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Economic Times
3 days ago
- General
- Economic Times
Happy stability
In his celebrated poem, Happy Insensibility, John Keats is inspired by a tree whose inability to remember the past helps it to power through a cold winter and to retain its ingrained capability to sprout new leaves and blossom into a lush green tree. The tree is not capable of remembering its past accomplishments of being full of leaves, which have been lost in the cold winter. All that it does is make itself capable of enduring and surviving through the ongoing winter and at the right time, when spring comes, it breaks through with its inherent capability of becoming a green tree again. In the yogic pose of Vrikshasan, Tree Pose, we stand on one leg with another leg bent and resting on the thigh. We then fold our hands and raise them high above our head. The pose builds our balance, stability and strength. Practitioners of the Tree pose would know that this balance and stability is directly proportional to the stability of thoughts while doing the pose. If you practise the pose along with other people, and your mind tells you to do this pose better or longer than others, then you will lose balance. If there are thoughts cluttering your mind, you will lose stability. That is why this pose is more difficult with eyes closed than with eyes open. A calm, quiet and self-focused mind are preconditions to achieving a steady Tree Pose. Through trees, nature teaches us to forget the past, deal with the present and strive for future. Through the Tree Pose, we learn to be calm, stable, balanced and strong. (Disclaimer: The opinions expressed in this column are that of the writer. The facts and opinions expressed here do not reflect the views of Elevate your knowledge and leadership skills at a cost cheaper than your daily tea. Tariffs, tantrums, and tech: How Trump's trade drama is keeping Indian IT on tenterhooks How IDBI banker landed plush Delhi properties in Amtek's INR33k crore skimming Good, bad, ugly: How will higher ethanol in petrol play out for you? As big fat Indian wedding slims to budget, Manyavar loses lustre Regulatory gray area makes investing in LVMH, BP tough For Indian retail Logistics sector: Be tactical in the face of head & tailwinds; 6 logistics stocks with an upside potential of over 30% Just hold a good business for the long term, irrespective of the noise; ignore the cap. 13 stocks with an upside potential of up to 51% Stock picks of the week: 5 stocks with consistent score improvement and return potential of more than 25% in 1 year
Time of India
11-08-2025
- Business
- Time of India
ET Make in India SME Regional Summits: How IDBI Bank is powering Punjab's MSMEs
Live Events Financial discipline: Avoid over-leveraging, maintain adequate equity, and most critically, match loan tenures with asset life. "Don't use short-term funds for long-term purposes," he warned. "It creates cash flow mismatches that can sink even promising businesses." Industry 4.0 integration: This isn't about following trends, but about survival. Digital technologies need to be woven into the core business operations, not treated as add-ons. Robust networks: Success increasingly depends on partnerships, both domestic and global. No business, however innovative, can thrive in isolation. The textile mills of Punjab have been humming for decades, their looms weaving not just literal fabric, but the economic fabric of the region itself. From the cotton fields to synthetic yarn factories, from the workshops of Jalandhar's sports goods manufacturers to the pharmaceutical units dotting the landscape, micro, small, and medium enterprises (MSMEs) form the backbone of this industrial in an era of rapid digitisation, these businesses face a critical question: how do you modernise without losing your footing?Nagaraj Garla, Executive Director of IDBI Bank, believes the answer lies in a blend of financial innovation, technology adoption, and strategic partnerships. Speaking at the ET Make in India SME Regional Summit in Chandigarh on August 7, he outlined how the bank is helping MSMEs in the region thrive in a complex business environment. Garla headlined the fireside chat, 'Catalysing 'Make in India' Growth: IDBI Bank 's Strategic Imperatives for Empowering MSMEs'.This edition of the ET SME Summit had IDBI as banking and lending partner, and Canon as tech Bank has deep roots in the textile sector. "We've been associated with textile companies virtually from their inception," he stated, pointing to long-standing relationships with industry giants such as Raymond and Arvind. But it's the smaller players who need the most