Modi Highlights India–UK Breakthrough in Trade and Social Security Agreements

Image - Prime Minister's Office

India and the United Kingdom have signed the landmark Comprehensive Economic and Trade Agreement (CETA) along with a Social Security pact, hailed by Prime Minister Narendra Modi as a milestone that will deepen economic linkages, boost exports, and support Indian professionals in the UK.

PM Modi said that the CETA would provide fresh momentum to India's farmers, entrepreneurs and MSMEs by expanding access to the UK market across several vibrant sectors. He added that the agreement on Social Security would provide invaluable support to Indian professionals working temporarily in the United Kingdom and enhance the competitiveness of Indian enterprises.

Background

• Signed: July 24, 2025, in the presence of PM Narendra Modi and UK PM Sir Keir Starmer.
• Negotiations concluded: May 6, 2025.
• Signatories: Commerce Minister Piyush Goyal and UK Secretary of State for Business and Trade Jonathan Reynolds.
• Bilateral trade: USD 56 billion, with a target to double by 2030.

Key Features of CETA

• Tariff Elimination: 99% of India’s exports to the UK will enjoy zero-duty access, covering nearly the entire trade basket.
• Benefiting sectors: Textiles, leather, footwear, gems & jewellery, marine products, toys.
• Tariff reduction: Processed foods, textiles, and leather tariffs cut from up to 70% to zero.
• Services Commitments: IT/ITeS, finance, legal, education, telecom, architecture, engineering.
• Professional Mobility: Streamlined pathways for contractual service suppliers, business visitors, intra-corporate transferees, and independent professionals.
• UK quotas: 1,800 Indian chefs, yoga instructors, and artists annually.

Social Security Agreement

• Exemption: Indian workers and employers exempt from UK social security contributions for up to three years.
• Savings: Over ₹4,000 crore, improving take-home pay and competitiveness.

Strategic Impact

• For India: Boosts farmers, MSMEs, artisans, women-led enterprises; expands access to UK markets.
• For the UK: Gains access to India’s fast-growing market; strengthens cooperation in technology and innovation.
• For Both Nations: Reflects trust between democracies; builds a forward-looking partnership driven by trade, technology, investment, and innovation.

Leadership Statements

• PM Narendra Modi: “This is a significant moment in the India–UK partnership. These agreements translate our shared ambition into tangible opportunities for our people.”
• Commerce Minister Piyush Goyal: “This FTA unlocks tariff-free access on 99% of Indian exports to the UK, advancing the ‘Make in India’ initiative and setting the stage for bilateral trade to double by 2030.”

Conclusion

The India–UK CETA and Social Security Agreement mark a transformative step in bilateral relations, opening unprecedented trade opportunities, easing professional mobility, and reinforcing shared prosperity goals.

Business Loans to Entrepreneurs Grew Faster Than Those to Commercial Entities Over Three Years

• Individual borrower business-oriented loans balances grew 1.8 times between March 2023 and March 2026, outpacing entity borrower balance growth at 1.5 times.
• Substantial scope for expansion in MSME credit access, with nearly 41% commercial enterprises having formal credit access in entity or individual capacity
• Overall commercial portfolio remained stable at 1.8% as of March 2026. The analysis identified emerging signs of risk in specific borrower segme

India’s commercial credit market is seeing a shift in borrower composition, with individual borrowers with business-oriented loans now forming a meaningful share of overall commercial credit balances, according to the latest MSME Pulse released by TransUnion CIBIL and the Small Industries Development Bank of India (SIDBI).

Loans to individuals accounted for 28% of outstanding commercial balances, while loans to entities accounted for 72%. Individual borrower balances grew 1.8 times during the three-year period between March 2023 and March 2026, compared with 1.5 times growth in entity borrower balances during the same period.

The report finds that outstanding commercial credit stood at ₹65.8 lakh crore as of March 2026, across 4.4 crore active commercial trades. This is a year-over-year (YoY) growth of 14% compared to the total outstanding credit of Rs 57.9 lakh crore as of March 2025.

Chart 1: Individual Business Borrowers Credit Profile

Individual Borrowers Form a Sizeable Business Credit Segment

As of March 2026, 2.8 crore individual borrowers had active business-oriented loans. Of these borrowers, 43% were early-stage as commercial entities with credit history of less than 24 months, highlighting a borrower segment that is active in business-purpose borrowing while still being relatively new as commercial entities. Almost half (48%) the share of the total Non-Banking Financial Companies’ (NBFCs) Commercial Balances pertained to Individual Borrowers. All other lender categories have a much lower share, with private banks the second largest at 24% of the commercial balance share among individual borrowers.

The individual borrower segment has been increasingly visible across key commercial credit products. Loans against property formed the largest share of outstanding balances for this borrower group, followed by commercial vehicle loans and unsecured business loans. At a product level, individual borrowers accounted for 68% of loan against property balances, 76% of commercial vehicle balances and 67% of unsecured business loan balances. The report notes that loans against property, commercial vehicle loans, unsecured business loans, term loans, overdraft and cash credit together formed ~87% of outstanding commercial credit balances.

Bhavesh Jain, MD & CEO, TransUnion CIBIL, said: “In India’s MSME economy, the entrepreneur and the enterprise are often deeply connected, particularly in the early years of business growth. A proprietor may borrow in an individual capacity, but the credit is frequently linked to business activity, working capital needs or asset creation. This makes individual business borrowing an integral part of how commercial credit is evolving, and it deserves to be understood within the broader MSME credit landscape.

 
As MSMEs grow, their credit needs also change, from small-ticket working capital to larger, sector-led funding requirements. The real opportunity for the credit ecosystem lies in understanding this progression with greater clarity, especially as borrowers move from individual business borrowing to entity-level credit, or from trade-led borrowing to manufacturing-led expansion.”

Formal Credit Access Remains a Large Opportunity

The share of new-to-credit (NTC) entities in origination volumes declined from 52% in FY23 to 42% in FY26, indicating that the pace of first-time formal credit onboarding has moderated in recent years. 

Chart 2: NTC Opportunity Sizing

NTC originations among commercial entities were concentrated in smaller ticket sizes. The report finds that 60% of these originations were in the ₹2 lakh to ₹10 lakh ticket-size segment, while 34% were in the ₹10 lakh to ₹2 crore segment. It also notes that 75% of ₹2 lakh to ₹2 crore NTC entity borrowers had prior retail credit experience, showing that first-time entity borrowers may enter formal commercial credit through different borrower pathways.

Emerging Pockets Of Risk in Specific Borrower Segments

While overall commercial credit portfolio performance remained stable as of March 2026, the report indicates elevated delinquency levels in certain borrower and product segments. Delinquency (measured as share of balances in 90+ Days Per Due (DPD) or classified sub-standard) in unsecured business loans to entities stood at 7.2%, up 274 basis points (bps) over three years. The ₹2 lakh to ₹10 lakh entity borrower segment recorded delinquency of 5.6%, up 111 basis points over the same period.

Signs of stress were also seen in early delinquencies (measured as accounts ever in 90+ DPD in first 12 months since origination) as well, for both unsecured business loans to entities and for the ₹2 lakh to ₹10 lakh entity borrower segment. For originations in the March 2025 ending quarter, for unsecured business loans to entities, early delinquencies were 2.9 times higher, while for the ₹2 lakh to ₹10 lakh entity borrower segment, early delinquencies were 2.1 times higher than the overall early delinquency of 3.4% for loans to entities originated in the same period.

Sectoral Patterns Point to Different MSME Credit Structures. 

The report shows that commercial credit patterns vary across sectors by exposure size and geography. Textiles, professional services, wholesale trade and infra-linked industries are led by the ₹10 lakh to ₹2 crore exposure segment. Maharashtra and Gujarat the leading states across key industries such as textiles, food processing. The report identifies manufacturing as a sector with strong concentration in industrial clusters.
Trade showed a different pattern, with retail trade anchored in the ₹2 lakh to ₹10 lakh exposure segment and wholesale trade led by the ₹10 lakh to ₹2 crore segment basis share of entities with live loans. Uttar Pradesh ranked first in both retail and wholesale trade counts, while Uttar Pradesh, and West Bengal appeared among the other leading states. In professional services, the report shows a higher share of entities in small exposure segments of ₹10 lakh to ₹2 crore, with Maharashtra, Karnataka and Tamil Nadu among the leading states.

