Tag: Covid-19

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E-Commerce

India’s Processed Food Products Exports Grow 26.51% During April-February FY 20-21 Despite Challenges Posed by COVID-19 Pandemic

India's processed food products (Photo Credits:Pexels)

Despite the challenges posed by the COVID-19 pandemic, India’s export of processed food products has witnessed a growth of 26.51%in the Rupee term during April-February (2020-21), compared to the same period during the previous year (2019-20). According to official data by the government, the total value of export of processed products was Rs 43,798 crores during April-February 2021 as per the quick estimates.

The data further informed that major processed food products exported from India include pulses, processed vegetables, processed fruits and juices, groundnuts, guar gum, cereals preparations, milled products, alcoholic beverages, and oil meals. Moreover, the value added products such as processed vegetables, alcoholic beverages, and milled products have witnessed a robust growth of more than 40% in April-Feb (2020-21) compared to same period in the previous fiscal (2019-20).

The export of miscellaneous processed items including Indian snacks, sauces, starch products, vegetable flours, malt products etc and pulses grew by 36% and 33% respectively in the first 11 months of the current financial year (2020-21). Considerable exports growth was achieved for the cereals-based products (18%), processed fruits and juices (12%) and Groundnut (7%). The export of oil meals rose by 96% in current fiscal (April-Feb).

Despite the COVID-19 pandemic disrupted trade around the world, the overall growth of 26.51% achieved in export of processed food products of APEDA scheduled products due to concerted efforts and initiatives taken to facilitate export from India.

According to Dr M Angamuthu, Chairman, APEDA, this trend of increasing exports of processed food products is likely to continue in the next financial year (2021-22).  An increase in demand of Pulses, Processed fruits and vegetables, Milled products, cereals preparations and other processed items is seen especially from Middle East, Far East, USA and UK markets.

For boosting agricultural and processed food products exports, APEDA initiated series of measures including virtual buyer seller meet, product promotion meeting, webinars, creation of products specific export promotion forums, ensuring market access through organizing exports promotion activities, MOUs with key stakeholders, extending financial assistance for exports promotion and promotion of GI products.

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Technology

Xiaomi Leads India’s Smartphone Market With 26% Share for January-March Quarter in 2021: Report

Xiaomi (Photo Credits: Facabook)

Xiaomi managed to lead the Indian smartphone market with a 26 percent market share in Quarter one 2021, as total shipments increased 23 percent (on-year) to reach over 38 million units in Q1 2021, according to data released by Counterpoint’s Market Monitor service. However, the second quarter is likely to be affected due to the lethal second coronavirus wave.

Xiaomi was followed by Samsung with 20 percent in the second position, while Vivo was third with a 16 percent share, the report said. The fourth position was held by realme with 11 percent share.

“Continuing with its stellar run, India’s smartphone market registered a third consecutive quarter of record shipments in Q1 2021, riding on pent-up demand. Consumer confidence also increased due to the beginning of a vaccination drive in the country,” said Senior Research Analyst Prachir Singh.

“But these numbers should be taken with caution as a second and more virulent wave of COVID-19 is currently on in the country and is likely to impact the coming quarters,” he cautioned.

Meanwhile, India’s mobile market grew 19 percent year-on-year in the January-March period due to the sturdy performance of both smartphone and feature phone segments.

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MSME

MSME Sector will Battle Ongoing COVID-19 Wave with Conviction & Lead India to Positive Growth Trajectory, Says Union Minister Nitin Gadkari

Nitin Gadkari (Photo Credits: Facebook)

Union MSME Minister Nitin Gadkari has said that he is confident that the firms in the micro, small and medium sector will fight the second wave of coronavirus pandemic with conviction, leading the country to a positive growth trajectory. Gadkari also added that the MSME sector battled the first wave of COVID-19 outbreak with great resilience and came out with strong growth projections.” MSMEs in India: Govt Aims To Raise MSME Sector’s Share in GDP to 40% From the Current 30% To Benefit Rural Poor, Says Nitin Gadkari.

Union MSME Minister said, “As a country, we battled the first wave of COVID-19 with great resilience and came out with strong growth projections. And I’m confident in the ability of the industry and MSME sector to battle the ongoing wave with similar conviction and lead India to a positive growth trajectory.” MSME Sector in India Has Huge Potential To Become World’s Largest Manufacturing Hub, Says Nitin Gadkari.

