Page 5 - Msmes

MSMEs struggle with access to formal credit due to limited formalisation

Other factors such as information asymmetry, lack of comprehensive financial records, weak credit histories, and insufficient collateral contribute to this issue

Filter Capital invests $10 mn in trade discounting platform M1xchange

Growth-stage investment firm Filter Capital on Monday said it has invested approximately USD 10 million (Rs 85 crore) in trade receivables discounting system platform M1xchange. This investment, made through a secondary transaction, highlights Filter Capital's belief in the potential of digital supply chain finance in driving financial access for India's micro, small and medium-sized businesses, it said in a statement. M1xchange, set up by Sundeep Mohindru and Vivek Misra, claims to facilitate invoice financing of nearly Rs 10,000 crore each month, enabling MSMEs with faster access to working capital and driving adoption across corporates, vendors, and financial institutions. According to the platform, India's supply chain finance sector is witnessing accelerated growth, driven by the need for faster-working capital access for MSMEs and digital transformation across industries. With the RBI's TReDS framework, digital platforms are increasingly becoming the backbone of MSME financin

UK access to India's procurement may hurt MSMEs, Make in India, warns GTRI

Economic think tank GTRI on Wednesday said allowing UK firms to participate in India's central government procurement tenders could crowd out MSMEs, which rely heavily on protected access to such contracts. After the UAE, India has opened its central government procurement (GP) for British companies under the free trade agreement (FTA) announced on Tuesday, subject to certain conditions. British firms can now bid for tenders, and those with just 20 per cent UK content will be treated as Class 2 Local Suppliers under India's Make in India policy. This effectively extends preferential treatment designed for Indian firms to foreign suppliers. While UK companies gain broad access to India's procurement system, Indian firms remain largely excluded from the UK's closed and highly competitive GP market, the Global Trade Research Initiative (GTRI) said. With little reciprocal benefit, this sets a dangerous precedent for future FTAs and weakens India's leverage to defend domestic interests,

RRBs must boost their lending in agriculture, allied activities: DFS secy

With the implementation of "One State, One RRB", regional rural banks will expand their lending in agriculture and allied activities, MSME and government-sponsored schemes, Financial Services Secretary M Nagaraju said on Monday. During a meeting to review the performance of the regional rural banks (RRBs) and the progress on their amalgamation plan, Nagaraju asked the sponsor banks and RRBs to recognise the challenges that lie ahead. The RRBs have grown in their reach to more than 22,000 branches, covering 700 districts in the country, and more than 92 per cent of their branches are in rural and semi-urban areas, the finance ministry said in a statement. The RRBs recorded a consolidated net profit of Rs 7,148 crore in 2024-25. The Gross Non-Performing Assets (GNPA) have reached a new low of 5.3 per cent, the lowest in a 10-year period, the ministry said. During the meeting chaired by the secretary, it was decided that the sponsor banks, in consultation with the RRBs, will draft a

NITI Aayog proposes easing eligibility for loan subsidy for MSMEs

Government think tank NITI Aayog has pitched for relaxing eligibility criteria for schemes that offer subsidies for capital and interest on loans at the state level to enhance competitiveness of micro, small and medium enterprises (MSMEs) in the country. The Aayog in a report titled 'Enhancing MSMEs Competitiveness in India' also suggested making skill development initiatives easily accessible, especially for MSMEs that face challenges due to their location or size. "At the state level, lowering eligibility barriers for schemes that offer subsidies for capital and interest on loans will better address the financing needs of MSMEs throughout their lifecycle," the report said. Given their success in providing credit to MSMEs, especially in remote areas, it said non-banking financial companies (NBFCs) need to scale up their operations. The report suggested that a crucial step in this process is for SIDBI to play a significant role by providing funding to help NBFCs improve their ...