Mr Jain said: “MSMEs remain central to India’s enterprise base, employment creation and regional economic growth. As more small businesses seek formal credit, it is important to recognise the diversity within the MSME segment. A micro enterprise seeking working capital, a trade borrower operating in a local market and a manufacturing unit looking to scale will have different credit needs, business cycles and growth paths. Expanding formal credit access for MSMEs has to go hand in hand with a deeper understanding of these differences. A more granular view across sectors, ticket sizes and geographies can help the ecosystem serve smaller and emerging enterprises while maintaining a focus on sustainable credit growth.”

About TransUnion CIBIL

India’s pioneer information and insights company, TransUnion CIBIL, makes trust possible by ensuring each person and business entity is reliably represented in the marketplace. We do this by providing an actionable view of consumers and businesses, stewarded with care.

We have developed technology and innovative solutions across core credit, risk and advanced analytics. As a result, consumers and businesses can transact with confidence and achieve great things. We call this Information for Good® — and it leads to economic opportunity, great experiences, and personal empowerment for millions of people and commercial enterprises in India.

We serve the financial sector as well as commercial enterprises and individual consumers. Our customers in India include banks, credit institutions, NBFCs, housing finance companies, microfinance companies, telecom companies and insurance firms.

For more information visit www.transunioncibil.com

About SIDBI

Since its formation in 1990, SIDBI has been touching the lives of citizens across various strata of society through its integrated, innovative and inclusive approach for all round development of MSMEs. SIDBI has directly or indirectly through various credit and developmental measures impacted the myriad Micro, Small and Medium Enterprises (MSMEs) in the country, whether they are traditional, domestic small entrepreneurs, bottom-of-the-pyramid entrepreneurs, or high-end knowledge-based entrepreneurs.
For more information, please visit: https://www.sidbi.in/

Axis Mutual Fund Unveils ‘Axis Account Plus’, India’s First Digital Working Capital Solution for Corporates & MSMEs

• ‘Axis Account Plus’, an industry-first, end-to-end digital working capital management solution helping corporates and MSMEs optimise surplus funds efficiently
• Seamless digital journey with instant transactions, same day redemption, and a unified dashboard offering consolidated visibility across entities
• Available for corporates and MSMEs on the Axis Mutual Fund website

Axis Mutual Fund, one of India’s leading asset management companies, has announced the launch of ‘Axis Account Plus’, India’s first end-to-end digital working capital management solution designed for corporates and MSMEs. It enables businesses to seamlessly invest surplus funds in Axis Mutual Fund eligible debt and liquid schemes through a convenient, faster solution with robust controls and inbuilt governance protocols. As businesses become more strategic about managing operating surplus, investment access must become simpler, more efficient and aligned to dynamic liquidity needs.

The launch comes at a time when India’s mutual fund industry continues to expand its role in the country’s financial ecosystem. At the same time, a significant amount of corporate capital remains underutilised. Nearly ₹25 lakh crore is estimated to be held in current accounts, where it typically earns no returns. India also has a large base of over 31 lakh active corporates and limited liability partnerships, along with more than 8.6 crore MSMEs registered on the Government of India’s Udyam platform.

Despite this scale, participation by non-individual investors in mutual funds remains limited, with institutional folios accounting for approximately 13.6 lakh folios. This highlights the need to make mutual funds access simpler and more relevant for a wider set of investors, including corporates and MSMEs.

For many businesses, surplus funds are held between payment cycles, receivables, working capital requirements and planned expenses. Axis Account Plus addresses this need by enabling businesses to utilise idle funds through a fully digital working capital management solution.

For example, if a company with a balance sheet size of ₹100 crore had ₹10 crore as surplus working capital, it could have deployed this amount through Axis Account Plus solution into Axis Mutual Fund’s debt and liquid schemes for a one-month period. Based on historical performance of Axis liquid fund, this may have potentially generated approximately ₹5.25 lakh over the month ended May 31, 2026 (assuming a simple annualised return of around 5.85%)*. Compared to keeping these funds in a current account with no returns, Axis Account Plus would have enabled the company to potentially earn returns on its surplus funds. Such earnings could then have been utilised to offset routine business overheads or operational expenses, thereby improving overall capital efficiency.

*Past performance may or may not be sustained in future. Please refer annexure 2 on page 3 for performance of the scheme in SEBI prescribed format.

Key benefits and features of Axis Account Plus:

• Better Returns on Idle Funds: Helps invest idle funds and potentially improve working capital management, with no penalty on redemption, and flexibility to park funds from a day upto one year, along with an endeavour for same day credit of redemption proceeds for quick access to cash. 
• Seamless Digital Journey: Supports onboarding, KYC, folio creation and investment execution to be completed entirely online, reducing paperwork, process delays and offline dependencies. 
• Safety & Trust: Investments are regulated by SEBI and managed by Axis AMC, ensuring credibility and security. 
• Robust Controls: Enables businesses to manage transactions through a maker-checker workflow, supporting internal approval processes with inbuilt governance protocols. 
• Service Connects: Transactions updates are received on SMS and email to registered users, maker and checker. 
• Unified Visibility: Provides a one-view dashboard that allows consolidated tracking across investments, including the ability to add a company’s subsidiaries and view holdings at a group-company level. 
• Dedicated Support: Committed relationship manager, accessible via SMS, email and WhatsApp along with regular product updates and insights to help keep investments optimised

Speaking on the launch, B. Gopkumar, MD & CEO, Axis AMC said, “With more than 8.6 crore MSMEs registered on the Government of India’s Udyam platform and approximately ₹25 lakh crore that is estimated to be held in current accounts in Banks, typically earning minimal or no returns, we see this as a huge opportunity to tap in.

With Axis Account Plus, we aim to be the first AMCs to address this opportunity at scale, targeting at least 2–3% of India’s MSMEs and corporates. Our working capital management solution allows MSMEs to park idle business cash seamlessly and efficiently, potential to earn return. This solution enables business-grade workflows and maker-checker controls, with an aim to support the pace, governance and growth ambition of modern enterprises”

With Axis Account Plus, Axis Mutual Fund aims to redefine how businesses approach surplus cash management by bringing together digital convenience, operational control and transaction capabilities on a single. The reinforces Axis Mutual Fund’s focus on innovation and its commitment to enabling corporates and MSMEs to make more efficient financial decisions.

To know more and transact: https://transact.axismf.com/corporate-investments

NSE Chief Urges Startups and MSMEs to View Listing as a Tool for Scale

Calling capital markets a key enabler of India's entrepreneurial growth story, National Stock Exchange (NSE) MD and CEO Ashish Chauhan on Friday urged startups and MSMEs to consider public listing as a strategic tool for scaling businesses. Speaking at the JITO Incubation and Innovation Foundation's (JIIF) Foundation Day event at NSE, Chauhan said, “founders should focus on building profitable, sustainable businesses rather than being distracted by short term stock price movements.

Addressing entrepreneurs, investors and startup founders at the event themed 'Compounding Bharat: Innovation Multiplied by Entrepreneurship', Chauhan said, “public markets provide growth capital, improve governance standards, enhance credibility and help companies attract top talent while allowing promoters to retain control of their businesses.”

The keynote comes days after the NSE filed its draft prospectus for one of India's largest ever public offerings, a listing nearly a decade in the making.

Chauhan said, “public listing lets founders raise growth capital without surrendering control, noting that a promoter can offer 25 per cent of equity to the market at the outset, retain 75 per cent and dilute further only as the business requires.”

"When you list, you keep 75 per cent with yourself and offer 25 per cent to the market in the beginning. You can give more later. Control stays with you," he said.