While addressing an event organised by the Amazon India, Nitin Gadkari said that the Indian MSMEs have a great opportunity of getting integrated with the global supply chain as various countries across the globe are looking to diversify their supply chain out of China.

He added that to enhance the competitiveness of the Indian MSMEs, both on national and global level, technology is a critical factor. “We need to ensure that digital transformation of India’s MSME sector takes place that enables them to capitalise on India’s current opportunity,” said Union MSME Minister Nitin Gadkari.

In May last year, amid the coronavirus pandemic, the government had introduced an Emergency Credit Line Guarantee Scheme, to help the struggling MSMEs back on their feet. This scheme was a part of the Rs 20 lakh crore package that was brought forward and executed by our finance minister Nirmala Sitharaman to repair the damage that has been done to this sector in the light of COVID-19.

Nitin Gadkari had earlier said that contribution of the Micro, Small and Medium Enterprise sector in the overall Indian economy, the coming years, will be enhanced to 40 per cent. Currently the firms in the Micro, Small and Medium sector contributes around 30 per cent in the overall gross domestic product in the country. Nitin Gadkari added that the works to increase export from the firms in MSME sector are in progress.

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MSME

Emergency Credit Line Guarantee Scheme 2.0 Now Extended to SMA-1 Borrowers

ECLGS Now Applicable to SMA-1 | Representational Image
ECLGS Now Applicable to SMA-1 | Representational Image

The Department of Financial Services said in a tweet that the scope of Emergency Credit Line Guarantee Scheme (ECLGS) 2.0 has now been extended to cover the Special Mention Accounts- 1 (SMA). The DFS took to Twitter and wrote, “Scope of ECLGS 2.0 expanded! SMA-1 borrowers in the healthcare sector and 26 other high stress sectors (as identified by the Kamath Committee) are now eligible under ECLGS 2.0.” The Emergency Credit Line Guarantee Scheme 2.0 was launched by the government to help the business, especially firms in the micro, small and medium sector in wake of coronavirus pandemic last year. Emergency Credit Line Guarantee Scheme: What is ECLGS? Are You Eligible? Know All About It.

The scheme comprises all micro, small and medium borrowers accounts with combined outstanding loans across all MLIs (member lending institution) of up to Rs 50 crore in any sector and up to Rs 500 crore in respect of borrowers in the hospitality sector, travel and tourism sector and leisure and sporting sector and classified as regular, Special Mention Accounts-0 or Special Mention Accounts-1 as on February 29, 2020, according to the scheme’s website. MSME Credit Moves Towards Pre-Pandemic Levels, Witnesses a Growth of 5.7%: Report.

The Special Mention Accounts (SMA) are those which are exhibiting signs of incipient stress resulting in the borrowers defaulting in timely servicing of their debt and borrowing obligations, though the accounts have not yet been classified as Non Performing Assets (NPAs) according to the guidelines issued by the Reserve Bank of India. In the case of Special Mention Accounts-1, the overdue period is between 31 to 60 days.

The amount of Emergency Credit line to be extended to Business Enterprises or the firms in the micro, small and medium enterprises would be upto 20 per cent of total outstanding as on Feb 29,2020. The interest rate charged on such borrowing is capped at 9.25 per cent for banks and 14 per cent for the Non-Banking Financial Corporations (NBFCs). It has a maximum tenure of four years from the date of disbursement and the moratorium period on the principle amount is 12 months.

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News

India Inc’s Revenue Expected to Grow at 15-17% in Fourth Quarter of FY21: Report

Growth in FDI | Representational Image (Photo Credits: Pixabay)
Growth in Revenues | Representational Image (Photo Credits: Pixabay)

The corporate revenues in India are likely to grow by 15 per cent to 17 per cent year-on-year in the forth quarter of financial year 2021, as per a report by Crisil. It further adds that the revenues are expected to rise to Rs 6.9 Lakh Crore by the said duration. This comes after eight quarters of either decline or single digit growth in the sector. According to the report,  construction-linked sectors such as steel and cement are estimated to have seen revenue rise 45-50 per cent and 17- 18 per cent on-year, respectively, buoyed by higher realisations and volumes. India Attracts More Than $72 Billion FDI In The First 10 Months of FY21.

