India is lagging in cotton exports to major markets due to a duty disadvantage vis-a-vis Bangladesh, Vietnam and Pakistan, a Confederation of Indian Textile Industry (CITI) study found. Indian export of cotton yarn to the likes of the European Union (EU) and China slumped 25% in the past five years, while fabric export fell 7%.
The Reserve Banks restructuring package for small businesses announced last month will help recast Rs 1 lakh crore of loans for 7 lakh eligible micro, small and medium enterprises, a top government official has said. The estimate from the Department of Financial Services (DFS) secretary Rajiv Kumar is much higher than domestic rating agency Icras assessment of Rs 10,000 crore. It comes even as some banks have seen a reluctance among the target MSMEs to take advantage of the scheme.
With Cloudtail and Appario Retail making a comeback on Amazon, third-party vendors have expressed concern over how they would compete with these preferred sellers. ET spoke to several third-party sellers, who said they are once again competing on price, shipping and logistics and do not expect a level playing field even now. The ownership of Cloudtail and Appario has been restructured so that they are no longer Amazon group companies and can sell products on the ecommerce marketplace, ..
NEW DELHI: Flipkart is in talks with a host of offline retailers as well as distributors of Samsung, Xiaomi and FMCG products to enrol them as sellers on its platform, to push sales while staying within the new regulations for foreign owned online marketplaces, people in the know said. Amendments to the foreign investment rules in ecommerce, that India announced on December 26, prevent such companies and entities associated with them from having any control over the inventories sold on ..
The government plans to create a non-lapsable logistics fund to develop multi-modal logistics parks, enable first and last mile projects especially for poorly-serviced remote areas besides setting up a startup acceleration fund to help incubate startups in the logistics sector. These proposals are part of the draft National Logistics Policy which the commerce department floated on Wednesday with the aim to reduce logistics costs from 13-14% of the gross domestic product (GDP) to 10%, in ..
MSMEs are the backbone of Indian economy. Aptly termed the growth engine of the country, the segment boosts of a sizeable proportion of self-driven- entrepreneurs too. And among this section, new age entrepreneurs, belonging to SC/ST fraternity form a sizeable chunk. Undoubtedly, along with MSME business owners, the development of SC/ST entrepreneurs is a must for meeting the objective of financial inclusion and generation of employment opportunities across the rural and urban areas o ..
Para banks would face tighter liquidity, higher funding costs and consequently lower net interest margins (NIMs) in FY20 as they overhaul their balance sheets toward longer term borrowings, IndiaRatings & Research said in its outlook report on Tuesday. The Fitch-owned rating company expects wholesale financing NBFCs, especially those lending to real estate, micro and small enterprises (MSMEs) and large corporates, to expand slower than the retail financing NBFCs.
Over a dozen small, fringe sellers have begun exiting or suspending their accounts on Amazon, unable to manage logistics and order deliveries on their own after norms for online marketplaces kicked in on February 1. This move, however, is unlikely to affect the e-commerce giant’s revenue. Most of these entities sold products through Amazon-owned Cloudtail and Appario, companies that helped in fulfilling orders and have now stopped operations due to restrictions. In the absence of guidel ..
Every time we hear the term chatbots, it comes from major tech companies like Google and Amazon. This has led us to believe that chatbots are something for big companies only and therefore, small businesses end up ignoring this revolutionary technology. What if I tell you it does more good to SMEs than to big companies? It might be difficult to believe at first because most of the definitions of chatbots are biased towards the multimillion dollar companies. Therefore, lets first under ..
For a sector that has been hammered by demonetisation and the chaotic implementation of the Goods and Services Tax (GST), Finance Minister Piyush Goyal had very little in his interim budget announcement that was new or could provide some succor to the MSME sector. From sanctioning loans upto Rs. 1 crore in 59 minutes to providing GST-Registered SME units with 2% interest rebate on fresh or incremental loan of Rs. 1 crore, Goyals announcement only reiterated what Prime Minister Narendr ..
Thanks to the government’s push on digital - led financial inclusion, loans of upto Rs 1 crore loan can be obtained under 59 minutes, said Piyush Goyal, Union Finance Minister, while presenting Interim Budget 2019. Considering the critical role of MSMEs in the Indian economy, the government has undertaken a number of measures to enhance the capacity building of MSMEs, he added.
