Laghu Udyog Bharati

Weekly Insights for Entrepreneurs

GST 2.0 Explained: How New Tax Slabs Could Transform MSMEs And Boost Growth

99 per cent of what is taxed at 12 per cent now would go to 5 per cent and nearly 90 per cent of the goods in the 28 per cent slab would move to 18 per cent.
Lower tax slabs naturally reduce errors in classification and regulatory issues for MSMEs.
For ease of doing business, a simplified GST registration scheme will be introduced for small and low-risk applicants, allowing automated registration within three working days. Applicants with monthly output tax liability of up to ₹2.5 lakh on B2B supplies will be eligible, covering nearly 96% of new registrants. A separate simplified registration scheme for small e-commerce suppliers operating across multiple states was also approved in principle.
Under the revised framework, 90% of refund claims will be released provisionally based on system-identified risk parameters, while only high-risk cases will undergo detailed scrutiny.

Centre’s procurement from women-led small and micro enterprises edges towards 3% target in the first five months of FY26

The share of goods and services purchased by various ministries and government departments from women-led micro and small businesses rose to 2.82%, according to data from the government's Sambandh portal.
In FY25, the government procured goods and services worth ₹6,000 crore from women-led MSEs, almost double that of FY24's ₹3,154 crore. In FY24, the government's purchases from women-led businesses were 1.85% of the total.
The share of women-led MSEs increased to almost 40% in September 2025 from about 20% in October 2022.
A NITI Aayog study clarified that 45% of women-led MSMEs operate in the manufacturing sector, while a little over a third are engaged in agriculture-related activities, especially in the livestock industry.

DRDO assures MSMEs of full support in defence production, R&D

The DRDO’s Defence Technology and Test Centre (DTTC), Lucknow, conducted a conclave, to apprise and collaborate with MSMEs and startups for defence R&D and production.
DRDO Chairman Dr Samir V. Kamat informed the MSMEs about the various technologies & industry-centric policies for the MSMEs and said that it is the opportune time for MSMEs to engage in defence R&D.
More than 100 participants from various MSMEs, startups, and the Laghu Udhyog Bharti deliberated upon aspects of skill development and funding for R&D, technical consultancy and technology development & transfer by the DRDO.
Reinforcing its commitment to supporting startups and MSMEs, the Ministry of Defence has also cleared procurement of 43 items worth over Rs 2,400 crore from iDEX startups and MSMEs for the Armed Forces as of February 2025. Additionally, projects worth over Rs 1,500 crore have been approved for development.

APEDA's ‘BHARATI’ Initiative To Support 100 Agri Food Startups And Target 50 Billion Exports By 2030

BHARATI, abbreviated as 'Bharat's Hub for Agritech, Resilience, Advancement and Incubation for Export Enablement', has been conceptualized to be a one-stop platform to enhance India's positioning in international markets.
APEDA, through BHARATI, aims to unlock this potential by offering incubation assistance, technology know-how, and export facilitation to farmers and entrepreneurs who are operating in various agri-food segments. By enabling startups to introduce innovation into the industry, the initiative seeks to make Indian products competitive and sought after in the world market.
By BHARATI, APEDA seeks to create the path for a new generation in Indian agriculture where startups, innovation, and export preparedness come together to yield economic development alongside rural empowerment.

Centre launches network of integrated biotech centres—from startups to academia

The Union government has launched 21 centres across India offering shared infrastructure to startups, small and large companies, and academic institutions operating in the biotechnology space.
The centers will support pilot and pre-commercial-scale technologies, including microbial biomanufacturing, sustainable agriculture, smart proteins, functional foods, and advanced cell and gene therapies.
The facilities range from biofoundries working on microbial strains, smart proteins, probiotics, and bio-based chemicals to biomanufacturing hubs developing advanced cell therapies.

GST reforms 'Diwali Dhamaka', meant to better lives, says PM

"If I sum up the reforms, I can only say it will make India look great. There are five gems attached to the economy: first the tax system became much simpler; second, the quality of life of the citizens would get better; third, both consumption and growth will get a new booster; fourth ease of doing business will boost investment and jobs; and fifth, the partnership between the states and Centre will strengthen cooperative federalism," he said.
The GST reforms announced by govt Wednesday have brought most of the goods under a two-tier tax structure of 5% and 18%, while keeping sin goods under 40% tax.
The new reformed duties will come into effect on Sept 22, which is the first day of Navratri.

India To Fast-Track Mega Infra Projects Under Viksit Bharat 2047 Vision

Mega ventures such as bullet train corridors, large shipbuilding yards, multiple ports and access-controlled highways, aligned with the infrastructure vision for Viksit Bharat 2047, will be put on the fast track.
Ministries and departments have been instructed to bundle projects and move them quickly for approvals. "Projects of national importance that hold potential to transform lives across multiple states, such as an access-controlled interstate highway, will be prioritised," an official said.
The World Bank has noted that India will need to ramp up both public and private investment, raising the real investment rate from around 33.5% of GDP to 40% by 2035 to support long-term growth.

