- Budget 2021: 10 key takeaways from FM Sitharaman’s announcements for MSME sectorFor the Covid-hit MSME sector, the budget was expected to play an important part in their revival. Presenting the Union Budget for 2021-22, Finance Minister Nirmala Sitharaman announced several measures that will have a direct or indirect bearing on the MSME sector. We summarize the 10 key announcements made by the FM.Budget 2021: 10 key takeaways from FM Sitharaman’s announcements for MSME sector
- Asian Development Bank lends Rs 295 crore to Northern Arc CapitalNorthern Arc Capital will use it to extend loans proceeds and provide guarantees to financial institutions and individual borrowers.
- How can India build globally competitive MSMEs?To edge away from India’s huge dependence on imports from China, sector-specific strategies will have to be formulated and alternate trading partners developed in the region.
- Government brings vehicle trade, repair under MSME development actThe ministry of micro, small and medium enterprises (MSME) approved the decision on Thursday, several people aware of the matter said. The official order will be issued shortly.
- MSME units engaged as vendors with the government or PSUs likely to revive first: Dun & Bradstreet reportMSMEs have largely borne the brunt of the disruption in the supply chain, scarcity of raw materials, unavailability of migrant labours and restrictions in transportation till at least May 2020.
- TReDS platform M1xchange raises funding from BEENEXT, MayfieldThe utilisation of funds by M1xchange will be to expand its network across India
- Monetary policy: RBI provides new incentives for commercial banks to lend to MSMEsThe move will facilitate more fund flow for a sector which has been facing acute financial crunch in the aftermath of the pandemic.
- Budget 2021: FM races to fix flaws in labour modelThe Finance Minister Nirmala Sitharaman’s first post-Covid budget had several measures to bring the unorganised working class into the mainstream economic fold.
- Banks sanction Rs 2.05 lakh cr to 81 lakh MSMEs under credit guarantee schemeThe loans provided under ECLGS 2.0 will have a five-year tenor, with a 12-month moratorium on repayment of principal.
- The target is to create 5 crore more jobs in the next 5 years: Nitin GadkariStating how the GDP contribution from rural, tribal and 115 aspirant districts is negligible, the minister said that this is the time for MSME ministry and the industry to concentrate more on such districts.
- TransUnion CIBIL, MoSPI launch MSME Credit Health IndexThe MSME sector has seen an increased level of NPAs in the last two years consequent to a slower rate of economic growth. Cash flows of MSMEs have been impacted over a period of time thereby limiting their ability to service debts.
- Fintech community embraces FM’s measures, expects wise usage of Rs 1,500 crore fundsThe fintech community in India has received the announcements with a welcoming attitude.
- MSME sector created 11 crore jobs in India: Nitin GadkariUnion Minister Nitin Gadkari said that the MSME sector contributes 30% to the GDP of the country.
- MSME sector contributes 30% to GDP, 48% to exports: Nitin GadkariUnion Minister of Micro, Small & Medium Enterprises (MSME), Nitin Gadkari stated that MSME sector contribute 30% to Gross Domestic Product (GDP) and export from it is 48%. “Presently MSME is the most important sector for the country, I say it's backbone of Indian economy.(ANI)MSME sector contributes 30% to GDP, 48% to exports: Nitin Gadkari
- A case for better tax-policies for MSMEsTax reforms and schemes that ought to encourage trading and ease of business – including on e-commerce platforms – have seemingly complicated the processes, and can potentially discourage SMBs to explore the online markets.
- A Rs 76,400 crore sector is pivotal to reducing dependence on Chinese importsComplete indigenisation of the consumer appliance components sector can speed up Aatmanirbhar Bharat.
- Government guarantee ups MSME loans: CibilAccording to credit data released by TU Cibil, MSME loans disbursed in urban, semi-urban and rural regions for June is over 3 times that of February and was at 1.9 times for metro regions.
- Making structural changes can give fillip to the MSMEs in the upcoming budgetIt is critical for the government to take some bold moves that helps in revival of the sector and boosts investor confidence.
- Economic Survey 2020-21: Drastic reduction in compliances with 41 central labour laws reduced to fourLast year was a particularly tough time for the MSME sector which faced an acute financial crunch and shuttered businesses amid the virus outbreak.
- Khatabook introduces Pagar khata App to digitize staff management for MSMEsPagarkhata app is equipped with a interface available in 13 languages, enabling hassle-free access for business owners across linguistic backdrops.
