Laghu Udyog Bharati

Weekly Insights for Entrepreneurs

Government doubles Micro Enterprise (ME) Card rollout to expand credit access for MSMEs

The ME-Card, first announced by Union Finance Minister Nirmala Sitharaman in the Union Budget 2025–26, is designed as a customised credit instrument for MSMEs registered on the Udyam portal. It offers benefits such as low-interest rates, credit guarantee cover, and simplified digital onboarding.
Each ME-Card comes with a credit limit of up to Rs 5 lakh, enabling small enterprises to meet working capital needs efficiently. The government projects the initiative could unlock Rs 1.5 trillion in additional credit over the next five years.
The disbursal of credit cards will be entirely digital, relying on simplified assessment models using enterprise revenue data derived from Unified Payments Interface (UPI) transactions, bank statements, and the Account Aggregator (AA) framework.

Indian MSMEs defy Trump tariff headwinds, sectoral indices stay in growth zone: SIDBI Report

The Small Industries Development Bank of India (SIDBI) survey confirmed sustained growth across the board, as all three key sectoral indices — manufacturing, services, and trading- remained well above the expansion threshold of 50, indicating continued growth momentum.
This optimism is supported by anticipated stronger domestic demand and favourable government measures, such as the reduction in Goods and Services Tax (GST) on various products and services. The services sector, in particular, is expected to experience robust future growth.
Most MSMEs reported stable profit margins, with nearly one in five witnessing improvements. While a small portion (15-20%) of businesses experienced some pressure on profits.

RBI panel backs cash-flow based lending, digital tools to boost MSME credit

Cash-flow based lending and adoption of digital solutions like the Trade Receivables Discounting System (TReDS) can improve credit linkage for the micro, small and medium enterprises (MSMEs), a Standing Advisory Committee headed by Reserve Bank of India deputy governor Swaminathan J suggested.
The deputy governor underscored the need to promote wider adoption of digital solutions like TReDS, encourage alternative credit assessment models, and ensure fair, transparent, and empathetic lending practices for promotion of rehabilitation of distressed but viable units.
He also urged MSME associations to play a greater role in capacity building and in bridging information gaps to help enterprises better leverage formal financial channels.

Defence Research and Development Organisation hands over 12 tech transfer agreements to industry partners

The two-day industry synergy meet, organised by DRDO's electronics and communication systems cluster, aimed to strengthen collaboration between DRDO and private industries, particularly startups and MSMEs, under the Aatmanirbhar Bharat initiative.
The technologies transferred include a range of systems developed across DRDO laboratories — from the D-29 Electronic Warfare Suite and Sarang ESM System to laser-based guidance technologies, satellite communication terminals, and medical dispenser cathodes.
The recipients include major defence manufacturers such as Bharat Electronics Limited (BEL), Bharat Dynamics Limited (BDL), and several private firms like DH Limited, Enertech Engineering, Beam Infotech, Nibe Ltd, and Panacea Medical Technologies.

12 Indian Deep Tech Startups Backed by IITs

India’s IIT ecosystem has emerged as a global deep-tech powerhouse, with IIT Madras alone incubating 475 startups valued at over ₹50,000 crore. These institutions are producing breakthrough technologies across AI, space exploration, quantum computing, semiconductors and sustainable mobility.
The following 13 startups, ranging from conversational AI unicorns to electric vehicle manufacturers and space-tech innovators, are serving Fortune 500 clients and proving that India can build world-class deep-tech enterprises competing globally.

PM Modi rolls out ₹1 trn research, development and innovation (RDI) fund for 'high-risk, high-impact projects'

A Special Purpose Fund (SPF) under the Anusandhan National Research Foundation will act as the custodian. Rather than investing directly in startups or companies, the SPF will channel capital through a second layer of professional fund managers.
Financing under the RDI fund will take the form of long-term, low-interest — or in some cases, interest-free — loans, equity infusion (especially for startups), and allocations to the deeptech fund of funds. The scheme doesn’t support grants and short-term loans.
Priority areas include energy security and transition, quantum computing, robotics, space technology, biotechnology, and artificial intelligence (AI).

Government to consider privatisation, stake sale, market listing of state discoms to revive ailing sector

These proposals form part of the government’s wider effort to address the financial crisis in the distribution sector, which continues to face mounting dues and operational inefficiencies. The Centre is reportedly considering a $12 billion bailout plan to support these reforms and put discoms on a sustainable growth path.
The proposed reforms include allowing private participation in the management and operations of state discoms.
The document also suggests partial divestment of state government stakes in discoms where debt levels have become unsustainable. If that fails to attract sufficient interest, the ministry is exploring the possibility of listing these entities on stock exchanges to raise funds and improve transparency.
The plan also recommends steps to make electricity tariffs more cost-reflective, aiming to reduce losses and ensure operational viability.