The Automotive Component Manufacturers Association (ACMA) has reiterated its demand for a uniform 18% GST for all auto components, besides a need for encouraging technology development & acquisitions. The apex body of the Indian auto component industry, in its pre-budget proposals to the Government, has further pitched for increasing the rate of weighted deduction on R&D spend and called for a reduction of import duty on aluminium and steel.
India’s packaging sector is currently the fifth largest sector of country’s economy. It is among the high growth industries in India, developing at a 22-25% per annum, says Packaging Industry Association of India (PIAI). Uflex is India’s largest flexible packaging company headquartered in Noida, in the National Capital Region of Delhi. Rajesh Bhatia, Group President (Finance & Accounts) & CFO, Uflex sheds light on packaging major’s key proposals submitted to the Govt this budget time
The Electronics and Computer Software Export Promotion Council (ESC) represents two important segments -computer Software and services electronics hardware, which have distinct characteristics. The former is mostly driven by knowledge and is a part of brain trust, while the latter is more in the domain of brick and mortar, since it has a good element of manufacturing process built around it.
The Indian MSME sector has been an integral part of the economic structure for several decades now and has acted as a launch pad for several reforms in the past. Being the bulwark for the Indian economy, it has often provided resilience at times of global recession and adversities. MSMEs often act as a catalyst for equitable growth and sustained development. MSMEs have also played an important role in the fields of innovation and technological advancements.
Budget 2019 should promote value-added manufacturing, increase funding, incentives for MSMEs: ELCINA
India is one of the largest electronics markets in the Asia Pacific Region. The sector that is driven by a more than 65 percent of MSME players is anticipated to reach $400 billion by 2025, believes Electronic Industries Association of India (ELCINA). To further explore the mindset of the electronics manufacturing fraternity on the eve of Budget 2019, ET spoke to Rajoo Goel, Secretary General, ELCINA and Dr Ashish Saurikhia, Coordinator Policy & Research
Micro, Small & Medium Enterprises (MSMEs) are the most significant contributing sectors for the Indian economy. Despite this, MSMEs are facing a number of challenges that are restricting their growth. Small enterprises are not able to meet their true potential due to various issues like the insufficiency of funds, limited resources, high global competition.
Singapore Indian Chamber of Commerce & Industry (SICCI) proposed Gujarat government to set up Special Economic Zone (SEZ) for Singapore SMEs and MSMEs. At the recent Vibrant Gujarat Global Summit in Gandhinagar, Gujarat delegates from Singapore led by Prasoon Mukherjee, Vice-Chairman Singapore Indian Chamber of Commerce & Industry (SICCI) approached the Gujarat government with a proposal to set up SEZs for Singapore-based small & medium entrepreneurs.
Small and mid-sized employers are at a higher risk of hiring candidates who lie on their resumes on various parameters, according to a study by employee background verification company AuthBridge Research Services. These are typically employers hiring 10-1000 employees a year. The study draws comparisons between discrepancy trends in employee verification for two groups – SMEs versus large employers. The data shows that for companies hiring in low volumes, the discrepancy rate ..
The government should encourage credit flow to the micro, small and medium enterprises (MSMEs) by providing incentives to the segment in the upcoming interim Budget, a report by Reliance Securities said on Tuesday. Among other incentives, the Budget should also provide interest subvention for lower amount MSME loans, it said. Noting that the likelihood of such an action by the government was "medium", the report said the impact of such a decision would be "positive".
The MSMEs endured business disruption continuously for last three years; started with demonetisation in 2016, GST in 2017 and NBFC crisis in 2018. During the course of the year, the government and the RBI had taken several steps to ease the difficulties faced by the MSMEs. The measures varied from ease to access to credit to ease of doing business and included sanction of loans of up to Rs 10 million within an hour, a one-time restructuring of existing loans to MSMEs, interest subsidy on loan pa ..
In an election year, interim budgets are mostly not very significant when compared to a normal budget, but this year is expected to be different. Two sectors that have resulted in this change are the crucial agriculture and SME sector. While agriculture has its own set of challenges, SMEs are primarily struggling in raising credit. Peer-to-peer lending has the wherewithal to address some of the challenges SMEs face, but for that a few changes need to be made in the Budget.
