Laghu Udyog Bharati

Weekly Insights for Entrepreneurs

Centre expands MSME engagement under PLI Scheme for traditional textiles: MoS

Minister of State for Textiles, Pabitra Margherita, announced significant relaxations to the Production Linked Incentive (PLI) Scheme to boost MSME participation in the textile sector. Key amendments include reducing the minimum investment threshold for new applicants and lowering the incremental turnover requirement from 25% to 10%.
he modified scheme now allows existing companies to apply without forming a new subsidiary, removing a major compliance hurdle. The product basket has also been expanded to include a wider range of man-made fibre (MMF) apparel, fabrics, and technical textiles, making the scheme accessible to a larger pool of small manufacturers.
For MSMEs, this revision presents a lucrative opportunity to scale operations with government backing. By lowering entry barriers to as low as ₹50 crore for certain categories, the government aims to integrate smaller players into the global value chain, enhancing India's export competitiveness in traditional and technical textiles.

Govt allocates Rs 200 crore for 9 new technology centres to support MSME skilling

The Union Government has earmarked ₹200 crore for the fiscal year 2025-26 to establish nine new Technology Centres under the Technology Centre Systems Programme (TCSP). These new facilities are in addition to the 18 existing centres, which have already trained over 3.28 lakh individuals in advanced manufacturing and industrial skills.
The initiative focuses heavily on bridging the skill gap by offering training in cutting-edge technologies such as Artificial Intelligence (AI), Robotics, and the Internet of Things (IoT). By integrating these modules into long-term and short-term training programmes, the government aims to equip the MSME workforce with future-ready capabilities.
Business owners stand to gain from a more technically competent talent pool and access to shared advanced infrastructure. These centres will not only provide skilled manpower but also offer technical consultancy and testing facilities, enabling local MSMEs to innovate and improve product quality without incurring massive capital expenditures.

MSME Ministry Expands Technology Centres, Boosts Digital Services

The Ministry of MSME is accelerating the modernization of the small business sector by expanding its physical network and enhancing digital public infrastructure. The government plans to set up 20 new Technology Centres and 100 Extension Centres, extending technical support and mentorship to enterprises in Tier-2 and Tier-3 cities.
Parallel to physical expansion, the Ministry is bolstering digital platforms like Udyam, GeM, and TReDS to streamline business operations. These digital services facilitate seamless registration, easier access to government procurement, and faster resolution of delayed payments, creating a more transparent and efficient ecosystem for small enterprises.
For MSMEs, this dual push offers comprehensive support. The expanded physical network brings technical assistance closer to factory gates, while the strengthened digital services reduce administrative burdens. Businesses are encouraged to leverage these platforms to enhance compliance, access new markets, and resolve liquidity issues more effectively.

MSME Credit: India Launches New Digital Credit Assessment Model

The Government has launched a new Credit Assessment Model (CAM) designed to revolutionize loan appraisals for MSME. This digital-first model utilizes verifiable data from the ecosystem—such as tax returns and transaction history—to automate and objective-base the credit decision-making process.
By moving away from traditional, paper-heavy assessments, CAM enables banks to assess credit limits for both existing and new borrowers with greater speed and accuracy. The initiative is part of a broader digital push that includes the extension of the PM SVANidhi scheme and incentives for digital transactions via RuPay and UPI.
This shift is a game-changer for MSMEs, particularly those with limited physical collateral but strong cash flows. Business owners should prioritize maintaining digital financial footprints, as the new model relies on data transparency to fast-track approvals, ensuring timely access to formal credit at competitive terms.

Three Hyderabad Startups Lead India’s Commercial Space Race

Three startups targeting the Low Earth Orbit (LEO) economy – Skyroot Aerospace, Dhruva Space, and TakeMe2Space – are capitalizing on Low Earth Orbit (LEO)s cost-efficiencies to transition space exploration from a government monopoly to a competitive private sector domain.
Skyroot leads the launch segment with its Vikram rockets and a new manufacturing facility, while Dhruva Space offers full-stack satellite solutions, including deployers and ground stations. Newer entrant TakeMe2Space aims to democratize orbit access by building “data centers in the sky” using affordable, industrial-grade components to drastically lower costs.
For MSMEs, this emerging ecosystem signals robust demand for precision manufacturing and ancillary services. The shift toward frequent commercial launches opens critical supply chain avenues in electronics, specialized materials, and data analytics, allowing small businesses to integrate into the expanding global space economy.

Modi, Putin chart roadmap: Labour mobility, n-energy, trade & defence

Deepening their ties as the world watched India roll out the red carpet for visiting Russian President Vladimir Putin, Delhi and Moscow signed a labour mobility pact, agreed on a programme for developing strategic areas of economic cooperation until 2030, announced a 30-day free tourist visa for Russian nationals and pledged to work towards early conclusion of a free trade agreement with the Eurasian Economic Union.
Following the Modi-Putin talks, the two sides inked 16 pacts, ranging from health to maritime cooperation, fertilizer to customs, academic to media collaboration. Defence and nuclear energy cooperation dominated discussions.
India and Russia will cross the $100 billion bilateral trade target much before the appointed 2030 deadline, Prime Minister Modi said after Russian President Vladimir Putin cited possibilities of enhancing trade and commerce between the two nations.