The revenue estimates are based on an analysis of 300 companies, that totals to around 55-66 per cent of the market capitalisation financial services and oil companies of the National Stock Exchange.  “The robust revenue growth rides on a low base of the corresponding year-ago quarter, besides higher government capital expenditure, and higher realisations amid a commodity upcycle, among others,” said Crisil Research Director Hetal Gandhi. 3 Top Investment Schemes in India to put your money at!

“Revenue for players in sectors such as airline services is estimated to drop 30 per cent on-year amid social distancing and cut in discretionary expenses, especially travel budgets,” he added.  “Similarly, revenue for players in media and entertainment is also expected to drop 10 per cent on-year due to lower advertisement spends and subscriptions. That said, a lower share of such sectors in the top 300 sectoral mix has muted the impact,” said  Gandhi.

According to the report by Crisil, that owing to the second wave of coronavirus pandemic, various states are likely to mount partial lockdown, keeping demand recovery uncertain in the near term. The COVID-19 cases have lately witnessed a spike in India, several states in Maharashtra, Punjab have already imposed a night curfew in order to curtail the spread of virus.

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Business motivation

Economic Impact of COVID-19 Second Wave Minimal So Far: Crisil Research

Marketing Strategies| Representational Image (Photo Credits: Pixabay)
Marketing Strategies| Representational Image (Photo Credits: Pixabay)

According to Crisil Research, the economic impact of the second wave of novel coronavirus has remained minimal so far in India with less stringent restrictions. “Few countries have escaped a second wave of the Covid-19 pandemic and it is India’s turn now, with daily cases crossing the previous peak of September 2020. And this wave is spreading faster than the first, though with a lower fatality ratio,” Crisil said in a statement.

“Initially concentrated in Maharashtra, new cases are slowly dispersing to other states, which have seen some dip in mobility towards end-March. So far, though, the economic impact remains minimal, with localised restrictions. Maharashtra, the worst impacted state, has introduced somewhat stringent restrictions that will temper mobility and contact-based services,” it added.

The statement added that mobility at the all-India level has remained nearly unaffected ever since a boom in cases since mid-February. However, mobility in Maharashtra is beginning to weaken.

From March 29 to April 4, the covid cases surged from 68,000 to over 1 lakh. Of the total cases during the same period, Maharashtra accounted for 55 percent of new covid-19 cases. Even though Gujarat, Chhattisgarh, Madhya Pradesh and Punjab accounted for fewer share, these states witnessed the highest growth rate in new news cases after Maharashtra.

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MSME

MSME Credit Moves Towards Pre-Pandemic Levels, Witnesses a Growth of 5.7%: Report

MSME Credit Grows at 5.7% | Representational Image (Photo Credits: Pixabay)
MSME Credit Grows at 5.7% | Representational Image (Photo Credits: Pixabay)

The latest MSME Pulse Report by TansUnion CIBIL shows that the credit in the Micro, Small and Medium Enterprises have witnessed a growth owing to the support of central government’s Emergency Credit Line Guarantee Scheme (ECLGS). As per the recent report, the MSME credit grew by 5.7 per cent YoY and around 3.5 QoQ in September 2020. The report also indicated that the Public Sector Banks are progressively taking the lead in providing quick loans and credits to the MSME sector, thereby ensuring an increased market share for themselves. Not only the PSBs, even the private sector banks are moving back to the pre-COVID-19 levels, with 22 per cent YoY growth in inquiries in December 2020. For the public sector banks, the same was recorded at 9 per cent. Indian SMEs Plan To Expand Businesses As Economy Revives, Restoration of Business Activities Likely To Gain Momentum Post COVID-19 Era: Survey.

Meanwhile, the inquiry trends in Commercial credit touched pre-COVID levels of 13 per cent in December 2020 after experiencing a sharp plunge in April 2020 owning to the coronavirus outbreak and the subsequent economic lockdown. The total on-balance sheet commercial lending exposure in India stood at Rs 71.25 Lakh Crore with a growth rate of 2.1 per cent YoY as in September 2020. As per report, for MSME sector it stood at Rs 19.09 Lakh Crore with a yearly growth rate of 5.7 per cent in all the sub segments of micro, small and medium enterprises. The Centre released the 17tth Installment of GST Compensation: What it means for States & UTs?

