Latest news with #MinistryofMSME
&w=3840&q=100)
Business Standard
3 days ago
- Business
- Business Standard
Government keen to increase credit availability to MSMEs, says official
He said that MSMEs provide employment to 27 crore people and that is why the ministry keeps them in mind while making policies The government wants to increase credit availability to micro, small and medium enterprises (MSMEs) and also improve them by enhancing technology, an official said on Friday. Addressing CII's Annual General Meeting, Rajneesh, Additional Secretary and Development Commissioner, Ministry of MSME said India is the fourth largest economy today and would be the third-largest soon. Rajneesh highlighted how MSMEs took a hit during COVID-19 but turned around very fast. He said that MSMEs provide employment to 27 crore people and that is why the ministry keeps them in mind while making policies. "We want to increase credit availability to MSMEs. This year Budget provided for providing credit cards to micro enterprises," he said adding MSME NPAs (bad loans) were less than 5 per cent in last five years as per RBI data. He also highlighted the role of technology to improve MSMEs, suggesting that through use of technology issues between environment concerns and growth aspirations can be resolved. Sunil Mathur, Managing Director and CEO of Siemens Ltd said, today average productivity level is 75 per cent in India whereas it is over 90 per cent in Europe and use of technology can help bridge this gap (productivity). He pointed that Indian MSMEs are dealing with challenges like access to market and finance. Shreekant Somany, CMD Somany Ceramics said digitisation helps MSMEs reduce cost and improve operational efficiency and suggested that MSMEs find new ways for rating them properly so that they get required financial facilities. "We must support MSME innovation hubs for improving quality of products to meet global standards," he said opining that regulatory compliance burden is heavy on MSMEs. Deepak Jain, Chairman Lumax Group said MSMEs represent the true entrepreneurship spirit of India. "We need to have very collaborative ecosystem... today ecosystems compete with each other, " he said citing example of China competing with other ecosystems globally. He stressed on the need to support MSMEs saying that supporting MSMEs should be a national competitive strategy. (Only the headline and picture of this report may have been reworked by the Business Standard staff; the rest of the content is auto-generated from a syndicated feed.)
Economic Times
3 days ago
- Business
- Economic Times
Government keen to increase credit availability to MSMEs: Official
Live Events The government wants to increase credit availability to micro, small and medium enterprises ( MSMEs ) and also improve them by enhancing technology, an official said on CII's Annual General Meeting, Rajneesh, Additional Secretary and Development Commissioner, Ministry of MSME said India is the fourth largest economy today and would be the third-largest highlighted how MSMEs took a hit during COVID-19 but turned around very said that MSMEs provide employment to 27 crore people and that is why the ministry keeps them in mind while making policies."We want to increase credit availability to MSMEs. This year Budget provided for providing credit cards to micro enterprises," he said adding MSME NPAs (bad loans) were less than 5 per cent in last five years as per RBI also highlighted the role of technology to improve MSMEs, suggesting that through use of technology issues between environment concerns and growth aspirations can be Mathur, Managing Director and CEO of Siemens Ltd said, today average productivity level is 75 per cent in India whereas it is over 90 per cent in Europe and use of technology can help bridge this gap (productivity). He pointed that Indian MSMEs are dealing with challenges like access to market and Somany, CMD Somany Ceramics said digitisation helps MSMEs reduce cost and improve operational efficiency and suggested that MSMEs find new ways for rating them properly so that they get required financial facilities."We must support MSME innovation hubs for improving quality of products to meet global standards," he said opining that regulatory compliance burden is heavy on Jain, Chairman Lumax Group said MSMEs represent the true entrepreneurship spirit of India."We need to have very collaborative ecosystem... today ecosystems compete with each other, " he said citing example of China competing with other ecosystems globally. He stressed on the need to support MSMEs saying that supporting MSMEs should be a national competitive strategy.
Time of India
3 days ago
- Business
- Time of India
Government keen to increase credit availability to MSMEs: Official
The government wants to increase credit availability to micro, small and medium enterprises ( MSMEs ) and also improve them by enhancing technology, an official said on Friday. Addressing CII's Annual General Meeting, Rajneesh, Additional Secretary and Development Commissioner, Ministry of MSME said India is the fourth largest economy today and would be the third-largest soon. Rajneesh highlighted how MSMEs took a hit during COVID-19 but turned around very fast. He said that MSMEs provide employment to 27 crore people and that is why the ministry keeps them in mind while making policies. "We want to increase credit availability to MSMEs. This year Budget provided for providing credit cards to micro enterprises," he said adding MSME NPAs (bad loans) were less than 5 per cent in last five years as per RBI data. Live Events He also highlighted the role of technology to improve MSMEs, suggesting that through use of technology issues between environment concerns and growth aspirations can be resolved. Sunil Mathur, Managing Director and CEO of Siemens Ltd said, today average productivity level is 75 per cent in India whereas it is over 90 per cent in Europe and use of technology can help bridge this gap (productivity). He pointed that Indian MSMEs are dealing with challenges like access to market and finance. Shreekant Somany, CMD Somany Ceramics said digitisation helps MSMEs reduce cost and improve operational efficiency and suggested that MSMEs find new ways for rating them properly so that they get required financial facilities. "We must support MSME innovation hubs for improving quality of products to meet global standards," he said opining that regulatory compliance burden is heavy on MSMEs. Deepak Jain, Chairman Lumax Group said MSMEs represent the true entrepreneurship spirit of India. "We need to have very collaborative ecosystem... today ecosystems compete with each other, " he said citing example of China competing with other ecosystems globally. He stressed on the need to support MSMEs saying that supporting MSMEs should be a national competitive strategy.