support in their journey from traditional to modern bank's Technology Upgradation Fund offers a lifeline to these businesses, providing 10-year term loans coupled with capital subsidies and concessional interest rates. It's not just about upgrading machinery, but also about transforming entire business models to meet both domestic demand and global export requirements."The challenge isn't just about having better looms," Garla added. "It's about creating a complete ecosystem that can compete internationally while maintaining cost efficiency."Perhaps nowhere is this challenge more acute than in the pharmaceutical sector. For large corporations, compliance with stringent regulatory requirements is manageable through dedicated teams and substantial resources. But for MSMEs, the costs are solution is simple yet powerful: collaborative clusters. "MSMEs can pool resources to create shared infrastructure and handle compliance collectively," he said, citing successful examples from Faridabad and Tirupur, where common facilities coordinate with overseas regulators for product cluster approach reduces costs but also levels the playing field, allowing smaller companies to access the same regulatory expertise and infrastructure that their larger competitors take for sports goods manufacturers of Jalandhar know the global market well, but navigating international supply chains requires more than just quality products. It demands financial sophistication that many MSMEs struggle to develop Bank's response is offering term loans for capacity expansion, pre-shipment credit, and post-shipment finance, all at concessional rates. But perhaps more importantly, the bank provides dedicated currency risk management services, a critical need in an era of volatile exchange rates."While large firms have in-house teams for currency management, MSMEs can rely on our experts for both RBI compliance and effective risk management," Garla explained at the ET SME Summit. Such specialised support that can make the difference between a successful export venture and a costly lesson in global most dramatic change, however, comes from the bank's embrace of digital lending technologies. Credit decisions that once took 45-60 days now happen in under an hour, sometimes within a single day. This is fundamentally changing how MSMEs access bank's IMSME Express platform, combined with active participation in invoice discounting through TReDS and the government's GeM portal, creates a seamless financial ecosystem. For enterprises supplying to large corporations or government entities, this means immediate liquidity instead of waiting weeks or months for payments."Financial discipline and management are critical for MSME success ," emphasised Garla. The bank's digital tools don't just provide faster credit; they help businesses better manage their cash flows and financial the most sobering statistic Garla shared is about innovation: globally, the innovation rate is around 36%, while in India, it's merely 4%. This gap, he argued, is what keeps many MSMEs at the lower end of the value chain, competing primarily on cost rather than value."If MSMEs focus on niche product specialisation, innovation, and global market access, we can greatly enhance competitiveness," he said. "This is key to achieving India's $5 trillion economy goal by 2047."As his conversation at the ET Make in India SME Regional Summit - Chandigarh came to an end, Garla shared three pillars of success that reflect years of working with businesses across sectors and scales:As Punjab's MSMEs stand at the crossroads of tradition and transformation, banks like IDBI are doing more than just providing capital. They're creating the financial infrastructure for the next phase of India's economic state's textile mills may still hum with the same industrial rhythm, but the businesses they house are increasingly sophisticated, globally-connected, and digitally-enabled. Whether this transformation will be enough to realise India's economic goals remains to be seen, but the blueprint, as outlined at the ET SME Summit, is Garla's vision, success won't just be measured in rupees and exports, but in the ability of India's MSMEs to innovate, adapt, and compete on the global stage. The question isn't whether these businesses can modernise, but how quickly they can embrace the future while staying true to their entrepreneurial ET Make in India SME Regional Summits, ET MSME Day, and ET MSME Awards are flagship initiatives to celebrate the versatility and success of India's MSME sector. If you lead or are part of a micro, small, or medium enterprise, register for the ET MSME Awards 2025 before August 31, 2025.
