Tag: Ministry 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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MSME

Union Minister Nitin Gadkari Inaugurates Technology Centres, Extension Centres To Boost MSME Sector

Nitin Gadkari (Photo Credits: Facebook)

The government is undertaking various initiatives for the development of the MSME sector. Several projects and schemes have been launched to promote the welfare of various firms in the micro, small and medium sector. In lines with this, Union MSME Minister Nitin Gadkari has has inaugurated new technology centres, one at Visakhapatnam in Andhra Pradesh and other at Bhopal in Madhya Pradesh, three extension centres of big technological centres and seven mobile Udyam Express. These centres have been inaugurated to increase the e geographic footprint of Technology Centres network through future ready new Technological Centres with vertical as well as horizontal expansion to cover more states and regions, making its reach across the country. Udyam Registration Portal: GSTIN No Longer Mandatory for Registering MSMEs.

The Technological Centres and Extension Centre are expected to boost the micro, small and medium enterprises and people involved in the sector by providing an increased capacity of training and enhancing skills of around four lakh trainees, providing assistance to around one lakh MSMEs in terms of technological, skilling and advisory support. It has been undertaken to increase the competitiveness of various MSMEs in the country. It also aims for creation and registration of more firms under the MSME sector. It also tragets to improve and enhance employment generation capacity of various firms in the micro, small and medium sector. RBI Extends Deadline For Udyog Aadhaar Memorandum of MSME Registrations Till March 31, 2021.

At the virtual inauguration event of the new technological and extension centre, the Union Minister of Micro, Small and Medium Enterprises, Nitin Gadkari said, “if the country has to overcome three biggest problems of poverty, starvation and unemployment, then we have to create jobs.” He added, “the technological centres should have coordination, cooperation and communication with the local industries.” Gadkari said, “the country has huge potential for raw material, young and skilled manpower, government is ready to support all entrepreneurs and we need to take the cooperation of IITs, engineering colleges and successful persons in the society.” He emphasised on the need of integrated development.

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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

MSME Loans: Bank of Maharashtra Ties Up With LoanTap Credit for Co-Lending to MSMEs

Mumbai, February 9: In a bid to facilitate loans to micro, small and medium enterprises (MSMEs), the state-owned Bank of Maharashtra inked a pact with LoanTap Credit on Monday. In a statement, the Bank said that it has entered into a co-lending agreement with the Pune-based non-banking financial company LoanTap Credit Products to help MSMEs in loans. Under the co-lending model, the bank will have an exposure of up to 80 percent while the rest will be borne by the LoanTap, the bank said in a release.

Bank of Maharashtra managing director and CEO AS Rajeev said that the co-lending is the system introduced by RBI in the wake of the liquidity crisis at non-banking finance companies. This is done to enhance the credit flow to the unserved and underserved sector and make available funds to the ultimate beneficiary at an affordable cost.

The RBI in September 2018, RBI had come out with a co-origination model between banks and NBFCs for providing credit to the priority sector. Last year in November, RBI rechristened the scheme as Co-Lending Model (CLM), and revised the terms to provide greater operational flexibility to the lending institutions.

BoM’s executive director Hemant Tamta said the co-lending model shall help the bank to meet the priority sector lending target. It will be beneficial for all NBFCs having wider outreach and customers, who will be facilitated with low cost credit from banks.

The co-lending model provides ease of loan sanctions at borrower’s convenience through digital lending platforms, which cover end-to-end loan processing cycle without manual intervention, from on-boarding of customers to loan disbursement and monitoring.