He said, “the public markets reward profitable businesses with a valuation that private balance sheets cannot match. A company earning an annual profit of Rs 2 crore, he said, could command a market capitalisation of Rs 40 to 50 crore once listed, giving the promoter room to raise capital, bring in partners and expand operations.”

Listing also gives a company its own currency, Chauhan said. “A listed promoter can use stock to acquire other businesses, draw in partners and reward staff through stock options, he said, citing the early use of employee stock options at Infosys by N R Narayana Murthy and Nandan Nilekani to attract talent the company could not otherwise have hired.”

He said, “listing strengthens governance and credibility, brings analyst coverage, eases access to bank finance and supports orderly succession by making it simpler to divide assets among heirs.” Compliance, he added, was lighter than commonly assumed and was routinely handled by a company secretary.”

Addressing the concern that listing exposes founders to hostile takeover, Chauhan said control stayed with the promoter and that no change of ownership could occur against a founder's wishes.

On share price, he cautioned founders against chasing artificial trading volumes or mistaking the stock price for the business itself.

"Your business is in your operations, not in the share price. The stock market is only a reflection of your business, it is not the business itself," he said, adding that share prices would follow sustained growth in profit and that founders should direct their energy towards operations rather than short term price movements.

“On liquidity in the small and medium enterprise segment, Chauhan said generating trading volume was not the company's responsibility and pointed to the market maker mechanism, under which two way quotes are provided for three years. Companies on NSE's SME platform, launched in 2012, had collectively raised more than Rs 21,700 crore and held a combined market capitalisation of more than Rs 2 lakh crore”, he said.

He acknowledged that SME business models carried higher risk than those of larger main board companies, but said investors in the segment understood the risk reward trade off and that well run SME companies could scale quickly.

"If you are doing a business of Rs 10 crore or Rs 20 crore, you should be planning for Rs 200 crore and beyond," he said.

JIIF chairman Jeenendra Bhandari said, " Over the last nine years, JIIF has evolved from an idea into one of the community’s most impactful entrepreneurship and innovation platforms. Over the past two years, we have successfully completed four incubation cohorts, facilitated over Rs 60 crore in startup investments, built a network of more than 20 ecosystem partners and collaborated with over 30 national and regional organisations.

Bhandari said, “the foundation had secured a Rs 5 crore MSInS grant and a Rs 2 crore SISFS grant, while its startups had achieved three full and three partial investment successes. He said initiatives such as four editions of its flagship investor engagement platforms and the launch of a 5,000 sq ft incubation centre in Mumbai continued to strengthen the innovation ecosystem.”

JITO, the Jain International Trade Organisation, is one of the world's largest networks of Jain industrialists, entrepreneurs and professionals. Its innovation and entrepreneurship arm, JIIF, has over the past nine years built a platform that has drawn leading names from across Indian business, with previous Foundation Day editions featuring founders and leaders of companies such as Paytm, Zepto, Info Edge and Haldiram's.

Yogi Govt Pushes CFCs to Empower More Artisans with Modern Tech, Training & Markets

The Yogi government is continuously working to strengthen traditional industries, handicrafts, weaving, and micro enterprises in the state. The government aims to ensure that the Common Facility Centres (CFCs) established under the ODOP scheme benefit a larger number of artisans, weavers, and micro entrepreneurs by connecting them with modern technology, training, and marketing facilities, rather than remaining limited to a few individuals. With this objective, a detailed review of 16 CFC projects operating across the state was conducted on Tuesday.

During the meeting, it was stated that Chief Minister Shri Yogi Adityanath had expressed concern over the limited number of beneficiaries in several CFCs and clearly stated that the benefits of these schemes should not remain confined to only a few members.

Keeping this in mind, the CFC projects have been designed with up to 90 percent government subsidy and a 10 percent contribution from entrepreneurs, enabling small entrepreneurs to access facilities such as modern machinery, design, testing, skill training, and common tools.

MSME, Khadi and Village Industries, Silk, Handloom and Textile Minister Rakesh Sachan directed officials during the review meeting to connect CFCs more closely with public interest through extensive awareness campaigns so that a larger number of people can benefit from these facilities.

Officials were instructed to use mobile messaging, pamphlets, Industry Bandhu meetings, and media platforms for outreach. Directions were also issued to display a ‘Citizen Charter’ at all CFCs to provide people with clear information about available services.

The meeting reviewed projects from several districts including Ambedkar Nagar, Moradabad, Sambhal, Varanasi, Khurja, Agra, Meerut, Saharanpur, Bareilly, Ayodhya, and Ghaziabad.

In the Ambedkar Nagar Weaver CFC, established with assistance of nearly Rs 4 crore, emphasis was placed on increasing the number of beneficiaries so that more weavers can access modern facilities. Similarly, discussions were held on strategies to expand outreach of facilities provided under the Banaras Silk Products CFC, which has received assistance of nearly Rs 9 crore.

During the meeting, weavers and artisans also raised issues related to electricity, yarn costs, market competition, and technological upgradation. Officials informed that the Yogi government had continued the flat-rate electricity scheme for weavers for several years, under which the government bore electricity expenses amounting to nearly Rs 44 crore from 2006 to March 31, 2023.

The government’s priority is to help people associated with traditional arts and handicrafts move forward with modern technology and become self-reliant.

During the review of the engineering and tool room-based CFC in Ghaziabad, officials informed that modern facilities such as CNC machines, 3D printing, material testing, and skill training are being provided there. More than 500 youths have been trained so far, and efforts are also underway to explore opportunities for manufacturing components for the defence sector.

The meeting also discussed strengthening the operational efficiency of the Physical Vapor Deposition (PVD) plant in Moradabad, which was described as an example of environmentally friendly technology.

In the Sambhal button industry CFC, utilization of more than 70 percent capacity was described as a positive sign, while emphasis was laid on improving the availability of raw materials and electricity.

The Khurja Black Pottery CFC was cited as a model of success during the meeting. More than 1,253 beneficiaries are associated with the project, and business turnover has increased from Rs 15-20 lakh to nearly Rs 90-95 lakh. It was described as an excellent example of connecting traditional art with modern markets. Artisans also raised a demand for additional land for clay storage during the meeting.

The Saharanpur Wood Craft, Agra Leather Cluster, and jaggery processing CFCs in Bareilly and Meerut were also reviewed. Efforts made in the Meerut project to connect 1,800 farmers and promote value addition were appreciated.

Officials were further directed to organize Udyog Bandhu meetings within CFC premises and establish coordination with large industrial units to connect small enterprises with bigger markets and supply chains.

New India Strengthens Sovereignty with Indigenous Defence Tech, MSMEs & Start-Ups at Core

India’s defence self-reliance took centre stage at the North Tech Symposium 2026 in Prayagraj, where Raksha Rajya Mantri Sanjay Seth credited the success of Operation Sindoor to the courage of the armed forces and the effectiveness of indigenously developed weapons. He hailed MSMEs and start-ups as the “Vishwakarmas of our age,” driving the vision of Viksit Bharat by 2047.

Key Highlights from the Symposium

• Operation Sindoor Success: Defence forces dismantled terror hideouts using Made-in-India equipment, underscoring India’s resolve for Aatmanirbharta in defence.
• MSMEs & Start-ups: Described as the backbone of the economy and brand ambassadors of India, powering innovation and exports.
• Defence Production & Exports: Record figures demonstrate the emergence of a New India that strengthens its own capabilities without threatening others.
• Technology & Innovation: Seth urged industry leaders to stay ahead of the technology curve, highlighting government support and initiatives like the Uttar Pradesh Defence Industrial Corridor.
• Army’s Call to Industry: Lt Gen Anindya Sengupta emphasized collaboration to make the Indian Army future-ready, stressing self-reliance for strategic autonomy.