India Today
6 days ago
- Business
- India Today
Is the world's 4th-largest economy taking care of unemployment?
India is poised to become the world's fourth-largest economy by the end of 2025. But, is the country handling its unemployment menace equally well? The World Economic Outlook April 2025 report by the International Monetary Fund, which showed how India's economy will progress ahead, also showed that joblessness is decreasing in the country. In fact, India is better placed than countries like Brazil, China, Canada, Italy, France, etc. in this IN INDIAIndia, the world's most populous country with 144 crore people, has been consistently lowering its unemployment rate. From 8.9 per cent in 2018, unemployment nearly halved to 4.9 per cent in 2024. Notably, the IMF's estimates match those of the Ministry of Statistics and Program Implementation's Periodic Labour Force Survey. Unemployment cannot be discussed without looking at the labour force participation rate (LFPR). If people leave the labour market, the unemployment rate will automatically come down. However, this doesn't seem to be the case with LFPR is also on the rise, which means that more people are entering the labour market and more are getting jobs. It rose from 48.4 per cent in 2018 to 56.4 per cent in an improving employment situation, India is ahead of many of its peers. Against a 4.9 per cent unemployment rate in India, South Africa recorded 32.8 per cent, Spain 11.4 per cent, Turkiye 8.7 per cent, France 7.4 per cent, Brazil 6.9 per cent, Canada 6.4 per cent, and China 5.1 per the government has recognised small and medium enterprises as one of the greatest sources of employment generation and has been adding support to MSMEs in the Union Budgets in recent years.'Beyond their economic contributions, these MSMEs have generated substantial employment opportunities, providing jobs to over 25.18 crore individuals. This extensive employment generation underscores the sector's crucial role in driving economic development and enhancing social stability by offering livelihoods to millions across the country,' the Ministry of MSME said following the Union Budget this year. The budgetary outlay of the Ministry of MSME rose from Rs 7,011 crore in FY20 to Rs 17,307 crore in InTrending Reel
&w=3840&q=100)
Business Standard
6 days ago
- Business
- Business Standard
NITI Aayog bats for working capital support for medium companies
In an effort to transform medium enterprises into global businesses, the NITI Aayog on Monday recommended working capital support of up to ₹25 crore at concessional interest rates, credit card with pre-approved limit of up to ₹5 crore, and a slew of technology as well as skilling measures. The government has been working on a roadmap for tailor-made policies for medium companies. This comes as the Centre feels that the needs of these enterprises often get ignored as they are clubbed into the same category as micro, small, and medium enterprises (MSMEs). 'A dedicated financing scheme under the Ministry of MSME is proposed allowing medium enterprises to apply for loan at concessional rates at their local retail banks and receive fast track decisions/loan up to a certain percentage of revenue depending upon the sector of the unit i.e. manufacturing or services capped at ₹25 crore with a maximum of ₹5 crore per request can be availed,' said NITI Aayog in its report 'Designing a Policy for Medium Enterprises.' Medium enterprises typically have significantly higher capital requirements than MSMEs. There is currently no dedicated scheme for addressing the working capital needs of medium enterprises, the Centre's official policy think tank said. According to the revised classification norms announced in the FY26 Budget, medium enterprises can invest up to ₹125 crore and have a turnover limit of ₹500 crore. At an event last month, MSME secretary SCL Das said that these were revised precisely to allay the inhibitions of MSMEs to scale into larger enterprises. According to NITI Aayog, the need for special focus on medium enterprises stems from the need to boost employment. It feels that the medium sector can be among the largest employment generators in the country, if provided with the right support. A NITI Aayog official, present at the report launch, said current trends show that a medium business typically ends up opening a new venture when it reaches the ceiling of eligibility criteria because it does not want to lose benefits. 'That is a major harm to economies of scale. The government wants them to make their primary ventures larger,' he said. According to NITI Aayog Vice-Chairman Suman Bery, the experience of the US, Germany, and Italy indicates that with the right support, these are very important parts of firm dynamics. 'In fashion, Italy transformed from a crafts tradition to generating big fashion houses like Giorgio Armani and Prada. India has that capability because of our deep crafts traditions and entrepreneurship. Not just in manufacturing, we should be thinking even medium enterprises can aspire for similar growth over the next 10-15 years,' said Bery. Medium enterprises also contribute more to research and development (R&D) compared to micro and small enterprises. 'What we know from Mittelstand in Germany is that they focused on niche areas like machine tools – a similar journey is anticipated by India's medium enterprises,' said the NITI Aayog vice-chairman. He also said that a focus on medium companies is needed since there's a need for transition from informal to formal economy, adding that these companies are characterised by formal labour, while micro and small enterprises employ primarily informal labour. NITI Aayog's formal recommendations also proposed to leverage the existing technology centres the Ministry of MSME and revamp them into India MSME 4.0 competence centres – these will cater to various industries, including General Engineering, Fragrance and Flavour, Electronics Systems Design and Manufacturing (ESDM), Sports, and other sectors based on regional and industry-specific demands.