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MSME

MSMEs Backbone of Indian Economy, Govt Aiming to Increase the Sector’s Contribution to India’s GDP to 50%, Says Nitin Gadkari

Nitin Gadkari (Photo Credits: Facebook)

Hyderabad, December 12: Terming Micro, Small and Medium Enterprises (MSME) as the backbone of Indian economy, MSME Minister Nitin Gadkari said the Modi government is now aiming is to increase the MSME sector’s contribution to the GDP to about 50 percent. The existing contribution of the MSME sector to India’s GDP is 30 percent. While speaking at the inaugural session of the three-day TiE Global Summit (TGS) being held virtually on Tuesday, Gadkari said the MSME sector currently constitutes 48 per cent of total exports from India and the government aims to take it to 60 percent in future.

“MSME is the backbone of Indian economy…a total 30 percent of the GDP in Indian economy is contributed by the MSME. Out of our total exports, 48 percent is also from MSME. At the same time up till now MSME created 11 crore jobs. And that is one of the reasons why MSME is the backbone of the country,” he said. “Now we have decided to make this 30 per cent contribution to GDP to 40 per cent and 48 per cent of the exports contribution to 60 per cent. And we want to create five crore jobs, he added. MSMEs Can Help in Boosting Exports, Says Nitin Gadkari.

During his address, Gadkari said at present, the village industries such as handlooms, handicrafts, Khadi Gram Udyog are generating Rs 80 thousand crore revenues which needs to be taken up to Rs 5  lakh crore in the next few years. Gadkari requested industrialists to invest in India and stressed that the country currently has an excellent network of roads, abundantly available power and water and reformed labour and other administrative laws. According to him, though there is an impact of COVID-19 globally, the Indian industry may get some opportunities out of it.

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Startup

Startup Registrations at GeM Portal Doubles in Past 1 Year Giving a Major Boost to Make in India Initiative

Startup (Representational Image Only, Photo Credits: NeedPix.com)

New Delhi, November 21: The startup registration at the Government e-Marketplace (GeM), the public procurement portal, has more than doubled in the past one year, reports said. The registration of the startups have witnessed a spike and has doubled to 7,438 in just one year as they are receiving many orders from government departments and public sector units, a senior official said. The Government e-Marketplace (GeM) was launched in August 2016 for online purchase of goods and services by all the central government ministries and departments.

GeM CEO Talleen Kumar was quoted by PTI saying that providing increased market access to seller groups like startups, and MSEs has reinforced Prime Minister Narendra Modi’s Make in India initiative. “We now have 48,038 buyers, 7.42 lakh sellers with 2.42 lakh MSEs (micro and small enterprises), 7,438 startups, 10,252 product categories, and 173 service categories. One year ago, we had 40,275 buyers, 2.98 lakh sellers, 59,536 MSMEs, and 3,509 startups”.

The official further added saying that the startups have fulfilled orders worth over Rs 1,800 crore through the marketplace. He added saying that the GeM is taking a number of steps so that more and more startups, MSMEs, artisans and weavers can register their goods and services on this platform. “Presently, over 20,000 artisans and 1.2 lakh weavers have registered so far as sellers and are uploading products in their relevant categories,” Kumar added.

Talking about the steps taken for startups across India, the officials said that the GeM portal started a ‘Startup Runway’ so that these entrepreneurs can showcase their innovative products and solutions, and they can also list multiple products with minimal technical specifications. The official said , he said a new and advanced version of the platform will be launched soon which will have powerful features and availability of big ticket items to attract large buyers like PSUs, Railways and Defence.

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MSME Technology

Paytm to Double Loan Disbursement for MSMEs From Rs 550 Crore in Last Fiscal Year to Rs 1,000 Crore by March 2021

Paytm (Photo Credits: Facebook)

New Delhi, November 9: In a major boost to the micro- and small and medium enterprises (MSMEs), financial services platform Paytm on Monday announced to double its loan disbursements for the MSMEs from Rs 550 crore in last fiscal year to Rs 1,000 crore by March 2021. The firm said that it has company expanded collateral-free loans of up to Rs 5,00,000 at a low-interest rate and unique daily EMI product customised for micro-merchants.

