Page 5 - Msme

Govt aims to extend additional Rs 5 trn via credit guarantees in 2 years

The government aims to ramp up credit guarantees extended to micro and small enterprises through the CGTMSE scheme by another Rs 5 lakh crore in the next two years, a top official said on Tuesday. According to Rajneesh, Additional Secretary and Development Commissioner (Micro Small and Medium Enterprises), credit guarantees worth of Rs 4 lakh crore were extended in the last two years via the Credit Guarantee Fund Trust for Micro and Small Enterprises (CGTMSE). "In a span of 22 years the cumulative credit guarantees extended by CGTMSE amount was 2.6 lakh crore. But in last two years, we have been able to give credit guarantees worth of Rs 4 lakh crore and in the next two years we intend to ramp it up to another Rs 5 lakh crore," Rajneesh said at a FICCI event here. He further shared that the government has bridged a large gap in formalisation of MSMEs in the last few years, with the total number of Udyam registered MSMEs rising to 5 crore from 1.65 crore units over a year ago. "The

Need to bring 80% MSMEs under formal financial system: M Nagaraju

Banks have an undisputable responsibility in advancing the agenda of inclusive growth, which is fundamental to the economic and social development of the country

New MSME credit assessment model for PSBs may see March 2025 launch

Credit model goes beyond credit scores, evaluates supply chains, digital footprints

Soon, loan processing for MSMEs, others will be faster, simpler: Here's how

Much like the UPI revolutionised payments, ULI aims to do the same for lending, making it quicker and simpler

Quality control orders protect MSMEs from unfair competition: Piyush Goyal

The quality control orders (QCOs) issued by the government for different products will protect MSMEs from unfair competition and help cut the import of sub-standard goods, Commerce and Industry Minister Piyush Goyal said on Saturday. He said that through these orders, the government is supporting the MSMEs (micro, small and medium enterprises). "We are giving time to MSMEs to meet the QCO requirements," he said, adding that MSMEs will benefit from these orders as "it stops substandard goods imported at strange rates from outside the country and thus helps the MSME sector by protecting it from unfair competition". MSMEs should not be looked upon as merely a small enterprise, he added. The entire ecosystem around big industries and enterprises comprises thousands of MSMEs, without whom they cannot succeed, he said, adding that MSMEs act both as suppliers and customers of big industries. The sector also plays an important role in the tourism and infrastructure development of the coun

Adopt supportive, empathetic approach towards MSMEs: RBI dy guv to lenders

Reserve Bank Deputy Governor Swaminathan J has asked financial institutions to adopt a more sensitive and empathetic approach towards MSMEs, and deploy supportive measures like restructuring options for loans, to support the sector which plays a key role in the economy. In a speech at the Annual Day of the Foreign Exchange Dealers Association of India (FEDAI) here, the deputy governor said MSMEs face challenges like access to affordable finance, delayed payments, infrastructure bottlenecks, and requirements of compliance, among others. The journey of India's economic transformation cannot be complete without the robust development of the MSME sector. "MSMEs are not just the backbone of our economy, they are the engines of growth, innovation, and employment," he said at the event held on Wednesday. However, for these enterprises to truly thrive and scale up, the financial sector must step up with innovative solutions, sensitivity, and a forward-looking approach, Swaminathan said. "

MSMEs' access to formal bank financing hurt due to asset shortage: RBI DG

It is challenging to assess the creditworthiness of small enterprises, says Swaminathan J

FM asks RRBs to devise suitable products aligning with MSME clusters

Finance Minister Nirmala Sitharaman on Monday asked Regional Rural Banks (RRBs) to devise suitable products aligning with MSME clusters to increase banking penetration. During a review meeting with chairpersons of RRBs and CEOs of their sponsored bank, the finance minister emphasised active outreach by the RRB branches located in MSME clusters to ensure credit to small and micro enterprises in areas like textile, wooden furniture, leather, food processing, packing materials etc. that hold immense potential for increasing the loan portfolio. Sitharaman also asked sponsor banks and RRBs to recognise the challenges ahead and continue focusing on maintaining asset quality, expanding digital services, and ensuring robust corporate governance. During the meeting, Sitharaman underlined that all RRBs must have their own up-to-date technology stack to stay relevant and noted that digital banking services like mobile banking will be a boon for regions with relatively challenging physical ...

