institutional framework in place to support the MSME sector, study the impact of the recent economic reforms on the sector and identify the structural problems affecting its growth.
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RBI allows restructuring of MSME loans up to Rs 25 crore
Mint, 2 January 2019
The Reserve Bank of India (RBI) allowed lenders to recast loans to MSMEs, provided the total fund and non-fund based exposure to each such borrower does not exceed Rs 25 crores. Such a debt restructuring, the central bank said, would not lead to a downgrade in asset classification. The MSME loan restructuring, according to the RBI statement, has to be implemented by 31 March 2020 and a provision of 5% of the total outstanding loan, in addition to the money already set aside to cover potential losses, will have to be made for such borrowers.
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SME IPOs make a mark in 2018; record Rs 2,455 crores garnered
The Times of India, 2 January 2019
Spurred by investor interest, 145 SMEs raised a record Rs 2,455 crore through IPOs in 2018, a surge of 37% from the funds raised in the preceding year. Going ahead, the IPO pipeline is "very handsome" as several companies are looking to tap the route for raising funds, said Mr Mahavir Lunawat, group managing director, Pantomath Advisory Services Group. Funds raised through IPOs in 2018 were used for business expansion plans, working capital requirements and other general corporate purposes.
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Google's new business app to help SMEs
The Economic Times, 19 December 2018
With increased internet penetration, smartphones have become an important storefront for brands and businesses of all sizes. To help businesses be present where customers are, Google India on Wednesday, launched a new, redesigned, Google My Business App. The app is a simple and free tool for SMEs to start their digital journey through listings on Google and keep their business presence up-to-date on Google Search and Google Maps.
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MSME ministry to set up 20 technology centres: Giriraj Singh
The Hindu Business Line, 19 December 2018
The government will set up 20 additional technology centres to help MSMEs, Union Minister Mr Giriraj Singh said on 19 December 2018. These centres support MSMEs by giving them access to advanced manufacturing technologies, skilling manpower and providing technical and business advisory support. Currently, 10 such centres are operational in different states of the country. The MSME minister said that there were some challenges for the sector, but the government was working on all those areas, including providing timely credit.
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Growth of exports of MSME products was 7.5% in FY 2017-18
Press Information Bureau, 17 December 2018
The growth of exports of products manufactured by MSMEs was 7.5% during the financial year 2017–18, Minister of State (I/C), Ministry of MSME, Mr Giriraj Singh said. The growth had been 5.9%, and 4.8% during 2015–16 and 2016–17 respectively and the share of MSMEs in GDP at current prices was 29.7%, 29.2% and 28.9%, during the financial year 2014–15, 2015–16 and 2016–17, respectively.
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Traders, MSMEs saw 3.5 million job losses due to note ban, GST, other factors
Business Standard, 15 December 2018
The TMSME (traders, micro, small and medium enterprises) sector has seen a loss of around 3.5 million jobs in the past 4.5 years, according to a survey conducted by the AIMO (All India Manufacturers Organisation). Demonetization and the GST are the main reasons, besides other factors such as e-commerce, according to AIMO. The TMSME sector has been hit hard, with a job loss of 43% in the trader segment, 32% in the micro segment, 35% in the small businesses segment, and 24% in the medium businesses segment.
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Gujarat MSMEs under stress as NPAs rise across sectors
The Times of India, 14 December 2018
Be it global factors or local, MSMEs across Gujarat continue to remain under stress and this is clearly reflected with rising bad loans in the sector. According to SLBC (state level bankers' committee) quarterly report, non-performing assets for MSME sector increased by Rs 2,205 crore, going up from Rs 6,321 crore in the second quarter of FY 2017–18 to Rs 8,526 crore in the corresponding quarter of FY 2018–19. During the same period, MSME advances have also grown from Rs 90,046 crores to Rs 1.15 lakh crores. This also pushed the ratio of NPA to outstanding for the MSME sector from 7.02% to 7.40% during the period. Bankers believe MSMEs across an array of sectors are under stress.
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More SMEs tap hackathons to hire quality, industry-ready talent
The Times of India, 7 December 2018
At a time when companies descend on college campuses across the country to hire talent, a study undertaken by HR tech start-up Mettl has found that smaller niche enterprises place higher reliance on hackathons to hire industry-ready talent better suited to support their digital goals. Companies said hackathons democratize hiring by making it all about the individual skills, remove the institution's brand out of consideration, and the packages offered to high performers in these challenges are almost 50% higher than the industry average.
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Interest rates on home, auto and MSME loans to be linked to new benchmark
The Economic Times, 6 December 2018
Small businesses and those buying homes and cars on credit have a reason to cheer from the next fiscal year, at least when the Reserve Bank of India reduces key rates. All banks will then have to align outstanding loans to a common benchmark and maintain the spread throughout its term, unless a change in the client's credit-risk profile warrants a reset. The central bank has also announced the linking of all new floating-rate personal retail and MSMEs loans to one of the four suggested external benchmarks from FY19. The reference gauges include the RBI policy repo rate, the Government of India 91-day Treasury Bill yield produced by the FBIL (Financial Benchmarks India Private Ltd), or the GOI 182-day Treasury Bill yield produced by the FBIL, or any other benchmark market interest rate produced by the FBIL.
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RBI proposes new method to benchmark floating rate of loans for MSMEs
The Economic Times, 5 December 2018
The Reserve Bank of India said there will be a new external benchmarking of Floating Rate loans by Banks to MSMEs, and is constituting a new committee to identify causes and propose long-term solutions for the economic and financial sustainability of the MSME sector. The Report of the Internal Study Group to Review the Working of the MCLR System chaired by Dr Janak Raj released in October for public feedback, had recommended the use of external benchmarks by banks for their floating rate loans instead of the present system of internal benchmarks PLR, BPLR, MCLR.
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UK-based business group to offer training to India's micro, small enterprises
The Economic Times, 5 December 2018
A British organization which works to improve the professional competence of business leaders will offer training to India's micro and small enterprises on best practices in corporate governance. The IOD (Institute of Directors) will sign an MoU with the Ministry of Micro, Small and Medium Enterprises. This is in line with the Indian government's programme to promote MSMEs by building management capacities The IOD will also promote and propagate the government's programmes for MSMEs through its in-house publications and e-publications.
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Odisha inks pact with Quality Council of India for MSME certification
The Indian Express, 4 December 2018
The MSME Department and QCI (Quality Council of India) on 3 December 2018 signed an MoU for implementation of ZED (Zero Defect Zero Effect) certification scheme. MSME Minister Mr Prafulla Samal said that MSMEs need a continuous effort to be able to improve their products and processes to boost their sales, exports and revenue. The ZED certification scheme will help them in improving quality, which in turn will enhance competitiveness of Odisha MSMEs globally.
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MSME bodies in South form joint panel
The Hindu Business Line, 3 December 2018
Leading southern MSME associations, including those in Maharashtra and Goa, have joined hands to raise the various issues and problems facing the sector with the Centre seeking redress. The associations that have come under the common umbrella are KASSIA (Karnataka Small Scale Industries Association), FSMEI (Federation of Small & Medium Enterprises of India), FAPSMEA (Federation of Andhra Pradesh Small & Medium Industries Association), KSSIA (Kerala State Small Industries Association), TNSTIA (Tamil Nadu Small and Tiny Industries Association), CODISSIA (Coimbatore District Small Scale Industries Association), GSIA (Goa State Industries Association) and Chamber of Small Industry Associations, Maharashtra.
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'42% SMEs in India find accessing finance difficult'
The Financial Express, 30 November 2018
For SMEs, accessing finance is the most difficult part and most of them rely on traditional bank loans to run their businesses. A global survey by American Express underlines that 42% of Indian respondents find access to finance to grow business difficult, as compared to a third of their global peers. The survey says that 82% of all SMEs plan to use bank loans. However, with rising borrowing costs, Indian SMEs are taking a hard look at their finance options. In fact, 69% of the fast growing ones say they will tap other sources of funding such as public equity.
