Laghu Udyog Bharati

Weekly Insights for Entrepreneurs

SIDBI Plans Industry Development Associations to Promote Cluster Innovation for MSMEs with Digital Push

SIDBI initiated a low cost and self-propelling model of cluster development through its national scheme, also known as Development of Industry Associations (DIA).
The portal will support all registered associations and their members to participate and do research on topics of their interest, networking and learning, getting updated information and posting and getting solved their financial and technical requirements.
By distributing capacity, skills and digital tools to the grassroots via associations, SIDBI is attempting to scale development bottom-up, rather than top-heavy, one cluster at a time. The associations can act as the connective tissue—pooling demand, negotiating scale and offering customised services.

Govt may tweak e-commerce FDI norms to boost MSMEs to export

DGFT has proposed introducing an inventory-based e-commerce export model. Under this framework, third-party export entities would hold inventory and manage backend processes on behalf of MSMEs.
To operationalise the model, DGFT has also suggested amendments to e-commerce FDI regulations, specifically reviewing the current prohibition on inventory-based e-commerce for this export-only carve-out.
A key safeguard for MSMEs is the mandatory pass-through of export-linked benefits. While export entities will be entitled to claim incentives such as GST refunds, duty drawback, and RoDTEP, they will be required to pass these benefits on to MSME sellers on a pro-rata basis.
Designated export entities would act as intermediaries, handling paperwork, logistics coordination, and even managing refunds or product returns

Unlocking $1 trillion: The future of MSME lending in India with new strategies

Traditional wisdom needs to be challenged, to enable and fuel MSME lending for the coming decade.
The formalization of MSME footprint across the ecosystem will act as a catalyst to accelerate data-driven lending. Here’s why:
With merchant QR codes and massive adoption of UPI payments, the smallest of businesses, have been able to “thicken” their bank statements. In our experience, transaction activity is the most authentic data and predictive source of credit risk.
Ever-increasing coverage, adherence and availability of granular data through GST filings have increased the reliability of business activity.
Geo-spatial analytics and satellite data can provide location-specific indicators like economic stability, property values, residential, commercial and civic infra, healthcare and criminal activity, and local employment trends. This can help create a “beyond bureau” approach to underwriting.

MSMEs show resilience with threefold export growth amid global challenges: Report

The exports from MSMEs have seen a three-fold growth, rising from INR 3.95 lakh crore in 2020 - 21 to INR 12.39 lakh crore in 2024 – 25. The exporting MSMEs have registered a threefold jump from 52,849 in 2020-21 to 1,73,350 in 2024-25.
Within MSMEs, micro & small enterprises constitute 91% of exporting units. Gross Value Added by MSMEs jumped from 27.3% in 2020-21 to 29.6% in 2021-22 and 30.1% in 2022-23, highlighting its growing role in national economic output.
Micro & small enterprises’ total export value within MSME export is 60%, while medium enterprises constitute only 9%. MSMEs produce over 6,000 unique products for both the domestic and export markets.
MSMEs’ vulnerability to achieve scale and size can be attributed to ineffectiveness in assigning cash or profits for growth, as they roll them over for working capital, which is difficult to come by.

Startup investors have always underestimated India’s scale: Peak XV’s Rajan Anandan

Investors have historically underestimated the total addressable market that Indian startups can disrupt, often failing to envision the scale companies can achieve in India, Rajan Anandan, managing director at Peak XV Partners, told Mint in an interview.
"I think all of us in India, including us, underestimate how big something can get here. A decade ago, if a consumer brand scaled to ₹100 crore, everybody said ‘wow’. Now, ₹100 crore is nothing — people ask if it can get to ₹1,000 crore or even ₹8,000 crore. A decade from now, we’ll be talking about ₹10,000-crore companies," he said.

Govt aims to make 'chips to ships' locally: PM Modi's 'Make in India' pitch

Every product that can be made in India should be made here, the Prime Minister said.
He also called for the fulfillment of the vision of 'Atmanirbhar Bharat', adding that at a time of global disruption, countries risk compromising their own growth if they depend on others for development.
He said that India is strengthening its position and will no longer accept being dependent on other countries for its development. He called for increasing investment in research and innovation to make the country self-reliant.
"Disruption doesn't wander us; we find new opportunities in that situation also. India is strengthening its foundation for the upcoming decade through Atmanirbharta. In these changing times, countries will compromise their growth if they continue to rely on others," he said.

Decade of Make in India: Government unveils comprehensive logistics cost assessment to boost competitiveness

For the first time, India will have a comprehensive and scientifically derived estimate of logistics costs, using a hybrid methodology that combines secondary data with nationwide surveys. This initiative follows the mandate of the National Logistics Policy (2022) to establish a uniform framework for measuring logistics costs and benchmarking them against global practices.
Until now, logistics costs in India were often misrepresented, with commonly cited figures of 13–14% of GDP derived from external studies or partial datasets. This led to inconsistent estimates, causing confusion among policymakers and global stakeholders. As per the current assessment prepared by NCAER for DPIIT, logistics costs in India are estimated at about 7.97% of total GDP.
The report provides a comprehensive framework by capturing logistics costs across different transport modes, product categories, and firm sizes.

Govt maps 12,167 HSN codes to ministries to boost ease of doing business

The government has prepared a guidebook mapping 12,167 HSN codes to 31 ministries and departments to promote a data-driven approach for streamlining regulatory processes and enhancing ease of doing business.
HSN (Harmonised System of Nomenclature) Code helps in systematic classification of goods across the globe.
The development will support more effective trade agreement negotiations that are aligned with national economic priorities and domain strengths.
"With the facilitation for identification of the relevant ministry or department for specific HSN Codes, this initiative will streamline regulatory processes and further enhance ease of doing business," the commerce and industry ministry said.

September RBI bulletin: Stage is set for 'virtuous cycle' of investment

Hailing the ‘landmark reforms’ of the GST regime as a key driver for consumption growth, a report on the state of the economy in the RBI bulletin argued that the lower GST rates, combined with the income tax relief for households and employment augmentation measures, would strengthen consumption growth drivers.
Moreover, the robust transmission of the 100 basis points (bps) reduction in the policy repo rate, higher kharif sowing and healthy corporate balance sheets are expected to aid this uptick, the report said.
Pointing to high frequency indicators in August that show manufacturing and services activity at a decadal high, the report concluded that “the growth outlook for H2 is one of optimism,” the report said.
Commenting on the GST reforms, the report noted that beyond rate simplification, the reforms have also addressed challenges relating to inverted duty structure, and made processes business-friendly, particularly benefiting micro, small and medium enterprises, and startups.

Credit Push: NPCI Exploring EMI On UPI Payments

The payments body is set to allow fintech companies to integrate the feature to allow users to convert their UPI payments into EMIs.
The feature would be similar to payments made via cards at PoS terminals, the report said.
Notably, the NPCI already has two credit products for UPI – RuPay credit cards and credit line on UPI.
The launch of EMI feature for UPI payment is expected to power the next phase of growth for UPI and help the NPCI inch further closer to its target of 100 Bn monthly UPI transactions.

Isro integrating Vyomitra into Gaganyaan crew capsule: Here's what it will do

Shaped as a half-humanoid with a robotic head, torso, and arms, though lacking functional legs, Vyomitra is specifically designed for microgravity conditions.
Inside, Vyomitra houses advanced artificial intelligence, enabling it to read the crew module’s display and commands, operate mission-critical controls, and communicate in Hindi and English.
For the Gaganyaan G1 flight, Vyomitra’s main job is to serve as the human proxy. This means analysing flight procedures, monitoring environment parameters, such as air pressure and temperature, and carrying specialised sensors to track mission data.
The humanoid will let ISRO test life-support and safety systems in an authentic yet risk-mitigated way, ensuring that, when Indian astronauts finally board Gaganyaan, all essential systems have faced rigorous, real-world conditions.

IIT-Madras launches cancer genome and tissue bank; could provide breakthrough in Cancer treatment

At the core of this project is the harvesting of about 7,000 tumor samples from cancer patients throughout India ( National Cancer Tissue Biobank, IIT Madras) Scientists at IIT-Madras are growing these tumor cells in the lab to experiment with different therapies. The novel strategy enables researchers to determine what works best for individual patients before giving them the actual therapies.
By minimizing guesswork in cancer treatment, the process holds the potential to enhance patient outcomes and limit adverse side effects.
These efforts are transforming India's cancer research and treatment towards precision medicine, a strategy that takes into account an individual patient's specific genetic and molecular profile when making treatment decisions. Precision medicine holds out the promise of more effective therapies, earlier diagnosis, and better patient care.

In a first, India test-fires Agni-P missile from rail-based mobile launcher

India has carried out the successful launch of Intermediate Range Agni-Prime Missile from a Rail based Mobile launcher system. This next generation missile is designed to cover a range up to 2000 km and is equipped with various advanced features.
The first-of-its-kind launch carried out from specially designed Rail based Mobile Launcher, has the capability to move on Rail network without any pre-conditions that allows User to have a cross country mobility and launch within a short reaction time with reduced visibility.
This successful flight test has put India in the group of select nations having capabilities that have developed canisterised launch systems from on the move rail network.

IIT Bombay-led 'Daksha' mission aims to build satellites; most powerful telescopes, deep space race

\'Daksha\' is a collaborative effort led by IIT Bombay along with support from Raman Research Institute (RRI), Physical Research Laboratory (PRL) and the Inter University Centre for Astronomy and Astrophysics (IUCAA).
Professor Varun Bhalerao, a rocket scientist in the physics department at IIT Bombay, is determined to change something fundamental about Indian science.
"The age of catching up is over, where we struggled to match the world's innovation. Now is the time to be world class," he says. The result of this vision is 'Daksha', a mission to develop and launch a pair of satellites housing the world's most powerful space telescopes. These telescopes will monitor an 1.81 million cubic megaparsecs of space-nearly five times the capacity of NASA's current leader, the Fermi Gamma Ray Telescope.

CSIR-AMPRI’s Indigenous SODAR System Inaugurated at IMD Delhi

A major milestone in indigenous technology was achieved with the inauguration of the SODAR (Sound Detection and Ranging) system facility at the India Meteorological Department (IMD), New Delhi. The system has been designed and developed by the CSIR–Advanced Materials and Processes Research Institute (AMPRI), Bhopal.
This CSIR-AMPRI and IMD partnership focuses on addressing scientific and societal challenges such as weather forecasting, climate variability, and disaster risk reduction. Through this MoU, SODAR system data from different locations will be shared for forecasting, validation, and advanced research initiatives.
This joint effort is expected to drive innovation in meteorology, climate science, and environmental studies, strengthening India’s research capacity while directly benefiting communities through better preparedness against climate challenges and natural disasters.

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