Tag: Development of MSMEs

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MSME

MSME Sector in India Has Huge Potential To Become World’s Largest Manufacturing Hub, Says Nitin Gadkari

Nitin Gadkari | File Image (Photo Credits: Facebook)

New Delhi, March 13: Union Minter Nitin Gadkari on Saturday said that the micro, small and medium enterprises (MSMEs) sector in India has a huge potential to become the world’s largest manufacturing hub. During a webinar on ‘Aatmanirbhar Bharat – Opportunities in Solar & MSME’ on Friday, Gadkari said that the government is committed to promoting renewable energy resources in the country, especially in the MSMEs sector.

The Minister, who holds the MSME portfolio along with road transport, said by making solar energy available, “we will create big market for electric vehicles”.  He said that the solar power rate in India is Rs 2.40 per unit and commercial rate of power is Rs 11 per unit and the cheap power generated through solar energy can be used for automobiles and other developmental works.

He expressed confidence that within five years, India will be a top manufacturing hub for automobiles in the world. While speaking about the businesses in India, the minister highlighted that India has tremendous potential and capacity for electricity generation. Gadkari invited investors abroad to invest in Indian MSMEs.

During his address, he expressed hope that this will provide a number of opportunities to the MSME sector in the country to become the world’s largest manufacturing hub. Talking about the growth of MSMEs in India, Gadkari said that the MSMEs with good track record are now being encouraged for capital market, adding that there exists a huge opportunity for investment in scrapping policy.

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Business motivation

Indian SMEs Plan To Expand Businesses As Economy Revives, Restoration of Business Activities Likely To Gain Momentum Post COVID-19 Era: Survey

Evaluation of Business Performance
एंटरप्रेन्योर

The small and medium enterprises (SMEs) in India are coming back to action besides new opportunities unlocking in numerous upcoming segments. As the economy in India limps back to normalcy, a number of small and medium enterprises (SME) in the country are now planning to expand their businesses. The SME Leasing & Business Sentiment Survey by 360 Realtors’ commercial division, shows that business activities in the country are reviving amid increasing confidence in the overall economic outlook of India with the growth trajectory of the country expected to be in the range of 8-10 percent in FY 22.

In a statement, the 360 Realtors noted that business activities are reviving amid increasing confidence in the overall economic outlook of India with the growth trajectory of the country expected to be in the range of 8-10 percent in FY 22. “Echoing this sentiment, a whopping 69 percent of the respondents in the survey have demonstrated their plans to expand their business. As the economy is expected to expand, there will be significant growth in demand and consumption which is egging on industry players,” the Survey stated.

Moreover, around 49 percent of the respondents said that they will launch new verticals, whereas slightly over 12 percent have suggested functional team reallocation. A report by IANS quotes the survey saying that the respondents are spread across numerous cities in India including Delhi-NCR, Kolkata, the MMR, Bengaluru, Hyderabad, Chennai, among other.

The COVID-19 pandemic has impacted the momentum of growth in the SME sector. Ankit Kansal, Founder & MD, 360 Realtors believed that the post-COVID-19 era will see the emergence of new opportunities and business proliferation driven by a consistent restoration of business activities.

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Startup

Startups and MSMEs in India Get Major Boost As Indian Bank Signs MoU With SID of IISc for Extending Exclusive Credit Facility to Businesses

Startup
Startup (Photo Credits: Pixabay)

New Delhi, February 20: In a bid to extend the exclusive credit facility to Startups and MSMEs in India, state-owned Indian Bank has inked an MOU with the Society for Innovation and Development (SID), an initiative of the Indian Institute of Science. Under the pact, the Indian Bank will extend loans of up to Rs 50 crore to these startups for their working capital requirements or for the purchase of machinery, equipment among other things.

This initiative is a part of the Banks scheme Ind Spring Board for financing Startups and will empower Startups and MSMEs to realise their research efforts powered by financial support from the Bank and backed by incubation facilities offered by SID, it said in a release.

In its statement, the Bank said that SID is the forerunner in setting up joint R&D with industries and supporting start-up incubation, the bank said, it provides support to the MSME sector by providing joint research and development arrangements and technical and financial support for incubation and acceleration of high-end technology products under its department named TIME2. (Technology Innovation for Midsized Enterprises).

Under the MOU, SID will identify the start-ups and MSMEs based on their credentials and past experience and will refer the list of such members who require financial assistance to the Bank, it added.

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MSME

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

Nitin Gadkari | File Image (Photo Credits: Facebook)

New Delhi, February 7: Union Minister Nitin Gadkari said on Saturday said that the government aims to increase the MSME sector’s share in the GDP to 40 per cent to benefit the rural poor. At present, around 6.5 crore micro, small and medium enterprises (MSMEs) contribute 30 percent to the GDP. While addressing a workshop at the Mahatma Gandhi International Hindi University at Wardha in Maharashtra, Gadkari emphasised that a policy has to be made to empower the poor.

The MSME Minister added saying that village industries and Khadi generate as much as Rs 88,000 crore on an annual basis. “We are not in favour of westernization, but we are in favour of modernization, in the villages. This is the time for socio-economic transformation”, Gadkari said. He said this can be increased if policy is flexible and innovative, and is aimed at improving the life of people living in villages. The minister also stressed that goods produced by village industries can be sold better if they are marketed better.

Gadkari stressed on the point that migration of as much as 30 percent of the country’s population from rural areas has taken place since independence due to lack of growth of the village economy. Gadakri recalled the philosophy of Mahatma Gandhi, Vinoba Bhave, Pandit Deendayal Upadhyaya, Ram Manohar Lohia and Jayaprakash Narayan and said that their aim was the same – to improve the lives of the poor living in villages. “Unless solutions are found to ensure that employment is generated in villages, and they are clean and have enough facilities, the dreams of these leaders will not be fulfilled”, he said.

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MSME

CBIC Introduces ‘Liberalised MSME AEO Package’ for Development of Micro, Small & Medium Enterprises

MSME (Photo Credit: Wikimedia Commons)
MSMEs (Representational Image)

In order to promote the Micro, Small and Medium Enterprises (MSMEs), the Central Board of Indirect Taxes and Customs (CBIC) has introduced a new scheme called the ‘Liberalised MSME AEO Package’.  Under this, swift  and easier customs clearance of consignments will be provided to the enterprises, with the option of deferred payment duties .  It will also provide a relaxed compliance criteria on the condition that units have a valid certificate from their line-Ministry. Indian Businesses Aim To Tap Consumers Directly in 2021 via Digital Platforms, Says Report.

MSMEs which have filed minimum 10 Customs clearance documents in one year and which have a clean compliance record over two years are eligible to apply for the scheme. Under it, various documentary requirements have also been simplified. As per the scheme, the CBIC will decide on an application for grant of  Authorised Economic Operator (AEO) status to an MSME within only 15 days from electronic submission of all the required documents for AEO Tier T1. Digital Transformation: 4 Reasons SMEs need to go online!

Authorised Economic Operators have various advantages. An approved AEO is entitled to several benefits, including the facility of direct port delivery  of imported containers, direct port entry  of their export containers, high level of facilitation in customs clearance of their consignments thereby ensuring shorter cargo release time, exemption from bank guarantees, priority for refund or discount drawback, as well as a client relationship manager at the customs port as a single point of interaction.

Another important benefit for an approved AEO  is that their payment of Customs duty is deferred and need not to be paid before the clearance of the imported goods by authority.  Various other relaxations have been introduced under the scheme such as reduction in bank guarantee requirements.