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MSMEs in Karnataka To Benefit As Amazon India Inks Pact With Karnataka Govt To Increase Their Exports on Global Selling Platform

Online Business
Online Business

Bengaluru, January 29: With an aim to help micro, small and medium enterprises (MSMEs) operating in Karnataka and spur their exports, global e-tailer Amazon India on Thursday signed an agreement with the Karnataka industries and commerce department. The pact will help the MSMEs in the southern state in increasing their exports on its global selling platform. The agreement will enable Amazon 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-tailer’s platform lowers entry barriers for MSMEs to expand their business and launch their products globally.

An official statement said that the MSMEs from the state export a range of products, including readymade apparel, leather goods and toys among others and the pact would boost their export. The company will conduct training, webinars and on-boarding workshops in MSME clusters at several locations on B2C e-commerce exports.

Here’s How the pact would benefit MSMEs in Karnataka:

  • The workshops will enable MSMEs to use tools for launching their brands and grow their business in overseas markets through our global selling platform.
  • The company will conduct training, webinars and on-boarding workshops in MSME clusters at Ballari, Channapatna and Mysuru on B2C e-commerce exports and selling worldwide through its 17 international marketplaces.
  • The partnership with Amazon India will enable MSMEs to leverage its global presence and showcase their products to customers the world over.
  • The partnership with Amazon will help the livelihood of artisans, weavers and craftsmen in the state as 50 per cent of sellers from Karnataka on Amazon were in based in tier-II cities, Amazon should expand its footprint beyond Bengaluru to other parts of the state.
  • Karnataka Industries Minister Jagadish Shettar said on the occasion that Karnataka had a vibrant agro, aerospace, automobile, biotech, garment, handicraft, textile and toys sectors.
  • Abhijit Kamra, Amazon India global trade Director, said the partnership with the Karnataka government would elevate MSMEs in the state to a global level.

In the past, the Amazon global selling programme has enabled over 70,000 Indian exporters to cross $2billion in exports and showcase Made in India products. The southern state has a rich cultural and traditional heritage, with multiple Geographical Indications (GIs) products like Bidriware, Channapatna toys and Kinnhal craft. Mysore silk, Udupi cotton and Ilkal sarees are world-famous.

Karnataka has about 8 lakh MSME units with Rs 86,000 crore investments and employ 56 lakh people in 10 clusters spanning automobiles at Hubli-Dharwad, food processing at Kalaburagi, readymade garments at Hubli, raisin at Bijapur (Vijayapura) and Athani in Belagavi, heat treatment at Hubli and printing at Harohalli in Ramanagara district among others.

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MSME

MSMEs in India Will Get E-Portal To Sell Their Products, Govt Is Working With SBI To Launch Online Facility, Says Nitin Gadkari

Nitin Gadkari (Photo Credits: Facebook)

Mumbai, January 23: With an aim to facilitate the Medium, Small and Micro Enterprises (MSMEs) in India to sell their products, the government is working with State Bank of India (SBI) to launch an E-portal on the lines of Amazon, Transport & MSME Minister Nitin Gadkari said. At a webinar organised by All India Association of Industries President Vijay Kalantri, Gadkari said that Amazon.com generates a business of around Rs 70,000 crore annually for Indian MSMEs at present. He added saying that this can be enhanced by a dedicated e-Portal to enable them complete with global brands.

Gadkari urged the MSMEs to spread their wings and said they must form joint ventures with start-ups or technology transfers from institutions like IITs or IIMs to compete on a global scale. The Minister asserted that the government aims to increase the share of MSME sector in total exports from the current 48 percent to 60 percent in the coming years. Gadkari said that this would go a long way in boosting the Atmanirbhar Bharat programme of Prime Minister Narendra Modi. He said in order to protect the interests of MSME vendors, the government has mandated public sector undertakings to settle their dues within 45 days of sale and also plan to introduce legislation to this effect.

On similar lines, the union minister said that the government is making efforts to increase the turnover of the village industry from the current Rs.80,000 crore to Rs.5-lakh-crore in next couple of years which will create jobs in rural, agricultural and tribal segments and eradicate poverty. Gadkari further highlighted the initiatives and innovations by his ministry, Gadkari said that they encourage development of high-quality, cost-effective but sustainable local products as import substitutes.

“Local MSMEs have developed indigenous paint, Khadi Prakritik Paint made with cowdung which is 50 percent cheaper than top brands, but is still world-class. A small unit can produce this paint with a capital investment of barely Rs. 15 lakhs,” Gadkari said.

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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.

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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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MSME

Amazon India & CII Sign MoU to Help MSMEs Adopt E-Commerce & Digitisation of Business

Amazon India and CII tie up to help MSMEs| Representational Image (Photo Credits: Facebook)
Amazon India and CII tie up to help MSMEs| Representational Image (Photo Credits: Facebook)

E-commerce giant Amazon India and the Confederation of Indian Industry on Thursday signed a Memorandum of understanding (MoU), following which they aim to bring benefits of digitisation of businesses to Micro Small and Medium Enterprises (MSMEs) in ten states across India. “As part of the MoU, Amazon.in and CII will conduct trainings, workshops and host masterclasses to enable MSMEs to sell online. Amazon and CII will work together to create a special exports module to simplify exports with e-commerce for lakhs of MSMEs across India,” Amazon.in said in a statement. Amazon India to Host 4th Edition of Small Business Day 2020 on December 12, to Support Startups to Sustain Their Business Growth.