- U GRO Capital partners with Wadhwani Foundation to help MSMEs thrive in post Covid eraMSMEs can benefit from this partnership by addressing their strategic, operational and development needs as part of the ‘Sahayata Stability Program’.
- Vistaar Finance raises $30 million from Dutch entrepreneurial development bank FMOVistaar has now raised over Rs 550 crore of debt financing in just seven months of this financial year.
- Govt unlikely to extend credit guarantee scheme for MSME sector beyond OctThe maximum amount of Guaranteed Emergency Credit Line (GECL) funding under the scheme was correspondingly increased from Rs 5 crore to Rs 10 crore.
- Govt warns public against 'mischievous' activities of MSME Export Promotion CouncilThe ministry said it is noticed that certain messages are being circulated in media and social media regarding issuance of appointment letter to the post of 'director' by the MSME Export Promotion Council.
- SIDBI inks MoU with Tamil Nadu govt to develop MSMEsThe setting up of the project management unit aims at bringing focused engagement in various forms leading to a stronger 'Atmanirbhar' state and country.
- JSW Steel launches website to help MSMEsEngineering exports in 2019-20 was about $76 billion and the government's aim is to double it to $150 billion by 2024-25. JSW basically would also like to participate and enable this growth for the MSMEs
- Tech Tonic SMBs’ Magic Potion for GrowthFor most SMBs, credit score is non-existent. Their public profiles and balance sheets are not something the banks can trust to give loans.
- Industry hails PLI scheme, bats for an MSME targeted planIndustry experts contend that the PLI scheme is a well directed initiative that will help in making India a competitive destination for electronics manufacturing and give a boost to nation’s Atmanirbhar Bharat drive.
- UVC Life Light launches a range of UV products to fight CovidUVC radiation is an effective disinfectant for surfaces, air, and water and can curb the risk of acquiring an infection.
- Instamojo closes Pre-Series C funding round from Base, Gunosy CapitalIn recent months, Instamojo introduced ways of going digital through their ‘Priority KYC’, ‘Sachet loans on Whatsapp’ and ‘InstaCash’ features which enabled merchants to go online and get instant access to loans.
- Improving sentiment, economic recovery to keep lid on restructuring requests: CrisilCrisil said that 968 companies or 27% of the sample set, had opted for the moratorium allowed by the RBI. As much as 98% of these are not opting for restructuring.
- ETRise Top MSMEs Ranking: In Conversation with Arjit Tyagi, Global Expansion Lead, CogoportIn conversation with ET Digital, Arjit Tyagi, Global Expansion Lead, Cogoport speaks about logistics as a sector – the components, challenges and potential, and how Cogoport endeavours to help companies in trade across countries through its products and offerings. With ETRISE Top MSMEs Ranking, The Economic Times Digital aims to celebrate the success of Indian Micro, Small & Medium Enterprises (MSMEs). The programme recognises small businesses that have excelled and set a benchmark for others to follow, across three categories – India’s Top Innovative MSMEs, India’s Fastest Growing MSMEs and India’s Top Performing MSMEs. To view more details, please visit www.etrise.com/topmsmesTo know more about Cogoport, please visit www.cogoport.comETRise Top MSMEs Ranking: In Conversation with Arjit Tyagi, Global Expansion Lead, Cogoport
- ETRise Top MSMEs Ranking: In Conversation with AK Vinod, Chief General Manager, Union Bank of IndiaIn conversation with ET Digital, AK Vinod, Chief General Manager, Union Bank of India speaks about the solutions that Union Bank of India offers for MSMEs, the role of technology in lending, and what MSMEs can expect from Union Bank of India in these difficult times.With ETRISE Top MSMEs Ranking, The Economic Times Digital aims to celebrate the success of Indian Micro, Small & Medium Enterprises (MSMEs). The programme recognises small businesses that have excelled and set a benchmark for others to follow, across three categories – India’s Top Innovative MSMEs, India’s Fastest Growing MSMEs and India’s Top Performing MSMEs. To view more details, please visit www.etrise.com/topmsmesETRise Top MSMEs Ranking: In Conversation with AK Vinod, Chief General Manager, Union Bank of India
- ETRise Top MSMEs Ranking: In Conversation with S Viswanatha Prasad, Managing Director, Caspian DebtIn conversation with ET Digital, S Viswanatha Prasad, Managing Director, Caspian Debt speaks about the Indian MSME sector, how Caspian Debt is helping MSMEs in India through its services and product offerings, its lending process and the future plans of the company.With ETRISE Top MSMEs Ranking, The Economic Times Digital aims to celebrate the success of Indian Micro, Small & Medium Enterprises (MSMEs). The programme recognises small businesses that have excelled and set a benchmark for others to follow, across three categories – India’s Top Innovative MSMEs, India’s Fastest Growing MSMEs and India’s Top Performing MSMEs. To view more details, please visit www.etrise.com/topmsmesETRise Top MSMEs Ranking: In Conversation with S Viswanatha Prasad, Managing Director, Caspian Debt
- Did the Government’s Rs 3 lakh crore collateral-free loan ECLG scheme do enough to prop up the MSME sector?The way the Government’s mega stimulus eventually panned out for MSMEs, it offers interesting takeaways.