Time of India
06-08-2025
- Business
- Time of India
ET Make in India SME Regional Summits: How IDBI is filling the ₹30 lakh crore MSME gap
Live Events ET Make in India Regional Summit | Nagpur – IDBI Session As part of the Economic Times' nationwide effort to spotlight manufacturing excellence, the ET Make in India Regional Summit in Nagpur hosted a focused IDBI Bank session, highlighting the pivotal role of financial institutions in empowering MSMEs and large-scale manufacturers. The session brought together senior leaders from IDBI Bank, policymakers, and business owners to explore tailored financing solutions, sector-specific growth opportunities, and strategic collaborations to bolster the "Make in India" initiative at the grassroots level. The transformation of MSME financing in India can be measured in minutes, literally. What once took banks months to process now happens in 15-20 minutes for smaller loans, thanks to machine learning algorithms that assess cash flows rather than balance Nagaraj Garla , Executive Director of IDBI Bank , this digital revolution is the key to unlocking a ₹30 lakh crore credit gap that stands between India's 6.6 million-plus MSMEs and their growth a fireside chat at the ET Make in India SME Regional Summit - Nagpur , Garla painted a picture of an ecosystem in rapid transition, where collateral requirements have virtually disappeared and export financing has tripled in just four years. IDBI was the banking and lending partner, and Canon was the tech enabler for the the most striking change in MSME financing is the waning importance of collateral requirements. Under the enhanced Credit Guarantee Trust for Micro and Small Enterprises (CGTMSE), coverage has expanded from ₹1 crore to ₹20 crore for exporters, while the new Mutual Guarantee Scheme allows heavy engineering MSMEs to access loans up to ₹100 crore by paying just a 5% premium without any collateral."If your business fundamentals are strong, funding is available," Garla emphasised, citing Nagpur's heavy engineering sector as particularly well-positioned to benefit from these expanded shift reflects a fundamental change in risk assessment. Banks now prioritise cash flow analysis over balance sheet strength, enabled by GST data that provides real-time visibility into business transactions across multiple banking digitisation of lending processes has created what Garla describes as "time-sensitive funding" capabilities. When export opportunities emerge, such as Bangladesh opening its rice market, Indian mills can now access urgent working capital within hours rather than digital lending team processes applications for ₹1-5 crore loans within 20 minutes, while larger amounts are approved within a day. Even complex project reports that previously required two months can now be generated within five hours using digital speed is crucial for capturing market opportunities, particularly in sectors like textiles where global buyers often work with tight delivery numbers behind India's MSME export surge tell a remarkable story. From ₹4 lakh crore in FY21, MSME exports tripled to ₹12 lakh crore by FY25, with the number of exporting MSMEs rising said, Garla identified significant barriers preventing even faster growth. Market access remains challenging despite improved financing, requiring more platforms such as Amazon and industry-specific solutions to connect buyers and sellers the Vidarbha region in particular, textiles represent the primary export sector, but success requires investment in digital looms, CAD technology, and sustainable fabrics to align with global approach extends beyond traditional lending into equity participation through sector-specific funds. Its Maharashtra Defence and Aerospace Venture Fund , for one, takes equity stakes in companies focused on import substitution, which is relevant given India's push for self-reliance in strategic dual approach of debt and equity financing addresses the complete capital structure needs of growing MSMEs, particularly those in capital-intensive sectors like heavy improved access to finance, Garla identified cash flow management as the single biggest challenge facing Indian MSMEs. "Many businesses fail because they misuse short-term funds for long-term investments," he stated at the ET SME Summit , describing it as a "huge red flag" for prescription was straightforward: match funding duration with investment needs, invest in employee retention, and maintain personal financial diversification beyond business position as a logistics hub with excellent connectivity creates natural advantages for MSME growth. The presence of large textile manufacturers such as Raymond and the Trident Group has created an ecosystem supporting engineering, food processing, and related seasonal businesses like food processing, IDBI offers customised repayment schedules aligned with cash flow patterns, allowing rice and dal mills to repay after harvest seasons rather than through fixed monthly installments.A key growth avenue Garla highlighted is public market access through BSE SME IPOs. Many MSMEs have delivered 100% returns over five years, outperforming large-cap stocks, yet remain privately held."Just diluting 5% equity can unlock substantial value," he noted, describing listing as both a funding mechanism and a wealth creation tool for entrepreneurs and the broader assessments at the ET Make in India SME Regional Summit- Nagpur suggests that financing constraints, long the primary barrier to MSME growth, are rapidly dissolving. The remaining challenges — market access, skilled workforce, and management sophistication — require different advice to entrepreneurs reflected this shift: embrace transparency with bankers, invest in global networking, and build shared infrastructure through industry associations to reduce individual costs while improving India positions itself in the 'China Plus One' manufacturing strategy, the transformation of MSME financing from collateral-based lending to cash flow-driven digital processes may prove to be the foundation for the next phase of industrial growth. The infrastructure is in place. The question now is whether Nagpur's entrepreneurs can execute on the opportunities this new financial ecosystem ET Make in India SME Regional Summits, ET MSME Day, and ET MSME Awards are flagship initiatives to celebrate the versatility and success of India's MSME sector. If you lead or are part of a micro, small, or medium enterprise, register for the ET MSME Awards 2025 before August 31, 2025.