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Bosch unveils Phantom platform for Indian SMEs
Deccan Herald, 30 November 2018
RBEI (Robert Bosch Engineering and Business Solutions) launched an intelligent ecosystem platform for SMEs to embark on Industry 4.0 journey. Launching the product as part of the Bengaluru Tech Summit, RBEI President and Managing Director Mr Vijay Ratnaparkhe said the Phantom platform will support SMEs to prepare digital transformation roadmaps for their manufacturing plants, machine intelligence and energy analytics. A non-invasive and retrofit solution that can set up in a few minutes, Phantom gathers unique machine usage and production patterns for extensive analytics and provides valuable insights on benchmarks, trends, losses and best practices.
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With new portal, PSBs likely to regain market share in MSME loans: SIDBI
The Hindu Business Line, 29 November 2018
Public sector banks (PSBs) are likely to regain market share in loans to MSME segment, as the recently launched online lending portal, psbloansin59minutes.com, will help them crunch the turnaround time (TAT) for loan proposals, according to a top SIDBI official. TAT, which is the number of days between the date of enquiry and the date of loan sanctioned or renewal date, was the longest for PSBs at 31 days for MSME loans in 2018, as per a TransUnion CIBIL–SIDBI joint report. Among lenders, non-banking finance companies (NBFCs) have the best TAT of 18 days, followed by private sector banks at 29 days.
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100% Free GST software for start-ups, entrepreneurs & SMEs
CIOL, 26 November 2018
AcTouch, one of India's leading Cloud ERP (Enterprise Resource Planning) companies has announced the launch of cloud-based GST software that is available for start-ups and SMEs absolutely free. Customers can directly register at https://www.actouch.com and take online assistance to make GST reports. The free GST software is ideal for entrepreneurs, start-ups, small time business owners and self-employed individuals like consultants, subcontractors, job work, freelancers, book keepers, SOHOs, small entrepreneurs and manufacturers, as it generates GST reports instantaneously.
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Digital lending in India set to grow to $100 billion by 2023: Report by Omidyar Network and BCG
The Economic Times, 22 November 2018
A joint study by Omidyar Network and BCG (Boston Consulting Group) highlights that digital lending to MSMEs is projected to increase by 10-15 times by 2023, to between Rs 6-7 lakh crores ($80-100 billion) in annual disbursements. The study says that India, with a largely level playing field, no dominant incumbents, and a range of entrants and business models can be successful in tapping the MSME lending market.
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SVL launches funds focused on SMEs, affordable housing
Mint, 20 November 2018
SVL (SBICAP Ventures Ltd) on 19 November 2018 announced the launch of two funds that will focus on affordable housing and SMEs. SVL, the alternative asset management arm of State Bank of India's subsidiary SBI Capital Markets Ltd, plans to raise Rs 400 crores for the SME fund and Rs 350 crores for the affordable housing fund. The two funds will help address the equity gap in the SME sector and improve the availability of affordable housing in India.
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China's biggest bank to invest $200 million in Indian SMEs
The Financial Express, 13 November 2018
The Indian unit of China's largest bank, the Industrial and Commercial Bank of China (ICBC) has set up USD 200 million fund for investing in promising Indian MSMEs and ventures, its official said. Mr Zheng Bin, CEO of ICBC, India on 12 November 2018 gave an overview of the Indian start-up ecosystem and how to invest in them at the 2nd 'Start-up India' Investment Seminar organised by the Indian Embassy. The ICBC, a top state-run Chinese bank which is the country's largest lender by market value, has opened its branch in Mumbai in 2011.
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IndiaNivesh Fund a lifeline for SMEs
The Economic Times, 12 November 2018
Small and medium companies, struggling to raise funds, now have a lifeline in IndiaNivesh-First Bridge Capital Manager. The fund is introducing a first-of-its-kind capital support for firms that critically need re-financing for survival. IndiaNivesh-First Bridge Capital has closed its first tranche of the Rs 900-crore fund, called the INRF (IndiaNivesh Renaissance Fund). It will own significant minority stakes in SMEs by infusing capital. In the first instalment, the fund raised Rs 168 crores. The tenure of such equity funding is about three-to-five years within which the investee company should generate returns for the fund. The fund aims to attain over 20% internal rate of return (IRR).
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Loan in 59 minutes! PM Modi launches portal for SMEs seeking funds
Business Today, 2 November 2018
Prime Minister Mr Narendra Modi on 2 November 2018 announced a slew of measures, including sanction of loans of up to Rs 1 crore to GST-registered MSMEs in 59 minutes through a special portal to give a boost to the nation's second biggest employing sector. Also, GST-registered MSMEs will get 2 per cent interest subvention or rebate on incremental loan of up to Rs 1 crore, he said. Interest subvention on pre- and post-shipment credit for exports by MSMEs has been increased from 3 per cent to 5 per cent, he said. In all, 12 decisions, which he termed as 'historic', were announced to boost MSMEs.
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Now, learn on WhatsApp how to run a small business in India
The Financial Express, 29 October 2018
The Facebook-owned messaging platform WhatsApp has joined hands with CII (Confederation of Indian Industry) for providing training to entrepreneurs and SMEs across India by using 'WhatsApp Business' app to help them grow their businesses, according to a statement. As part of the partnership, WhatsApp and CII will work on enhancing business communication via CII's SME Technology Facilitation Centre for SMEs across the country, and also develop informative content, both in digital and physical formats, to distribute among entrepreneurs.
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Government readies loan, social security plan for MSMEs
The Economic Times, 27 October 2018
The government is set to announce a package of benefits for MSMEs spread across 80 clusters that will cover credit flow, steps to improve market access and ensuring social security benefits for workers through a targeted approach like the one for aspirational districts. The list of clusters range from food processing units in Vishakapatnam to steel ancillary in Bokaro (Jharkhand), large cardamom in Sikkim, sports goods in Meerut and leather goods in Agra.
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Tata Tele Business Services introduces Smart VPN Solutions for SMEs
CIOL, 25 October 2018
Tata Tele Business Services (TTBS) today introduced Smart VPN (Virtual Private Network) Solutions for SMEs with improved security services and privacy capabilities that are resilient and make it easier for enterprises to connect with trust and security. Smart VPN privatizes a public cloud network, extending it with the security of a private network. This helps businesses with a fully meshed network to have a seamless connectivity, ensuring proactive mitigation from any cyber threat.
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YES BANK launches 'Vyapaar Express' to focus on MSMEs
India Infoline News Service, 24 October 2018
YES BANK, India's fourth largest private sector bank, in partnership with Makarpura GIDC Industrial Estate Infrastructure & Charitable Association, announced the launch of its first 'Vyapaar Express' MSME Carnival in Makarpura GIDC at Vadodara in line with the Bank's commitment to creating an enabling environment for MSMEs. This is the first cluster event in a series of 12 other such events that will be organized across the country.
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NASSCOM inks MoU to expand Indian SMEs in MENA region
The Economic Times, 19 October 2018
IT industry body NASSCOM has signed an MoU with a leading technology community to help Indian SMEs expand their operations in the Middle East and North Africa region. The MoU between NASSCOM and the Dubai Internet City (DIC) is the first of its kind in the MENA (Middle East and North Africa) region. Under the agreement, the DIC will provide NASSCOM's SME members with support and a platform to expand their operations in the MENA region.
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USAID, Rabobank, Ananya Finance and Samunnati to provide credit to sustainable landscapes sector
The Hindu Business Line, 10 October 2018
US Agency for International Development (USAID) announced a new partnership designed to support enterprises and projects engaged in the sustainable landscapes sector to reduce greenhouse gas emissions from land use. This 10-year partnership with the Rabobank Foundation, Ananya Finance for Inclusive Growth, and Samunnati Financial Intermediation and Private Services, will make available up to $15.3 million in local financing to SMEs, cooperatives, producer companies and microfinance institutions, directly or indirectly engaged in the sustainable landscapes (agriculture, forestry, and other land uses) sector.
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NSE signs pact with Uttarakhand govt to fuel MSMEs growth in state
The Times of India, 10 October 2018
Leading stock exchange NSE said it has signed a pact with the Uttarakhand government to provide access to capital to MSMEs, which will fuel growth of such entities in the state. The bourse will play an active role along with the government in nurturing the SMEs and start-ups by increasing awareness on the opportunities to raise capital, SME exchange guidelines, listing processes, compliances with listing agreement among others.