At the outset, 2019 began on a positive note for the Indian MSME sector as RBI announced a one-time restructuring of MSME loans of up to Rs 25 crore. The sector also breathed a sigh of relief when the government announced the hike in exemption threshold for MSMEs under GST. With such measures forerunning the Interim Budget 2019, the sector has high expectations from the government’s budget presentation on February 1,
The National Company Law Tribunal (NCLT), in a first, has passed orders restraining others from using the brand name and trademarks of a corporate debtor -- Servomax India -- currently undergoing corporate insolvency resolution process (CIRP). NCLT has stepped into the issue of brand protection and trademark enforcement responding to the plea of resolution professional (RP) seeking to restrain the suspended directors of the corporate debtor and others from using brand name and trademar ..
Moodys Investors Service Friday said the steps announced by the government to aid MSMEs and the measures being planned to support farmers will increase the risk of fiscal slippage and push deficit to 3.4 per cent of GDP in the current financial year. The government had budgeted the fiscal deficit for the current financial year at 3.3 per cent of the gross domestic product (GDP). However, in the April-November period, the deficit touched 114.8 per cent of the budget estimates.
Over 100 Indian firms will feature in the Singapore export forum during a business conclave here from Thursday that aims to promote Indias export-oriented industries in the strategic ASEAN region. The business forum along with an exhibition is being organised as part of the India Week, showcasing Indias favourites for the global markets -- ayurveda, cinema, food, lifestyle, handicrafts, literature, music, tourism and yoga.
M1xchange, run by Mynd solutions Pvt. Ltd., has raised a Series-A round of venture capital from Mayfield India and SIDBI Ventures. This investment will enable M1xchange to invest further into technologies like blockchain, enhance its network and boost business growth for the company. M1xchange is one of the three holders of the Trade Receivables Discounting System (TReDS) licenses issued by RBI. The technology platform acts as an exchange to facilitate the financing of trade receivables ..
The Industry has its agenda chalked out for the sops that should be doled out to MSMEs in the upcoming 2019 interim budget. Increased fund allocation, revision of the definition of MSMEs and a focus on formalising the sector were some of the key suggestions floated by India Inc. OP Prahladka, Chairman, Export Promotion Council for Handicrafts (EPCH) says that while on the one hand the government wants to increase exports, on the other it is reducing the allocation of funds. “The funds u ..
The government is mandating disclosure for all companies that have arrears to micro, small and medium enterprises (MSMEs) for over 45 days in its latest attempt to increase transparency and improve the liquidity crunch faced by the employment-intensive sector that has a large share of manufacturing activity in the country. Sources told TOI that the ministry of corporate affairs is expected to notify the rules over the next few days, specifying that disclosures have to made to the regist ..
Indian Prime Minister Narendra Modi is considering offering cheap loans and free accidental insurance coverage to millions of small businesses, two government sources with direct knowledge of the matter said, as he tries to placate a key voter bloc ahead of a general election due by May. Small business groups have been critical of the Modi government in the past year after many firms were squeezed by a shock move to ban high-value currency notes in 2016, followed by a hasty implementation ..
Originality and authenticity are the key elements when people rely and trust documents which have been certified by an expert. These two attributes are pervasive across the globe and encompass products and services consumed. Over the period, various cases have been reported as regards forged or false certificate, non-professional representing as professional, signed documents becoming invalid since they were fake, date mismatch making the document non reliable, etc
Yes Bank conducted an in-depth 5-month survey covering over 2,700 MSMEs across 20 industries from all over the country, to analyse the impact of digitization on Indian MSMEs. The study, titled Impact of Digitization on MSMEs – the first large survey of its kind, identifies key drivers for digital adoption by MSMEs, as well as barriers and recommended measures for greater adoption of digital tech.
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 ..
Non-bank lender Hinduja Leyland Finance has invested in the first tranche of a common securitisation deal where micro loans of several microfinance companies have been pooled together to derive economies of scale. The size of the deal was Rs 79 crore with 11 NBFC-MFIs participating in it, of which six participated in a securitisation transaction for the first time. Four small MFIs with loan outstanding below Rs 100 crore were part of it.