Paytm continues to lead the offline payments (P2M) segment with over 50 percent market share by offering all digital payment methods. Bhavesh Gupta, CEO, Paytm Lending was quoted by IANS saying that with the firm’s collateral-free instant loans, it is trying to help kirana stores and other small business owners who have been left behind by the traditional banking sector and do not have easy access to loans and credit.

According to a report by IANS, the company informed that the recently launched Paytm All-in-One Android POS device has enabled over two lakh MSMEs to accept all payment modes. The company said it will continue to offer collateral-free loans under the ‘Merchant Lending Programme’ in Paytm for Business app. The firm said it has digitised the entire process starting from the loan application, approval to disbursal with no additional documents required in partnership with NBFCs and banks.

Rrports inform that in the last financial year, the company processed loans worth Rs 550 crore, benefiting over a lakh merchant partner. “Going forward, we will especially focus on EDC merchants and provide higher loan amounts based on their EDC transactions,” Gupta said.

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MSME

MSMEs to Get a Boost As D&B India and NSIC Ink Pact to Create Ecosystem for Promoting and Fostering Growth of Micro, Small & Medium Businesses

A worker at an MSME firm
A worker at an MSME firm. | Representative image.

New Delhi, November 5: In a bid to foster the growth of micro, small and medium enterprises, Dun & Bradstreet Information Services India has signed an agreement with the National Small Industries Corporation (NSIC). The pact aims to create an ecosystem for promoting, aiding and fostering the growth of MSMEs. A statement said, the partnership between the two will help MSMEs in India to increase their visibility, expand access to global markets, find potential customers, uncover new suppliers and channel partners, manage risk and identify growth opportunities.

With the new pact, MSMEs will also be able to leverage platforms like D&B Credit to make credit decisions, monitor the financial health of customers, assess credit risk and identify portfolio trends. The partnership will provide Indian MSMEs with access to Dun & Bradstreet’s suite of data and analytics solutions via NSIC’s countrywide network of offices and technical centres.

Julian Prower, chairman of the board and MD, Dun & Bradstreet India said, “By working with the NSIC, we expect to play a pivotal role in enabling the eco-system required to accelerate MSME growth and help achieve the government GDP contribution target of 50 percent of GDP by FY 2025.” Dun & Bradstreet India will also partner with NSIC to provide customized training and certification programs to help MSMEs better navigate the ever-changing global business environment, the release stated.

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MSME

MSME Sector Created 11 Crore Jobs in India, Contributes 30% to Country’s GDP, Says Nitin Gadkari

Nitin Gadkari | File Image (Photo Credits: Facebook)

New Delhi, October 30: The Micro Small and Medium Enterprises (MSME) sector is the backbone of the Indian economy and has created 11 crore jobs so far, MSME Minister Nitin Gadkari said on Thursday. While speaking at the ‘Namaste Bharat Exhibition’, Gadkari said that the MSMEs contribute to the 30 percent to GDP. He said that as far as export is concerned, it is 48 percent and up till now, 11 crore jobs have been created by the MSME sector.

At the ‘Namaste Bharat Exhibition’, Gadkari said that presently, MSME is the most important sector for the country. “I say it is the backbone of Indian economy,” Gadkari said at the ‘Namaste Bharat Exhibition’. Gadkari was addressing the virtual inaugural ceremony of the 10-day ‘Namaste Bharat’ exhibition.

The 10-day Namaste Bharat is the first of its kind exhibition for promoting ”Made in India” products globally. “We are giving highest priority for how we can reduce our import and increase our exports. The global economy is an open platform where the quality, cost and scale of marketing of products are very important factors. Presently, MSMEs are the backbone of the country,” the MSME minister said.

About Namaste Bharat Exhibition:

Namaste Bharat is backed by the Federation of Indian Export Organisations (FIEO) and the High Commission of Singapore. It has been conceptualized and curated by Singapore’s leading events and marketing company De Ideaz. The exhibition will see over 300-plus local Indian exhibitors showcasing over 1,00,000 Made in India products.