Commerce Min seeks exporters' views on schemes under export promotion plan

The commerce ministry has sought views of export promotion councils (EPCs) on the different schemes which the government is framing under the export promotion mission announced in the Union Budget, an industry official said. The councils will have to submit their comments by tomorrow to the Directorate General of Foreign Trade (DGFT), the official said. The government is framing schemes for MSME exporters to provide credit on easy terms, promote alternate financing instruments through strengthening factoring services for them and offer monetary assistance to deal with non-tariff measures imposed by other countries. The commerce, MSME and finance ministries are working on these schemes. In the meeting, DGFT Ajay Bhadoo made a presentation on the mission to the representatives of the councils. Officials from ECGC, EXIM bank, and the RBI were also present at the meeting. Certain exporters have suggested to the ministry that funds under MAI (Market Access Initiative) should be given o

IDFC First Bank profit falls 58% on worsening asset quality of micro loans

Fresh slippages during the quarter was Rs 2,175 crore including Rs 572 crore from the micro loan book, as compared to Rs 4195 crore and Rs 437 crore

TMB to continue growing gold loan business in FY26, says MD & CEO Nair

The bank's total gold loan portfolio as of March 31 is a little over Rs 18,000 crore

Startups, MSMEs filed 310% more patents in past 5 years: Official

Patent filings by startups and MSMEs have increased by 310 per cent in the last 5 years from 1,492 in 2018-19 to 6,120 in 2023-24, an official said on Thursday. N Ramchander, Joint Controller, Controller General of Patents, Designs and Trademarks, further shared that in about three years over 2.4 million students and faculty across India have been educated about IP rights through the National Intellectual Property Awareness Mission launched in 2021. Addressing an event organised by ASSOCHAM, he informed that the filing of patent applications in India has surged by 116 per cent rising from 42,763 in 2014-15 to 92,172 in 2023-24. "Patent grants have been an even more remarkable increase of 1,624 per cent, jumping from 5,978 in 2014-15 to 103,057 in 2023-24. India has seen biggest change in resident and non-resident distribution over past 10 years with the share of resident filling increasing from 24.8 per cent in 2013 to 60 per cent in 2024," said N Ramchander. India's IPR policy has

MSMEs to get steel at export parity prices despite safeguard tariff hike

The steel industry has agreed to supply the metal to micro, small and medium enterprises (MSMEs) at rates on par with export prices, a top government official said on Tuesday, allaying concerns that a safeguard duty imposed on certain import products will have adverse impact on small enterprises. The government on Monday imposed a 12 per cent provisional safeguard duty for 200 days on five steel product categories, including hot rolled coils, sheets and plates, to protect domestic players from surge in imports. The decision came following a recommendation from the commerce ministry's investigation arm DGTR. For each product, a threshold import value has been notified. If imports arrive at a value lower than the threshold, the duty becomes applicable. These steel products are used as inputs by domestic manufacturers of various sectors, especially those engaged in manufacturing of engineering goods. Talking to reporters here on Tuesday, Steel secretary Sandeep Poundrik said, "As far

Sundaram Home Finance launches K'taka branch, eyes ₹900 cr loan disbursals

Sundaram Home Finance, a subsidiary of non-banking finance company Sundaram Finance Ltd, strengthened its footprint in Karnataka by launching a new branch in Tumkur. The company aims to disburse Rs 900 crore in the neighbouring State this year. The Chennai-headquartered company currently operates 18 branches across locations including Mysore, Mangalore, and Hubballi and has also planned to expand into Tier III cities this year. Commenting on the expansion in Karnataka, Sundaram Home Finance Managing Director D Lakshminarayanan said in a company statement on Friday: "We believe there are significant opportunities in smaller towns in Karnataka for our prime home finance business, and we aim to deepen our presence in these markets over the next 12 months." He added, "Karnataka currently contributes over 10 per cent of our disbursements, and we expect this to increase in the coming years, supported by our continued expansion in Tier II and III towns across the State." For the ...

