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Large companies must ensure timely release of payments to micro and small enterprises to ease their working capital needs and reduce cost of funds, Chief Economic Advisor V Anantha Nageswaran said on Tuesday. Speaking at the CII Annual Business Summit, Nageswaran said large companies should accept invoices presented by micro, small and medium enterprises and make payments on time. "Larger enterprises in the country have to pledge to contribute to relieving the working capital requirements of micro and small enterprises. Micro, small, and medium enterprises are the source of working capital for large enterprises. It should be the reverse. And because these enterprises have a much higher cost of capital," Nageswaran said. Freeing working capital for MSMEs would create a "successful, positive bandwidth" in terms of innovation, Nageswaran said. India has a huge pool of MSMEs with many struggling to scale up and integrate better into the global value chain. He said the government has ma
India's digitalisation reforms in public administration have improved productivity in micro, small and medium enterprises (MSMEs) in states that have embraced such changes, the International Monetary Fund (IMF) said in a working paper. The authors compared the productivity of unincorporated manufacturing firms in states that have undertaken more digitalisation reforms with those having fewer such changes in public administration. "We find that states that undertake more public administration digitalisation experience higher productivity growth and lower productivity dispersion among firms," economists Somnath Sharma and Kenichi Ueda. MSMEs contribute around 35 per cent of manufacturing output in India, employ around 110 million workers and contribute about 45 per cent of the overall exports from India. Most MSMEs are not formally registered as companies under India's Companies Act of 1956 and only a few studies have been done on the impact of the business environment reforms on the
Two key armoured platforms designed and developed by the DRDO, to meet the emerging operational requirements of the armed forces, were unveiled on Saturday. The Advanced Armoured Platforms (Tracked and Wheeled), designed and developed by Vehicles Research & Development Establishment, were unveiled by Secretary, Department of Defence (R&D) and Chairman, DRDO, Samir V Kamat at the premises of the DRDO's laboratory in Ahilyanagar, Maharashtra, the defence ministry said. "The platforms have been developed to meet the emerging operational requirements of the defence forces," it said in a statement. Both the platforms have been integrated with indigenously designed and developed 30 mm crewless turret, with advanced features to meet the mobility, fire power and protection requirements, it said. The 30 mm crewless turret along with the 7.62 mm PKT gun is configured to launch Anti-Tank Guided Missiles as well. The base design has the capabilities to be configured for multiple roles. ...
The Ministry of Small and Medium Enterprises is in touch with the Department of Financial Services to explore an ECLGS-like credit guarantee scheme to support MSMEs amid the West Asia crisis, a senior official stated on Wednesday. Responding to a media query on whether a credit guarantee scheme was in the works for MSMEs, Additional Secretary in the Ministry of Micro Small and Medium Enterprises (MSMEs) Rajneesh said, "We are in constant touch with the Department of Financial Services regarding ECLGS kind of a mechanism. So, at an appropriate stage I will be in a position to share further details on this". The Emergency Credit Line Guarantee Scheme (ECLGS) was launched in May 2020 as part of Aatmanirbhar Bharat Abhiyan to support eligible MSMEs and enterprises in meeting their operational liabilities and restarting their businesses in the context of the disruption caused by the COVID-19 pandemic. The scheme covers all the sectors. Field officers of the MSME Ministry are in constant
The government should cap testing charges for routine industrial products as high costs to comply with the quality control orders (QCOs) may impact the country's manufacturing and small importers, think tank GTRI said on Tuesday. While the QCO policy aims to improve product quality and consumer safety, the pace of expansion is putting pressure on testing infrastructure and has created significant compliance bottlenecks for MSMEs, the Global Trade Research Initiative (GTRI) said. "India's expanding quality control regime is imposing such high testing and certification costs that many MSME importers may be pushed out of business, leaving the market increasingly dominated by large importers," GTRI Founder Ajay Srivastava said. The charges arise under the Foreign Manufacturers Certification Scheme (FMCS) of the Bureau of Indian Standards (BIS), under which foreign manufacturers of products covered by India's Quality Control Orders have to obtain BIS certification before exporting to ...