- CPSEs clear dues worth Rs 13,400 crore to MSMEs in last five months: GovtIt is mandatory for all CPSEs and the companies with turnover of more than Rs 500 crore to join this platform. However, many companies are yet to join or transact on it. Corporates have been requested to check whether their group/ company has joined the TReDS platform and is doing transactions.
- ETRise Top MSMEs Ranking: A wheelchair that can climb stairs, travel up to 25 kmAccess for the differently abled in the country has been a quintessential problem. With an aim to upend this segment, Bengaluru-based Ostrich Mobility brings affordable, customised and sustainable solutions providing easy mobility to wheelchair-bound users.
- MSMEs begin race to implement IT infrastructure to support electronic invoices within 50 daysThe government has said that e-invoicing or electronic invoicing will be mandatory for any company that has a turnover of more than Rs 100 crore. The limit was Rs 500 crore as per the earlier regulations. Industry trackers say that in most cases the companies that are now required to abide by the regulations may find it tough. This is mainly due to the investment required in the IT infrastructure and the limited time frame to do so.
- Paytm expands collateral-free loans of up to Rs 500k to MSMEsIn the last financial year, Paytm has processed loans worth Rs. 550 crore benefiting over a lakh merchant partner.
- Sidbi extends validity of SCRF to facilitate free onboarding on TReDSA total of 6,545 MSMEs have been given free onboarding facility on TReDS through RXIL, M1xchange and Invoicemart so far.
- ETRISE Top MSMEs Ranking: Unveiling India’s best small businessesWith Top MSME Ranking, the idea was to discover and chronicle businesses that are creating a new and lasting template for success.
- D&B India, NSIC ink pact to boost growth of MSMEsThe partnership will provide Indian MSMEs with access to Dun & Bradstreet's suite of data and analytics solutions via NSIC's countrywide network of offices and technical centres.
- Small-town retailers go digital with business activity back to normal levelsGiven the current scenario due to COVID-19, more consumers are looking online and this provides the potential for MSMEs to transform and build on digitisation of their businesses.
- Fail to scale: India’s manufacturing aspiration confronts the ‘missing middle’Millions of small units, a handful of large ones and a sprinkling of mid-sized firms characterise Indian manufacturing. The result–low productivity and an anemic growth in employment.
- MSME ministry lays out new guidelines for pottery, beekeeping activitiesThis is being done to enhance the production, technical knowhow of pottery artisans and to develop new products at reduced costs; and to enhance the income of pottery artisans through training and modern / automated equipment.
- Covid disruption will hurt MSME recovery prospects says MoodysGovernment of India's stimulus measures like guarantees on loans to MSMEs will partially offset rising risks and help alleviate liquidity pressures in the sector but will not fully shield the sector from a downturn.
- U GRO Capital seeks patent for its scorecard based underwriting modelThe scorecards for assessment at various stages have been developed in consultations with CRIF and CRISIL market experts.
- Tata Power, SIDBI join hands for rooftop solar financing for MSMEsTata Power and SIDBI have joined hands to design a solar financing solution to help MSME players with financial aid without any collateral at an interest of less than 10 per cent.
- Take innovative products like Khadi denim to global markets: Nitin Gadkari to WalmartThe minister said that the target now is to provide 5 crore more jobs in the MSME sector while increasing export share to 60%.
- ETRise Top MSMEs Ranking: This company wants to solve finance issues for MSMEs with loans at a clickFlexiLoans offers SMEs a lending solution which focuses on the three key aspects of technology, products and partnerships.
- Efforts on to make 5,000 MSME clusters under SFURTI scheme: Nitin GadkariSFURTI (Scheme of Fund for Regeneration of Traditional Industries) offers incentives such as skill development, capacity building, creation of facilities such as common facility centres, rehousing facilities and marketing and e-commerce assistance to local industries.