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Russia's MSP Bank, SPA Capital sign agreement for financing SMEs
The Hindu Business Line, 5 October 2018
Russia's state-owned MSP Bank, which focuses on providing finance to SMEs, has signed a pact with New Delhi-based SPA Capital to finance small businesses and start-ups predominantly in the hi-tech and innovations space. The agreement was signed on the sidelines of the India-Russia business summit addressed by Prime Minister Mr Narendra Modi and Russia's President Mr Vladimir Putin on 5 October 2018.
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Cabinet approves MoU to promote India-Russia cooperation among SMEs
PIB, 4 October 2018
The Union Cabinet approved signing of an MoU between National Small Industries Corporation Ltd of India (NSIC) and Russian Small and Medium Business Corporation (RSMB). The MoU will be signed during the upcoming visit of Russian President to India. The MoU aims to promote cooperation between SMEs of the two countries.
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PayPal launches merchant App for business in India
The Hindu Business Line, 4 October 2018
PayPal, a global technology platform and digital payments leader, announced the launch of its first merchant-focused App in India, PayPal for Business. This App, which is available for download on Android and iOS, will help small/medium merchants and freelancers conduct their domestic and cross-border business on the go backed by PayPal's robust risk and security platform. PayPal has 17 million merchant accounts globally.
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857 start-ups and 1234 MSMEs registered on GeM
UNI, 3 October 2018
The Ministry of Commerce & Industry said that a total of 857 start-ups and 1234 MSME sellers have been registered on the Government-e-Marketplace (GeM). MSME sellers have been awarded 40,000 orders worth Rs 551 crores, and in less than 6 months, the transaction volumes have increased from 3.78 lakhs (FY 17-18) to 4.31 lakhs (FY 18-19).
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Govt raises loan limit for MSMEs to over Rs 1 crore
The Hindu Business Line, 2 October 2018
The government has enhanced the loan limit for MSME entrepreneurs to over Rs 1 crore under the Prime Minister Employment Generation programme. Mr Giriraj Singh, Minister, Micro, Small and Medium Enterprises, said the government was lending between Rs 25 lakhs and Rs 1 crore to successful entrepreneurs at 15% interest subsidy but such entrepreneurs can now apply for loan over and above the limit. Inaugurating the Khadi Fest 2018 in Mumbai, he dedicated an online portal for entrepreneurs to seek financial assistance and emphasised on the government's aim to generate employment in rural India.
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India, most sought-after business destination: Online search data
The Hindu Business Line, 30 September 2018
A study conducted by SEMrush, an online digital marketing suite, revealed that India leads the Top 10 globally most searched countries online for 'starting business in'. The study has established the fact that India is not just a preferred choice for Indians to do business, but is also becoming a priority for SMEs from across the world.
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Clensta International named 'SME of the Year' at Leaders of Tomorrow' Conclave and Awards 2018
Best Media Info, 27 September 2018
Clensta International has been named 'SME of the Year' at the Leaders of Tomorrow (LOT) Conclave and Awards 2018. Ms Priyanka Gill, Founder and CEO, Luxeva India, was named 'Young Woman Entrepreneur' of the year at the awards ceremony. LOT showcases, empowers and recognizes India's most promising SME entrepreneurs.
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India, Morocco sign pact to deepen collaboration in MSME sector
Money Control, 26 September 2018
India and Morocco have signed an agreement for deepening cooperation in the MSME sector, a move which will facilitate the transfer of Indian technologies and products to the North African nation. The MoU was signed in Rabat, Morocco by National Small Industries Corporation (NSIC) CMD Mr Ravindra Nath and Director General, Maroc PME, Mr Rabri Barrazouka. Through this MoU, NSIC and Maroc PME will work together to enhance cooperation opportunities between the MSMEs of the two countries.
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Bank nod for MSME loans of up to Rs 1 crore in 59 mins: Govt
The Economic Times, 26 September 2018
Finance minister Mr Arun Jaitley has launched a new portal to fast-track loans for MSMEs as the government promised that banks will approve funding up to Rs 1 crore in 59 minutes without entrepreneurs having to visit branches. Businesses need to submit GST and income tax details, along with bank statement, to be eligible for speedier loan sanctions. The portal has been set up by SIDBI along with SBI, PNB, Bank of Baroda, Indian Bank and Vijaya Bank, with other banks expected to join in the coming days.
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Rising imports from China hit MSMEs hard: House panel
The Financial Express, 25 September 2018
Rising imports from China have taken a heavy toll on the employment-generation potential of the manufacturing sector, especially among MSMEs, the parliamentary standing committee on commerce said. The major impact of Chinese imports has been felt by labour-intensive sectors like textile, steel and power.
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ADB Disburses $150 Million Financing to Chola to Improve Credit Access for MSMEs in India
Business Standard, 19 September 2018
The Asian Development Bank (ADB) has completed the disbursement of a $150 million debt financing to Chola (Cholamandalam Investment and Finance Company Limited), in equivalent rupees, to help MSMEs in India have better access to finance and expand financial inclusion in the country. ADB's financing, which has been provided in the backdrop of a slowdown in credit growth in the Indian banking system, has a countercyclical effect and is expected to boost investments and employment.
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Bajaj Finserv offers customised loans to MSMES
Business Standard, 14 September 2018
Bajaj Finance Ltd, the lending arm of Bajaj Finserv, offers MSMEs customized business loans with simple eligibility criteria and minimal documentation. MSMEs can borrow up to Rs. 30 lakhs by submitting their registration certificates and previous year's income tax returns. The loan can be availed in 24 hours once the application meets all the criteria.
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ICICI Bank to provide loans to MSMEs based on their GST returns
Your Story, 19 September 2018
ICICI Bank, one of India's largest private sector banks, on 19 September 2018 announced the launch of a new working capital facility that will enable MSMEs to get an overdraft (OD) based on the turnover reported in their GST returns. Christened 'GST Business Loan', the facility is available to any MSME, including non-customers of ICICI Bank, for up to Rs 1 crore. According to the bank, this facility does away with the requirement of paper-intensive assessment of financial documents including balance sheets of previous years. Further, the process for sanction of the OD is reduced to two working days.
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Swedish start-up Otivr brings Indian SMEs closer to Nordics
The Financial Express, 6 September 2018
With rapid innovation in businesses, demand for skilled service providers has increased in the Nordics and the rest of Europe, leading to huge outsourcing opportunities for Indian IT SMEs. A Swedish tech start-up, Otivr, with support from the Swedish Chamber of Commerce in India, is helping Indian SMEs access this opportunity. Otivr is helping transform the IT outsourcing business by providing Indian SMEs a gateway to Europe, and especially the Nordic countries, as it has a strong foothold there.
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MSMEs with good CIBIL MSME Rank (CMR) can avail loans at lower interest rate: Bank of Baroda
Knowledge & News Network, 6 September 2018
Taking a major step forward in the direction of risk-based pricing of MSME loans, Bank of Baroda has announced an offering of lower interest rates on such loans to MSMEs who have good CIBIL MSME Rank (CMR). By adopting risk-based pricing of MSME loans based on CMR, Bank of Baroda will now be able to make access to credit cheaper for well-performing MSMEs in the country.
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SAP India signs MoU with NSIC for technology adoption across MSMEs
Update Odisha, 30 August 2018
SAP India on 30 August 2018 signed an MoU with the National Small Industries Corporation Ltd (NSIC) to expand technology adoption across MSMEs in the country. As a part of the MoU, SAP India will leverage the well-established network of NSIC Technical Services Centres and other institutions working under its administrative control to create a future-ready workforce.
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MUDRA launches major impact study of loans to SMEs
The Hindu Business Line, 29 August 2018
Pradhan Mantri Mudra Yojana (PMMY), which has completed three years with a cumulative disbursal of about Rs 6 lakh crores in loans to SMEs so far, is being reviewed. MUDRA (Micro Units Development & Refinance Agency Ltd), an apex body for the scheme, is commissioning a massive field-based longitudinal impact assessment by an independent agency. MUDRA is looking at understanding the role of alternative channels such as microfinance institutions (MFIs) and other intermediary organisations in reaching out to end-users by leveraging additional funds.
