As part of the ET India Inc Boardroom series, panelists from the MSME sector were of the opinion that there is rapid growth of the online ecosystem and India has made significant infrastructure investments which will yield results in the time to come.
The highest year-on-year growth of 9% was seen in the category of small businesses with a loan exposure of between Rs 10 lakh to Rs 50 lakh.
Emphasising on exports as an area which will show a lot of opportunity in the times to come, Das said that the PLI scheme has identified a few champion sectors that will support domestic manufacturers in achieving economies of scale and expanding their footprint in the global market.
While the government support has been critical in ensuring the sector lifts-off from the runway, unleashing a new wave of bolder and well-directed reforms would thrust the industry to soar higher.
With the COVID 19 pandemic disrupting economic activities worldwide, the role of fintech, banks, and NBFCs in powering small businesses in the post-pandemic new world will go way beyond routine financing.
Costs for MSMEs to do business is rising in all sorts of ways. Unpaid dues are central to their woes.
The Covid-19 pandemic challenged small businesses in more ways than one. It also brought about learnings and new ways of surviving in tough situations.
The pandemic brought in some unprecedented changes that impacted several industries across the economy, the MSME sector being one of the worst hit.
Nirmala Sitharaman said, only three times has the Budget followed a contraction in the economy this time, unlike before, the situation is due to a global pandemic Budget-2021 provides every opportunity for the economy to capture the pace and grow sustainably.
He has served at both multinational and Indian corporates, working in leadership roles and across functions such as sales and distribution, product and portfolio management, and business development.
The scheme is touted as a replacement for the Service Export from India Scheme and is on the same lines as Remission of Duties and Taxes on Exported Products (RoDTEP) for goods exports.
The need for a change in definition, that's aimed at offering small firms the incentives to grow and thereby reap economies of scale was argued for in the Economic Survey 2018-19 too.
MSMEs play a pivotal role in bolstering the economy and, therefore, need to be carefully nurtured with policies and regulations which will help and sustain them.
U GRO Capital launches ‘GRO Micro’ for micro enterprises; aims to support 50,000 small businesses by FY22
The platform aims to offer small ticket loans – secured against property, as well as unsecured loans, to micro businesses to help them in stability in the post pandemic era and meet their working capital needs to fix broken cash flows.
Vayana Network connects corporates and their trade ecosystems to provide digital, convenient and affordable access to credit for their payables and receivables.
The pandemic has accelerated the adoption of digital technologies and rapidly shifted how consumers prefer to shop and pay.
The Centre is seeking to cut through swathes of bureaucracy and speed up bill payments by getting its departments to compulsorily adopt the Trade Receivable Discounting System or TReDS. For the government, quick vendor payments should enhance competitive intensity — and lower its costs.
Credlix helps in access to collateral-free credit from enterprise buyers and banks/NBFCs through invoice discounting.
There have been many factors that aided the growth of Chinese SMEs, including strong cultural advantages and a sharp focus. India too can replicate a similar model to accelerate MSME growth.
For 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
The proposition focuses on supporting MSMEs in expanding their business, sustaining momentum, and accelerating growth.
Despite the adverse economic and business conditions brought about by COVID-19, U GRO Capital has declared profits in each quarter of FY21.
BNPL is helping SOLV further reinforce trust on the platform as it meets the needs of both parties – sellers who want to be paid upfront and buyers who want credit for financing their inventory.
The product is document light with no demand for invoices as part of documentation hence, making the application process hassle free for the MSMEs.
The report proposes the creation of a support system that will improve Ease of Doing Business for largely informal micro and small entrepreneurs.
In his first reaction to the budget on Monday, Gandhi had alleged that the Narendra Modi government plans to handover the country's assets to crony capitalists.
The Union Budget 2021-22 has earmarked an allocation of Rs 15,700 crore for the Ministry of Micro, Small and Medium Enterprises — more than double of the last year.
Flipkart Wholesale customers will have access to an easy credit facility to manage cash flow, a range of Flipkart assured quality products, simple and convenient order returns and speedy product delivery directly to their shops with an easy order tracking facility.
Finance Minister Nirmala Sitharaman’s measures to give a leg up to the MSME sector in the Budget have left the fraternity largely unimpressed.
Finance Minister Nirmala Sitharaman in her Budget speech for 2021-22 said the anti-dumping duty (ADD) and countervailing duty (CVD) have also been revoked on certain steel products.
While identifying crucial products being imported into the country, the focus should be on how they can be manufactured here, said the minister.
As part of the Aatmanirbhar Bharat package announced in May, MSME dues from central government agencies and CPSEs should have been paid in 45 days.
"With the government increasing opportunities for local MSMEs and reducing dependence on imports, MSMEs will be able to scale up operations and gain higher market share across the various sector,” said the Minister of State for Micro, Small and Medium Enterprises
The Economic Times Digital Payments Forum presented by Mastercard aims to start a dialogue on how digital technology and small businesses can profitably marry.
The ‘ICICI Bank Niyo Bharat Payroll Card’ allows an individual to receive funds upto Rs 1 lakh into the card account.
Touching upon the subject of food vs fuel the minister said that the government has given permission to making ethanol from corn, rice and other food grains.
