Category: MSME

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MSMEs in Haryana Get Major Boost! Products Manufactured by MSMEs in the State To Get Global Market, Talented Artisans To Benefit

Clothing Business

Chandigarh, February 11: The products manufactured by the Haryana MSMEs will now get the global market as the Haryana government signed pacts with three companies on Thursday. The news was informed by Haryana Deputy Chief Minister Dushyant Chautala. The Minister, who also holds the industries department portfolio, said artisans producing traditional handloom products of the state will also get a reasonable price for their craft. The Deputy Chief Minister said the signing of MoUs with three companies of international and national level by the MSME department is a step towards ‘Atmanirbhar Bharat’. The pact will give a boost to the MSMEs of the state as well as to the talented artisans.

The pacts with ”eBay”, Power2SME”, India’s first ”buying club” for SMEs and TradeIndia.com, price and product discovery platform, was signed by Haryana MSME Department Director General Vikas Gupta and the representatives of the companies. The memoranda of understanding (MoUs) by Haryana’s Micro, Small, and Medium Enterprises (MSME) Department with three companies was signed in his presence, a state government statement said. Industries and Commerce Department Principal Secretary Vijayendra Kumar was also present on the occasion.

  • The products being manufactured by the MSMEs of the state will now be able to be purchased in any corner of the world; this will also increase the export of our country.
  • Haryana government’s primary focus is to promote entrepreneurship, to enhance inclusive and balanced regional development in the state.
  • The strategic collaboration will help MSMEs, artisans in remote parts of the state, to overcome challenges restricting their access to domestic and international markets. This will not only give a boost to sales of existing entrepreneurs but also create unprecedented opportunities for new entrepreneurs.
  • Through this initiative, we are aiming at significantly enhancing visibility of indigenous and specialised products from the state, be it industrial products, or traditional handicraft products, and further strengthening ”brand Haryana”.

Chautala said these MoUs will also create unprecedented opportunities for new entrepreneurs. On the occasion, Kumar said MSMEs are becoming the backbone of the economy. He said the state government is committed to strengthening the existing ecosystem of over 2 lakh MSMEs in the state. Chautala said that in the current competitive era, it is important for MSMEs to adopt new and strategic approaches and added that e-commerce has the potential to take MSMEs to new markets. Gupta said the directorate of MSME is providing all possible help to its entrepreneurs so that they can generate good income from their enterprises and more youth can get employment.

Gupta said the directorate of MSME is providing all possible help to its entrepreneurs so that they can generate good income from their enterprises and more youth can get employment. He added that this pact will help our MSMEs transcend geographic boundaries and reach out to newer markets. “We look forward to creating impact and generate larger market opportunities for our MSMEs.”

He added that this pact will help our MSMEs transcend geographic boundaries and reach out to newer markets. “We look forward to creating impact and generate larger market opportunities for our MSMEs.”

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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 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

MSMEs in India: Banks Can Deduct Loans to New MSME Borrowers From NDTL for CRR Purpose, Says RBI

Money (Photo Credits: Unsplash)

New Delhi, February 6: With an aim to incentivise new credit flow to the micro, small, and medium enterprise (MSME) borrowers, all the Scheduled Commercial Banks will be allowed to deduct credit disbursed to ‘New MSME borrowers’. The banks have been allowed to deduct the credit from their net demand and time liabilities (NDTL) for calculation of the Cash Reserve Ratio (CRR).

The new development comes as part of the additional measures announced by RBI Governor Shaktikanta Das after the MPC meeting. The ‘New MSME borrowers’ have been defined as those who have not availed any credit facilities from the banking system as on January 1, 2021.

The exemption will be available for exposures up to Rs 25 lakh per borrower for credit extended up to the fortnight ending October 1, 2021. According to reports, details of the scheme would be spelt out separately by the Reserve Bank of India (RBI).

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MSME Startup

Aero Space 2021: MSMEs Bag Defence Orders Worth Rs 203 Crore in The Event

Fighter Aircraft (Photo Credits: Pixabay)
Fighter Aircraft (Photo Credits: Pixabay)

The scope of Micro, Small and Medium enterprises have been rapidly expanding. The sector is no longer limited to handicrafts, apparel and other labour intensive industries. Its areas of operations are even including highly advanced and technology incentive ones. Newer capital driven avenues are being opened up for the enterprises. Even MSMEs related to the production of defence related equipment and technology are gaining momentum. In the on going Aero India 2021 in Bengaluru, several small and medium scale enterprises have participated and showcased their prowess.  Overall the MSMEs have garnered a deal worth Rs 203 Crore from the Ministry of Defence during the event. Evaluation of Business Performance: 5 Ways to Measure True Success.

Union Defence Minister Rajnath Singh on Friday addressed the Start-Up Manthan organised by the Innovation for Defence Excellence (iDEX) at the Air Force Station, Bengaluru. The event provides an opportunity for start-ups to showcase their capabilities, products and services to the targeted audience. During his speech, Singh announced that 45 MSMEs participating in the event have bagged orders worth Rs 203 Crore, terming it a big achievement. “We have signed 128 MoUs, 19 ToTs, 4 Handing Overs, 18 Product Launches and 32 major announcements, totalling a grand figure of 201 feats, ” he added.

The number of start-ups in the aero-space sector has also increased manifolds. Over 300 start-ups have been currently engaged and under iDEX. Meanwhile,  10 start-ups have developed products worth ₹100 crore which were put on display at the Aero India event this year.  In Defence India Start-up Challenge (DISC) for the ongoing year, over 1,200 start-ups and innovators took part. Out of the total participants more than 60 start-ups in 30 technological areas under DISC challenges have been recognised. 3 Simple & Effective Growth Hacks for Every Small Business.

The Union Defence Minister informed that around  Rs 4,500 Crore worth investment has been made in 384 start-ups through Fund of Funds Scheme. “In such an ecosystem, it will not be an exaggeration to say that our economy is soon going to be driven by these start-ups,” said Rajnath Singh. Adding that the government is acutely conscious that start-ups being the latest entrants in the defence manufacturing sector require that extra push.

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MSME

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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MSME

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.

Get more than 600 business templates that will give you exactly what you are looking for. Learn from the top industry experts that can help you change the business dynamics for the future. To know about our courses, click here: https://www.badabusiness.com/psc?ref_code=ArticlesLeads 

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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.