North Tech Symposium 2026 – Facts & Figures

• Dates: May 4–6, 2026
• Location: Prayagraj, Uttar Pradesh
• Theme: Raksha Triveni Sangam – Where Technology, Industry & Soldiering Converge
• Participants: 284 companies including MSMEs, private defence firms, start-ups, and innovators in uniform
• Showcases: UAVs, drones, counter-UAVs, all-terrain vehicles, surveillance systems, indigenous artillery, and AI-based defence technologies
• Organisers: Indian Army’s Northern & Central Commands with SIDM
• Inauguration: Defence Minister Rajnath Singh on May 4, 2026

Strategic Significance

• Strengthening Sovereignty: Seth asserted that New India neither casts an evil eye nor ignores threats to its sovereignty.
• Future Growth: Start-ups and MSMEs are positioned as drivers of innovation, exports, and defence manufacturing.
• Collaboration Platform: The symposium bridges defence forces, industry, academia, and innovators, fostering synergy for national security.
• Global Outlook: Demonstrations of AI surveillance, logistics drones, and indigenous artillery highlight India’s push to reduce dependence on foreign equipment.

Leadership Voices

Raksha Rajya Mantri Sanjay Seth: “Our start-ups and MSMEs are the driving force for future growth… They are the Vishwakarmas of our age.”

Lt Gen Anindya Sengupta: “Self-reliance will lead to strategic autonomy, technological sovereignty and operational tailoring.”

Raksha Mantri Rajnath Singh: Inaugurated the event, reinforcing the government’s commitment to defence innovation.

Conclusion

The North Tech Symposium 2026 showcased India’s defence innovation ecosystem, where Operation Sindoor’s success became a symbol of indigenous strength. With MSMEs and start-ups at the forefront, the event reinforced India’s march towards Viksit Bharat 2047 and a future-ready military.

MSME Ministry Trains 2,500 Artisans in AI Tools Under PM Vishwakarma Scheme

The Ministry of MSME has trained over 2,500 artisans and craftspeople under the PM Vishwakarma Scheme in the use of Artificial Intelligence (AI) tools, marking the first-of-its-kind initiative across Government of India ministries to integrate grassroots entrepreneurs into the AI ecosystem.

Background of the Initiative

• Scheme: PM Vishwakarma, launched on 17 September 2023, supports artisans in 18 traditional trades with training, tools, credit, and market linkage.
• Objective: Empower artisans by bridging the digital divide and enhancing livelihoods through technology.
• Alignment: Reflects the vision of “AI for Social Good” emphasized at the IndiaAI Impact Summit and reinforced in the Delhi Declaration.

Training Highlights

• Beneficiaries: 2,543 artisans and craftspeople across 20 States and Union Territories.
• Format: Hands-on, practical sessions delivered in simple language and tailored to local contexts.
• AI Tools Introduced: ChatGPT, Indus, and Google Gemini.
• Skills Covered:
  • Branding, product design, packaging, and marketing strategies
  • AI-enabled business efficiency solutions
  • Customer engagement and market expansion
  • AI-generated product descriptions and high-quality visual content

Pan-India Coverage

State/UT	Beneficiaries
Telangana	387
Maharashtra	295
Gujarat	262
Rajasthan	251
Bihar	250
Karnataka	248
Uttar Pradesh	210
Punjab	100
Delhi	82
Odisha	70
Goa	68
Uttarakhand	51
Meghalaya	51
Tripura	50
Jharkhand	43
Daman & Diu	38
Chandigarh	36
Himachal Pradesh	31
Sikkim	20
Total	2,543

Impact and Significance

• Digital Empowerment: Bridges the gap between traditional craftsmanship and modern technology.
• Global Competitiveness: Enhances product value and market reach for grassroots entrepreneurs.
• Economic Growth: Promotes sustainable and inclusive growth by enabling artisans to access new customer segments.
• Policy Innovation: First initiative across Government of India ministries to integrate artisans into the AI ecosystem.

Conclusion

This pioneering effort by the Ministry of MSME under the PM Vishwakarma Scheme represents a transformative step in India’s digital journey. By equipping artisans with AI-driven skills, the government is not only preserving India’s rich artisanal heritage but also positioning it for global competitiveness in the digital age.

India Approves BHAVYA: Plug-and-Play Industrial Parks to Attract Global Investors and Strengthen Atmanirbhar Bharat

India has taken a bold step toward accelerating regional industrialization and strengthening its manufacturing ecosystem with the approval of the BHAVYA scheme. This landmark initiative is designed to create new opportunities for millions of people while reinforcing the country’s vision of Atmanirbhar Bharat.

The BHAVYA scheme has been approved with a massive financial outlay of ₹33,660 crore (about $3.64 billion USD), aimed at developing 100 plug-and-play industrial parks across India. This investment is expected to generate around 15 lakh direct jobs and catalyze industrial growth nationwide.

Driving Industrial Growth and Inclusivity

The BHAVYA scheme is poised to benefit a wide spectrum of stakeholders:

• Primary beneficiaries: Manufacturing units, MSMEs, startups, and global investors seeking ready-to-use industrial infrastructure.
• Secondary beneficiaries: Workers, logistics providers, service sector enterprises, and local communities who will thrive in the ripple effects of industrial expansion.

By offering plug-and-play industrial parks, the scheme ensures industries can begin operations without delays related to land acquisition or infrastructure setup. This model not only boosts efficiency but also enhances India’s appeal as a global manufacturing hub.

A Step Toward Atmanirbhar Bharat

The approval of BHAVYA represents a transformational milestone in India’s industrial journey. It strengthens manufacturing capabilities, boosts exports, and lays the foundation for a resilient, inclusive, and globally competitive economy. The initiative aligns seamlessly with India’s broader goals of self-reliance, sustainability, and global leadership in production.

NICDC: Spearheading Smart Industrial Cities

At the heart of this transformation is the National Industrial Corridor Development Corporation Limited (NICDC), operating under the Department for Promotion of Industry and Internal Trade (DPIIT), Ministry of Commerce and Industry.

NICDC is currently implementing 20 projects across 13 states, building world-class greenfield industrial smart cities that enhance competitiveness, attract investments, and generate employment. These projects embody the concept of pre-developed ecosystems—where land, utilities, approvals, and infrastructure are ready, enabling industries to hit the ground running.

The Road Ahead

The BHAVYA scheme is more than an infrastructure project—it is a catalyst for economic transformation. By integrating manufacturing, logistics, and community development, it promises to:

• Create millions of jobs across regions.
• Empower MSMEs and startups with modern industrial infrastructure.
• Attract global investors seeking efficiency and scale.
• Strengthen India’s position in global supply chains.

This initiative signals India’s commitment to building a resilient, future-ready economy where industrial growth translates into inclusive prosperity.

Summary Table – BHAVYA Scheme 

Aspect	Details
Budget Allocation	₹33,660 crore
Number of Parks	100
Park Size	100–1,000 acres
Lead Agency	NICDC (under DPIIT)
Job Creation	~15 lakh direct jobs
Implementation Model	Central + State + Private partnerships

About NICDC:

National Industrial Corridor Development Corporation Limited (NICDC), under the Department for Promotion of Industry and Internal Trade (DPIIT), Ministry of Commerce and Industry, is spearheading the development of world-class greenfield industrial smart cities to enhance manufacturing competitiveness, attract investments, and generate employment. NICDC is currently implementing 20 projects across 13 states.

NICDC-led initiatives are built on the concept of plug-and-play industrial parks—ready-to-use ecosystems where land, utilities, approvals, and infrastructure are pre-developed, enabling industries to start operations quickly without delays related to land acquisition or infrastructure setup.

Prayaan Capital Raises ₹110 Crore Series A Led by Peak XV Partners to Bridge India’s $300B MSME Credit Gap

Prayaan Capital, led by Rangarajan Krishnan (Ranga), former JMD and CEO of publicly listed Five-Star Business Finance, today announced that it has raised INR 110 crore in its Series A round led by Peak XV Partners.

Rangarajan Krishnan

Rangarajan Krishnan had recently acquired a controlling stake in Prayaan Capital. He aims to transform Prayaan into a new-age MSME lending platform, expanding access to credit for India’s small businesses by combining deep on-ground underwriting expertise with a technology-first approach across sourcing, underwriting, and collections. The company will focus on serving underserved MSMEs across India, a segment that continues to face an estimated USD 300 billion credit gap.