Dear MSME friends, wish all of you a very successful and prosperous 2019. The last couple of years have been very stressful and challenging for all of you and I sincerely hope that this New Year brings with it better tidings. The new calendar year started with RBI announcing a restructuring dispensation for you, something which has been hailed as a welcome relief by all stakeholders. It sure is and well deserved, considering your contribution to the economy and the disruption caused to your busi ..
Ahead of the general elections, the government is considering an insurance scheme for lakhs of GST-registered small and medium scale traders with a view to address certain concerns of this segment. According to sources, the scheme may provide accidental insurance cover on the lines of Pradhan Mantri Suraksha Bima Yojana (PMSBY) for the traders at an affordable premium.
To apprise the Reserve Bank of India (RBI) about the credit and finance issues being faced by MSME sector, industry chambers representing a wide section of the Micro and Small & Medium Enterprises (MSME) met RBI Governor Shaktikanta Das on Monday. Seeking the Central Bank’s intervention in addressing Non Performing Assets (NPAs) in MSMEs, the Federation of Indian Micro and Small & Medium Enterprises, the umbrella organisation representing MSMEs, asked for setting up of a separat ..
Lenders need to look beyond credit bureau in assessing risks of MSME lending and detecting early warning signal, as borrowing from multiple borrowers is getting increasingly risky, a joint study by credit bureau Transunion- Cibil and Sidbi said. “Financial institutions need to have robust early warning tools that can alert on signs of overleverage not only at a borrower level but also at a borrower segment level to take the right lending decisions” said ` market Pulse’ a quarterly study ..
Stacked loans by borrowers have a higher potential of turning into Non-Performing Asset (NPAs), reveals the recently released TransUnion CIBIL- SIDBI MSME Pulse Report. The latest report noted that the default rates in borrowers taking multiple loans from lenders within a period of 60 days have increased from 2.5% to 4.4% during Sep’15 to Sep’18 period. In the light of the report highlighting a direct correlation between loan stacking behaviour and probability of default, Satish Pillai, ..
Two ministerial panels under the GST Council will meet on Sunday to decide on hiking the exemption threshold for MSMEs and feasibility of levying calamity cess under the new indirect tax regime, officials said. The six-member Group of Ministers (GoM) on MSME, headed by Minister of State for Finance Shiv Pratap Shukla, would deliberate on the problems faced by micro, small and medium enterprises (MSMEs) under GST and scope for hiking exemption threshold for such units.
ICICI Bank and Small Business FinCredit will jointly provide loans worth up to Rs 1 crore to the small and medium enterprises. ICICI Bank Friday said it has singed a memorandum of understanding with Small Business FinCredit India Pvt Ltd (SBFC) to jointly provide credit to micro, small and medium enterprises (MSMEs).
Indian central bank’s decision to allow a one-time restructuring of some loans to small businesses is bound to foster indiscipline among borrowers. That’s the view of India Ratings and Research Pvt., a Fitch group company, on the relaxation extended to the so-called micro, small and medium enterprises. “This dispensation may encourage some of the MSME borrowers, which are otherwise operating satisfactorily, to opt for the scheme and impair the credit discipline,” according to Karan Gupt ..
For the Micro, Small and Medium Enterprises (MSME) sector, 2018 remained a year characterised by a rather challenging business environment, the Government on Wednesday came out with a report card on what it has done for the sector. Released by the Finance Ministry, the communication sought to highlight the key achievements, measures taken and the proactive nature of the government led by Prime Minister Narendra Modi. The MSME sector which has been hit hard by demonetisation and by the
Although corruption and red tape remains the top challenge for new and small businesses, more enterprises say fund-raising will be their main concern in the coming year, finds a survey by citizens engagement forum LocalCircles. Here’s a look...
The Reserve Bank of India (RBI) has opened a loan-restructuring window for micro, small and medium enterprises (MSMEs) for a year, yielding to a key demand of the government that had sought such a facility, which former governor Urjit Patel was reportedly not too keen on. RBI on Tuesday allowed a one-time restructuring of existing loans to MSMEs that are in default but ‘standard’ as on January 1, 2019, without an asset classification downgrade. The restructuring has to be implemented by
In a new year gift to the MSME sector, the Reserve Bank Tuesday allowed a one-time restructuring of existing debt up to Rs 25 crore for the companies which have defaulted on payment but the loans given to them have continued to be classified as standard assets. The decision will help the micro, small and medium enterprises (MSMEs) which are facing cash crunch in the wake of demonetisation and GST implementation.