The paint is free from heavy metals like lead, mercury, chromium, arsenic, cadmium and others. It will be a boost to local manufacturing and will create sustainable local employment through technology transfer.
After a 43.1% fall in enquiry volume in the Q1FY21, the enquiry volumes bounced back to a year on year growth of 12.1% in the subsequent quarter as the lockdowns eased and business resumed for most sectors.
Airtel's solutions for MSMEs include connectivity, landline, mobile, conferencing, cloud, security solutions for businesses, Internet of Things, and cloud communication suite to transform customer engagement.
Vriddhi will accelerate the rollout of e-institutes to other cities in India this year, providing training, mentoring and ecosystem support to help local MSMEs prepare for growth as part of the supply chains of Flipkart and Walmart or other channels.
Haqdarshak will provide application support services to business owners for availing the right schemes that the government has announced.
The support was critical particularly in the months of September and October since the cash flows are needed for production of goods and services which could be particularly sold during the festival time.
The conventional distribution model of traditional lenders has always been tilted towards the urban areas and focuses on larger ticket sizes. The solution to this gaping credit need of the MSME lies with the fintechs.
The $10 million investment for onward lending to small business entrepreneurs will be deployed over five years from IndusInd Banks impact investing division with full backing from DFC, part of the US federal government.
Axis Bank backed TReDS platform, Invoicemart, reaches Rs 10,000 crore worth of MSME invoice discounting
Invoicemart has helped in price discovery for MSMEs across 486 cities and towns in India who are now able to get their bills discounted from 39 financiers without necessarily having a direct lending relationship with these financiers.
The portable device will click pictures of products when set up on a batch of goods and send the feed to the AI- based software for quality control.
Co-origination or co-lending model is a financial system of leveraging the comparative advantages of both the banks and non-banking finance companies (NBFCs) in a collaborative effort.
These units are spread over the sectors like fly ash brick making, paper egg trays, corrugated papers, plastic moulded products, milk and milk products, bakery, paper cup and other miscellaneous industries.
The ministry had launched a social media campaign to promote local products made by artisans and MSMEs for the recent festive season.
The total dues to MSMEs rose to Rs 5,096.53 crore at the end of October from Rs 2,346.82 crore at the end of May, the MSME ministry said.
Northern Arc Capital will use it to extend loans proceeds and provide guarantees to financial institutions and individual borrowers.
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.
The 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 report
MSMEs 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.
The utilisation of funds by M1xchange will be to expand its network across India
The move will facilitate more fund flow for a sector which has been facing acute financial crunch in the aftermath of the pandemic.
The Finance Minister Nirmala Sitharaman’s first post-Covid budget had several measures to bring the unorganised working class into the mainstream economic fold.
The loans provided under ECLGS 2.0 will have a five-year tenor, with a 12-month moratorium on repayment of principal.
Stating 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.
The 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.
Union Minister Nitin Gadkari said that the MSME sector contributes 30% to the GDP of the country.
Union 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
The fintech community in India has received the announcements with a welcoming attitude.
According 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.
Complete indigenisation of the consumer appliance components sector can speed up Aatmanirbhar Bharat.
Tax 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.
It is critical for the government to take some bold moves that helps in revival of the sector and boosts investor confidence.
Pagarkhata app is equipped with a interface available in 13 languages, enabling hassle-free access for business owners across linguistic backdrops.
Economic Survey 2020-21: Drastic reduction in compliances with 41 central labour laws reduced to four
Last year was a particularly tough time for the MSME sector which faced an acute financial crunch and shuttered businesses amid the virus outbreak.
MSMEs can benefit from this partnership by addressing their strategic, operational and development needs as part of the ‘Sahayata Stability Program’.
Vistaar has now raised over Rs 550 crore of debt financing in just seven months of this financial year.
The maximum amount of Guaranteed Emergency Credit Line (GECL) funding under the scheme was correspondingly increased from Rs 5 crore to Rs 10 crore.
The 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.
The setting up of the project management unit aims at bringing focused engagement in various forms leading to a stronger 'Atmanirbhar' state and country.
Engineering 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
For most SMBs, credit score is non-existent. Their public profiles and balance sheets are not something the banks can trust to give loans.
Industry 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 radiation is an effective disinfectant for surfaces, air, and water and can curb the risk of acquiring an infection.
In 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.
Crisil 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.
In 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
In 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
In 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.
It 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.
Access 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.
The 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.
In the last financial year, Paytm has processed loans worth Rs. 550 crore benefiting over a lakh merchant partner.
With Top MSME Ranking, the idea was to discover and chronicle businesses that are creating a new and lasting template for success.
The 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.
A total of 6,545 MSMEs have been given free onboarding facility on TReDS through RXIL, M1xchange and Invoicemart so far.
Given 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.
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.
This 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.
Government 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.
The scorecards for assessment at various stages have been developed in consultations with CRIF and CRISIL market experts.
The minister said that the target now is to provide 5 crore more jobs in the MSME sector while increasing export share to 60%.
Tata Power and SIDBI have joined hands to design a solar financing solution to help MSME players with financial aid without any collateral at an interest of less than 10 per cent.
ETRise Top MSMEs Ranking: This company wants to solve finance issues for MSMEs with loans at a click
FlexiLoans offers SMEs a lending solution which focuses on the three key aspects of technology, products and partnerships.