India’s approximately 70 million MSMEs employ nearly 300 million people and play a critical role in driving economic growth. Yet access to formal credit remains limited for many, creating a large and enduring opportunity for new-age lenders built with both operational discipline and modern technology at their core.

Ranga brings more than two decades of experience across financial services. As JMD and CEO of Five-Star Business Finance, he helped scale the company into one of India’s leading MSME lenders, culminating in a successful public listing in 2022. Peak XV has known and partnered with Ranga for over 15 years, including during his leadership journey at Five-Star, and is now partnering with him from day one as he builds Prayaan Capital.

Prayaan Capital seeks to build an institution that combines the proven strengths of branch-led distribution with a technology-enabled operating model. The company aims to leverage digital tools alongside deep customer understanding to improve credit access and serve small businesses more effectively.

Rangarajan Krishnan, Promoter, Prayaan Capital, said: "Small businesses are the backbone of India’s economy, yet millions remain underserved by formal credit. Prayaan Capital is built on the belief that combining deep customer understanding with technology can meaningfully expand access. I am grateful to partner with Peak XV, who have been long-term believers in this segment and have supported me through multiple chapters of my journey."

GV Ravishankar, Managing Director, Peak XV, said: "We have known Ranga for over 15 years, and our partnership has been shaped by a shared commitment to expanding access to credit for small businesses. He and his team bring deep experience and a genuine obsession with serving this segment well. Having seen firsthand the impact they created at Five-Star, we are excited to partner with them from day one as they build Prayaan Capital."

The investment will be used to build Prayaan Capital’s lending platform, expand its team, and grow its presence across key MSME markets in India.

About Prayaan Capital

Prayaan Capital is a technology -enabled MSME lending platform focused on expanding access to credit for India’s small businesses. Led by Rangarajan Krishnan, former CEO of Five-Star Business Finance, the company combines deep underwriting expertise with modern technology to serve underserved entrepreneurs across India.

About Peak XV Partners

Peak XV Partners (formerly Sequoia Capital India & SEA) is a leading venture capital firm investing across India, APAC and beyond. Over the last 20 years of operations in the region, Peak XV has grown to manage over USD 10 billion in capital across 16 funds and has invested in over 450 companies. The portfolio has seen over 35 IPOs and several successful M&As to date. To know more, please visit www.peakxv.com.

Credlix Acquires Majority Stake in Vanik Finance, Infuses ₹80 Crore to Boost MSME Credit Access

Credlix, the fintech arm of Moglix, has taken a majority stake in Vanik Finance, with an aim to infuse ₹80 crore. This marks a significant step in Credlix’s efforts to expand timely and accessible working capital solutions for India’s MSMEs and exporters.

Founded by Rahul Garg, Moglix has built one of India’s leading B2B commerce ecosystems. Through Credlix, the group is strengthening its financial services capabilities for manufacturers, suppliers, and exporters across industrial sectors. The majority stake in Vanik Finance enhances Credlix’s ability to offer a wider range of secured and unsecured lending products while maintaining a disciplined and customer-focused approach.

“This milestone helps us widen access to timely and reliable capital for MSMEs,” said Rahul Garg, Founder and CEO of Moglix and Credlix. “Our goal is to support the complete financial lifecycle of small and mid-sized businesses in a way that is simple, transparent, and aligned with their growth needs.”

For MSMEs, this translates to quicker access to funds, fewer intermediaries, and greater flexibility in managing cash flows. Vanik Finance will now operate fully under the Credlix brand, leveraging advanced analytics and digital underwriting to simplify credit decisions and accelerate turnaround times.

This development comes at a pivotal moment for India’s economy. MSMEs contribute nearly 30 percent of India’s GDP and about 45 percent of exports, highlighting their role in driving industrial growth. As the Make in India and Atmanirbhar Bharat programs advance, access to affordable finance remains one of the most important levers for strengthening India’s manufacturing base and export capacity.

Across India, business credit is evolving quickly. MSMEs today expect faster, cleaner and more predictable access to capital as they scale, manage cash cycles and invest in growth. Lenders are responding by moving toward smarter business-loan offerings that combine digital onboarding, bank-statement analytics, GST-based assessments and collateral-light structures.

The focus is on reducing documentation, improving transparency and enabling quicker sanctions so that manufacturers, traders and exporters can access working capital without friction. Credlix is building a unified system that brings together technology, credit intelligence and sector understanding to deliver reliable liquidity solutions tailored to the needs of growing businesses.

“MSMEs are the backbone of India’s economy. They need financial partners who understand their realities,” Garg added. “By bringing together technology, supply chain networks, and simplified credit access, we aim to help them grow with confidence.”

Credlix will continue investing in technology-led credit products including digital invoice discounting, export factoring, and anchor-based programs. Pilot initiatives across major industrial clusters have demonstrated strong demand and consistent repayment performance. The company is also exploring partnerships with banks and financial institutions to expand reach and capacity.

Through initiatives such as the India–Mexico Trade Corridor, Credlix is enabling exporters with smoother liquidity flows and better access to international buyers. With a stronger capital base and expanded lending capability through Vanik Finance, Credlix is now positioned to scale these efforts across markets and contribute to India’s participation in global trade.

About Credlix

Credlix, the financial arm of Moglix, is a global supply-chain financing platform that enables SMEs to access fast, collateral-free working capital. With operations across India, the United States, Mexico, and the UAE, Credlix helps businesses scale sustainably and participate in global markets.

Link- https://www.credlix.com/

Tata Steel’s B2MSME E--Commerce Platform, DigECA, Crosses ₹1,000 Crore GMV

Tata Steel today announced a significant milestone for its B2MSME e-commerce platform, DigECA, which has surpassed ₹1,000 crore in Gross Merchandise Value (GMV) in the current financial year (FY26). The platform has also recorded over 160 kilo tonnes (KT) in sales and onboarded more than 3,500 Micro, Small and Medium Enterprises (MSME) customers, underscoring its growing role as a catalyst in the digital transformation journey of India’s MSMEs, known as Emerging Corporate Accounts (ECAs) within Tata Steel.

Designed to make steel buying simple, transparent and efficient, DigECA offers ECAs an integrated, omni-channel experience with features such as embedded financing options, real-time order visibility, and dedicated technical support. The platform primarily focuses on flat steel products including Tata Astrum, Tata Steelium, and Galvano, bringing together quality assurance and digital convenience under one ecosystem.

Prabhat Kumar, Vice President - Marketing & Sales (Flat Products), Tata Steel, said: “Surpassing ₹1,000 crore GMV and 160 KT in sales is a testament to the trust our ECA customers place in DigECA. This platform is not just about transactions - it’s about building meaningful relationships, enhancing customer experience through seamless integration of MSME value chain, and aligning our services with their evolving business needs.”

Since its pilot launch in fourth quarter of Financial Year 2024-25, DigECA has registered a 30x growth, driven by Tata Steel’s relentless focus on innovation, customer-centricity, and digital enablement. The platform’s growth mirrors Tata Steel’s broader vision to digitalise the steel supply chain and promote inclusive growth across India’s industrial ecosystem.

With DigECA, Tata Steel continues to lead the way in digital transformation, equipping ECAs with the right tools, services, and support to achieve their business aspirations and contribute to India’s industrial progress.

Godrej Finance Partners Muthoot FinCorp to Expand MSME Lending via Property-Backed Loans

• Aims to achieve disbursals of INR 250 crore in FY26.

Godrej Capital, is the financial services arm of Godrej Industries Group. Godrej Capital’s subsidiary, Godrej Finance (GFL), has entered a co-lending partnership with Muthoot FinCorp to enhance credit access for MSMEs in Tier-2 and Tier-3 cities, building on Muthoot FinCorp’s strong presence and deep market reach in these regions.