As per the MSME Pulse Report, the high risk MSME borrowers with a CIBIL rank between 7 to 10 secured the maximum benefits from the rise in approval rates. Meanwhile, the NPA (Non-Performing Asset) ratio saw a decline to 12.1 per cent in September 2020. It is being reasoned as a consequence of the Supreme Court order of not declaring NPAs till further notice. Moreover, as per a finance ministry release, total loans sanctioned under ECLGS stand at Rs 2.1 Lakh Crore of which Rs 1.65 Lkah Crore has already been disbursed.

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Business motivation

Business Confidence in India Improves As Economic Activities and COVID-19 Vaccination Drive Gathers Pace: NCAER Survey

Evaluation of Business Performance
एंटरप्रेन्योर

New Delhi, February 8: The business confidence in India has improved as economic activities pick up and vaccination drive gathers pace. A study by the National Council of Applied Economic Research (NCAER) stated that the NCAER Business Confidence index (BCI) rose 29.6 per cent on a q-o-q basis during the third quarter of FY 2020-21. “The BCI rose further by 29.6 per cent on a q-o-q basis, rising from 65.5 in 2020-21:Q2 to 84.8 in 2020-21:Q3,” and NCAER statement said.

The report stated that the business sentiments remained worse than they were during the corresponding period in the previous year. According to a report by IANS, The proportion of respondents expecting that ‘overall economic conditions will improve in the next six months’ increased by 4.8 percentage points. This was 29.8 percent in 2020-21, Q2 to 34.6 per cent in 2020-21, Q3.

The respondents are also expecting that the ‘financial position of firms will improve in the next six months’ increased by 3.1 percentage points, from 27.7 per cent in 2020-21, Q2 to 30.8 per cent in 2020-21, Q3, the study reported.

The BCI increased for the consumer durables sector by 26.1 percent on a q-o-q basis in 2020- 21, Q3. For consumer non-durables, it increased by 32 percent, for intermediate goods by 37 per cent, for capital goods by 27 per cent, and for the services sector by 32.5 percent, the report added.

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MSME

Key Learning from 2020: How Indian MSMEs survived COVID 19 & Prepared to Kickstart 2021

key learning from 2020

The year 2020 was tough due to COVID 19 pandemic and like a nightmare for Indian brands & businesses and MSMEs. However, it has also proven to be a great learning curve. The global pandemic has redefined the business rules, forcing entrepreneurs to think out-of-the-box to find innovative ways to survive amidst challenging times.

According to a report published in Financial Express, ‘in 2020 about 38% of startups struggled with funds, and 30% of them had only 1-3 months of reserved working capital. Many businesses also reported around 80-90 % drop in their revenue’.

Though the Indian startup ecosystem emerged in the early 2000s, most businesses followed the traditional path to run their business operations in a straight, simple, and most convenient way.

According to the global innovation mapping and research company StartupBlink, ‘Indian startups ranked 23rd amongst 202 countries, based on their strength.

When the worst-ever global health emergency was also stuck in India, immediate measures were required to survive the lockdown. Though many Government Schemes were launched, Indian businesses and MSMEs also stepped up their game by mobilizing their operations online.

So how did they manage to survive during the challenging times? Check out the key learning’s from 2020 that helped the Indian MSMEs survive:

  1. Digital Innovation & Manage Cash Better

The reason why Indian startups are growing at a rapid pace is their flexibility to adapt to new changes and optimistic approach. During the pandemic, the most important learning that entrepreneurs or solopreneurs are willing to implement in 2021 is cash management and digital innovation.

Umar Akhar, Founder of Bengaluru-based Koskii also agrees. He says, “every entrepreneur must learn to increase their efficiency and manage cash better.

Also, digital innovation and the rise of online business operations is a promising trend, for which every business owner must be prepared.

  1. An Upward trend for Ecommerce

If there was one way through which most of the businesses survived during the pandemic, it was the power of digitalization.

With the imposed nationwide lockdown, the SMEs realize that for their business survival, they needed to adopt technology and constantly power themselves with digitalization.

The Chief Corporate Affairs Officer of Flipkart Group says the COVID 19 pandemic has helped MSMEs realize the potential of technology and e-commerce. Thanks to that, they have become modernized and upgraded.

  1. Cloud Adoption

Cloud adoption is the latest entrant that has given a new direction to SMBs. By upgrading themselves, the SMBs have increased their efficiency and productivity, since remote working allowed them to work in a secure environment.

2021 has come with great opportunities for SMBs to grow and expand with the power of technology, reimagined business models, and optimized business operations. Most of the MSMEs are willing to make the changes that are required for them to sustain.