Time of India
06-08-2025
- Business
- Time of India
ET Make in India SME Regional Summits: Orange City's ₹30 crore MSME makeover
Live Events The numbers from Nagpur's recent industrial trade fairs in early 2025 tell a compelling story: over 300 MSMEs participated, hundreds of business inquiries poured in, and substantial orders materialised on the spot. For Subhash Ingewar, Assistant Director of the MSME Development and Facilitation Office, Nagpur, these results validate what he calls the "immense potential for growth" in India's Orange at the ET Make in India SME Regional Summit - Nagpur on July 24, Ingewar outlined an ambitious government support framework designed to capitalise on this momentum and position Nagpur as a key driver of India's 'Atmanirbhar Bharat' vision. Ingewar delivered a keynote titled 'Opportunities in 'Orange City': Vision for MSME-led Growth in Nagpur and Beyond'. IDBI was the banking and lending partner, and Canon was the tech enabler for the the heart of the government's strategy lies the MSME Cluster Development Scheme, offering up to ₹30 crore in funding for common facility centres and infrastructure development. The economics are compelling for manufacturers: Special Purpose Vehicles need to contribute just 5-10% of project costs, while the government provides the remaining 80-90%.This funding mechanism addresses one of the most persistent challenges facing MSME clusters: the inability to invest in shared infrastructure and modern facilities that could enhance their collective of the more innovative support measures targets a seemingly mundane but crucial requirement: barcodes. While cheaper alternatives exist in the market, Ingewar emphasised the strategic importance of GS1 India barcodes , which cost ₹70,000-80,000 but are internationally readable and essential for export markets."The GS1 barcode is required for exporting to many countries. It's a one-time investment with long-term benefits," he explained in his opening keynote at the ET SME Summit in Nagpur, announcing that the Ministry now reimburses up to 80% of these costs, which works to ₹50,650 per subsidy directly addresses the export readiness gap that has long prevented smaller manufacturers from accessing global markets due to compliance and certification Zero Defect Zero Effect (ZED) certification programme represents another pillar of the government's approach, promoting both manufacturing quality and environmental responsibility. With bronze, silver, and gold-level certifications available, enterprises can access 60-80% reimbursement of certification initiative reflects a broader shift toward positioning Indian MSMEs not just as low-cost manufacturers, but as providers of quality, environmentally-responsible products that can compete in premium global the most relevant support comes through the upgraded Samadhaan portal, designed to address the chronic issue of delayed payments that plague MSMEs across India. The platform allows enterprises to file complaints about overdue payments, which are then forwarded to the MSME Facilitation Council for upgrades to the portal's interface and features signal the government's recognition that cash flow problems often pose existential threats to smaller manufacturers, regardless of their underlying business his address, Ingewar credited Union Minister Nitin Gadkari's leadership for creating momentum in the region. The trade fairs organised under Gadkari's guidance in January and February this year provided validation of local manufacturing capabilities and market success of these events — 175 industries receiving stall charge reimbursements and generating substantial business inquiries — has become a template for future market development initiatives across the Vidarbha all these programmes is a broader vision of transforming government support from dependency-creating subsidies to capability-building investments. Ingewar framed the initiatives within the larger 'Atmanirbhar Bharat' movement, describing it as more than a slogan."With new ideas, concepts, startups, and innovations, we are on a path to reduce import dependency and create a proud, self-sufficient India," he declared, positioning Nagpur's MSMEs as crucial contributors to national economic Nagpur's manufacturers, the government's comprehensive support framework represents both an opportunity and a challenge. The funding, subsidies, and facilitation mechanisms are in place, but success will ultimately depend on how effectively local enterprises can leverage these resources to build genuine competitive industrial trade fair results suggest that strong market demand exists. Now, with targeted financial support addressing specific pain points from barcodes to delayed payments, Nagpur's MSMEs have the tools needed to transform potential into Ingewar concluded his address at the ET Make in India SME Regional Summit - Nagpur, the message was clear: the government is creating an enabling environment. The next chapter of the city's industrial story will be written by entrepreneurs willing to seize these opportunities and contribute to India's journey toward ET Make in India SME Regional Summits, ET MSME Day, and ET MSME Awards are flagship initiatives to celebrate the versatility and success of India's MSME sector. If you lead or are part of a micro, small, or medium enterprise, register for the ET MSME Awards 2025 before August 31, 2025.