L to R: Vinod Reddy, CBO – Secured & Unsecured Lending Business, Muthoot FinCorp, Manish Shah, MD & CEO, Godrej Capital, Shaji Varghese, CEO, Muthoot FinCorp, Pankaj Gupta, MD & CEO, Godrej Finance – a subsidiary of Godrej Capital, Shalinee Mimani, CRO, Godrej Capital

The co-lending partnership will offer loan against property ranging from INR 10 lakh to INR 75 lakh, with an average ticket size of INR 15 lakh. With operations spanning pan-India, this offering is well-positioned to tap into markets with strong demand for accessible and timely credit. The partnership will soon be expanded to include other products such as gold loans and housing loans.

Through a seamless digital integration, this partnership will ensure faster approvals, greater transparency, and compliance with RBI’s co-lending framework. Under the terms of the agreement, the company will assume 80% of the risk, with Muthoot FinCorp covering the remaining 20%. Muthoot FinCorp will oversee underwriting, collections, and the customer journey, while the company will ensure regulatory compliance through a jointly defined policy framework.

Manish Shah, MD & CEO of Godrej Capital stated, “Access to timely credit can make all the difference for a growing business, especially in Tier-2 and Tier-3 cities where it is needed the most. With our partnership with Muthoot FinCorp, we aim to bridge this gap for MSMEs by offering simpler, transparent, and faster lending solutions. Our endeavour is to help businesses grow with confidence while contributing to a stronger and more inclusive financial system.”

Shaji Varghese, CEO of Muthoot FinCorp added, “MSMEs are the largest contributor of employment in the country after agriculture but access to credit is a pertinent challenge faced by the sector. With our 3700+ branches and Muthoot FinCorp ONE app, we have expanded our reach to the hinterlands ensuring accessibility to these MSMEs. With our new partnership with Godrej Capital for Loan Against Property offering to the sector, I am sure we will further contribute to the growth of MSMEs by meeting their financial requirements timely and effectively”.

Through its subsidiary GFL, the company offers a diverse range of loan products to meet the varying needs of MSMEs and individual borrowers. These include offers such as Loan Against Property, Udyog Loan Against Property for smaller-ticket requirements, and unsecured Business Loans.

The alliance is targeting disbursals of INR 250 crore in this fiscal year, with a strong focus on high-potential markets across North, South, and Western India. As one of the few co-lending partnerships between NBFCs, it reflects a robust digital-first approach and sets the stage for broader participation in the fast-growing MSME lending space.

SBI Launches MSME CoE in Gurugram to Drive Capacity Building and National Development Goals

State Bank of India (SBI), the country’s largest bank, inaugurated its Centre of Excellence (CoE) for MSMEs at the State Bank Academy (SBA), Gurugram. The Centre has been established with an objective of strengthening the MSME ecosystem through capacity building, research, and industry collaboration, thereby contributing to India’s vision of becoming a developed nation.

The Centre was inaugurated by Shri M. Nagaraju, Secretary, Department of Financial Services (DFS) and Shri C.S. Setty, Chairman, in the presence of Shri Vinay M. Tonse, MD (RB&O), Shri Surender Rana, DMD (Retail-Agri, SME & FI), Shri Anindya Sunder Paul, DMD (SME & SCF) and Smt. Suranjana Dutta, CGM STU. SBA is an institute imparting specialized training in Credit, International Banking, Risk & Compliance and carrying out Research & Development in various spheres of banking.

State Bank Academy Gurukul, Gurgaon, Haryana

Shri M. Nagaraju, Secretary, Department of Financial Services, said, “MSMEs are the true engines of growth, creating widespread employment and driving prosperity in rural India, which is critical for our journey towards becoming a developed nation. I urge this SBI Centre of Excellence to benchmark itself against the best MSME institutions in the country. My expectation is that the CoE will engage in making case studies and undertaking research, creating a rich repository of knowledge and sharing it online for the benefit of all, especially those in remote areas. Continuous innovation and deep engagement with entrepreneurs, fintechs, and startups will be the key to its success.”

Speaking on the occasion, Shri C.S. Setty, Chairman, SBI, stated, “As the largest lender to MSMEs, with the widest network of SME branches, SBI is responsible to build capacity and the Centre of Excellence will serve as a hub of ideas and innovation, supporting the development of new SME-focused products and processes that can benefit the entire banking sector.”

Shri C.B.K. Singh, GM & Director, State Bank Academy, said, “The Centre has been established based on the vision articulated by the Chairman and would play a significant role in supporting the growth and development of the MSME sector.”

The CoE has been designed with an inclusive approach, engaging with MSME promoters, startups, industry associations, academia, government, regulators, and banking professionals. This collaborative model will ensure that the Centre’s initiatives remain relevant, impactful, and aligned with the needs of the sector.

UGRO Capital Reports ₹421.8 Cr Income in Q1 FY26; PAT Up 12%, AUM Crosses ₹12,000 Cr

• AUM of INR 12,081 Cr, up 31% YoY
• Total Income stood at INR 421.8 Cr in Q1’FY26, up 40% YoY
• Net Total Income at INR 216.5 Cr, up 31% YoY
• GNPA/NNPA at 2.5%/1.7% on total AUM
• Embedded Finance Growth: Reached INR 1,011 Cr AUM with INR 582 Cr disbursed in Q1’FY26 through MSL platform
• Emerging Market Business Growth: Reached INR 2,772 Cr AUM with 309 branches operational; ~346 branches to be operational by Sep’25
• CRAR at 22.4%, provides strong capital headroom above the regulatory minimum, supporting calibrated growth
• Strategic actions: Profectus Capital acquisition (INR 1,400 Cr, all-cash) advancing; INR 381 Cr rights issue completed and INR 911 Cr preferential issue in process

UGRO Capital Limited (“UGRO” or “the Company”), a DataTech NBFC focused on MSME lending, announced its financial performance for the quarter ended June 30, 2025 (Q1’FY26). The Company sustained healthy year-on-year growth and a stable risk profile, while reinforcing structural growth engines of branch expansion in Emerging Markets, scale in Embedded Finance, and progress on the Profectus Capital acquisition and ongoing equity raise. Continuing its journey toward becoming the largest small business financing institution driven by data and technology, the Company reported Assets Under Management (AUM) of INR 12,081 crore as of June 30, 2025, reflecting a 31% YoY growth.

The Emerging Market Business continued to scale with 309 operational branches and a path to ~346 branches by September 2025, supported by improving branch-vintage profitability. The Embedded Finance platform crossed INR 1,000 Cr AUM; Q1 disbursements were INR 582 Cr, with strong contributions from partners such as PhonePe and BharatPe. In parallel, the Company advanced the INR 1,400 Cr all-cash acquisition of Profectus Capital (shareholder approval received; change-of-control and allied approvals in process) and continued its capital raise programme (INR 381 Cr rights issue completed; INR 911 Cr preferential issue in progress), further strengthening the balance sheet for quality growth.

UGRO Capital continued to diversify liabilities and improve the cost of funds during the quarter. Total debt stood at INR 7,586 Cr as of June 30, 2025, with CRAR at 22.4%, and the off-book share at 42% supported by co-lending and direct assignment flows. The partner ecosystem remains deep and data linked with 17 Co-lending partners, 50+ lenders and 770+ GRO partners and Green anchor partners, enabling tailored credit for over 2 lakh MSMEs across India.

In terms of financials, Total Income for Q1’FY26 stood at INR 421.8 Cr, up 40% YoY and 2% QoQ; Net Total Income was INR 216.5 Cr, up 31% YoY and PAT was INR 34.1 Cr, up 12% (YoY). Portfolio quality remained stable with GNPA/NNPA at 2.5%/1.7% on total AUM.

UGRO reported Disbursement of INR 1,599 Cr in Q1’FY26. First Quarter of any Financial Year is seasonally softer, and by design, the Company prioritized discipline over pace. Underwriting filters were tightened particularly on borrower leverage resulting in calibrated originations. Draft co-lending guidelines issued in April weighed on volumes temporarily; the effect was cushioned by higher direct assignments and continued liability diversification. With the Emerging Market network nearing full rollout and embedded-finance funnels strengthening, momentum is expected to improve from Q2 while keeping asset quality at the center.