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Tamil Nadu govt. to popularise quality certification for SMEs
The Times of India, 27 August 2018
The Tamil Nadu government is planning to popularise the need for quality certification among MSMEs to help them achieve better business results in the national and international markets, under an MOU between the state MSME department and the Quality Council of India (QCI). The initiative is aimed at pushing the MSMEs to obtain the ZED (zero effect and zero defect) rating bronze, silver, gold and platinum-and certification from the QCI, thereby improving the quality and quantity of their products.
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Centre earmarks Rs 1,000 crores for MSMEs in North East
Business Standard, 20 August 2018
The Centre has earmarked Rs 1000 crores for implementation of various schemes for MSMEs of the North East region in the 2018-19 fiscal. These are Central sector schemes in which a specific percentage of the budgetary allocation is allocated for SC, ST and the North East.
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MSME loans under-reported by Rs 10 lakh crores
The Times of India, 20 August 2018
Bank lending to small businesses is under-reported by around Rs 10 lakh crores as many loans to proprietorship firms are hidden under the garb of personal loans. These personal loans are usually backed by gold and property and have the lowest default ratios.
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MSME credit growth back at pre-note ban levels: RBI study
The Hindu, 17 August 2018
The flow of bank credit to MSMEs, which took a hit in the aftermath of demonetization, seems to have picked up again, according to a study by RBI officials. Data shows that during the April-June quarter, bank credit to MSMEs increased on average by 8.5% year-on-year, mirroring the level of growth during April-June 2015. Credit to micro and small enterprises grew at an even healthier rate.
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Guwahati-based enterprise among top 100 SMEs in India
Business Standard, 18 August 2018
Guwahati-based OOH (Out of Home) media firm Outreach Advertising has made it to the list of top 100 SMEs in the country for 2017. The screening was made from over 33,000 entities across the country, under an initiative by India SME Forum in association with the Union Ministry of Micro, Small & Medium Enterprises.
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MSMEs to invest Rs 700 crores in Gujarat
The Times of India, 17 August 2018
After a slew of big-ticket investments with domestic and foreign giants stepping into Gujarat, the state is now attracting significant investments from MSMEs from across the country. According to state government data, a cumulative investment of Rs 700 crores has been committed by MSMEs in less than five months, during the period from April to August this year. More than 300 plots have been allotted by the GIDC (Gujarat Industrial Development Corporation) during this period, in the industrial clusters of the state. According to state government officials, most of these companies are allied industries or vendors to existing major firms.
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Rajasthan govt. to help MSME entrepreneurs avail central schemes
The Times of India, 14 August 2018
The Central government runs several schemes to facilitate, assist and handhold MSMEs. Often, however, entrepreneurs fail to take advantage the benefits due to lack of information and knowledge about the systems and processes. Similarly, the government provides incentives under various interventions to industrial clusters but in many cases they are not availed. In a meeting under MSME commissioner Mr Naveen Mahajan, a decision was taken to create a dedicated cell with an officer in-charge to coordinate with the entrepreneurs to tap the schemes.
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NALCO to enhance procurement from MSMEs
Odisha Diary, 13 August 2018
In what will be a big boost for the MSME sector in Odisha, NALCO CMD Dr Tapan Kumar Chand said that the state-based Navratna PSU is taking concrete steps to support MSMEs and making all efforts to enhance the procurement of materials from MSMEs from the current level of Rs 400 crores to Rs 1200 crores after expansion.
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Govt. to give incentives to online aggregators for facilitating MSMEs biz
Zee News, 13 August 2018
The government is planning to give incentives to online aggregator who will facilitate MSMEs to sell their produce online. The MSME ministry is working towards a mechanism under which these aggregators will get tax rebate, discount on registration charge, free legal consultation, recovery of cost on digital infra.
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MSME protectionism : Government hikes 20% import duty on 328 textile goods
The Indian Wire, 8 August 2018
The government announced a 20% hike in import duties on about 328 textile goods on 7 August 2018. The notification said it seeks to 'increase customs duty on 328 tariff lines of textile products from the existing rate of 10 per cent to 20 per cent under Section 159 of the Customs Act, 1962'. This is proposed to create an estimated 10.5 crore jobs and also indented to boost the demand of raw materials.
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7 clusters under MSME get Odisha State panel nod
The Indian Express, 5 August 2018
The State-level Project Steering Committee (SLPSC) on 4 August 2018 approved three cluster development programmes for recommendation to the Ministry of MSME for approval. Chairing a meeting of the committee, Additional Chief Secretary, MSME, Mr L N Gupta approved a dry fish cluster at Paradip, rice mill cluster at Balasore and coir cluster at Teispur, Puri. The three proposals will be submitted to the office of Development Commissioner in the Ministry of MSME for approval.
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Industry body apprehensive of new MSME definition
The Hindu, 1 August 2018
MSMEs have voiced concern over the proposed change in MSME definition from investment criterion to annual turnover. Ms G Krithiha, Secretary of Lagu Udyog Bharati, said that the distinction between trading and manufacturing has been removed in the present definition. The organisation has also voiced the apprehension that importers and multinationals engaged in trading activities could pass themselves as MSMEs and take away their benefits.
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Happy Loans to disburse 7 lakh MSME loans by end of 2020
Business Standard, 31 July 2018
Happy, an innovation-driven working capital fulfilment platform for Indian MSMEs has unveiled its growth projection and roadmap for the next two years. The platform projects disbursing more than 7 lakh loans to micro enterprises operational across all key geographies of the country. At present, the platform has disbursed more than 18,000 MSME-based merchant loans. The platform also has over 15 partners on board, giving it an access to over five million merchants across the country.
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MSMEs to be decided based on turnover; Bill introduced in Lok Sabha
The Economic Times, 23 July 2018
A bill specifying the turnover of a business entity which would classify it as a micro, small or medium enterprise was introduced by the government in the Lok Sabha on 23 July 2018. The Micro, Small and Medium Enterprises Development (Amendment) Bill provides for change in the criterion of classification of MSMEs from the existing based on 'investment in plant and machinery or equipment' to 'annual turnover' of the enterprise. As per the amendments, any business with a turnover of up to Rs 5 crore would be considered as a 'micro enterprise'. A 'small enterprise' would be the one whose annual turnover is more than Rs 5 crore to Rs 75 crore.
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MSME Ministry to dispatch teams to 117 districts to spread word on schemes
The Financial Express, 24 July 2018
The MSME Ministry will send teams of officials to 117 most-backward and Naxal-affected Aspirational Districts identified by NITI Aayog to spread awareness about its existing schemes and obtain proposals to set up and strengthen micro and small enterprises.
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48 lakh MSMEs registered on Udyog Aadhaar portal
The Hindu Business Line, 18 July 2018
In a big push for the Centre's Make in India mission, the Union Ministry of MSME has registered over 48 lakh MSMEs during past three years since September 2015. Of these, about 10 per cent or 486,080 MSMEs were registered from Gujarat and 97,998 MSMEs were from Jharkhand.
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PHDCCI-Rajasthan to help MSMEs
Business Standard, 11 July 2018
To stimulate the growth of MSMEs, industry body PHD Chamber of Commerce & Industry has tied up with SMERA (SME Rating Agency of India) to help entrepreneurs to get financial assistance. The PHDCCI has developed a web portal bringing in all government schemes under one umbrella. The industry body has suggested the Government formulate a 'Trade with India' policy apart from the existing 'Make in India' policy.
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India Korea Technology Exchange Centre inaugurated by Giriraj Singh
Business Standard, 11 July 2018
The India Korea Technology Exchange Centre was inaugurated at NSIC (National Small Industries Corporation) on July 10 by Mr Giriraj Singh, Minister of State (Independent Charge), Ministry of MSME and Mr Hong Jong Haak, Minister of SMEs and Start-ups of Republic of Korea, creating a new era of association with India and Korea in the field of growth of MSMEs both the countries. The purpose of the Centre is to create a platform for MSMEs of India and Korea where they can be assisted to identify and exchange latest technologies, share management expertise, product development, and technology applications for productive development.
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MSME registration not mandatory to avail delayed payment protection: Delhi High Court
Knowledge & News Network, 10 July 2018
A bench of Delhi High Court has held that registration of MSMEs under MSMED Act is not mandatory to avail benefits under the Act. There has been ambiguity since long regarding the applicability of the MSMED Act, 2006 in cases where the entities were not registered under the MSMED Act at the time of execution of the contract.