The total gross loan portfolio of microfinance industry is estimated to have grown by 9 per cent to Rs 63,081 crore for the September quarter this fiscal from the previous quarter, a report said. Sa-Dhan, an association of microfinance institutions, in its report said Karnataka, Bihar, West Bengal, Uttar Pradesh and Odisha were the top five states in terms of loan portfolio share.
Nearly 60 million businesses comprise the MSME (Micro, Small, and Medium Enterprises) sector in India, which is responsible for driving a substantial amount of economic growth in the country, while providing employment to approximately 80 million people. This sector contributes around 95 percent of the manufacturing output in the economy, along with a significant share in the revenue generated by the service sector.
Public sector banks have approved more than 1.12 lakh loan applications of MSMEs totalling Rs 37,412 crore under the 59 minutes loan scheme launched by the government in November. GST-registered micro, small and medium enterprises (MSMEs) can take loan up to Rs 1 crore in just 59 minutes through psbloansin59minutes.com portal. Giving details about the progress of the scheme, Minister of State for Finance Shiv Pratap Shukla in a written reply to the Lok Sabha said that as on December
The government has proposed to fast-track patent applications from women and small businesses in its latest bid to encourage innovation from new category of innovators. Currently, the benefit of expedited patents is available to startups, with over 350 companies taking advantage of the special window that was opened in May 2016 as part of the government’s flagship Start-up India scheme. Now, the department of industrial policy and promotion (DIPP), has floated draft rules to amend the ..
Buoyed by over 36 per cent of its procurement from micro and small enterprises (MSEs), power giant NTPC has pitched for their universal registration for supplies to all CPSUs in India. "To promote ease of doing business for MSEs, NTPC Chairman Gurdeep Singh has proposed a single window registration for MSEs across CPSUs," a senior company official told PTI.
The Government has extended the deadline to file the annual returns for FY 2017-18 under Goods and Services Tax (GST) to March 31, 2019, which earlier was December 31, 2018. All taxpayers registered under the GST act between July 2017 to March 2018, have to submit the annual return in form GSTR 9 (for the regular taxpayer) or GSTR 9A (for composite taxpayers). The taxpayers with a turnover of more than Rs. 2 crore in the Financial Year(FY) 2017-18 will have to get their books of accounts .
Mutual recognition agreements between countries that can help facilitate trade more effectively is key to the growth of SMEs globally while countering challenges of product development, information flow and infrastructural bottlenecks at play. Leading industry and trade representatives from different countries tabled the challenges and opportunities presented to SMEs in their respective economies at the recently held 15th CII SME Global Summit in Delhi.
India needs to create a hub for MSMEs as a market with linkages to various countries around the world but the lack of technological access, infrastructural roadblocks and funding hassles have come through as some major constraints currently impeding growth. At a session during the 15th CII Global SME Summit held in the capital recently, industry professionals discussed how the integration of Indian SMEs with Global Value Chains (GVC) was the need of the hour for SMEs to come up the curve.
Artificial Intelligence (AI) has become the buzzword today. While AI is poised to radically revolutionise the foundation of every industry, the manufacturing industry also stands to gain significantly from this technological disruption. So, why is AI being increasingly considered path-breaking for the manufacturing sector? This is because of the implausible potential that AI exemplifies, both, on and off the factory floor.
NEW DELHI: Delving on the significance of being a part of the global value chains for SMEs, Suresh Prabhu, Minister of Commerce & Industry and Civil Aviation said that the government is working on action plans that will support the SMEs to take this vision forward. “We have been working on strategies to build linkages between countries and companies, in essence creating new partnerships of supply chain,” he said.
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.
The Indian arm of global e-tail major Amazon will host Small Business Day online shopping event on December 16 to promote small and mid-size enterprises (SMEs) and micro entrepreneurs in the country, the company said on Monday. "Through the event, we aim to promote small businesses and micro entrepreneurs and encourage shoppers to discover and buy products directly offered by them," Amazon India said in a statement here.