Speaking on the performance, Mr. Shachindra Nath, Founder and Managing Director of UGRO Capital, said, “Q1 was a quarter of discipline. In line with our risk guardrails, we tightened underwriting and moderated originations wherever borrower leverage was elevated. Even so, the portfolio remained resilient across our nine focus sectors, and we delivered 31% YoY AUM growth with stable asset quality. We stayed focused on building our next engines of Emerging Market distribution, Embedded Finance partnerships and the Profectus acquisition. With capital actions underway and approvals progressing, we are well placed for the next phase of high-quality growth. While the industry is seeing relatively higher stress in unsecured segments, UGRO’s exposure there is limited and ring-fenced; our book is predominantly secured, and our filters are sharper than before. As seasonal effects fade and partner funnels ramp up, we expect growth to pick up while staying firmly disciplined on unit economics."

About UGRO Capital Ltd (NSE: UGROCAP I BSE: 511742)

UGRO Capital Limited is a DataTech Lending platform, listed on NSE and BSE, pursuing its mission of “Solving the Unsolved” for the small business credit gap in India, on the back of its formidable distribution reach and its Data-tech approach.

The Company’s prowess in Data Analytics and strong Technology architecture allows for customized sourcing platforms for each sourcing channel. GRO Plus module which has uberized intermediated sourcing, GRO Chain, a supply chain financing platform with automated end-to-end approval and flow of invoices, GRO Xstream platform for co-lending, an upstream and downstream integration with fintechs and liability providers, and GRO X application to deliver embedded financing option to MSMEs.

The credit scoring model GRO Score (3.0) a statistical framework using AI / ML driven statistical model to risk rank customers is revolutionizing the MSME credit by providing on-tap financing like consumer financing in India.

UGRO has executed Co-lending model in India which is prevalent in the West through Co-Lending relationships with total of 17 Banks and NBFCs and built a sizeable off-balance sheet asset of 42% of its AUM through its Co-lending and Co-originating partners and GRO Xstream platform.

The Company is backed by marquee institutional investors (raised INR 900+ Cr of equity capital in 2018, INR ~340 Cr in 2023, INR ~258 Cr in 2024 and INR ~1300 in 2025). For more information, please visit: http://www.ugrocapital.com

Over 81% of 9000+ Surveyed MSMEs Expect Revenue Increase in Next 1-2 Yrs: Kinara Capital MSME Insights

Kinara Capital, a leading fintech driving MSME financial inclusion, today released its fourth edition of MSME Insights, signaling strong optimism and increased formalization in the MSME sector. MSME entrepreneurs are confident about their near-term business growth prospects.

According to the latest MSME Insights, 81% of the surveyed MSMEs expect their business revenue to increase within the next 1-2 years. Of these, 34% anticipate a revenue growth of more than 15% in their businesses. Additionally, MSMEs are embracing formalization, with 51.7% of the surveyed reporting that they are now GST-registered.

The fourth edition of MSME Insights is based on an extensive multilingual survey of 9,314 MSMEs from Manufacturing, Trading, and Services sectors conducted across Andhra Pradesh, Gujarat, Karnataka, Maharashtra, Tamil Nadu, Telangana, and the Union Territory of Puducherry.

The MSME Insights is a comprehensive data analysis of current trends of micro-small-medium enterprises (MSMEs) based on firsthand input from business owners. MSME Insights also delved into the behavioral patterns within the MSME sector and the analysis uncovered a striking pattern across all sectors. MSMEs still depend significantly on cash transactions, even when not accounting for UPI usage. Over 84.3% of the surveyed MSMEs stated that between 25%-100% of their business transactions are conducted with actual cash—underscoring the need for deeper digitization efforts across the sector.

Sharing her perspective, Hardika Shah, Founder & CEO, Kinara Capital, said,
“On the occasion of World MSME Day, it is encouraging to witness the strong optimism shared by India’s MSMEs. The fact that 81% of respondents in our recent MSME Insights survey expressed confidence in their growth prospects speaks volumes about the sector’s resilience and ambition. This optimism is rooted in improved access to formal credit, which enables entrepreneurs to focus on expansion. However, the sector’s continued reliance on cash transactions highlights the need to accelerate digitization. Embracing digital payments can enhance financial transparency and significantly boost access to formal credit. Ultimately, digitization holds the key to reaching underserved MSMEs and closing India’s ₹30 lakh crore credit gap.”

Key Findings From Kinara Capital’s Msme Insights, Fourth Edition

MSMEs are upbeat about their business growth: More than 81% of the respondents have indicated that they are expecting varying degrees of growth in their revenue. Of these, 47% of the respondents expect their revenue to witness a 5%-15% growth, 26.1% anticipate a growth of 15%-25% and 7.9% are optimistic of more than 25% growth in revenue. Only a small proportion, i.e., 1.1% foresee no growth.

Cash is King for MSMEs: Overall, 84.3% of the surveyed MSMEs reported relying on cash (excluding UPI) for 25%-to-100% of their business transactions. While only 7.4% of the MSME respondents relied on cash for more than 75% of their business transactions, 30.5% depended on cash for 50%-to-75% of their business transactions. This outcome indicates that a shift to digital payments, though underway, is far from reaching its full potential.

Formalization is on an Upswing: MSMEs are increasingly recognizing the benefits of Goods and Services Tax (GST) compliance. According to the survey, 51.7% of respondents are GST-registered and file returns regularly. Of these, 29.4% expressed interest in GST-linked loan products that offer better interest rates or flexible tenures. Regular GST filings not only reflect consistent business activity but also provide a verifiable financial history that enhances credit eligibility. Additionally, GST registration reduces the overall tax burden through input tax credits and offers MSMEs the ease of doing business across state lines with a unified tax structure.

Tata Steel Unveils DigECA, a one-stop digital steel Buying Platform, for MSME customers

Tata Steel today launched a new version of DigECA, expanding access beyond channel partners to include Micro, Small and Medium Enterprises (MSMEs), broadly classified as Emerging Corporate Accounts (ECA) by Tata Steel. DigECA is a groundbreaking B2MSME e-commerce platform specifically designed to meet the needs of ECA customers, enabling them to transact directly with ease and convenience while accessing the highest quality products and services.

Building on the success of Tata Steel’s B2C e-commerce portal, Aashiyana, DigECA envisions a revolution in the customer journey for ECAs. The platform focuses on flat products such as Tata Astrum, Tata Steelium, and Galvano, providing MSMEs with hassle-free purchase experience with Tata Steel and its channel partners.

Since the pilot launch in Q4 FY25, DigECA has experienced impressive growth, onboarding over 2,000 ECA customers and achieving significant milestones in its Gross Merchandise Value (GMV). This growth reflects our commitment to empowering customers with complete transparency regarding material availability and order fulfillment, ensuring a seamless process from enquiry to delivery, further augmented with post-supply services.

Prabhat Kumar, Vice President, Marketing & Sales (Flat Products), Tata Steel, said: “At Tata Steel, we are committed to enhancing customer satisfaction through digital innovation. With the launch of DigECA for our ECA customers, we are simplifying the steel buying experience and strengthening their direct engagement with Tata Steel. The platform is designed to enable a more connected and efficient relationship between customers and our distribution network, helping us better align our offerings with evolving market needs.”

With DigECA, Tata Steel reinforces its expertise in technology and innovation to deliver an unparalleled experience for customers, setting the stage for a thriving future. The Company is dedicated to ensuring that its ECAs feel supported and valued in the collective pursuit of meeting the business aspirations.

Over 1 Lakh Micro Food Processing Enterprises Funded Under PMFME Scheme, in Last 5 Years

Under central government-sponsored PM Formalization of Micro Food Processing Enterprises (PMFME) Scheme across the country, a total of 1,08,580 micro food processing enterprises have been approved for assistance under PMFME Scheme till 31st October, 2024. The scheme is operational from 2020-21 to 2025-26 with total outlay of Rs. 10,000 crores.