Trump tariff impact: Brace for exchange rate wars too, says Madan Sabnavis

At the global level, slower trade will also mean slower growth, especially for export-oriented economies, Sabnavis said. Back home, he feels that the MSMEs will be under pressure again

MSME bodies raise critical financing issues before parliamentary committee

"The industry highlighted issues impacting industry access to finance before the Parliamentary Standing Committee on Finance in a session," said a source

Size and scale: Regulation should enable companies to scale up faster

However, gaining access to technology is not the only problem small and medium-sized businesses are facing

Working to boost our role in global value chain for MSMEs: Niti Aayog CEO

Niti Aayog is working on a programme to improve India's penetration into global value chains for growth of domestic micro, small and medium enterprises (MSMEs), CEO of the government think-tank B V R Subrahmanyam said on Wednesday. Observing that MSMEs are more affected by regulations than large companies, he said the prime minister has taken a major step towards deregulation and a task force under the cabinet secretary is working on it. Subrahmanyam was addressing a gathering after launching 'the Digital Excellence for Growth and Enterprise', or 'Dx-EDGE', a platform to empower MSMEs with the tools, knowledge and ecosystem needed to become future-ready, competitive and resilient. Dx-EDGE is a national initiative spearheaded by CII with the support of NITI Frontier Tech Hub (NITI FTH) and All India Council for Technical Education (AICTE) to drive digital transformation across India's MSMEs. The Niti Aayog CEO further said it is a fact that some of the big manufacturers have moved t

11,000 exporters avail benefits under interest equalisation scheme: Govt

The government on Tuesday said about 11,000 exporters avail the benefits under the interest equalisation scheme to get credit at concessional interest rates. Interest equalisation has been an important policy instrument, especially for MSME exporters, for bringing down the higher cost of credit incurred by Indian exporters vis-a-vis their foreign competitors, Minister of State for Commerce and Industry Jitin Prasada said in a written reply to the Lok Sabha. In India, the repo rate stands at about 6.25 per cent, with exporters bearing interest rates ranging between 8 to 12 per cent or even more, depending on the spread and risk assessment of the borrower by the Authorised Dealer Banks. In competing countries, the interest rate is very low. For instance, the central bank rate in 2025 is 3.1 per cent in China, 3 per cent in Malaysia, 2 per cent in Thailand, and 4.5 per cent in Vietnam. "Approximately, 11,000 exporters avail the benefits under the scheme," he said. Up to June 30, the

Standard Chartered raises 1 bn euro via social bond, commits 50% for India

Standard Chartered has raised 1 billion euro (about Rs 9,400 crore) through issuance of the first social bond which will support sustainable development projects across the bank's emerging market footprint, including India. The 8-year bond will primarily facilitate lending to small and medium sized enterprises (SMEs), ensuring access to finance, helping create jobs and empowering and nurturing women-owned SMEs, StanChart said in a statement on Friday. Of the total, about 50 per cent would be allocated for India for sustainable projects. Proceeds will also finance access to essential services including healthcare and education, and will facilitate investment into affordable basic infrastructure and food security, in line with the social activities set out in the bank's Sustainability Bond Framework, it said. The top five countries where StanChart's social assets are located include India (57 per cent), Malaysia (10 per cent), Bangladesh (6 per cent), Mainland China (5 per cent), and

MSME industry bodies urge RBI to tweak norms for ecommerce exports

A digital verification system linked to bank accounts could further streamline the process

Andhra govt approves over Rs 1.21 trn in investments from 10 companies

The Andhra Pradesh State Investment Promotion Board (SIPB), chaired by Chief Minister N Chandrababu Naidu, approved investments worth over Rs 1.21 lakh crore from 10 companies on Thursday. The approved investments have the potential to create 80,104 jobs, including Rs 25,000 crore from Satyavedu Reserve Infracity Pvt Ltd (Sri City), Rs 58,469 crore from Indosol Solar Pvt Ltd, and Rs 22,000 crore from AP NGEL Harith Amrit Ltd, among others. "At the fourth SIPB meeting held at the Secretariat, the Chief Minister reviewed new investment proposals in the industries, power, and tourism sectors. The SIPB approved Rs 1,21,659 crore in investments from 10 companies, which will create 80,104 jobs," a press release stated. Naidu directed officials to closely monitor these investments until they materialise and urged ministers and officials to work proactively to ensure industries commence operations without delays. Additionally, the CM instructed officials to establish MSME parks in all 175

RBI to set up 'On Tap' cohort on climate change risks: Guv Malhotra

As a central bank, he said the RBI is mindful of its role in addressing and mitigating risks to the financial system from climate change