Sebi to notify SME listing guidelines shortly

The Securities and Exchange Board of India (Sebi) will soon announce guidelines for listing small and medium enterprises (SMEs). The move is expected to set …

Source: Business Standard

‘MSME share in GDP may touch 10%’

The micro, small and medium enterprises (MSMEs) are expected to contribute up to 10% to the country’s gross domestic product (GDP) soon, …

Source: Financial Express

Cutting-edge tech for all from Indian labs

One, developing compelling application services for the emerging markets especially for the small and medium enterprises and home users. …

Source: Business Standard

Going Wireless

In India, the PBX market size is around Rs 800 crore. Market in terms of number of lines would be around 3 to 3.5 mn per year. Small and medium sized PBXs …

Source: Voice & Data Online

Orissa plans ministry for smaller enterprises

Orissa is planning to form a separate ministry that would exclusively focus on the problems of the micro, small and medium enterprises (MSME) and work for their growth, the state’s top official said Thursday. …

Source: prokerala.com

Cleartrip signs Sales Force Automation deal with Veon Consulting …

A four year old company with 300% year on year growth and as much as 40% repeat customers, Veon is set to take the leading commercial-open source solutions to small and medium enterprises across the globe. Run by IIT/IIM alumuni, …

Source: by startup

SBI prefers rights issue over stake sale

Bhatt said the bank would offer a one- time settlement for bad loans from small and medium enterprises (SMEs) to provide relief to small firms hit by the …

Source: India Today

India-Africa summit to take up 145 projects worth $9 billion

External affairs minister SM Krishna will inaugurate the sixth India-Africa Project Partnership conclave on March 14, being jointly organised by the …

Source: Financial Express

Centre brings new policy to increase exports

Continuation of Interest Subvention of two percent provided to labour intensive sectors that include the micro, small and medium enterprises (MSME) sector …

Source: Sify

Centre to reserve 20% govt purchases for MSME sector

In a major boost to the domestic Micro, Small and Medium Enterprises (MSMEs), the Centre has decided to reserve 20 per cent of all government purchases for …

Source: Sify

UP MSMEs hail Budget proposals

Union Budget 2010 has brought cheers for the 1.2 million-odd Micro, Small and Medium Enterprises (MSMEs) in Uttar Pradesh. Union Finance Minister Pranab …

Source: Sify

Avaya Unveils New IP Office Version for SMEs

… released a new version of Avaya IP Office – the company’s flagship communications solution for small and medium-sized enterprises (SMEs). …

Source: TMCnet

Marketing savviness is crucial for small and medium enterprises

In essence, this sums up how important marketing savviness is for small and medium enterprises. For SMEs the key to taste marketing successes…

Source: The Economic Times

Workshop on SMEs, auto design seminar mark day-2 of design fest

The workshop for SMEs was intended to expose the enterprises to the systematic development of the design of a product, either in-house or by deploying design consultants…

Source: Indian Express.com

Corporate affairs in rural woman’s world

At the Wadi centre, being run on rent owing to funds crunch, there are 50 women being trained with the support of the government-run Micro, Small & Medium Enterprises (MSME)…

Source: TOI, Nagpur

SBI favours rights issue to dilution of Govt stake

State Bank of India may not opt for a dilution in Government stake to about 51 per cent, as proposed in the SBI (Amendment) Bill, 2010, which was placed in…

Source: thehindubusinessline.com

India ranks top in generic drug exports

The generic drug sector in the country is populated by a large number of small and medium enterprises (SMEs), which form the core of the industry. …

Source: SME Times

RAK FTZ Grows Revenue in 2009 With 11 Per Cent Increase

One of our main focuses now is to support SMEs – because a blooming SME industry is one of the most vital signs of a flourishing economy. …

Source: PR Newswire (press release)

‘Will leverage our experience & expertise for development of Indian financial …

We have received an overwhelming response from various market participants such as banks, importers, exporters, corporate houses and SMEs across India. …

Source: Financial Express

25th Aahar International to create history in Indian f&b sector

With every edition of Aahar International trade fair – India Trade Promotion Organisation, trade promotion agency of the union ministry of commerce …

Source: fnbnews.com

IFRS Training Offered For SMEs

… the IFRS for SMEs. As part of these activities the IASC Foundation recently held a ‘Train the Trainers’ workshops in India and Malaysia jointly with the …

Source: Tax-news.com (subscription)

Textiles, leather subsidy issue will be taken up shortly

… to expire on March 31, 2010, but in the budget, Mr. Mukherjee had proposed to extend it for handicrafts, carpets, handlooms and SMEs for one more year

Source: The Hindu

Govt. aware of problems of industries in NE region: Pranab

He, however, said efforts are being made to meet credit requirements of small and medium enterprises (SMEs), micro and other tiny industry even without …

Source: The Hindu

Exports maintain positive trend, up 11.5% in January

… one more year (till March 31, 2011) for exports covering handicrafts, carpets, handlooms and small and medium enterprises as they are still struggling. …