RBI MPC Meeting Highlights: Repo rate cut by 25 basis points to 5.25%, EMIs to come down; RBI governor Sanjay Malhotra dismisses concerns on rupee, says comfortable on external sector

Beyond the rate cut, RBI’s decision to purchase government bonds worth up to ₹ 1 lakh crore through OMO, combined with a USD 5 billion buy-sell swap, marks a decisive effort to restore durable liquidity and stabilize currency markets after the rupee’s sharp depreciation.
RBI assesses 2025-26 real GDP growth at 7.3% and CPI inflation at 2%. The latter is the lower bound of the RBI’s inflation tolerance range.
Persistently low inflation and subdued core inflation has given RBI the headroom to cut repo rate, despite global headwinds posing threat to capital flows. The RBI’s move of repo rate cut and liquidity enhancing measures, is consistent with its focus on growth by ensuring availability of credit and transmission of lower rates to productive sectors of the economy.

Sitharaman flags complete customs revamp as next big reform drive

Finance Minister Nirmala Sitharaman has announced a major overhaul of India's customs framework as the government's next critical reform drive. She stressed the need to simplify procedures and improve transparency, thereby significantly reducing the compliance burden.
Sitharaman plans to replicate the success of faceless tax assessments by minimizing human intervention in customs operations. The strategy involves deploying advanced scanning technologies to reduce officer discretion and potential harassment. This modernization targets alignment with global standards, balancing operational efficiency with robust safeguards against illicit trade and contraband.
The minister also promised to rationalize tariffs on items where duties remain excessive, continuing the trend of recent reductions. This effort seeks to optimize cost structures for the industry and correct market distortions.

Govt unveils comprehensive measures to strengthen R&D in defence manufacturing

The central government has unveiled a comprehensive framework to bolster Research and Development (R&D) within the domestic defence manufacturing sector. This initiative is designed to reduce dependency on foreign imports by fostering a self-reliant ecosystem capable of designing and producing advanced military technologies indigenously.
Key measures include incentivizing private sector participation through funding support and streamlining procurement processes for locally developed equipment. The policy aims to bridge the gap between academia, startups, and established defence contractors, ensuring that innovation translates effectively into scalable production capabilities for the armed forces.
Economically, this move is expected to retain capital within the country that was previously earmarked for expensive foreign acquisitions. By nurturing a high-tech domestic defence base, the government aims to create high-value engineering jobs and position India as a potential net exporter of defence hardware in the future.

RDI Fund will be a success if Rs 1 lakh crore catalyses Rs 10 lakh crore in deep tech VC investments: DST Secretary

Department of Science and Technology Secretary Abhay Karandikar has outlined ambitious targets for the operationalization of the Research and Development and Innovation (RDI) Fund. The objective is for the initial government corpus of Rs 1 lakh crore to catalyse a massive Rs 10 lakh crore investment into the deep tech sector.
The strategy relies on leveraging government capital to de-risk early-stage investments, thereby encouraging Venture Capitalists to bet on high-risk, high-reward technologies. This blended finance model addresses the chronic funding crunch faced by startups working on capital-intensive innovations in fields like quantum computing and biotechnology.
If successful, this multiplier effect could fundamentally transform India’s innovation landscape, shifting the focus from service-based startups to IP-driven deep tech enterprises. For the economy, this signals a major push toward creating sovereign capabilities in critical technologies, driving future industrial growth and global competitiveness.

CSIR-NCL Develops Self-Healing Hydrogel Electrolyte for Safer, Flexible Zinc-Metal Batteries

Researchers at CSIR-NCL have engineered a novel self-healing hydrogel electrolyte tailored for zinc-metal batteries, addressing critical safety concerns associated with traditional lithium-ion alternatives. This breakthrough aims to enhance the durability and operational lifespan of flexible energy storage devices used in next-generation electronics.
The technology utilizes a hydrogel matrix that inherently suppresses dendrite formation—spiky crystalline structures that often cause short circuits in zinc batteries. Its unique chemical composition allows the electrolyte to autonomously repair mechanical damage, maintaining ionic conductivity even after repeated bending, stretching, or structural stress.
This development positions zinc-metal batteries as a viable, safer competitor for wearable electronics and flexible gadgetry. By eliminating flammability risks and improving mechanical resilience, the innovation paves the way for sustainable energy storage solutions ready for commercial integration.

DRDO Hands Over Seven Technologies Developed Under Tech Development Fund to Armed Forces

The Defence Research and Development Organisation (DRDO) has officially transferred seven indigenous systems developed under the Technology Development Fund (TDF) scheme to the Indian Armed Forces. This initiative underscores a major push toward self-reliance in defense manufacturing by integrating private sector innovation with military requirements.
The suite of technologies includes advanced simulation tools, underwater launched unmanned aerial vehicles, and sophisticated communication systems. These solutions were engineered by Indian MSMEs and startups, leveraging domestic R&D to meet specific tactical requirements ranging from geospatial analysis to secure data transmission in hostile environments.
The handover marks the successful operationalization of the TDF scheme, bridging the gap between civilian innovation and military application. By deploying these systems, the armed forces gain tailored domestic capabilities while significantly reducing dependency on foreign imports for critical defense hardware.