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MSME credit growth driven by services: RBI
The Financial Express, 3 July 2018
While credit to MSMEs has been seeing double-digit growth, much of it may have benefited MSME players in the services sector rather than those in manufacturing. Bank credit outstanding to MSMEs grew a mere 0.2% year-on-year (y-o-y) to Rs 3.61 lakh crores, as on May 25, shows data released by the Reserve Bank of India (RBI). This suggests there has been little improvement in manufacturing MSMEs' access to credit from a year ago.
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MSME Ministry to set up export promotion cell
The Times of India, 1 July 2018
The MSME Ministry is looking to set up an export promotion cell in 2018 to coordinate with other departments and export promotion councils for increasing shipments of products like khadi, leather and coir, and identify clusters that can export directly or through aggregators. The move will further streamline strategies aimed at boosting exports from MSMEs, considered a powerful engine of the country's economic growth, contributing around 45 per cent of the overall shipments from India.
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President inaugurates 'Udyam Sangam 2018' to mark UN MSME Day
The Economic Times, 27 June 2018
The President of India, Mr Ram Nath Kovind, inaugurated the Udyam Sangam-2018 in New Delhi on International MSME Day 2018. Referring to UdyamSakhi portal of the MSME Ministry, the President said that it will empower women and weaker sections by providing training to 80 lakh women. Asserting that the MSME sector in India is leveraging the demographic dividend of the country, he said that the sector is promoting an inclusive growth in rural and backward areas.
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MSME-focused platform Instamojo makes NEFT transfers free for its sellers
The Economic Times, 27 June 2018
MSME-focused digital payments platform Instamojo has made online transactions through NEFT (National Electronics Funds Transfer) free of cost for its five lakhs seller base, said the company in a press release. With this launch, sellers will not have to pay any fee or charge for doing online transactions through NEFT through Instamojo platform. The company aims to take its customer base to 25 lakh by 2020.
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World trade information provider Connect2India launches global trade helpline for SMEs
The Financial Express, 26 June 2018
World trade information provider Connect2India today said it has launched a platform for SMEs to provide relevant knowledge related to global commerce and barriers. SMEs can reach out to experts on global trade through an interactive voice response number as well as using email id -
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MSMEs maintain positive credit growth: Report
The Economic Times, 22 June 2018
The MSME segment in India is growing at a positive rate of 15% year-on-year, according to the second edition of 'MSME Pulse' report released by credit bureau CIBIL and MSME lender SIDBI. Private banks and NBFCs continue to improve market share, especially with better- rated SME borrowers.
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HSBC to lend more to SMEs despite risk
The Economic Times, 14 June 2018
British lender HSBC will increase its exposure to SMEs in India, encouraged by growing demand, high yields and due to the limited pool of mid-cap companies. The bank has so far shied away from lending to high-risk SMEs as it recovers from higher capital requirements post the 2008 financial crisis.
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Uttarakhand Cabinet gives approval to MSME policy
Knowledge & News Network, 14 June 2018
The Uttarakhand cabinet has given its approval to a dedicated MSME policy with a view to push industrialization in the hilly areas of the state. The policy gives industry status to several activities like rafting, camping, surfing, panchakarma, joyriding etc. This means that the owners and investors will be entitled to benefits under the MSME policy.
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Relief for MSME borrowers, get temporary loan-repayment breather
The Economic Times, 6 June 2018
The Reserve Bank of India (RBI) has given a temporary loan-repayment breather to all MSMEs that have been affected due to implementation of the GST regime. The RBI noted that that formalization of business through registration under GST had adversely impacted the cash flows of the smaller entities during the transition phase with consequent difficulties in meeting their repayment obligations to banks and NBFCs.
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Rajasthan Industries department, Quality Council of India sign MoU
Daily News & Analysis, 14 June 2018
The Rajasthan state industries department and Quality Council of India (QCI) signed a memorandum of understanding on Wednesday for adding sustainability to MSMEs in Rajasthan. QCI will extend support to the MSMEs in Rajasthan for their ranking in accordance to 'zero effect, zero defect' policy. The MSMEs shall be registered at the ZED portal and accordingly will be extended Bronze, Silver, Gold, Diamond and Platinum ranking on basis of self-assessment. The QCI shall provide technical support for providing training to officials of the industries department and of the MSME industries regarding provisions of the assessment.
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Marg ERP, ICICI Bank to offer payments platform for MSMEs
The Times of India, 14 June 2018
Hyderabad-based inventory and accounting software solution company Marg ERP has partnered with ICICI Bank to offer an integrated payments platform to MSME customers using MARG's accounting software. This partnership will enable ICICI Bank's current account holders to connect their bank accounts with the MARG ERP software and undertake an array of digital transactions. It will enable businesses to initiate vendor and salary payments via RTGS, NEFT or IMPS directly from this platform, automate reconciliation of banking and accounting entries, apply for working capital loans as well as schedule future dated payments.
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Ministry of MSME and AYUSH collaborates for development of enterprises
Knowledge & News Network, 6 June 2018
For developing enterprises in the traditional medicine sector 'AYUSH', the Ministry of MSME and Ministry of Ayush signed an MoU in New Delhi. This collaboration will create synergies through the institutions and schemes of both ministries for the development of AYUSH enterprises in the country. The objective is to position India as a world leader in Holistic Healthcare. Under this partnership, both the ministries will organize regional workshops for entrepreneurship development in AYUSH sector.
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Telangana Government decides to establish MSME industrial parks in all districts
Knowledge & News Network, 4 June 2018
In a bid to give major push to the MSME sector, Telangana government has decided to set up MSME industrial parks in all the districts of the state. These parks will be set up taking into consideration the locally available natural and human resources in the district. Nearly 11 lakh MSME units are functioning in Telangana State creating about one lakh jobs every year and producing more than 8000 products for domestic and international markets.
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PMEGP a flagship programme under Ministry of MSME
Oneindia, 2 June 2018
The Prime Minister's Employment Generation Programme (PMEGP), offers credit-linked subsidy to establish new enterprises for generating continuous and sustainable employment opportunities in rural and urban areas of the country. The Ministry of MSME says Rs 860.51 crores has been released by the Ministry as margin money under PMEGP out of which Rs. 528.32 crores has already been disbursed by the banks.
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SIDBI to expand MSME working capital portfolio, partners Yes Bank
Business Standard, 30 May 2018
SIDBI is looking to expand its working capital portfolio, and has partnered with Yes Bank to cater to working capital needs of its MSME clients. Under the pact, Yes Bank would provide various banking services, including working capital, to SIDBI customers at its pan-India branches, which currently number around 1100.
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Actis sets up SME-focused lending platform in India; commits $220 mn
VCCircle Network, 30 May 2018
Emerging markets private equity firm Actis Advisors Pvt. Ltd said it will invest up to $220 million (Rs 1484 crores) over five years in a non-banking financial company founded in 2017 by Mr K V Srinivasan, the former CEO of Reliance Commercial Finance. The lender, Actis said, would focus on loans against collateral to SMES operating in a dozen sub-sectors.
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India-Zimbabwe inks pact to make SMEs techno-savvy
KNN, 12 May 2018
Aiming to make local SMEs technology-savvy, Zimbabwe and India have signed an MoU extending the Indo-Zimbabwe project launched in 2006 and designed to enhance the capacity and capability of the SME sector. Indian Ambassador to Zimbabwe Mr Rungsung Masakui said the joint project has played a critical role in developing the country.
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E-commerce exports via all foreign post offices soon: Finance Ministry
The Economic Times, 12 May 2018
The customs department is planning simplified procedures for exports by India Post, including permitting e-commerce shipments through all foreign post offices, the finance ministry said. Since 2016, e-commerce exports had been allowed through FPOs (Foreign Post Offices) under MEIS (Merchandise Export from India Scheme) incentives from the post offices at Chennai, Mumbai & Delhi.
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Centre to double credit guarantee to MSMEs
The Economic Times, 11 May 2018
In a bid to tackle the trade finance woes of MSMEs, the Union Government announced that it would double the credit guarantee up to Rs 50,000 crores for 2018-19 under the CGTMSE (Credit Guarantee Fund Trust for Micro and Small Enterprises) scheme set up by the Ministry of MSME. To ensure credit availability to MSMEs for inclusive growth, the Ministry is also holding discussions with all banks and NBFCs and is planning that 70,000 units giving employment generation to almost 5 lakh people be taken up this year itself.