Union Minister of State for Food Processing Industries, Shri Ravneet Singh Bhittu, shared this information in a written reply to Loksabha.

He informed that the Ministry of Food Processing Industries (MoFPI) in India has been actively supporting small and medium-scale food processing entrepreneurs through various schemes. Here are some key initiatives:

Central Sector Pradhan Mantri Kisan SAMPADA Yojana (PMKSY) Scheme

• Objective: To incentivize food processing entrepreneurs for setting up or expanding related industries.
• Financial Assistance: Provides mostly credit-linked financial assistance (capital subsidy) to entrepreneurs.
• Projects: Includes 41 Mega Food Parks, 399 Cold Chain projects, 76 Agro-Processing Clusters, 559 Food Processing Units, and more.

Production Linked Incentive Scheme for Food Processing Industry (PLISFPI)

• Objective: To support the creation of global food manufacturing champions and promote Indian brands in international markets.
• Implementation Period: From 2021-22 to 2026-27.
• Outlay: Rs. 10,900 crores.

Centrally Sponsored PM Formalization of Micro Food Processing Enterprises (PMFME) Scheme

• Objective: To provide financial, technical, and business support for setting up or upgrading micro food processing enterprises.
• Operational Period: From 2020-21 to 2025-26.
• Outlay: Rs. 10,000 crores.
• Approved Enterprises: Over 1,08,580 micro food processing enterprises have been approved for assistance under this scheme.

These schemes, which are not region or state specific but demand driven, aim to boost the food processing industry, enhance operational efficiency, and support the transition to sustainable and modernized food processing practices.

Meta Partners ONDC To Enable Small Businesses Build Conversational Buyer-Seller Experiences on WhatsApp

• Meta will enable and educate small businesses, through an ecosystem of our business and technical solution providers capable of building seamless conversational buyer and seller experiences on WhatsApp.
• With you ONDC partnership, Meta will digitally upskill five lakh MSMEs through the Meta Small Business Academy.

Meta, the parent of social media giant Facebook, today announced its partnership with Open Network for Digital Commerce (ONDC) to enable and educate small businesses in building seamless conversational buyer and seller experiences on WhatsApp through an ecosystem of Meta's business and technical solution providers. As part of this collaboration, ONDC will help these business solution providers become seller apps, bringing the businesses they service onto the ONDC network and helping them drive commerce.

To kick-off the partnership, over the next two years, Meta will also digitally upskill 5 lakh MSMEs through the Meta Small Business Academy. Born out of Meta's commitment to up-skill 10 million small businesses across the country, Meta Small Business Academy offers a certification to empower entrepreneurs and marketers to gain critical digital marketing skills to grow on our apps.

“At ONDC, we are committed to accelerating and democratizing the digital landscape and towards that, we aim to empower MSMEs, help them build digital visibility, and boost their businesses. Today, for any business to grow, it is critical for them to market themselves and reach a wider audience. Our partnership with Meta will not only digitally upskill these businesses but will also enable them to connect with a customer base far and wide. I am confident that our collaborative efforts will pave the way for millions of small businesses by providing them with the right impetus for growth.” – T Koshy, MD & CEO of ONDC. 

“India’s digital transformation story is unfolding at a revolutionary pace, and for this growth to continue, we need the right ecosystem and partnerships that enable millions of small businesses to build and deepen their digital presence. Meta has been a frontrunner in partnering with the government and the industry to advance digital inclusion, especially for MSMEs across India. Our partnership with ONDC builds on supporting the government’s vision for Digital Public Infrastructure (DPI) and furthering our ongoing commitment to skilling small businesses and aiding this rapid digital transformation and growth story in the country.” – Sandhya Devanathan, Vice President, Meta in India. 

As part of the partnership, Meta will also support Sahayak, ONDC’s WhatApp chatbot, in enhancing the services offered on the bot as the single point of seller communication and customer communication for ONDC.

Earlier this year, Meta launched ‘WhatsApp Se Wyapaar’ program to upskill 10 million traders across 29 states in 11 Indian languages on the WhatsApp Business app. Today, there are more than 200 million users of the WhatsApp Business app across the world, and more than 60% of people on WhatsApp in India message a business account.

In April this year, Meta partnered with NIESBUD, AICTE and CBSE, to train students, Entrepreneurs, Startups and small-businesses in Digital Marketing. The partnership agreement was inked through Ministry of Education, Ministry Skill Development & Entrepreneurship.

Kinara Capital Commits ₹ 575+ Cr in Business Loans Disbursement for MSMEs in Karnataka by FY24

myKinara App, available in Kannada, simplifies process for MSMEs to avail Business Loan

Kinara Capital, a fast-growing fintech driving MSME financial inclusion, today reiterated its commitment to fostering MSMEs in Karnataka. It aims to disburse over INR 575+ crores in business loans in FY24 and support the growth of MSMEs in the state.

Elaborating about the plan, Thirunavukkarasu R (Thiru R), Chief Operating Officer (COO), Kinara Capital, said, “Karnataka is a vibrant, growing region with a diverse MSME sector. Kinara Capital is proud to be headquartered in Karnataka and for over a decade, we have supported thousands of small business entrepreneurs in this state. Our commitment to disburse over INR 575+ crores in FY24 to MSMEs in Karnataka will boost business growth and lead to the creation of 6000+ new jobs in local economies.”

MSME business owners can start the process at their convenience with our easy to use myKinara App, available in Kannada. In FY23, Kinara Capital had disbursed over INR 341 crores, 141% higher than FY22 in the state.

The ambitious disbursement plan for this fiscal (FY24) will be supported by operational enhancement. Recently, Kinara Capital has opened 3 new branches in Haveri, Humnabad and Ramanagara and expanded its geographical presence to over 28 branches and 658 pincodes. Furthermore, the company plans to increase its employee strength in Karnataka to 930 employees, with over 300 new hires across Kinara Capital’s Offices in this fiscal .

Headquartered in Bengaluru, Karnataka, Kinara Capital Capital provides MSMEs with collateral-free loans in the range of INR 1 lakh to INR 30 lakhs through its various products such as Long-term Working Capital and Short-term Working Capital, Machinery Purchase, Bill Discounting and HerVikas loans to across 300 sub sectors.

Till date Kinara has disbursed more than INR 1,089 crores across 20,717 business loans in Karnataka. The support from Kinara has led to over INR 79 crores in incremental income generation for the small business entrepreneurs, and created over 21,437 new jobs in the local economies. Food Products , Construction Material, Machine Components, Textiles, Fabrication, Auto Components, Automobiles etc are some of the leading sub-sectors for Kinara Capital in the state.

Kinara Capital has also been working towards empowering MSME women entrepreneurs through its focused program HerVikas. Under the program, women entrepreneurs are supported with an upfront automatic discount on their business loans. Through HerVikas program, Kinara Capital has disbursed more than INR 87 crores across 956+ business loans to women entrepreneurs in Karnataka. The company is looking at scaling up its commitment and extending its support to more women-owned MSMEs in the state.

Kinara Capital is a fast-growing fintech company and is globally recognized for disrupting the small business lending model in India by democratising access to collateral-free business credit in India. Kinara Capital has disbursed over INR 5,000+ crores to date across 90,000+ collateral-free business loans thereby propelling vast financial inclusion of India’s MSME sector. Leading with a women- majority management team, Kinara Capital has raised the bar for gender inclusivity internally as an organisation and externally with its HerVikas program for women entrepreneurs. The company is qualified as a Systemically Important NBFC by the Reserve Bank of India (RBI) and is a debt-listed entity on the Bombay Stock Exchange (BSE). Founded in 2011, and headquartered in Bengaluru, Kinara Capital has 133 branches serving MSMEs across 100+ cities in India with a workforce of 1,600+ employees. Visit kinaracapital.com for more information and follow us on Twitter @KinaraCapital.