Amazon also intends to work with the Ministry of MSMEs and enable MSMEs across the country to take their business online so as to ensure a wider customer base for them, not only in India but at a global level. As a part of this initiative, the CII and Amazon will publish regular reports on market analysis and conditions to help the MSMEs foresee any opportunity and be ready for threats. They will also publish insights for enterprises on promising categories, marketing, and branding of their products, logistics, MSME success stories and information on top performing products and services. IIT Kharagpur Develops Portable AI-Based Device to Enable Automatic Inspection of Goods in MSME Sector.

The Director General of CII, Chandrajit Banerjee, said that their initiative will help Indian MSMEs to reach customers at a global level. She added, “education about e-commerce and e-commerce exports will enable MSMEs to identify opportunities that help them access national and global customers.”  Adding, “We are excited about our partnership with Amazon that will help bring e-commerce closer to MSMEs and drive their digital transformation.”

Early this year, Amazon India had made three key announcements including digitising 10 Million MSMEs, enabling $10 Billion in e-commerce exports and creating 1 Million jobs, by 2025.”As we continue to work closely with the government on this important agenda, our collaboration with CII will help bring more and more MSMEs online, help them be part of the growing digital economy and create newer business opportunities for them,” said Amit Agarwal, Senior VP and Country Head, Amazon India.

Recently Nitin Gadkari the Union Minister for MSMEs had also talked about the importance of technology and digitisation of the sector. “In the next 5 years, technology and e-commerce will play a key role in enabling this growth and ensuring the success of millions of MSMEs in domestic as well as international markets. The combined efforts of government and the Industry will bring us closer to realizing the vision of an Aatmanirbhar Bharat,” he had said.

 

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Startup

Traditional and Rural Enterprises: 5 Schemes by Government to Protect & Develop The Sector

Handloom Industry (Photo Credits: Wikimedia Commons)
Handloom Industry (Photo Credits: Wikimedia Commons)

Rural India has a variety of industrial set-up including cottage industry, single-unit manufacturing, small and medium enterprises among others, since long-back. The traditional industries still thrive and provide employment to many villagers and people in the nearby areas. There are several traditional industries which are viably operative. These include handloom, handicrafts, coir, cashew, beedi, tiles and bricks and other household industrial activities carried out in the rural parts of the country. Traditional industries are labour intensive, relying on skills passed on from one generation to another generation. Mostly these industries comes under the category of Micro, Small and Medium enterprises (MSMEs)

The MSMEs contribute about 30 per cent to India’s GDP In terms of exports as well, they are an integral part of the supply chain and contribute about 40% of the overall exports. MSMEs also play an important role in employment generation, as they employ about 110 million people across the country. Governments at various levels, time and again, have implemented various schemes in order to protect and promote rural entrepreneurship and traditional industries. Here are some the schemes imitated by the government for their development –

 

Prime Minister’s Employment Generation Programme (PMEGP) 

Launched by the centre in 2008, this scheme is a credit-linked subsidy programme undertaken to generate self-employment opportunities through establishment of micro-enterprises in the non-farm sector and providing help to traditional artisans and unemployed youth. The scheme is implemented by Khadi and Village Industries Commission (KVIC) functioning as the nodal agency at the national level. At the State level, the scheme is implemented through State KVIC Directorates, State Khadi and Village Industries Boards (KVIBs), District Industries Centres (DICs) and banks.

 

A Scheme for Promoting Innovation, Rural Industry & Entrepreneurship (ASPIRE)

This scheme  was launched in 2019 to create new jobs and reduce unemployment, promote entrepreneurship culture in India, boost grassroots economic development at the district level, facilitate innovative business solutions, and promote innovation to further strengthen the competitiveness of the MSME sector. The scheme helps by providing for incubation and commercialisation of Business Ideas Programme through technical/research institutes, including those in the field of agro-based industry. These would be designated as Knowledge Partners and would incubate new/existing technologies for their commercialisation.

Scheme of Fund for Regeneration of Traditional Industries (SFURTI)

The scheme aims for the development of khadi, village industries, and coir clusters by providing them with improved equipment, common facilities centres, business development services, training, capacity building and design, and marketing support, etc.  The scheme invites applications from non-government organisations (NGOs), institutions of the Central and State governments and semi-government institutions, field functionaries of State and Central government, Panchayati Raj institutions (PRIs), private sector bodies by forming cluster-specific special purpose vehicles/entities (SPVs), corporate, and corporate social responsibility (CSR) foundations with expertise to undertake cluster development.

