Tag: MSME sector

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Women-Led MSMEs To Get Major Boost As IFC Proposes To Lend Loan Up to $150 Million to Bajaj Finance

Women Entrepreneurs in India (Photo Credits: Pixabay)

Chennai, April 23: In a bid to boost the startup ecosystem in India and help the women-led MSMEs in the country, the International Finance Corporation (IFC) part of the World Bank Group has proposed to loan up to $150 million to Bajaj Finance Ltd.

Under the new initiative, Bajaj Finance will increase its lending to MSME segment to about $600 million. According to details by IFC, the proposed $150 million senior loan for up to five years to Bajaj Finance will enable the company to expand its lending to micro, small and medium enterprises (MSME) and women-owned MSMEs.

Bajaj Finance, which is headquartered in Pune is part of the Bajaj Group,  which is the third-largest non-banking finance company (NBFC) in India. The firm has $4.9 billion equity base and $22.3 billion asset base as of December 31, 2020, IFC said.

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MSME

Digitalisation To Play Key Role in Growth and Development of MSME Sector in India, Says Nitin Gadkari

Union MSME Minister Nitin Gadkari. (Photo Credit: PIB)
Union MSME Minister Nitin Gadkari. (Photo Credit: PIB)

With an aim to development of small businesses in the country, digitalization across areas like marketing and manufacturing would play a critical role, Micro, Small and Medium Enterprises Minister Nitin Gadkari said. The Minister also emphasised the need for technologies that can help expand economically viable MSMEs in the rural and tribal areas across the country. He also pointed out that MSMEs account for 30 percent of India’s GDP, 48 percent of the exports and have created 11 crore jobs. The government aims to take this to 40 percent GDP contribution, 60 percent exports, and create 5 crore new jobs.

“Digitalisation in MSMEs is the most important subject…digitalisation is a solution by which we can make our system transparent and time-bound,” he said at an event held by Microsoft. In his address, Gadkari noted that marketing is an important arena for MSMEs and a number of small companies that have started marketing online are seeing excellent results. He added that digitalization can play an important role for the manufacturing sector in enhancing processes, he said, urging the tech sector to collaborate with MSMEs to help them in these processes. He said the most important agenda for the government is development of MSMEs in the rural, agricultural, tribal areas and 115 aspirational districts.

“This area is where GDP contribution is very negligible…So we need to find technology which is useful for making economically viable MSMEs in the village, rural, agricultural and tribal area,” he noted. He added that while these areas have raw materials, a digital system that is result-oriented can be brought in that will create a win-win situation for all.

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Amazon India Helped 2.5 Firms in MSME Sector Go Digital

Online Business| Representational Image (Photo Credits: Pixabay)
Business| Representational Image (Photo Credits: Pixabay)

The e-commerce giant, Amazon India said that it has digitised 2.5 Million micro, small and medium enterprises in the country. The company had last year announced that it will invest $1 Billion to digitally enable 10 Million firms belonging to the MSME sector by 2025. The ongoing pandemic has also pushed several businesses to shift online, as per report, the number of sellers venturing online have increased by 50 per cent since the coronavirus outbreak and the subsequent lockdown.

Not only the MSMEs, the e-commerce platform is increasingly hosting several local shops. Amazon India has a ‘Local Shop Programme’ through which the company aims to brings neighbourhood kirana stores on it’s online marketplace. The programme is said to have gone up around 10 times in the past six months to exceed more than 50,000 offline sellers.

The Indian local and regional language option available on Amazon India’s website has also helped in the increase of sellers to enter the online marketplace. Around one third of the sellers have signed up in local languages mostly Hindi, Tamil, Kannada and Marathi, said Amazon India’s Global Senior Vice President and Country Head Amit Agarwal. MSMEs in Karnataka To Benefit As Amazon India Inks Pact With Karnataka Govt To Increase Their Exports on Global Selling Platform.

Amazon India has also enabled a cumulative exports of $3 Billion under its Global Selling programme. Over 70,000 businesses are currently a part of this initiative by the e-commerce giant. The firm has also created around 7,00,000 employment opportunities until last year and added 3,00,000 more jobs during the preceding year, generating a total of 1 Million job opportunities in the country. Amazon India & CII Sign MoU to Help MSMEs Adopt E-Commerce & Digitisation of Business.

Recently, the firm had inked an agreement with the Karnataka industries and commerce department to help MSMEs in the state in increasing their exports on its global selling platform. Under this Amazon will be able to train and onboard MSMEs across the state on its global selling platform for driving their exports to customers in 200 countries the world over. The e-commerce giant’s platform lowers entry barriers for firms in MSME sector to expand their business on a global level.

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Centre Committed to Promote Renewable Sources of Energy, Especially in MSME Sector, Says Union Minister Nitin Gadkari

Union MSME Minister Nitin Gadkari. (Photo Credit: PIB)
Union MSME Minister Nitin Gadkari. (Photo Credit: PIB)

The government and its various enterprises have taken several initiative to promote and develop the micro, small and medium enterprises. Several schemes and programmes have been implemented with the aim to boost the MSME sector in the country and improve its competitiveness at par with the global competitors. There are have certain steps undertaken by the Nitin Gadkari-Led Union MSME Ministry to reduce the cost of operations and increase the efficiency of its functioning. At a recent event, Nitin Gadkari said that the government is committed to promote the use of renewable resources in the country, especially for the enterprises in the micro, small and medium sector. MSMEs Should Avail Concessional Finance and Install Rooftop Solar System to Increase Business Efficiency, Says Union Minister Nitin Gadkari.

Addressing a webinar, Union Minister Nitin Gadkari said that the firms in the micro, small and medium sector with good track record are now being encouraged for capital market. Gadkari added there exists a huge opportunity for investment in scrapping policy. The MSME Minister also invested foreign investors to invest in the Indian MSMEs and expressed hope that it will drive the sector to become the world’s largest manufacturing hub, by providing numerous opportunities.Union Minister Nitin Gadkari Inaugurates Technology Centres, Extension Centres To Boost MSME Sector.

He also promoted the use of solar energy for the micro, small and medium firms in another recent event. Gadkari had earlier urged the MSME owners to install rooftop solar for enhancing the efficiency of the firm and bring down the cost of operations substantially. He had said that the roof top solar system offers an excellent value proposition to Micro, Small and Medium Enterprises by significantly bringing down cost of electricity consumption, which on an average, is up to one-fifth of their operations cost. He also asked the people in the sector to avail concessional debt finance to do the same.

“I believe there is a strong business case for MSMEs to install rooftop solar and achieve significant savings to achieve the cost-competitiveness. I am confident that MSMEs will stand together in generating and consuming solar power using their rooftops,” Union Minister Nitin Gadkari had said while addressing an event virtually earlier this month.

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MSME Sector ‘Growth Engine’ of Indian Economy, Contributes around 30% to GDP, Says RBI Governor Shaktikanta Das

RBI Governor Shaktikanta Das (Photo Credits: Wikimedia Commons)

The Micro, Small and Medium Enterprises have been gaining momentum in past few years. Government at various levels, the MSME Ministry, Public Sector Banks, and NBFCs among other state agencies have been implementing several initiatives for the development of the sector and encourage more and more people to establish their businesses in the MSME sector. The sector did suffer owing to the coronavirus outbreak and the subsequent lockdown, which lead to curb on all the economic activities across the country. However, the various micro, small and medium enterprises are now on the path of revival and will soon bloom to its full potential soon again. Union Budget 2021: Here Is What the First Paperless Budget Has In Store for the MSME Sector.

Addressing the 185th Foundation Day Celebration of Bombay Chamber of Commerce and Industry, Governor of the Reserve Bank of India Shaktikanta Das said that the Micro, Small and Medium Enterprises (MSME) sector has emerged as the growth engine of the economy and is showing signs of revival after the COVID-led degrowth in early part of the current financial year (2020-21). Das added that the sector has been rendered vulnerable by the pandemic necessitating concerted effected effects to combat the stress and focus on the revival of the sector.

He informed that MSME sector -a vast network of around 6.33 Crore enterprises- is contributing about 30 per cent of the nominal Gross Domestic Product (GDP) of the country and 48 per cent to the total exports of India. “As digital capabilities improve and connectivity becomes omnipresent technological innovation and technology-driven revolution are poised to quickly and radically change India’s economy,”said Das. Adding that the Reserve Bank of India has also made necessary intervention to support economy’s critical sector- referring to the micro, small and medium enterprises. Major Boost to MSME Sector: Govt Trying to Make 5,000 MSME Clusters Under SFURTI Initiate, Says Union Minister Nitin Gadkari.

Meanwhile, the central government on its end has also been contributing towards the development of the MSME sector. In the Union Budget for the upcoming financial year 2021-22, Finance Minister Nirmala Sitharaman has proposed an allocation of a fund of over Rs 15,000 Crore to the Micro, Small and Medium Enterprises, which stands at double the amount apportioned to the sector last fiscal. A reduction in the custom duties has also been proposed, with duties on semis, flat, and long products of non-alloy, alloy, and stainless steels has been reduced to 7.5 per cent uniformly.

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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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Union Budget 2021: Here Is What the First Paperless Budget Has In Store for the MSME Sector

union budget-2021
Union Budget 2021-22 | Representational Image

Union Finance Minister Nirmala Sitharaman on Monday presented the central government’s Budget for the upcoming financial year 2021-22 in the Parliament. The MSME sector got a fair share of the estimated public expenditure for the next fiscal year set to begin from April 1 this year. In the budget unveiled today in Lok Sabha, Sitharaman has allocated a fund of over Rs 15,000 Crore to the Micro, Small and Medium Enterprises, which stands at double the amount apportioned to the sector last fiscal. “We have taken a number of steps to support the MSME sector in this budget. I have provided Rs 15,700 crore more than double the previous year,” said the Finance Minister. Union Budget 2021: How the post-COVID Budget will Impact the Corporates & Common Taxpayers?

The budget has also slashed the custom duty rates on various commodities to support the MSMEs affected by the COVID-19 induced economic slowdown. Customs duty on semis, flat, and long products of non-alloy, alloy, and stainless steels has been reduced to 7.5 per cent uniformly as per the Union Budget for 2021-22.  “To provide relief to metal recyclers, mostly MSMEs, I am exempting duty on steel scrap for a period up to March 31, 2022. Further, I am also revoking ADD and CVD on certain steel products,” said Nirmala Sitharaman.

The custom duties on steel screws and plastic builder wares has been increased from 10 per cent to 15 per cent while on prawn feed it has increased to 15 per cent from the existing 5 per cent. Meanwhile the duty on cooper scrap has been halved from 5 per cent to 2.5 per cent. For MSMEs dealing in the textile industry,  nylon chain has been made in par to polyester and other artificial fabrics as part of easing duty on raw materials and inputs.Union Budget 2021: Healthcare, Infrastructure will remain in the limelight!

In order to provide budgetary incentives to the promoters and exporters of garments, leather and handicraft products that are in the MSME sector, Nirmala Sitharaman announced the withdrawal of exemptions on imports of some types of leathers as they are manufactured domestically in quality and quantity.

Apart from the above measures, the finance minister has announced the establishment of a special framework for MSMEs for debt resolution. To resolve cases faster, the NCLT framework will also be strengthened including the implementation of the e-Courts system from the businesses in the sector. An additional year of tax holiday has also been provided to the affordable housing business.

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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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IIT Kharagpur Develops Portable AI-Based Device to Enable Automatic Inspection of Goods in MSME Sector

IIT Kharagpur
IIT Kharagpur (Photo Credits: Wikimedia Commons)

Kolkata, December 4: IIT Kharagpur researchers have developed a portable Artificial Intelligence-based device for automatic inspection of goods manufactured in MSMEs. According to a PTI report, the innovation will immensely benefit the micro, small and medium enterprises, which rely on manual checking and face losses when an entire batch is rejected if a few samples turn out to be faulty during random inspections, he said.

The research team, comprising Professors Surjya K Pal and Debashish Chakravarty, technical staffer Pravanjan Nayak among others, has filed a patent for the system, which will be made available to MSMEs to license the technology. MSME Employment Opportunities: Centre Plans to Create 5 Crore Job Opportunities in Micro, Small and Medium Enterprises Sectors in India.

How Does the Device Work?

The portable device will click pictures of products when set up on a batch of goods and send the feed to the AI-based software for quality control.

Professor Pal highlighted that MSMEs mostly rely on manual inspection, were a few samples are randomly selected and checked based on which the entire batch is accepted or rejected. This not only lacks effectiveness but also increases the cost of production.

The MSME sector, which employs over 10 crore people in the country and contributes nearly 30 per cent of India’s GDP and 50 per cent of export revenue, is still outside the ambit of industry-scale adoption of artificial intelligence and machine learning, Professor Pal further pointed out.

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MSME Employment Opportunities: Centre Plans to Create 5 Crore Job Opportunities in Micro, Small and Medium Enterprises Sectors in India

future jobs
Job (Representational Image) Photo Credits: Picpedia)

Mumbai, December 1:Union Minister Nitin Gadkari on Monday stated that the Central government is planning to create 5 crore employment opportunities in addition to the existing ones in Micro, Small and Medium Enterprises (MSME) sectors alone.

He was addressing at 2020 Horasis Asia Meeting. Gadkari was quoted saying, “The government is planning to create 5 crore more employment opportunity from MSME sectors only. In the coming years, India will become the top automobile manufacturing hub in the world.”

He further went on to compare India’s manpower with China and said that our country has huge potential. The availability of young talented manpower, raw material and favourable Policy of Centre and State governments gives an excellent opportunity for investors to invest in India,” he added.

The government is working to increase the contribution of the MSME sector to the economic growth from 30 percent to 40 percent and also increase the MSME export from 48 percent to 60 percent.