Indian Wedding Season To Drive Rs 6.5 Lakh Crore Business

A key finding is a strong consumer shift towards Indian-made products. The study reveals that over 70 per cent of wedding-related purchases are now domestic goods, including apparel, jewellery, and décor. This trend is attributed to the ‘Vocal for Local’ initiative, which has reduced demand for imported items.
Apparel and jewellery are major contributors, while services like catering and event management also claim a significant share.
The national capital, Delhi, is expected to be the largest market, with 4.8 lakh weddings contributing nearly Rs 1.8 lakh crore.
Regionally, states like Rajasthan and Gujarat are seeing a surge in luxury destination weddings, while Uttar Pradesh and Punjab report high spending on traditional décor and catering.
The sector is also expected to contribute approximately Rs 75,000 crore to government tax revenues.

Fiscal deficit at 36.5% of FY26 target on higher capital spending

Total receipts stood at 17.30 lakh crore rupees, while overall expenditure in April to September was at 23.03 lakh crore rupees. They were 49.5% and 45.5% of this fiscal year's budget target.
Tax and non-tax revenues were 43.3% and 79.9% of the budgeted estimate.
Non-tax revenue jumped as the Reserve Bank of India approved a dividend of Rs 2.69 lakh crore to the central government, up from Rs 2.11 lakh crore transferred last year.
Federal budget had set the fiscal deficit target for 2025-26 at 4.4%, in line with the Indian government’s commitment to narrow the budget gap to below 4.5% by fiscal 2026. India’s fiscal deficit for FY25 stood at 4.8% of GDP, meeting the revised estimate.

How is India's middle-class revolutionizing consumption trends and what does it mean for the future?

India's consumers are changing. They are moving from loose goods to branded items. Digital platforms are influencing choices. Health and wellness are now priorities, leading to shifts in spending. Premium products are gaining traction. This evolution signals a dynamic market transformation across the nation.
“We see India's 2030 consumer as a mosaic of identities - experimental, aspirational, proudly regional and digitally native. ”
India’s digital leap is unmistakable. Consumers in India now burn through 35-40 GB of mobile data each month, far surpassing the US average of 29 GB.
India’s food and beverage preferences are shifting toward fortified, cleaner and more regional products, with consumers increasingly trusting brands and packaging over detailed labels.
Amid rising consumer confidence in Made-in-India labels, more brands have an opportunity to move up the value chain and capture the superpremium segment.

One qubit at a time: IISc hits milestone in India’s quantum quest, develops 6-qubit photonic system

This achievement makes India capable of quantum computing using the different properties of light-based particles, instead of relying on their interactions.
Processing power and capacity of a quantum computer increases with the number of qubits (the basic unit of information used to encode data in quantum computing) it contains.
Though the system may be small in number, it is the first demonstration in the world—according to Prof. Chandrashekar—where a six-qubit entangled GHZ (Greenberger–Horne–Zeilinger) state has been generated using the gate operations without any probabilistic process and by using only photons.
This positions India among few nations which are capable of developing quantum computing using light-based particles.

IIT Bombay researchers develop GPS-free control scheme for autonomous drone swarms

The innovation simplifies drone architecture, enhances stealth, and ensures stability even in dynamic missions.
The method uses bearing-only measurements obtained through onboard cameras to determine relative positions and maintain formation.
“This means that vehicles in a swarm should be able to decide their ‘actions’ based on variables they can measure with their on-board sensors, instead of having to rely on some global information being fed to them or some human/centralised computer deciding what their action ought to be.

IIT Madras Achieves Breakthrough In Vertical Take-Off, Landing Technology

In a sophisticated experiment that combined a real-time hybrid rocket thruster with a virtual simulation, the researchers achieved the necessary velocity for “soft landing”, a crucial feature for all craft ranging from planetary landing of an unmanned or manned exploration module to terrestrial landing of a VTOL aircraft.
“Once the VTOL system reaches the Technology Readiness Level (TRL) for commercial application, it will be a game-changer in both civil and military aviation. VTOL will help to decentralise air transport to multiple locations rather than a single big airport or an airbase, ”
The developed VTOL technology can be extended to fixed-wing UAVs as an initial implementation,.

CSIO forays into niche optics field, works on smart head-up display (HUD) for fifth-generation fighter aircraft

While developing this, CSIO is foraying into the domain of ‘waveguide technology’.
Waveguide technology, according to scientists at CSIO, guides electromagnetic waves, such as radio waves or light, through a specific path with minimal loss. Both are used to direct energy from one point to another, such as a light source to a user’s eye in an augmented reality headset.
Such waves are used in high-power applications like radar systems, high resolution optical devices, augmented reality, broadcasting and even gadgets like microwave ovens, where they prevent energy from spreading beyond the stipulated requirements and minimise loss.
“We have given a pre-prototype demonstration of the HUD and its technology to the Air Force and the project is expected to be complete in about two years’ time, ” Ashish Gaurav, senior principal scientist at CSIO said.

IIT Bhilai Researchers develop Smart Polymer Gel for energy-saving windows, green power devices

The material behaves like a smart window coating-it automatically adjusts transparency with changes in temperature, reducing heat inside buildings and cutting down on air-conditioning costs.
At the same time, the same gel can be used as an electrolyte in small power-generating devices, showing its potential for sustainable energy applications beyond buildings.
The kye benefits of the gel are Energy savings in buildings: Smart windows reduce cooling needs by automatically adjusting transparency with temperature.
The gel doubles as an electrolyte for eco-friendly power devices. Cost-effective and scalable: One material serves dual energy functions, reducing technology costs and complexity.

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