Laghu Udyog Bharati

Weekly Insights for Entrepreneurs

Amid Trump tariff threat, PM Modi pledges to protect farmers, MSMEs & youth

Prime Minister Narendra Modi on Saturday sent a strong message to the world that protecting India\'s economic interest was paramount.
PM emphasised that the "top priority of the government remains the welfare of farmers, small industries and employment for youth." He reaffirmed the resilience of the Indian economy, saying that the country must remain vigilant about its economic interests and adopt ‘swadeshi’ products.
“There is an atmosphere of global instability. All countries are focusing on their individual interests. India is going to become the third biggest economy in the world and this is why India will have to stay alert as far as its economic interests are concerned,” the PM said.
PM urged people to go ‘Vocal for Local’. “Anyone who wishes good for the country and wants to see India become the third-largest economy must encourage this spirit of going local,” he said.

Govt rolls out new measures to strengthen MSME credit, liquidity

A major move under the Credit Guarantee Scheme includes a ₹9,000 crore infusion into the Credit Guarantee Fund Trust for MSE's. This is expected to unlock an additional ₹2 lakh crore in credit. From April 1, 2025, the loan guarantee ceiling will increase from ₹5 crore to ₹10 crore, with up to 90 per cent coverage.
The PMEGP continues to provide margin money subsidies of up to 35 per cent for new micro-enterprises. Project cost ceilings stand at ₹50 lakh for manufacturing and ₹20 lakh for services.
To scale up promising MSMEs, the Self-Reliant India Fund will provide ₹50,000 crore in equity, with ₹10,000 crore from the government and the remaining ₹40,000 crore from private equity and venture capital partners.
The RBI has widened the scope of the Trade Receivables Discounting System, lowering the eligibility threshold for corporates and PSUs to ₹250 crore turnover.

Trump trade tariffs: MCA planning to ease compliance burden for MSMEs

As part of a broader strategy to shield domestic industry from US tariffs, the Ministry of Corporate Affairs (MCA) is planning to ease compliance reforms for medium, small and micro enterprises (MSMEs), according to official sources.
“We are looking at it very seriously and taking inputs from the MSME ministry as well,” a government source said..
The MCA may also consider amendments to the existing Companies Act for simpler certification processes for MSMEs and doing away with certain compliances for such companies, sources said.
Some of the measures which were recommended in the expert committee report regarding Company Law in 2022 include reducing fines and penalties which are designed keeping larger companies in mind.

Businesses Must Report All MSME Payments Under Revised Clause 22 Of Form 3CD

The updated Clause 22(iii) stipulates that businesses must report the total amount paid to MSMEs during the previous financial year, regardless of payment timing.
This represents a departure from previous requirements where only delayed payments were subject to reporting obligations. Companies must now maintain detailed records of both timely and overdue payments to ensure complete compliance.
By mandating detailed disclosure of payment patterns, the authorities aim to increase transparency and accountability in business-to-business transactions involving smaller enterprises.

India Generative AI Startup Landscape 2025: Mapping the Momentum

India’s GenAI startup ecosystem stands at a transformative inflection point in 2025, rapidly scaling in size, deepening in capability, and becoming more strategically relevant to enterprises, policymakers, and the broader technology landscape.
The report, titled “India Generative AI Startup Landscape 2025: Mapping the Momentum”, presents an in-depth analysis of this fast-evolving landscape. It offers a structured view across global and Indian market trends, startup formation patterns, funding shifts, enterprise adoption behavior, and policy interventions.
The report also highlights where India stands, what it uniquely brings to the global GenAI table, and what must be done to unlock its full potential. The recommendations are in the form of a forward-looking playbook for founders, investors, enterprises, and policymakers to act decisively in shaping the next decade of AI innovation from India.

US-India trade row: MEA official calls Donald Trump’s tariff hike a ‘unilateral decision’; says both sides were ‘very close to a solution’

In its first official reaction, India called the move "unfair, unjustified and unreasonable"
Despite the escalation, Dammu Ravi, secretary (economic relations), ministry of external affairs, indicated that India would continue to engage diplomatically. "Perhaps, this is a phase we have to overcome. The negotiations are still going on. So, we are confident that solutions will be found in the course of time in looking at mutually beneficial partnerships," he said.
Downplaying the long-term impact of the tariffs, Ravi said Indian industry was resilient and would not be derailed by the new duties. “The high tariff will not have any detrimental impact on the Indian industry. It will not pull back or derail India Inc,” he asserted.
Ravi noted that countries often look for alternative markets when faced with tariff “walls”, and said India would now turn its attention to geographies such as the Middle East, Latin America, Africa and South Asia.

MPC meeting highlights: Continue to do whatever required to support economic growth, says RBI Governor

RBI Governor Sanjay Malhotra announced that the repo rate will remain unchanged at 5.5%. He also projected the GDP growth projection for FY26 retained at 6.5%.
Unveiling the third bi-monthly monetary policy for 2025-26, Mr. Malhotra said the above normal southwest monsoon, lower inflation, rising capacity utilisation, and congenial financial conditions continue to support domestic economic activity
The CPI inflation for FY26 projected down at 3.1%as compared with 3.7% projected in June.
Highlights of RBI’s August 2025 monetary policy.