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Lenovo launches V-Series laptop for SMEs, start-ups in India
The Economic Times, 10 May 2018
Chinese technology major Lenovo on 10 May 2018 launched a new V-series laptop "V330" for SMEs and start-ups with prices starting from Rs 48,000. The V330 laptop comes with entrepreneur-friendly flexibility features like an ultrabay drive that can house either an optical drive or an additional battery, a QuickCharge battery, an elegant spill-resistant backlit keyboard, USB-C type and USB 3.0 ports.
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Amazon India launches Weavesmart on its marketplace
The Economic Times, 3 May 2018
Amazon India launched Weavesmart, the e-commerce store for handlooms in India and an e-marketing partner for the Ministry of Textiles for promoting India Handloom Brand and Handloom Mark products, on its marketplace. Through this alliance, handloom & handcrafted products by weavers from various parts of the country associated with Weavesmart will now be available to millions of Amazon customers across India. Amazon India intends to help these associated weavers reach millions of customers across India and in turn help in empowering them and helping the weavers to display their creativity on a large scale. Currently, Weavesmart has more than 3000 weavers in its network and more than 20,000 products.
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Haryana to reduce power tariff for MSMEs
The Times of India, 23 April 2018
Haryana Chief Minister Mr Manohar Lal Khattar said power tariff will be reduced for small and medium enterprises having connection below 20 kilowatts. The tariff will be reduced from the present Rs 6.75 per unit to Rs 4.75 per unit from 1 May 2018.
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MSME Ministry - GSTN to share data of registered MSMEs
Knowledge & News Network, 11 April 2018
The MoMSME (Ministry of Micro, Small and Medium Enterprises) and the GSTN (Goods & Services Tax Network) will soon sign a pact to share database of the MSMEs registered with the Udyog Aadhaar portal and on GSTN database. Around 44 lakh MSMEs are registered with the Udyog Aadhaar portal, while the number of MSMEs on GSTN database is around 1 crore.
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West Bengal govt to set up integrated promotion hub for SMEs
The Economic Times, 9 April 2018
West Bengal government will be setting up an integrated production and promotion hub for small and micro enterprises, called Biswa Khudra Bazar near Santiniketan in Birbhum district on a 50-acre plot. The hub is being developed by West Bengal Small Industries Development Corporation (WBSIDC). It will take around two years to complete the project. According to the scheme of things there will be three separate units in the state-of-the-art Biswa Khudra Bazar - one for production of goods, another for the promotion and sale of the same products and the third one dedicated to developing newer markets for those products. The Entrepreneurs' Hub, where the production will take place, will come up on 5 acres, while the Business Hub, where the goods will be promoted and sold will be spread across 25 acres.
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FIEO, PayPal join hands to simplify international trade for Indian exporters and SMEs
The Economic Times, 5 April 2018
The FIEO (Federation of Indian Exports Organisation) and online payment system PayPal signed an MoU on 5 April 2018 to promote exports and leverage each other's technology and experience. The agenda of the partnership shall be to focus on: (a) 'Make in India' and 'Digital India' ; (b) enabling international transactions; (c) empowering SMEs, entrepreneurs, artisans, start-ups; and (d) conducting training and seminars for businesses to attune themselves to technology. Under this collaboration, PayPal will join FIEO to train SMEs on how to utilise professional opportunities and use technology for safe and smooth business.
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GST Composition Scheme for SMEs in India
India Briefing, 3 April 2018
The composition scheme is a system under the GST (Goods and Services Tax) Act that allows suppliers of goods, other than exempt goods, and restaurant-related service providers to file their GST returns at a fixed rate. This scheme is of particular interest to SMEs, although it can be accessed by any taxpayer whose turnover on the 'taxable supplies of goods' does not exceed Rs 15 million (US$230,100). For Indian states in the northeast and the north Indian state of Himachal Pradesh, the threshold limit is Rs 7.5 million (US$115,050).
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SIDBI, New India Assurance partner to cater to MSMEs
The Times of India, 2 April 2018
SIDBI has tied up with New India Assurance Co Ltd as a bancassurance partner to cater to the insurance needs of small businesses. A memorandum of understanding was signed with The New India Assurance Co and two MSMEs were issued insurance policies, SIDBI said. SIDBI is evolving as one stop solution provider, and launched a revamped website aimed at transforming the MSE ecosystem in the country on the occasion of its foundation day. SIDBI also launched an MSME contact programme to understand their opportunities, challenges and eco system so as to grasp what can be done to ease the way they do business.
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SME IPOs continue to catch investors' fancy; raise Rs 2,155 crore in FY18
The Economic Times, 1 April 2018
SMEs raised around Rs 2,155 crore through IPOs in 2017-18, more than two-fold jump from the previous fiscal. Funds raised through IPOs were meant for business expansion plans, working capital requirements and other general corporate purposes, according to offer documents. A total of 148 companies got listed with IPOs worth Rs 2,155 crore in the last fiscal. Geographically, Gujarat topped the list as a maximum 50 firms from the state listed on SME bourses, followed by Maharashtra (43), Madhya Pradesh (13), Delhi (10), and Telangana and West Bengal (5 each).
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Universal Robots focuses on SMEs in India
The Hindu, 26 March 2018
Universal Robots, the world's largest manufacturer and supplier of collaborative robot ('cobot') arms, is focusing on SMEs to grow its business in India, the company's top executives said. Over two years, the robotics firm has supplied 400 cobots to companies in India, of which 10% have been sold to SMEs.
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Lendingkart Finance ties up with Sistema Business Scalerator to serve SMEs in South India
Business World, 29 March 2018
Lendingkart Finance announced that it has tied up with Sistema Business Scalerator to serve SMEs in South India. The Sistema team has built on-ground presence in select states where they will source business for Lendingkart Finance through their contact points and facilitate the loan disbursal process. Lendingkart Technologies is an online platform that makes working capital finance available to SMEs. As per the terms of engagement, Sistema Business Scalerator will deploy its team in the states of Tamil Nadu, Kerala, Karnataka, Telengana, Andhra Pradesh and Puducherry to help Lendingkart Finance source business and scale its operations in those states.
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MSME-DI Nagpur holds state-level vendor development program
Knowledge & News Network, 24 March 2018
MSME-Development Institute, Nagpur, in conjunction with IOC Ltd at Nagpur, organized a state-level vendor development program (SVDP). The objective of the SVDP is to create opportunities for MSMEs to develop as potential vendors for the CPSUs (Central Public Sector Undertakings) under the Public Procurement Policy.
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RBI relaxes loan repayment deadline for MSMEs, opens up lending limits
India Briefing, 20 March 2018
India's MSMEs will benefit from an extension for standing loan repayments to banks and NBFCs (Non-Banking Finance Companies). The announcement, made by the Reserve Bank of India, the country's central bank, provides immediate relief to MSMEs hurt by blocked cash flows due to the implementation of the GST (Goods and Services Tax). So far, the shift to the GST regime has been far from smooth for MSMEs; it has restricted the liquidity of these companies, resulting in their inability meet their repayment obligations to banks and NBFCs.
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ICICI Bank launches instant overdraft facility for MSME customers
The Times of India, 13 March 2018
ICICI Bank has launched an instant overdraft facility for up to Rs 15 lakh for MSME customers. The digital offering is being made available to current account customers of the bank for credit without the need to visit a branch or submit physical documents. The facility is available both on internet banking and ICICI's mobile app. ICICI Bank also plans to offer instant overdraft facility to MSME customers of other banks. The overdraft is renewable on an annual basis, depending on the customer's repayment track records.
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Women run a quarter of Karnataka's 20 lakh MSMEs
The Times of India, 11 March 2018
Women play a significant role in the growth story of Karnataka, one of India's leading industrialized states. Data shows that nearly 250 of every 1,000 MSMEs in Karnataka are owned and run by women, much higher than the national average of 190. This means that of the 20.5 lakh MSMEs in Karnataka, according to industry figures, 5.1 lakh are owned by women. Interestingly, of the 50-odd lakh employees in the MSME sector in the state, 40% or 20 lakh are women, data with the ministry of MSMEs shows.
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IIT-Delhi, IISc, KIAMS to help SMEs face 'disruptive' techs like AI
United News of India, 10 March 2018
To enable the Indian manufacturing to face 'disruptive' technology like Artificial Intelligence (AI), the Union Government would set up four SAMARTH innovation centres in the country's top institutions, including IIT, Delhi; IISc (Indian Institute of Science), Bengaluru; and KIAMS (Kirloskar Institute of Advanced Management Studies), Pune. The Department of Heavy Industry has approved a grant of Rs 78 crore to support these centres. While the centre at IIT, Delhi has already been inaugurated, the centres at IISc, Bengaluru and KIAMS Pune are likely to start by September 2018. All these centres will become self-sustaining within three years. They have been mandated to cover nearby clusters and colleges.
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EEPC signs MoU with the Czech Republic SME association
The Times of India, 9 March 2018
Engineering Export Promotion Council India has signed an MoU with the Association of Small and Medium-sized Enterprises and Crafts of the Czech Republic to promote bilateral trade and investment. The MoU was signed at the IESS (International Engineering Sourcing Show) on 8th March. As the partner country, the Czech Republic, with a strong manufacturing base, has a predominant presence of at least 50 companies at the IESS. Under the MoU, the two sides would exchange market information pertaining to the engineering sector and assist each other in organization of the exhibitions, trade fairs and buyer-seller meets. They will also encourage institutional partnerships in research and development, consultancy, besides technology transfer.
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Auto industry welcomes change in MSME definition
The Economic Times, 12 February 2018
With the Cabinet amending the definition of the MSMED (Micro, Small and Medium Enterprises Development) Act, 2006, several stakeholders in the industry are set to benefit from this change. While the auto component industry has welcomed this move, dealers are largely untouched by its benefits. According to the latest amendment to the MSME Act, MSMEs will be categorized on the basis of their annual turnover instead of investments in plant, machinery and equipment. Micro enterprises with an annual turnover up to Rs 5 crores, small enterprises with an annual turnover of more than Rs 5 crores but not over Rs 75 crores as well as medium enterprises with an annual turnover over Rs 75 crores but not exceeding Rs 250 crores will now come under its ambit. The earlier criteria were based on investments made in plant and machinery that was capped at Rs 10 crores. Consequently many companies that were out of the MSME bracket and missed the subsidies and incentives received under the MSME definition, have come under its umbrella.
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Government measures to ensure MSMEs become growth engine: DFS secretary
The Economic Times, 11 February 2018
A slew of recent measures, including tax concessions in the budget, for MSMEs has been taken with an aim to transform such enterprises into a growth engine for 'new India', Financial Services Secretary Mr Rajiv Kumar said. These initiatives will bring down the tax burden on enterprises with an annual turnover of up to Rs 250 crores and also lower the interest burden, leaving more surplus for investment and growth of the MSME sector. The RBI on its part too announced various measures for MSMEs hit by the implementation of GST by giving them additional up to 180 days to clear their dues to banks.
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86% rise in MSME registration in Gujarat
DNA, 11 February 2018
Number of small businesses grew to 86 per cent in Gujarat in about 18 months, said a senior government official. He attributed the rise to the conversion of unregistered units to registered ones. The move will enable the government to find solutions to the growth bottlenecks for the sector as well as increase compliance by the units resulting in higher tax revenues for the government. The rise in the registration is a result of a campaign initiated by the central government to convert the unorganised sector into the organised sector, said sources. Soon, one can expect separate packages for micro, small and medium enterprises as per their sizes rather than being clubbed together.
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Govt redefines MSMEs based on annual revenue
Mint, 8 February 2018
The Union cabinet on 7 February 2018 approved a proposal to redefine MSMEs, based on their annual revenue, replacing the current definition that relies on self-declared investment on plant and machinery. The move is expected to improve ease of doing business, avoid unnecessary inspections and at the same time enable the authorities to verify claims of businesses using the sales data they have from the GST Network, the company that processes GST (goods and services tax) returns. The move is in addition to steps being taken to stimulate the MSME sector's growth, including a cut in corporate tax from 30% to 25%, announced in the Union budget, and the Reserve Bank of India's decision to give a longer period to small businesses before classifying their loans as non-performing assets, or bad loans.
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MSME loans up to Rs 25 crores get more repayment time
The Economic Times, 8 February 2018
In a major relief to the medium and small enterprises sector, the RBI on 7 February 2018 said GST-registered MSME borrowers will get a further 180-day window to pay dues if their accounts were standard as on August 31, 2017. This move, allowed to banks and NBFCs, will be applicable for dues between September 2017 and January 2018 if the aggregate exposure does not exceed Rs 25 crores. Banks and NBFCs will not be required to downgrade asset classification of these MSMEs.
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Budget 2018 extends sops to MSMEs in push to formalize Indian economy
Mint, 2 February 2018
The Union Budget 2018 on 1 February 2018 extended sops to MSMEs as part of the government's efforts to bring businesses under the formal economy's fold. Finance minister Mr Arun Jaitley proposed to cut the corporate tax rate to 25% for companies with annual revenue of up to Rs 250 crore. The budget also earmarked Rs 3 trillion for 2018–19 under the Pradhan Mantri Mudra Yojana or Mudra scheme. In addition, Mr Jaitley allocated Rs 3,794 crores for credit support, capital and interest subsidy to MSMEs.
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Budget 2018: MSMEs get Rs 3794 crores allocation for credit support
The Economic Times, 1 February 2018
Commenting that MSMEs are "major engine of growth and employment generation" while presenting Budget 2018, Finance Minister Mr Arun Jaitley announced Rs 3794 crore allocation to MSME sector for credit support, capital and interest subsidy on innovation. The Finance Minister also asserted that demonetisation and the introduction of GST is enabling the government to make policies which will benefit the micro and small medium enterprises.
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MSME sector faces major problem in availing credit: Survey
The Economic Times, 29 January 2018
India's MSME sector faces a major problem in terms of getting adequate credit for expansion of business activities, according to the Economic Survey 2018. The survey tabled in Parliament by Finance Minister Mr Arun Jaitley pointed out that MSMEs received only 17.4% of the total credit outstanding. "Growth of credit to micro and small enterprises increased by 4.6%, while credit to medium enterprises decreased by 8.3%," it said. Elaborating on the status of the major schemes implemented for the MSME sector, the survey observed that loans extended under the Pradhan Mantri Mudra Yojana during 2016-17 have crossed the target of Rs 1.8 lakh crores. "Of this amount, Rs 1.23 lakh crores was lent by banks while non-banking institutions lent about Rs 57,000 crores. In December 2017, the total number of borrowers was 10.1 crores, out of which 7.6 crores were women," said the survey.
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India Transact Services joins Mobik to enable MSMEs create mobile presence
The Economic Times, 18 January 2018
ITSL (India Transact Services Ltd.), an omni-channel merchant digital payment solutions company, has entered into a strategic alliance with Mobik, an Israel-based mobile advertisement platform. Their objective is to empower MSMEs. The MSME sector in India is very fragmented, and often lacks quintessential resources like technology and capital used by other organised large retail chains to retain their customers and market their products as well as the brand in the online space. ITSL and Mobik's aims at promoting special offers and products online, providing them with a platform and a set of marketing tools and apps. ITSL in a statement claimed that they wish to empower 10,000 merchants with this solution reaching out to 10 lakh end-consumers by 2019.
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West Bengal has highest number of MSMEs: official
The Economic Times, 16 January 2018
West Bengal has the highest number of MSMEs in the country with 52,69,814 units (11.62% of total), a development which will boost the state during the Bengal Global Business Summit. The eastern state left behind highly industrial regions like Maharashtra and Gujarat in the race, a data in the 2016–17 MSME ministry annual report showed. Uttar Pradesh ranked second after West Bengal, followed by Maharastra. In 2017, West Bengal also recorded the biggest bank credit flow to the MSME sector in the last five years at USD 15 billion, the report said.