The upcoming CII 15th SME Global SME Business Summit being held in partnership with Ministry of MSME in the capital on 19-20th Dec 2018 will stir up a range of discussions aimed at fostering global MSME growth. A host of established names from the industry will engage in interactive sessions on the export potential of the MSME sector, identifying strategic markets and the increasingly important role of e-commerce to bolster trade.
Amazon has announced exciting deals for the specially curated Small Business Day that begins at midnight on December 16. Customers can discover products from micro-entrepreneurs and small businesses at great discounts. The products for Amazon Small Business Day have been selected from Amazon.ins initiatives like Kala Haat (focused on weavers, artisans), Amazon Saheli (women entrepreneurs), Amazon Launchpad (innovative startups) and Amazon Select (emerging brands) and tens and thousand.
The Reserve Bank prefers fundamental changes to smoothen loan flow to micro-businesses through a public credit registry, rather than doling out forbearances, deputy governor Viral Acharya Saturday said. The statement comes almost a month after the central board "advised" the monetary authority to consider a restructuring scheme for stressed standard assets of micro, small and medium enterprises borrowers up to Rs 25 crore.
Ashish Gupta is the cofounder of Junglee, which was sold to Amazon for $240 million in 1998, and a venture capitalist. But for thousands of angel investors dotting India’s startup landscape, he is the one with the Midas touch. He was an angel investor in Flipkart when it was just a Bengaluru based online vendor of books. His investment of Rs 10 lakh galloped into Rs 133 crore almost a decade on, when Flipkart was sold to Walmart. Gupta’s venture capital ambitions floundered when his fund Helion.
Setting out various developmental and regulatory policy measures for strengthening regulation and supervision; the Reserve Bank of India on Wednesday said there will be a new external benchmarking of Floating Rate loans by Banks to Micro, Small and Medium Enterprises (MSME) and constituting a new committee to identify causes and propose long-term solutions for the economic and financial sustainability of the MSME sector.
The story of imitation jewellery retail chain Son Roopam should have been part of a narrative on entrepreneurship. But it has instead become one on loans — the lack of it, to be precise. Run by three young men, barely 30 years old, the retail chain is a pivot away from a decade-old wholesale business for imitation jewellery. Since starting off as retailers 18 months back, the entrepreneurs — three friends Vikas Singh, Praveen Singh and Ashish Mishra — have already invested Rs 5 crore o.
The share of bank credit to micro and small enterprises (MSEs) has been shrinking since three years — from 5.9% in October 2015 to 4.5% in October 2018, data from the RBI show. While it is clear the sector is facing problems due to the double whammy of demonetisation and GST, it’s unclear whether MSEs are hit by liquidity issues or whether banks do not find them credit-worthy.
Small and Medium-sized Enterprises (SMEs) in India are using their advantages – such as size, agility, and innovation – as one of their top three strategies for fueling revenue growth in 2018 even as they look at embracing responsible business practices as a way to attract more customers, reveals the second edition of the American Express Global SME Pulse 2018.
In an endeavour to acknowledge, reward and encourage innovation in the manufacturing sector, The Indus Entrepreneurs (TiE) Delhi-NCR in association with Power2SME, announced the fifth season of their annual flagship event, the Spirit of Manufacturing awards. The award ceremony, which will be held on November 29, 2018 in New Delhi on the side-lines of TiE Global Summit 2018, will applaud ingenious start-up ideas in the manufacturing space.
The decision to restructure loans of up to Rs 25 crore for the MSME sector is a "step backwards" and the risks to the banking sector will manifest in the next 6-9 months, Fitch Ratings said Wednesday. Fitch Ratings Director (Financial Institutions) Saswata Guha said, given the past record, it is unlikely that banks would exercise prudence while restructuring loans of micro, small and medium enterprises (MSME)
For many MSMES in the country, operating overseas has become a norm since the wave of globalization kicked in during the latter part of twentieth century. As information and communication technologies boosted connectivity among nations and MSME industries, hosts of enterprises started expanding their boundaries to begin businesses in different parts of the world. Lesser availability of raw materials and human capital at home, high cost of transportation, political instability and a limited
The Urjit Patel- led RBI may ease the risk weights for lending to micro, small and medium enterprises (MSMEs), helping lenders pare interest rates on loans to small businesses, which have been reeling under the pressure of a credit crunch, apart from facing stress in the wake of payment delays from large companies. On Monday, the central bank agreed to open a restructuring window for MSMEs, although it initially suggested that small businesses were more prone to loan defaults.
Digital lending to MSMEs in India has the potential to grow nearly as large as the entire global microfinance industry as it stands today by 2023, as per a report by Omidyar Network and the Boston Consulting Group. A survey of 1,500 MSME owners with annual business revenue between Rs 3 lakh and Rs 75 crore highlighted challenges for MSMEs in growing their business due to lack of formal credit, and showed a large opportunity for digital lenders.
Omidyar Network, the impact investing firm established by Pierre Omidyar, the founder of eBay, and BCG released a study on how digital lending to MSMEs in India have the potential to disrupt the status quo in financial services. This, it said, can offer a meaningful market opportunity to both startups as well as traditional lenders alike. “Credit Disrupted: Digital MSME Lending in India” highlights that digital lending to MSMEs is projected to increase between 10 and 15 times by 2023, scaling up to Rs 6-7 Lakh Crore ($80-100 billion) in annual disbursements.
India needs to have a robust policy for making funds available to small and medium enterprises (SMEs), particularly for energy efficiency projects, Director General Bureau of Energy Efficiency Abhay Bakre said Thursday. Addressing a CII conference on energy efficiency here, he said that SMEs were deprived of finances, which they are otherwise eligible for, and are finding it difficult to get funding
The Reserve Bank of India (RBI) and the government are likely to find common ground on the issue of relief to micro, small and medium enterprises (MSMEs). There are also indications that the central bank will examine some of the proposals made by the government, thereby staving off invocation of the never-used Section 7 of the RBI Act by the Centre.
Commerce and Industry Minister Suresh Prabhu Friday said innovation in agri sector was important for reducing wastage, increasing production, and cutting fertiliser use to enhance soil fertility. He said that huge opportunities exist for startups in the agri sector to promote growth.
Swadeshi ideologue and independent director on RBI board S Gurumurthy on Thursday backed demonetisation and GST, though acknowledged that they had created pressure on micro, small and medium enterprises (MSMEs), which needed a helping hand since it contributes significantly to the economy and accounts for millions of jobs.
In September 2014, the newly elected government announced a significant step towards making India a global superpower - Make in India campaign. The idea behind this program is to create a favourable environment for manufacturing in India and encourage companies in India and abroad to set up manufacturing processes in the country.
While a debate is going on whether the RBI should do more to ease credit to MSMEs, officials said the central bank has provided special training to nearly 11,000 officers at various commercial banks on lending to micro, small and medium enterprises. This training has been provided to officers working at nearly 3,000 bank branches covering all districts in India through more than 2,000 special workshops in the last three years, officials said.
India needs to have a robust policy for making funds available to small and medium enterprises (SMEs), particularly for energy efficiency projects, Director General Bureau of Energy Efficiency Abhay Bakre said Thursday. Addressing a CII conference on energy efficiency here, he said that SMEs were deprived of finances, which they are otherwise eligible for, and are finding it difficult to get funding.
GlobalLinker, a SME enablement ecosystem has been selected to partner with The Monetary Authority of Singapore (The Central bank of Singapore) and Info-communications Media Development Authority (IMDA) to create ‘Business sans Borders’, a collaborative AI-driven global solutions hub to foster SME digitalisation.
The Minority Affairs Ministrys
The Indian unit of Chinas largest bank,
West Bengal governments Sufal Bangla
The ongoing crisis of confidence in non-banking
Export of raw sugar from India to China will begin
More Indians from smaller towns and cities are
Temp hiring numbers are at a four-year high
Need a business loan but are deterred by the daunting process? Forget making rounds of your bank branch for weeks, dealing with staff that is less than cooperative, and all that cumbersome paperwork. And forget the collateral too!
For a sector that has been hammered by demonitisation
After launching a portal that will sanction a loan
Global demand for Indian flavours and scope
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