Defence production has soared to an all-time high of 1.5L cr, says Defence Minister Rajnath Singh

"These numbers indicate a robust 18% growth over the previous fiscal's output of Rs 1.2 lakh crore, and a staggering 90% increase since 2019-20, when the figure was Rs 79,071 crore," Singh said.
The landmark has been achieved due to the efforts of MoD's deptt of defence production and all stakeholders, including defence PSUs, other public sector manufacturers and private industry. Defence exports have also risen, reaching Rs 23,622 crore in 2024-25. Defence PSUs and other PSUs accounted for 77% of total production, while private sector contributed 23%, up from 21% in 2023-24.
Both segments of the industry have shown consistent year-on-year growth due to policy reforms, improved ease of doing business and a strategic focus on indigenisation over the past decade. "Emphasis on reducing import dependence and building a defence industrial complex that caters to domestic needs as yielded positive results,"

NITI Aayog Launches the Report on ‘Unlocking a $200 Billion opportunity: Electric Vehicles in India’

This Report has come out with multiple approaches to accelerate India’s EV transition. To kickstart the entire effort of accelerating the adoption of EVs, some actions have been recommended as the immediate next steps in the Report.
The report serves as a blueprint for accelerating India’s EV transition. It identifies key barriers, strategic unlocks, and actionable recommendations to accelerate EV adoption. By enabling data-driven decisions and cross-sector collaboration, it supports a unified national push.
Rajiv Gauba, Member, NITI Aayog, said that, “India stands at the cusp of a transformative shift in clean mobility. As the nation advances its Electric Mobility ambition, this report provides valuable insights and policy-aligned recommendations to overcome existing barriers and unlock scale.

From shop floors to sales counters, it’s HERing season

Companies across sectors are stepping up temporary hiring of women ahead of the festive season, with staffing mandates rising as much as 60% from last year as India Inc’s focus on gender diversity plays out in seasonal staffing.
\“Compared to last year, there’s been a 20-25% rise in such requests, particularly in sectors like retail, e-commerce, and logistics where seasonal demand peaks,\”
Companies are not only aiming for gender balance but also recognising the value women bring in customer-facing and operational roles during hightraffic periods.
\“Companies believe that women can stand out for their customer-friendly behaviour, compliance with standard operating procedures and discipline. This move opens a new pool of talent for companies and new possibilities for them. They could see higher productivity and retention.\”

IIT Guwahati develops deep learning-based sensor to turn exhaling air from mouth into voice commands

The developed sensor offers a promising alternative communication method for individuals with voice disabilities who are unable to use conventional voice-based systems.
The developed sensor is made from a conductive, chemically reactive porous sponge. When placed just below the air-water interface, it captures the tiny disturbances created by exhaled air and converts them into measurable electrical signals. The research team used Convolutional Neural Networks (CNN), a type of deep learning model, to accurately recognize these subtle signal patterns. This setup allows users to communicate with devices from a distance, without the need to generate sound.
The developed sensor can also be used in exercise tracking and movement detection. Additionally, its proven durability, remaining stable after extended underwater use, suggests potential applications in underwater sensing and communication.

IIT Delhi decodes method to recycle denim waste into high-quality garments

The research addresses a key challenge in textile recycling: the loss of fibre strength and length during mechanical processing, which usually results in inferior fabrics. By optimising the recycling process, the team was able to minimise damage to fibre properties while converting discarded denim into a yarn that retained its quality.
\“To reduce the roughness of recycled yarns, a softening treatment was applied to the fabric,” explained Majumdar. “This ensured that the tactile feel of the garments matched that of virgin textiles.\”
Importantly, the process is not limited to denim. \“We have demonstrated our work with denim waste, and it can be extended to any other textile waste,\”

IIT Kanpur Professor Invents A Compact Device To Check Food Grain Quality

It also enables the user to determine whether the grains are ideal for sowing, detecting early diseases in plants, and in grain storage facilities.
With the help of the device, farmers will be able to select the best food grains for sowing, which will enhance the yield in their fields. It also helps food grain wholesale to determine whether the grains are suitable for storage or to be sold in the market for immediate consumption before they become inedible.
Key Features of the device; Compact and Portable, Cost-effective, Impact sound analysis for density assessment, Integrated weighing for accurate measurement, High resolution imaging for textile and colour, Photodiodes and NTR spectroscopy for chemical analysis, GPS-enabled for location-based comparison.

Breakthrough in Nanotech: IISER Pune and IIT Bombay Develop Cost-Effective, Scalable Technique to Produce Precision Metal Nanoparticles

These nanoparticles play a critical role in cutting-edge applications such as biosensors, environmental monitoring, and diagnostic devices. The technique, known as \“confined dewetting,\” offers a scalable, energy-efficient, and affordable way to create nanoparticles with high precision.
The team’s experiments demonstrated that sensors developed using this method could detect molecules at picomolar concentrations—equivalent to one trillionth of a mole per litre. Such extreme sensitivity could significantly advance early-stage disease detection, including cancer diagnostics, as well as trace detection of harmful substances like lead or mercury in water.
With potential applications spanning health diagnostics, pollution monitoring, and quality control in manufacturing, the method holds promise to revolutionize how nanoscale devices are designed and deployed.

IIT Roorkee researchers develop novel drug candidate to restore strength of antibiotics against drug-resistant bacteria

The team designed a novel molecule that works alongside the antibiotic Meropenem to treat infections caused by KPC-2-producing Klebsiella pneumoniae, a superbug listed among the World Health Organization\'s top-priority threats.
It further added that the newly discovered molecule belongs to a class of β-lactamase inhibitor drugs that prevent bacterial enzymes from breaking down life-saving antibiotics.
\“Our compound neutralizes the resistance mechanism and shows strong therapeutic results in preclinical models,\” said Prof. Ranjana Pathania from the Department of Biosciences and Bioengineering.

Disclaimer: