News

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 - This email address is being protected from spambots. You need JavaScript enabled to view it..
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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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Secretary - SAMEEEKSHA, Industrial Energy Efficiency Division,
TERI, Darbari Seth Block, IHC Complex, Lodhi Road, New Delhi 110 003, India
Tel: +91 11 2468 2100, 2468 2111 | Email: sachink@teri.res.in