India's Fighter Jets Learn To Think In Flight: Meet DRDO-Developed Morphing Wings That Adapt Like Living Organisms

India has achieved a significant aeronautical milestone with the DRDO's development of “morphing wing” technology, enabling fighter aircraft to alter their wing geometry in real-time. This bio-inspired innovation allows aerial platforms to adapt physically during flight, mimicking the aerodynamic versatility of birds to optimize performance.
The system employs smart materials and shape memory alloys that respond to electrical stimuli to change the wing's curvature and surface area. Unlike rigid fixed wings, these adaptive structures optimize lift and drag ratios dynamically, managed by an onboard AI system that “thinks” to adjust aerodynamics based on current flight conditions.
This capability promises to revolutionize aerial combat by enhancing fuel efficiency, maneuverability, and stealth characteristics. The successful demonstration places India among a select group of nations mastering smart aerostructures, setting the stage for integration into future indigenous stealth fighter programs.

Hydrogen from waste: IIT Roorkee technology set for industrial use

Researchers at IIT Roorkee have successfully developed a sustainable technology to generate high-purity hydrogen from agricultural and municipal waste, which is now slated for industrial-scale deployment. This innovation addresses the dual challenge of efficient waste management and the production of clean, renewable energy.
The process utilizes a proprietary microbial fermentation technique that breaks down organic biodegradable matter in a controlled bioreactor environment. By optimizing specific bacterial strains and reaction conditions, the system maximizes hydrogen yield while simultaneously treating the waste, converting complex organic compounds into clean fuel without significant carbon emissions.
With an industrial partner already engaged for implementation, this technology offers a commercially viable alternative to fossil-fuel-based hydrogen production. It supports national green hydrogen goals and provides a scalable solution for decentralized energy generation, transforming waste disposal burdens into valuable economic resources.

Mumbai’s AI-Enabled AQI System: How IIT Kanpur’s ‘MANAS’ Model Will Track Air Quality

The Indian Institute of Technology (IIT) Kanpur is deploying its advanced AI-powered air quality monitoring system, MANAS, in Mumbai to provide hyper-local pollution data. This initiative aims to replace static, low-density monitoring with a dynamic network capable of granular environmental analysis across the metropolitan region.
MANAS (Mission for Advanced Network and Analysis of Sensing) integrates low-cost sensor nodes with machine learning algorithms to calibrate data in real-time. The system corrects sensor drift and accounts for variable weather conditions, ensuring that inexpensive hardware delivers accuracy comparable to high-end reference grade stations.
The deployment will empower Mumbai’s civic authorities with actionable, street-level insights to combat urban smog effectively. By democratizing access to precise air quality metrics, the system facilitates targeted policy interventions and public health warnings, serving as a scalable model for other pollution-prone metropolitan areas

Sulphur to Saviour: IIT-Bhilai Develops Polymer from Toxic Waste That Can Sponge 80% Pollutants from Water

Scientists at IIT Bhilai have synthesized a novel polymer derived from industrial sulfur waste capable of removing toxic pollutants from water bodies. This “waste-to-wealth” innovation repurposes a hazardous byproduct of the petroleum industry into a highly effective environmental remediation tool.
The material is created through inverse vulcanization, where sulfur is copolymerized with organic crosslinkers to form a stable, porous structure. This resulting polymer acts as a molecular sponge, utilizing high affinity binding sites to absorb up to 80% of heavy metals, dyes, and organic solvents from contaminated water sources.
This development offers a dual environmental benefit: reducing the accumulation of sulfur stockpiles and providing a cost-effective solution for wastewater treatment. The scalable synthesis process makes it an attractive candidate for industrial effluent treatment plants, significantly lowering the cost of water purification.

Atmanirbhar Push: Bharat Unveils Swadeshi Hansa-3 NG Trainer Aircraft in Major Aviation Boost

India has unveiled the Hansa-3 (NG), a “Next Generation” indigenous two-seater trainer aircraft designed to modernize pilot training infrastructure. Developed by CSIR-National Aerospace Laboratories (NAL), this composite light aircraft represents a significant stride in the Atmanirbhar Bharat initiative for civil aviation.
The aircraft features an all-glass cockpit with advanced avionics, powered by a Rotax 912 ISC engine for improved fuel efficiency and performance. Its airframe is constructed from lightweight composites, offering superior aerodynamics and durability compared to metal predecessors, while ensuring easier handling for novice pilots during flight maneuvers.
The Hansa-3 NG is poised to replace aging foreign trainer fleets in Indian flying clubs, drastically reducing the cost of pilot training. With certification processes underway, the aircraft is ready for commercial production, strengthening India's self-reliance in the general aviation sector and lowering barriers for aspiring aviators.

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