'SMEs turn to capital markets for funding, raise Rs 11,000 crore'

Small and Medium Enterprises (SMEs) are increasingly turning to the capital markets for funding, with 780 SMEs listed on the NSE and BSE as of June 2024, a senior official said on Wednesday, adding that these companies have raised approximately Rs 11,000 crore. The combined market capitalisation of these SMEs now exceeds Rs 1.6 lakh-crore, Shekhar Chaudhary, director of the financial markets division at the department of economic affairs, said. Speaking at the 10th edition of the CII (East) Capital Markets Conclave, Chaudhary emphasised the vital role capital markets play in India's economic growth and development. A report on SME Initial Public Offerings (IPOs) was released during the event. Experts discussed how capital markets could drive India's economic future by empowering SMEs to make significant contributions to the country's GDP, a statement said. Chaudhary also noted that in the social enterprise sector, nine NGOs have raised Rs 12 crore through a social exchange platform

MoD, NSE sign agreement to help MSMEs, emerging firms in defence sector

The Defence Ministry and the National Stock Exchange on Monday signed an agreement that seeks to help Micro, Small and Medium Enterprises and emerging companies in the defence sector to scale up their business operations, explore new markets and fund their research and development activities. The Memorandum of Understanding has been signed to facilitate capital market access to the MSMEs. It intends to facilitate MSMEs in the defence sector to raise productive capital for their growth plan efficiently and transparently through the NSE platform 'NSE Emerge', the defence ministry said in a statement. The platform offers new and viable options for raising equity capital from a diversified set of investors, it said. The MoU was signed by the additional secretary the Department of Defence Production (DDP) and managing director, NSE in the presence of Defence Secretary Giridhar Aramane. "The MoU will be in force for a period of five years, during which, DDP and NSE would conduct an ...

MSMEs get a helping hand in Budget but challenges in financing remain

According to CRISIL Ratings' bi-annual 'MSME Report' (June 2023), the debt need of the sector is more than Rs 100 trillion. Of this, 70% is for working capital requirements alone

Archaic laws need to be reviewed keeping in mind recent changes: DFS Secy

Joshi explained the intention behind the Budget proposals for the financial sector

Credit guarantee to Rs 20 lakh Mudra loan: FM on MSMEs in Budget 2024

Union Budget 2024-25: Finance Minister Nirmala Sitharaman announced the continuation of bank credit to micro, small, and medium enterprises (MSMEs) during stress periods

Threshold-based relief for MSMEs must have sunset clauses: Economic Survey

A small enterprise is where the investment in plant and machinery or equipment does not exceed Rs 10 crore, and turnover does not exceed Rs 50 crore

Around 8 million jobs created under the PMEGP, says MSME ministry

The reply in the Parliament further maintained that under PMEGP, there is no specific target set for women entrepreneurs

MP receives investment proposals worth Rs 17,000 crore at RIC Jabalpur

MoU to boost defence production in the state signed; proposals worth more than Rs 5,000 crore given by some 1,500 units of the MSME sector

Income tax rate cut, sops for PSUs: Brokerage expectations from budget 2024

Expectations (as measured by pre-budget equity market performance), wrote analysts at Morgan Stanley in a note, are important in determining what the market does immediately after the budget

Budget 2024: MSME sector eyes double loan limit under MUDRA to Rs 20 lakh

The finance ministry in the forthcoming Union Budget needs to double the loan limit to Rs 20 lakh under the MUDRA Yojana, and expand the credit guarantee cover for unsecured loans for MSMEs from Rs 2 crore to Rs 5 crore. MSMEs also want incentives from the government to help them sell products globally. Finance Minister Nirmala Sitharaman will present the Union Budget for the current fiscal on July 23 in the Lok Sabha. On expectations from the Budget, Navin Saini, chief business officer (Retail & MSME), Arka Fincap said the government will continue its agenda to provide a strong foundation for MSMEs, bolstering their growth. "To achieve this, they should consider increasing the loan limit of the Pradhan Mantri MUDRA Yojana (PMMY) scheme from Rs 10 lakh to Rs 20 lakh and expanding the credit guarantee cover for unsecured loans for MSMEs from Rs 2 crore to Rs 5 crore. "These measures will provide MSMEs with greater access to necessary financial resources, enabling them to thrive and

MSMEs urge RBI to allow P2P lending, crowdfunding to overcome credit gaps

Cite examples of other countries' regulatory frameworks for crowdfunding

Industry body urges FM Sitharaman to continue 45-day MSME payment rule

Industry body SME Chamber of India has urged Finance Minister Nirmala Sitharaman to continue the 45-day MSME payment rule for corporates and other buyers. According to Section 43B(h) of the Income Tax Act, introduced through the Finance Act 2023, if a larger company does not pay an MSME on time -- within 45 days in case of written agreements -- it cannot deduct that expense from its taxable income, leading to potentially higher taxes. The government in last year's Budget added a new clause under Section 43B of the Income Tax Act to address the challenge of delayed payments faced by MSMEs in the country. "We are pursuing not to change the 45-day MSME payment rules imposed by the Department under the pressure of corporates or multinational companies to save the life span of the MSME sector. Section 43B(h) of the Income Tax Act reinforces the importance of timely payments by mandating that companies settle payments to MSME vendors within 45 days to qualify for deductions," SME Chamber