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ETRISE launches Biz Listings, aims to help Indian SMEs grow their business
The Economic Times, 3 November 2017
As more and more consumers move online, having a web presence that can be easily discovered and generate visibility, leads and business becomes essential. In order to provide quick, reliable and comprehensive information to the users and connecting buyers (service seekers) with the sellers (service providers), ETRISE has launched 'Biz listings' for small businesses. ETRISE Biz Listings is a 'one-stop' platform enlisting Service providers / SMEs from various industries and will be accessible from across ET's digital platforms.
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India's new rank of 100 on Ease of Doing Business index not reflective of situation for MSMEs: IIA
KNN, 2 November 2017
In the World Bank's "Doing business" report of 2018, India has jumped to 100th place from 130th in 2017, the Finance Ministry informed recently. However this jump is not very reflective of the situation of the ecosystem that continues to haunts the MSMEs of the country, Indian Industries Association said.
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AU Small Bank, SIDBI launch Rs 200-cr fund for MSMEs
The Hindu Business Line, 28 October 2017
AU Small Finance Bank today tied up with SIDBI to launch a Rs 200-crore fund for providing loans to MSMEs. The programme will fund term loans in the Rs 25 lakh to Rs 2 crore ticket size. Under the advice of SIDBI, AU Bank will play the anchor in this programme as all the processes including disbursement, monitoring and recovery will be handled by them. The appraisal of the proposal shall be done jointly by AU Bank and SIDBI .Both the financial institutions will earmark a corpus of Rs 100 crore for lending under this agreement this financial year.
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Crisil SME Tracker: Incentivized SMEs can help bridge India's skill deficit
Business Standard, 15 September 2017
CRISIL believes subsidizing and incentivizing credible SMEs to undertake skill development training programmes can help narrow India's yawning skill deficit. As things stand, less than five per cent of the country's workforce possesses formal vocational skills. In this context, engaging SMEs in skill development can boost the effectiveness of the government's Skill India initiative and also improve the competitiveness of the SME sector, which is India's second-largest employment generator.
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KITCO to launch programme to uplift micro, small and medium enterprises
The Economic Times, 13 September 2017
Consultancy major KITCO Ltd. is launching a programme to uplift MSMEs to make them competitive, as part of its 45th year anniversary celebrations. The programme will help address the issue of shortage of funds often faced by MSME sector. In the first phase, ten enterprises operating in various sectors will be selected under the programme.
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Fund for lending to SMEs to be ready in 5-6 months
The Indian Express, 13 September 2017
Mr Y M Deosthalee, former CMD of L&T Finance Holdings Ltd, indicated that over a dozen top executives of Indian firms are planning to create a fund that will lend exclusively to SMEs in the country. He said that the fund will be ready in the next five to six months.
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Google launches new feature 'Google My Business' to help Indian SMEs manage biz online
KNN, 8 September 2017
To help India's SME communities, Google has launched a feature titled 'Google My Business' for SME/business customers, which allows owners to manage the business listings from a simple, easy-to-access dashboard within Google Search. For this, owners are required to find their businesses on Google Search, complete and enhance listing, share photos and posts and see how many views they are receiving. According to Google India, more than 80% of people are searching the Internet to find local information.
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SME board fund-raising up 7-fold in 6 years
The Hindu Business Line, 7 September 2017
Small and medium enterprises have clambered onto the IPO bandwagon with alacrity: fund-raising activity through junior bourses has gone up by about seven times in the past six years. For small entrepreneurs, raising funds through the SME IPO platform yields dual benefits of increased capital availability on the one hand, and improved corporate governance on the other. Currently, 267 SMEs are listed on the NSE and the BSE. Some 81 of these companies are from Gujarat, followed by Maharashtra (76) and Delhi (22). In terms of sectors, SMEs from the construction, finance and investment, textile products, trading and computer hardware segments are among the top ones to hit the primary markets through this platform. A total of Rs2,458 crore has been raised so far by 267 SMEs.
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IndiaOnline.in Launches Jaipur Office to Support Rajasthan's SME Sector
Business Wire India, 7 September 2017
The IndiaOnline.in Network, India's largest online network of 475+ inter-linked websites, has announced the launch of its operations in the Pink City, Jaipur, with an aim to cater to the ever-growing & robust SMEs sector of Rajasthan. IndiaOnline.in is targeting bringing over 1000 SMEs from Rajasthan under its marquee GETONLINE initiative within this year. The GETONLINE initiative of the IndiaOnline.in Network aims to equip each & every SME of the country with Website & Digital Marketing Solutions and educate them on how to grow their business using online tools & solutions. The Network will power Rajasthan with its dedicated portals namely www.RajasthanOnline.in, www.JaipurOnline.in, besides others for all major cities & towns of the state. The company also has regional Channel Partner offices in over 15 locations of the country including Agartala, Ahmedabad, Bhubaneswar, Guwahati, Gorakhpur, Hyderabad, Kochi, Kolhapur, Pimpri Chinchwad, Raipur, Sangli, Tinsukia, Vijayawada and Visakhapatnam and is headquartered at New Delhi.
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Summit set to increase SME business ties between UAE and India
The National, 5 September 2017
Giving Emiratis the confidence to "pitch camp" in India by investing in medium-sized projects such as housing and leisure tourism is the focus of initiatives being pursued by both nations ahead of a India-UAE Partnership Summit to be held from 30-31 October 2017 in Dubai. Dr Azad Moopen, Aster DM Healthcare's chairman, said the aim was to help Emirati businessmen understand the market in the sub-continent. Small and medium-sized enterprise projects ranging from 10 to US$50 million are likely to be showcased at the two-day summit, which aims to bring together ministers, government officials, industry leaders and investors from both countries.
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IFC Invests $10 million in Power2SME
The Economic Times, 5 September 2017
The IFC (International Finance Corporation) the private investment arm of the World Bank has invested $10 million as equity in Power2SME, an e-commerce platform that helps small and medium companies buy raw materials at bulk prices. In addition to the investment, IFC will also advise Power2SME to help it expand beyond its current 14 states, improve its ability to provide working capital to SMEs by adding more banks as partners, and increase the number of users on its platforms by up to 10 times in five years. Power2SME is backed by venture capital firms such as Kalaari Capital, Accel Partners, and Inventus Capital.
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Online tools helping Indian SMEs sell products globally: Facebook
The Economic Times, 6 September 2017
While 43 per cent of Indian exporters in SMEs (small and medium sized enterprises) depend on online tools for 75 per cent of their international sales, 63 per cent agree that using online tools for selling internationally has increased their revenue, a new survey by Facebook revealed on 6 September 2017.
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Gujaratis rule SME platform, Delhiites at rock bottom
The Economic Times, 29 August 2017
Gujarat-based SMEs (small and medium enterprises) are turning bullish on raising funds through SME exchanges. This could be gauged from the fact that out of total 72 SME IPOs (initial public offers) launched in 2017 so far, Gujarat has churned out 31, which is the highest from any state. Gujarat is followed by Maharashtra with 22 SME IPOs and Rs 257.10 crore of fund mobilisation. Rajasthan and Madhya Pradesh have seen four each IPOs hitting the market and Delhi three in 2017.
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DIPP to release new industrial policy by October, will review FDI Regime
Mint, 30 August 2017
The DIPP (Department of Industrial Policy and Promotion) under the commerce and industry ministry will release a new industrial policy by October 2017 that will focus on encouraging Indian branded products with higher value addition and will review the existing foreign direct investment policy regime to facilitate greater technology transfer. DIPP has adopted a consultative approach for formulating the industrial policy by setting up six thematic focus groups and an online survey on the department's website to obtain inputs.
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IIoT adoption remains low in SMEs: Deloitte India and CII
The Hindu Business Line, 30 August 2022
The global Industrial Internet of Things (IIoT) market is expected to reach $1.1 trillion by 2028, with a compound annual growth rate (CAGR) of 22.7%, but IIoT adoption remains relatively lower in small and medium-sized manufacturing firms compared to large-scale manufacturing firms, according to the latest study by Deloitte India and the Confederation of Indian Industry.
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India, Mauritius sign MoUs for cooperation to boost MSME sector; discuss B2B meets, training programmes
The Financial Express, 25 August 2022
The MSME Ministry on 25 August 2022 announced two memorandums of understanding (MoUs) signed between India and Mauritius on cooperation in promoting the MSME sector of the two countries.
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