Time of India
05-08-2025
- Business
- Time of India
ET Make in India SME Regional Summits: Vidarbha's industrial awakening
Live Events Maharashtra's Vidarbha region, long known primarily for its oranges and cotton fields, is experiencing a shift that has business leaders and policymakers buzzing with optimism. This subject was core to the ET Make in India SME Regional Summit - Nagpur, which took place on July 24, 2025. This edition had IDBI as banking and lending partner and Canon as tech enabler."Nagpur is now in take-off mode as an industrial capital of Vidarbha," said Julfesh Shah, Chairman of the Chamber of Small Industry Associations (COSIA), Vidarbha Chapter, capturing the sentiment that underlined the panel discussion, 'Unlocking Vidarbha's potential: Building a stronger MSME ecosystem in central India '. The other panellists were Prashant Mohota, MD, Gimatex Industries (Textiles) & President, Vidarbha Industries Association; Prashant Waghmare, DGM & Regional Head, APEDA; and Aakash Awasthi, Branch Head, NSIC, transformation in the heart of India is tangible. Infrastructure development spanning 100 kilometres around Nagpur, including new roads, bridges, and metro connectivity, has laid the foundation for what industry leaders believe will be the country's next major manufacturing hub. This boom is already attracting attention from investors and manufacturers looking beyond traditional industrial decades, Vidarbha's industrial identity was synonymous with cotton textiles. But industry leaders are pushing for a fundamental shift. Prashant Mohota highlighted both the challenge and opportunity ahead."Countries like China, Vietnam, and Korea have grown on the strength of man-made fibres [MMFs], but we remain cotton-dependent," he explained. The irony isn't lost on local manufacturers: one of the world's biggest MMF producers, Indorama, operates nearby, and yet local adoption remains minimal.'We [also] need region-specific cotton R&D. Institutions like CICR and CIRCOT are helping, but the reach is limited. Sustainable cotton production is the future. Without that, our industry cannot scale globally,' Mohota textile sector, which currently exports 30-35% of its production, is now focused on innovation and international collaboration. With new skill development policies launched under Maharashtra Chief Minister Devendra Fadnavis and two universities planned around Nagpur, the region is betting on its youth to drive the next phase of textiles diversify, Vidarbha's agricultural exports are experiencing their own renaissance. Nagpur oranges, protected by geographical indication status, are breaking new ground in international markets. Prashant Waghmare shared promising developments at the ET SME Summit: while 80% of current exports still go to Bangladesh, the region is successfully expanding into Middle Eastern markets and Dubai supermarkets.'We aim to support farmers with training and linkages to foreign markets. There's great potential here if we continue investing in cold storage, logistics, and processing infrastructure,' he numbers speak to the potential. Last week alone, Vidarbha exported 300 metric tonnes of oranges. Companies such as DIS and Fresh Market are already operational, while small-scale entrepreneurs are being supported through export facilitation centers that provide automatic grading, waxing, and pre-cooling MSME sector, which accounts for about 96% of India's industrial units, is receiving unprecedented support in Vidarbha. The revised MSME definition, which allows enterprises with up to ₹125 crore investment and ₹500 crore turnover to qualify for benefits, has expanded the eligible base challenges persist. GST complexities, particularly the 18% tax on commercial property leases, continue to burden small manufacturers. COSIA has taken these issues to court, with favorable judgments emerging in Gujarat and cases pending in Mumbai High Awasthi from NSIC emphasised that Maharashtra's Package Scheme of Incentives offers support across all scales, from small to ultra-mega industries."Maharashtra's policies are among the best, based on our comparison across eight states," he said, though land availability remains a convergence of infrastructure development, policy support, and market diversification has created what industry leaders describe as a perfect storm for growth. The region's strategic location, improved connectivity, and emerging ecosystem of support institutions are attracting serious investor the panel at the ET SME Summit in Nagpur concluded, the message was clear. Vidarbha is no longer just an agricultural heartland. It's positioning itself as India's next industrial frontier, where traditional strengths in textiles and agriculture are reimagined for global question isn't whether Vidarbha will emerge as a major industrial hub; industry leaders seem convinced it will. The question is how quickly the region can execute its ambitious vision, and how effectively it can leverage its unique advantages in an increasingly competitive investors and manufacturers looking beyond saturated industrial centres, Nagpur's message is simple: the stage is set, the infrastructure is ready, and the takeoff has ET Make in India SME Regional Summits, ET MSME Day, and ET MSME Awards are flagship initiatives to celebrate the versatility and success of India's MSME sector. If you lead or are part of a micro, small, or medium enterprise, register for the ET MSME Awards 2025 before August 31, 2025.
