Tag: MSME

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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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MSME

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

Here Are 3 Major Roadblocks on the Path of Indian MSMEs’ Road to Digital Transformation

Digital Transformation
Digital Transformation (Photo Credits: Pxfuel)

New Delhi, November 24: Indian MSMEs realised the importance of digitisation amid the coronavirus crisis. Infact, digitisation opened the gates for many local businesses and helped them strengthen their operations and cope better with stressful times.

However, there are some roadblocks on the path of Indian MSMEs which needs to be cleared to achieve success.

Limited growth capital: MSMEs have limited growth capital that makes technology adoption and digital transformation demanding.

Expensive: Digitisation is an expensive affair, from buying the latest smart devices, strong internet services, to getting skilled employees to manage the system.

Unaware of digital impact: Indian MSMEs are still unaware of digitisation and they fail to create customer loyalty and retention.

India’s micro-, small- and medium-sized enterprise sector is a vital contributor to the country’s growth story. According to a 2019 study conducted by YES Bank, it revealed that over 50 percent of digitally-empowered MSMEs improved their profits, operational efficiencies, as well as customer engagement. In addition to this, the Narendra Modi government has pushed out several initiatives to boost the sector.

MSMEs are not alone in their journey to digitisation, e-commerce companies like Amazon and Flipkart to corporates like Mastercard all have been doling out initiatives to help the MSME sector. Also, several startups like Khatabook, FarEye, Udaan, and others are dolling out several initiatives to help MSMEs in the digitisation journey.

 

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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

MSMEs Show Signs of Recovery, All Eyes Now on Diwali 2020 to Bailout the Stressed Sector

Startup Growth
Startup Growth (Photo Credits: Pixabay)

Mumbai, November 3: The coronavirus pandemic has been extremely difficult on every business, and India’s MSME sector is one of the worst-hit. The sector which has about 70 million enterprises and employs around 110 million people is battered due to the lockdown.

From factories being shut down, and freeze in the production, it is the small companies who are facing the heat of the pandemic. All eyes are now on Diwali 2020, from which they expect the sales to recover and help them to bounce back.

With the ease in the lockdown restrictions and with the economy opening up, business is taking place. According to a Financial Express report, retailers in majority sectors are yet to recover back to the year-ago level, and businesses in consumer durables and electronics seem to be scaling back relatively faster.

Some of these sectors like- sports goods, furniture, jewellery, footwear, food and grocery have still not managed to hit October 2019 level growth, according to the survey done by the Retailers Association of India.

While all hopes are pinned on the Diwali season, but according to reports, the demand continues to be low as people are sceptical of going to shops and making their purchases. On the other hand, customers are extremely careful in terms of spending as well.

 

 

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MSME

MSMEs in India: Over 11 Lakh MSMEs Registered So Far on Udyam Online System Since July; Here’s How You Can Register Your MSME Online

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

New Delhi, November 11: As many as 11 lakh MSMEs in India have registered on the new online system of Udyam Registration so far in just less than 5 months. The Udyam Registration was launched in July by the government. Of the 11 lakh MSMEs, as many as 3.72 lakh enterprises have registered under manufacturing category whereas 6.31 lakh enterprises under service sector. The five leading states for Udyam registrations are Maharashtra, Tamil Nadu, Rajasthan, Uttar Pradesh and Gujarat.

The MSME ministry stated that the top five industrial sectors of registrations are food products, textile, apparel, fabricated metal products and machinery & equipment. 1,01,03,512 persons have been given employment by these registered units. Registration without PAN and GST number is permitted on the system up to March 31, 2021 as a transitional arrangement.

Reports inform that the share of micro enterprises is 93.17 percent whereas small and medium enterprises are 5.62 percent and 1.21 percent, respectively. Adding further, an official statement said that 7.98 lakh enterprises are owned by male whereas 1.73 lakh enterprises by female entrepreneurs, and 11,188 enterprises are owned by divyangjan entrepreneurs.

Here’s How MSMEs Can Register:

  1. MSMEs can register on the official website of Udyam Registration- i.e. udyamregistration.gov.in
  2. An enterprise for the purpose of this process will be known as Udyam and its Registration Process will be known as ‘Udyam Registration’.
  3. A permanent registration number will be given after registration. After completion of the process of registration, a certificate will be issued online.
  4. This certificate will have a dynamic QR Code from which the web page on our Portal and details about the enterprise can be accessed.
  5. There will be no need for renewal of Registration.
  6. The single window systems at Champions Control Rooms and at DICs will help you in the process. Registration Process is totally free. No Costs or Fees are to be paid to anyone.
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MSME

Good News! MSME Business Activity Returning to Near-Normal Levels, Tier 2 & 3 Witness Faster Recovery Than Tier 1 Cities

Startup Growth
Startup Growth (Photo Credits: Pixabay)

Mumbai, November 4: It comes as a ray of hope amid the pandemic that the business activity of the micro, small and medium enterprises is returning to near-normal levels. According to a report published on PTI, the SMEs are rapidly developing a digital business tool to increase efficiency and growth.