 

Credit Guarantee Scheme for Micro and Small Enterprises (CGTMSE)

It facilitates credit to MSMEs through collateral-free credit facility (term loan and/or working capital) extended by eligible lending institutions to new and existing micro and small enterprises.  The MSME Ministry and Small Industries Development Bank of India (SIDBI) jointly established a Trust named Credit Guarantee Fund Trust for Micro and Small Enterprises in order to implement Credit Guarantee Scheme for Micro and Small Enterprises. 75 per cent of the loan amount to the bank is guaranteed by the Trust Fund. It provides collateral-free loan up to a limit of Rs 100 Lakh for individual MSMEs on payment of a guarantee fee to the bank.

Credit Linked Capital Subsidy Scheme (CLCSS)

It facilitates technological development of small scale industries, including khadi, village and coir industrial units, by providing 15 per cent upfront capital subsidy with a upper limit of Rs 15 Lakh. Its objective is to upgrade the plant and machinery of small enterprises with state-of-the-art technology, with or without expansion, and also for new MSMEs, which have set up their facilities with appropriate, eligible and proven technology duly approved under scheme guidelines.

Apart from these, the government have certain other schemes aimed towards the development and conservation of the traditional industries in India. It also aims to keep the spirit of entrepreneurship alive and going in the rural area.

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MSME

Stimulus 3.0: Narendra Modi Govt Announces Fresh Relief Package, From Creating More Jobs to Credit Guarantee Support Scheme, Here’s How MSMEs Will Benefit

Stimulus Package
Stimulus Package (Photo Credits: Picpedia)

New Delhi, November 12: FM Nirmala Sitharaman announced a slew of measures as part of stimulus 3.0 with an attempt to give relief to the stressed sectors amid the coronavirus pandemic.

FM announced Atmanirbhar Bharat Rozgar Yojana to boost employment and create jobs. This will be effective from October 1, 2020. Under the new scheme, any EPFO-registered employer takes on new employees or hires those who lost jobs between March 1 and September 30 will be given some benefits.

The other measure was Credit guarantee support scheme, which was launched for the healthcare sector and 26 sectors stressed due to coronavirus pandemic. The scheme can be utilised for 100 percent guaranteed collateral-free additional credit at capped interest rates in these sectors.

The entities from these sectors with an outstanding credit of above Rs 50 crore and up to Rs 500 crore as of February 2, 2020, will be benefited in this scheme, the further FM added.

As part of PM Garib Kalyan Rozgar Yojana, an additional outlay of Rs 10,000 crores will be provided for in the current financial year, to boost rural employment.

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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

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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MSMEs in India Get Big Relief! Govt Ready to Waive ‘Interest on Interest’ on Loans Up to Rs 2 Crore During Moratorium

Money (Photo Credits: Unsplash)

New Delhi, October 17: In a major relief to thousands of individuals and MSME borrowers in India, the Modi government announced that it is ready to waive ‘interest on interest’ on loan up to Rs 2 crore during moratorium. In an affidavit filed on October 3, the government informed the Supreme Court that it has taken a decision to waive ‘interest on interest’ on loans up to Rs 2 crore during the six-month moratorium period. The affidavit said that the only solution is that the government should bear the burden resulting from waiver of compound interest.

The retail borrowers and small businesses are the ones who have been worst hit by the coronavirus pandemic. After the Centre expressed its willingness to waive off ‘interest on interest’ charges on loans up to Rs 2 crore for six months through August, the benefit will now be extended for loans availed by micro, small and medium enterprises (MSMEs), education loans, housing, consumer durables, credit card dues among others.

The categories of loans up to Rs 2 crore include- MSME loans, education loans, housing loans, consumer durable loans, credit card dues, auto loans, and personal loans to professional and consumption loans. The Centre said, “After careful consideration and weighing all possible options, the respondent Union of India has decided to continue the tradition of handholding the small borrowers”.

In the affidavit, the Centre added saying that it is impossible for the banks to bear the burden resulting from waiver of compound interest without passing on the financial impact to the depositors or affecting their net worth adversely, which would not be in larger public interest. “The government, therefore, has decided that the relief on waiver of compound interest during the six-month moratorium period shall be limited to the most vulnerable category of borrowers”, the affidavit said.

According to a report by IANS, after the recommendations of an expert committee, the Centre has altered its stand. Earlier, the RBI and Centre had argued against waiver of interest on interest, as it would be against the interests of other stakeholders, especially depositors, and also unfair to those who have paid their dues.

Background:

A bench comprising Justices Ashok Bhushan, RS Reddy and MR Shah had requested the Centre to have again consider its decision in the backdrop of financial hardship faced by many amid the coronavirus pandemic. Although, the top court had agreed to not waive interest altogether. The Centre said that the top Court would be satisfied that the government bearing this burden would naturally have an impact on several other pressing commitments being faced by the nation, including meeting direct costs association with the pandemic management.

The Centre also cited the example of waiving interest on interest for banks. “In case of SBI alone, waiver of six months’ interest would completely wipe out over half of the bank’s net worth which has accumulated over nearly 65 years of its existence”, the affidavit read. The Supreme Court will take up the matter on October 5 for further hearing. A clutch of petitions was filed in the top court seeking waiver of interest on interest on the deferred EMIs during the moratorium.