However, it takes more than just the willingness to bring your business from the losses inflicted by the year 2020. Other key problem areas might require your attention. Resolve all the business-related challenges with our Problem Solving Courses.

Get more than 600 business templates that will give you exactly what you are looking for. Learn from the top industry experts that can help you change the business dynamics for the future. To know about our courses, click here: https://www.badabusiness.com/psc?ref_code=ArticlesLeads 

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Business motivation Startup Strategy Technology

PM Narendra Modi Urges Youngsters To Join ‘Prarambh’, the Startup India International Summit on January 15-16; Here’s How To Register Online

Startups (Photo Credits: Unsplash)

Prime Minister Narendra Modi has called upon youngsters of India to attend ‘Prarambh’, the Startup India international summit on January 15 and 16. The Prime Minister asserted that the summit seeks to bring together top minds from industry, academia, investment, banking and finance besides young start up leaders. Taking to Twitter, the Prime Minister shared his LinkedIn post in which he noted that virtual interactions have become the new normal during the COVID-19 pandemic and said a big advantage of this is that people can be a part of programmes sitting at home. “With most events being held virtually, it has given a great opportunity for youngsters to be a part of many interesting domestic & global forums. One such opportunity is coming up in the form of Prarambh on 15-16 Jan. I urge our youth to be a part of it,” Modi tweeted on Monday.

Referring to the ‘Prarambh’ summit, the prime minister said India would also be marking five years since the Startup India initiative began. He said that this initiative has propelled India to being among the most attractive start-up eco-systems globally. Lauding the capabilities of the youths in India, the Prime Minister said that no words can do justice to the spirit of India’s youth. “Their penchant for innovation has led to outstanding results. Our start-up heroes are not merely coming from big cities but also from smaller towns. This is a good sign,” he added

Talking about the work from home opportunities, the Prime Minister noted and said work from home is in, so is greater adapting to technology. “For me, it meant more programmes online, which were extremely productive and insightful. There were interactions with scientists, medical professionals, COVID warriors, academics, industry leaders, young innovators, spiritual leaders and more,” Modi said.

The Prime Minister added that there were virtual summits, both bilaterals and multilaterals with world leaders, he noted, adding that “path-breaking” development schemes were launched through public events organised digitally.

About Prarambh:

‘Prarambh’ – Startup India International Summit – on 15 and 16 January 2021 in a virtual format. It will be organised by the Department for Promotion of Industry and Internal Trade (DPIIT), Ministry of Commerce and Industry. ‘Prarambh’ means ‘an auspicious beginning’. As a verb, it implies ‘to start’.

The idea is to attain attention of global capital for startups in India, mobilize domestic capital, provide opportunities for accessing international markets to our startups and evolve enabling policy provisions.  The first day of the Summit has been devoted to host dignitaries and stakeholders from BIMSTEC member States. The day will witness participation of renowned stakeholders from startup communities of BIMSTEC member states engaging in multilateral discussions and showcasing best of their innovations.

Here’s How You Can Register for the Prarambh Summit:

  1. Youngsters can registered themselves on the official site i.e. https://www.theprarambh.in
  2. Click on ‘Register Now’ at the top of the page and fill in all the details that have been asked.
  3. Enter details like your name, address, email-id, sector, select country and state, city and category and then click on ‘Submit’.
  4. Youngsters can check the official website as it has all the details of the 2-day Start-up India International Summit.

The main objectives of the Prarambh Summit are given below:

  • Encouraging and inspiring the youth for innovation and entrepreneurship
  • Exchange knowledge on best practices on nurturing startup ecosystems
  • Develop capacities of entrepreneurial ecosystem
  • Mobilize global and domestic capital for investments into startups
  • Provide opportunities to startups for entering domestic (private and public) and international markets
  • Showcasing high-quality, high technology and frugal innovations from India
  • Enable ease of doing business for startups and investors.

The who’s who of the Indian as well as global Startup ecosystem are making a beeline for this event. Please mark this date for a marathon of in-depth knowledge sessions and exchange of global ideas! Prarambh is expected to bring together top policy makers, industry, academia, investors, startups and all stakeholders from across the globe. In addition to deliberating on good practices from best of the ecosystems across the world, the sessions of the Summit are designed to showcase the spread and depth of entrepreneurship based on innovation in India.