Source: Hindu Business Line

Standard Chartered 2009 operating profit climbs 13% to US$5.15 billion

We helped small and medium enterprises start up and grow with an extra 14% increase in lending to more than US$13 billion. The Group continued to focus on …

Source: Business Intelligence Middle East (press release)

Government extends interest subvention of 2 per cent for one more …

The government has now proposed to extend the interest subvention of 2 per cent for one more year for exports covering handicrafts, carpets, handlooms and small and medium enterprises (SMEs). Earlier, the government had provided …

Source: www.caclubindia.com

Minda Receives Rs 400m Investment from Indian Private Equity Fund …

The investment was made through the India Business Excellence Fund (IBEF), a US$ 125m India focused private equity fund. IBEF has an investment focus of providing growth capital to Small & Medium Enterprises (SME), typically in the …

Source: by Ermanno Cece

India Aviation 2010 — a sign of hope for civil aviation sector

Further, thirteen French SMEs are present at India Aviation 2010. Aviation started in Europe with SMEs and they have always been a key element in the …

Source: The Hindu

Stimulus should continue for SMEs: FICCI chief

During the press meet, Mittal loud for making India a leading manufacturing hub, which will help in promoting micro, small and medium enterprises (MSMEs).

Source: SME Times

Awaiting RBI guidelines on new banking licence: SREI Infra

On the Budget day, finance minister said that Reserve Bank of India (RBI) is considering giving some additional banking licenses to private sector players. …

Source: Moneycontrol.com

Small units to step up IT budgets in 2010

Small and medium enterprises (SMEs) are expected to loosen restricted information technology (IT) budgets, take to social networking, increase adoption of …

Source: Sify

Smaller enterprises in Rajkot hit by lack of management skills

Small and medium enterprises of Rajkot are facing trouble in dealing with major national and international clients, since most of them lack the requisite …

Source: Business Standard

MSME Sector allocation raised to Rs. 2400 crore

The Minister said that these initiatives for the Micro, Small & Medium Enterprises Sector will spur growth and development. The Budget allocation for the …

Source: Press Information Bureau (press release)

Tamil Nadu to set up exclusive industrial park for Japanese firms

The Tamil Nadu government will set up an industrial park for Japanese small and medium enterprises (SME) near here in a bid to attract more investments from …

Source: The Hindu

Orissa to offer VAT exemption to IT SMEs

As part of its endeavour to promote SMEs (Small and Medium Enterprises) in the IT sector in Orissa, the state IT department plans to offer a rent subsidy of …

Source: Business Standard

Jharkhand Khadi Board attains smart turnaround

The Prime Minister and the Ministry of Micro, Small and Medium Enterprises have invited Chairman of the Jharkhand Board to share success story of the Board …

Source: Fibre2fashion.com

NASSCOM seeks two-year extension on STPI scheme

Kris Gopalakrishnan, CEO and MD, Infosys, says, "The MAT increase may affect small and medium enterprises by 16-18%. So, what is the impact of MAT on …

Source: Moneycontrol.com

Budget 2010 – taking the middle path!

For instance, if we take up the case of Micro, Small and Medium Enterprises (MSMEs), we will see that the Budget has recognized the needs of the sector and …

Source: SME Times

For small and medium firms, it is an opportunity lost – Rajeev Karwal, CEO, Milagrow

For MSEs some of the major announcements which were expected in the budget, were sorely missing MSMEs get between 40% and 60% of the banking loans…

Source: mydigitalfc.com

Another chance lost for MSME sector – Rajeev Karwal

Though overall it is a progressive Budget with clear focus on infrastructure, agriculture and inclusiveness, it does not mean much for the micro, small and medium enterprises…

Source: India Today

Budget disappoints small IT firms

Tax benefits for all IT firms under the STPI scheme are available till March 31, 2011, while the small and medium enterprise (SME) sector does not get the …

Source: CIOL

India, Saudi role crucial in global economy: PM

“We need Indian expertise to support our small and medium enterprises,” he said. — IANS Minister of State for External Affairs Shashi Tharoor has the knack …

Source: Chandigarh Tribune

Bengal Chambers hail Budget

… President, Howrah Chamber of Commerce: The Budget is not only growth-oriented but has the vision of building a future for small and medium enterprises, …

Source: istockAnalyst.com (press release)

Budget could push R&D spend by 25-50%: pharma players

Upbeat from the move, Gujarat wing of the Indian Drug Manufacturers\’ Association (IDMA) said that now small and medium enterprises could also take interest …

Source: Business Standard

Let me, at the outset, say that though overall it is a progressive budget with clear focus on infrastructure, agriculture and inclusiveness, it does not mean much for the MSME sector.