At 59.3, manufacturing PMI rises to nearly a 18-year high in August

"Indian manufacturing growth gained further momentum in August, with ongoing improvements in demand continuing to underpin robust increases in factory orders and production. In August, the seasonally adjusted HSBC India manufacturing PMI – a single-figure indicator of sector performance – indicated the fastest improvement in operating conditions for 17 and a half years," the survey said.
The survey noted that the upward movement in the headline figure largely reflected an acceleration in growth of production volumes as the rate of expansion was the quickest in nearly five years.
Earlier in July, the HSBC India Manufacturing PMI, compiled by S&P Global, had risen to a 16-month high of 59.1.

India Services PMI hits 15-year high in August on new orders, output rise

Demand buoyancy, efficiency gains, and greater inflows of new business were among the key reasons for the strongest growth since 2010. New orders grew in August for the 49th month in a row, and at the fastest pace in more than 15 years.
"The broad-based expansion in international sales bolstered overall demand, which prompted Indian services firms to hire additional workers. Reflecting higher labour costs and robust demand conditions, both input and output prices increased substantially in August,"
Hiring in the services sector picked up slightly from July but remained moderate overall, with most new jobs being part-time. This steady job creation helped companies manage workloads.

Health ministry looks to reduce drug development, approval timelines

In a notification dated September 3, the ministry has sought public comments on the proposed amendments that aim to simplify the requirements and procedures for obtaining test licences and for submitting applications related to bioavailability/bioequivalence (BA/BE) studies.
The amendments would allow companies to conduct certain clinical trials and manufacture the drugs needed for these trials without seeking a license — the activities could begin after simply notifying the regulator. Moreover, the amendments are also intended to ensure quicker initiation of BA/BE studies. These studies are required to demonstrate that any new drug is absorbed in the same manner and induces similar results compared to a previously approved drug.
India has around 8 per cent share in global clinical trials, and several pharma companies take their early stage trials overseas due to regulatory bottlenecks here.

Vikram-32 chip: What are the features of India’s first indigenous microchip built by ISRO?

The Vikram-32 chip has been developed by the Semiconductor Laboratory (SCL) of the ISRO. It is designed for space launch vehicles where extreme environmental conditions demand high reliability.
The Vikram-32 processor is designed to handle complex tasks, including calculations with decimals, using a 32-bit architecture. It can manage large memory and execute sophisticated instructions required for satellite launches and space vehicles.
Engineered to withstand harsh space conditions, the chip also holds potential beyond space applications. Its robust design makes it suitable for use in defence, aerospace, automotive, and energy sectors.

IIT Mandi scientists develop scalable tech for wearables, quantum systems

IIT Mandi researchers have developed a new composite material that could finally make bendable phones, wearable health trackers, and lightweight solar panels durable enough for real-world use. By encapsulating tungsten disulfide (WS) in a polydimethylsiloxane (PDMS).
Potential uses include sensors for monitoring health, flexible smartphones, bendable displays, strain sensors, optoelectronic devices, solar cells, and even quantum light sources.
As PDMS is biocompatible, the material can be used directly on the human body, which presents potential for real-time monitoring of health with devices.
The fabrication process is easy, non-toxic, and inexpensive, making it scalable to mass production.

AIIMS & IIT Delhi begin clinical trials of bioengineered corneas

The initiative holds promise for addressing India’s acute shortage of donor corneas and restoring vision to thousands suffering from corneal blindness.
India records an estimated 1.2 million cases of corneal blindness annually, yet donor availability continues to lag far behind demand. Experts note that the country requires nearly two lakh corneal transplants each year, while only about 25,000 are performed due to the paucity of donors.
The bioengineered cornea, developed through cutting-edge tissue engineering techniques, could significantly bridge this gap by offering a reliable, scalable, and biocompatible alternative to natural donor tissue.

DRDO transfers three advanced materials technologies to industry partners

DRDO\'s Defence Metallurgical Research Laboratory (DMRL) in Hyderabad has transferred three advanced materials technologies to the industry partners.
The technologies transferred include "manufacturing of high strength radomes" to BHEL, Jagdishpur, for enabling the production of high-quality radomes (protective covers for crucial missile sensors) to support key defence programmes and enhance self-reliance in missile systems.
The other transferred technology is the manufacturing of DMR-1700 steel sheets and plates for defence applications to JSPL, Angul, offering an excellent combination of ultrahigh strength and high fracture toughness at room temperature.
And, "DMR 249A HSLA steel plates for naval applications to BSP, Bhilai, SAIL, offering a robust and reliable material, meeting the stringent dimensional, physical and metallurgical requirements for the construction of naval vessels".

IIT-Indore develops a device to generate electricity from water and air

The innovation uses microscopic channels to push water through as it evaporates, triggering ion movement and producing an electric current. The prototype, scientists said, is currently designed for small-scale applications but has the potential to be scaled up.
"This technology demonstrates that everyday natural processes like evaporation can be tapped as a reliable source of power," an IIT-Indore researcher involved in the project explained.
The IIT-Indore device is still at a developmental stage. Further research will focus on improving efficiency and adapting it for real-world use, including powering low-energy electronic devices and sensors.

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