The positive sign is that out of 36, 16 states and Union territories have witnessed business activity levels higher than pre-covid times. The data gathered by startup OkCredit further pointed out that business activity in Karnataka, Maharashtra, Gujarat, Andhra Pradesh, Tamil Nadu and Delhi are trending at 90-95 per cent of their pre-COVID levels.

A similar positive trend is being witnessed in Uttar Pradesh, Madhya Pradesh, Chhattishgarh, Odisha, Jharkhand, Uttarakhand, Bihar, Haryana, Assam, Rajasthan, and Himachal Pradesh.

The report further mentions that businesses activity in tier 2 and tier 3 cities are witnessing faster recovery than tier 1 cities. This has been attributed to the rise in micro-retail players increasingly taking up digital bookkeeping solutions.

 

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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.

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MSME

MSMEs Are The Backbone of Economy, Can Help in Boosting Exports, Says Nitin Gadkari

Nitin Gadkari (Photo Credits: Facebook)

Mumbai, October 29: Micro, small and medium enterprises (MSMEs) are the backbone of the economy and can help in boosting exports, Union Minister Nitin Gadkari said. The MSME minister said at present, the MSMEs are the backbone of the country. While addressing the virtual inaugural ceremony of the 10-day ”Namaste Bharat” exhibition, Gadkari said that the government wants to create more employment in the backward and tribal areas.

The 10-day Namaste Bharat is the first of its kind exhibition for promoting ”Made in India” products globally. It is backed by the Federation of Indian Export Organisations (FIEO) and the High Commission of Singapore.

“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”, he said. He said the government wants to recognise, respect, support and facilitate women entrepreneurs and at the same time we want to incentivise them.

The Namaste Bharat initiative 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.

Talking about the Khadi Gram Udyog, the MSME Minister said that through this, the government is now concentrating on village industries and areas which are socially, economically and educationally backward. “We want to focus on these areas where we need more concentration for gaining and creating employment potential and growth. And that is exactly the way of eradication of poverty, which is our mission. They need guidance, innovation and technology and that is where we need to help them,” the minister added.

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MSME Startup

COVID-19 Impact: 78% MSMEs and Startups in India Reduced Workforce in Last 8 Months Since Pandemic Broke Out, Says Survey

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

New Delhi, October 20: Ever since the COVID-19 pandemic broke out in India, as many as 78% MSMEs and startups across the country have reduced workforce in the last 8 months. As per a survey by LocalCircles, only 22 percent startups and MSMEs have the same or increased workforce as compared to the pre-COVID levels. According to reports, India’s startups and MSMEs ecosystem went through a torrid time due to the deadly pandemic and lockdown that was imposed across the country. Revenues and operations were severely impacted for most businesses which led to cost cutting and some even shut down temporarily or permanently. Per CMIE, 6 million Indians had already lost white collar jobs in the March – August period.

To understand the impact of the pandemic on startup and MSME, a survey conducted by LocalCircles received over 7,000 responses from startups, MSMEs and entrepreneurs spread across 104 top business districts of the country. In the survey, startups and MSMEs were asked about how have workforce adjustments taken place in their business during the Covid-19 pandemic. In response, 25 percent said their business has shut down and all workforce has been let go, while 15 percent said their workforce has reduced by 50 percent or more.

A 19 percent said their workforce has reduced by 25-50%, and another 19 percent said their workforce has reduced by up to 25 percent. A 6 percent said their workforce has increased and 16 percent said they have same workforce as pre coronavirus time. This shows that 78 percent MSMEs and startups in India have reduced workforce in the last 8 months since the COVID-19 pandemic broke out and only 22 percent startups and MSMEs have the same or increased workforce as compared to the pre-COVID levels.

The Government also took steps to help these small businesses through the Atmanirbhar Bharat scheme, but its advantages per feedback from businesses in July this year has been quite limited, the survey said.

The startups and MSMEs in India were asked about how employment of women has been in their business 8 months into the COVID-19 pandemic. In response, 7 percent said women in their workforce have been reduced by 50-100 percent, 12 percent said women in their workforce have reduced by 25-50 percent, and 12 percent said women in our workforce have been reduced by up to 25 percent. 46 percent said they still have same number of women in the workforce as pre COVID-19. Not a single business reported increase in the number of women employees during the course of the 8 months of COVID-19 pandemic.

This means that 31 percent MSMEs and startups in India have reduced women workforce in the last 8 months. The Labour Force Participation Rate (LFPR) among women in India, is one of the lowest in the world and appears to have slid even further during the COVID -19 pandemic.

In the final question, startups and MSMEs were asked looking at the next 6 months as to how do they see employment of women in their business. In response, 50 percent said they don’t plan to hire any women employees while 30 percent said they plan to hire 1-5 women employees. 13 percent said they plan to hire 6-10 women employees and 7 percent were unsure about it.