For the micro, small and medium enterprises, although there has been an apparent increase of approximately Rs. 800 crore, some of the major announcements which were expected in the budget were sorely missing. It was expected that the MSMEs would atleast get a 50% reservation out of the total quota of 40% reservation of the priority sector lending. Internationally, in most of the developed/ developing countries, MSMEs get between 40% and 60% of the banking loans, whereas in India, it languishes between 8 – 10%. This is the biggest reason for MSMEs to not be able to grow, turn sick, or resort to taking money from the parallel economy at much higher rates.

There seems to be a lack of this understanding despite the fact that the government has announced that a high-level national council will be formed to oversee the implementation of the recommendations of Prime Minister’s Task Force on the MSME sector. It is also very sad to see that while a small or medium farmer, who is also a businessman is extended huge benefits, the unorganized and micro enterprises in the country do not get the same treatment, though they may be needing the support more than that farmer.

The credit support program of the MSME Ministry, which runs the Credit Guarantee Fund Scheme, has got an additional budget of about Rs. 73 crore i.e. the planned expenditure under this program has gone up from Rs. 99.12 crore to Rs. 172.75 crore. Through this scheme, the guarantee cover is provided for collateral-free credit facility, extended by Member Lending Institutions (MLIs), to the new as well as existing small enterprises on loans of upto Rs. 1 crore. While the objective is laudable, the fact remains that MLIs really have no compulsion or incentive to extend this facility to the needy small entrepreneurs, because in reality, the Credit Guarantee Trust doesn’t move fast enough to settle the issues related to the bad-debts, if any.

The allocation to ‘Quality of technology support institutions and programs’ has been raised from Rs. 251.64 crore to Rs. 333.50 crore. This, according to me, may not be at all enough to upgrade the tool-rooms and technical institutions of the 24 very important institutions and 4 programs that run under this scheme, namely Credit Linked Capital Subsidy Scheme, ISO Reimbursement Scheme, Schemes of National Manufacturing Competitiveness Program and Vertical Shaft Brick Kiln technology. The conditions of the various tool rooms and technology centres actually have to be seen to be believed. If machines have come, there are no specialists to operate them; and if machines & specialists both are present, then there are no funds to run these centres. Hence, the very purpose of the existence of these centres is defeated.

It is also surprising that the National Commission on the Enterprises in the unorganized and informal sector has zero allocation in this year’s budget, though till last year, it had a Rs. 1 crore budget. The Rajiv Gandhi Udyami Mitra Yojna, which provides handholding assistance to designated nodal agencies, namely Udyami Mitras, for providing handholding support to first-generation entrepreneus in dealing with various procedural and legal hurdles, has got an allocation of just Rs. 7 crore.

MSME Cluster Development Program, under which, special emphasis has been given to comprehensive development of clusters, including infrastructural development has seen an increase of about Rs 25 crore taking the total expenditure to Rs. 50.50 crore. But for a country of our size, this may be spread too thin and too wide to really have any major impact

The special scheme recommended by PM’s Task Force has got an allocation of just Rs. 1 crore in this year’s budget. It has a massive agenda for immediate action to provide relief and incentives to MSMEs accompanied by institutional changes and detailing of programs in a time-bound manner. In addition to this, it also has suggested setting up of appropriate legal and regulatory structures to create a conducive environment for entrepreneurship and growth of MSMEs. It also has a task of setting up a special fund exclusively for micro-enterprises, and introduction of public procurement policy, which mandates government and PSUs to reach a target of 20% purchases from MSMEs. How all this can be achieved with an organization backed by Rs. 1 crore budget for the whole of 2010-11 is almost impossible for me to understand.

There have been some major additions of about Rs. 1300 crore in Khadi and Coir Board Industries but like last year, and the year before, both these sectors have spent 20-25% lesser than the budget that was allocated to them.

Some other initiatives which have been taken overall but will affect the SME sector positively are:

• Extension of packing credit interest subvention of 2% for another year.
• Raising of Audit requirement limit from Rs. 40 lakh to Rs. 60 lakh, and for professionals from Rs. 10 lakh to Rs. 15 lakh.
• Exemption from capital gains on conversion from general partnership to limited liability partnership.
• A one-time grant of Rs. 200 crore to Tirupur Textile Sector.
• Government initiative to give more banking licenses and extend banking service for the under-banked and un-banked segments of the society.
• Agreement signed with ADB for US$ 150 mn to implement Khadi Udyog Reform.
• Doubling of corpus of micro-finance development and equity fund from Rs. 200 crore to Rs. 400 crore.
• Allocation of Rs. 1000 crore to the National Social Security Fund for the employees of the unorganized sector.

Despite some sporadic initiatives visible here or there in this budget, there clearly seems to be a lack of a coherent approach towards a sustained development of the MSMEs. Let’s hope that there will be more focus, which will come up in the future for the hidden jewels of India, who have always got more lip-service than real support from the powers that be.

By Rajeev Karwal,

Founder Director & CEO,

Milagrow Business & Knowledge Solutions

A one-stop destination for MSMEs