Laghu Udyog Bharati

Weekly Insights for Entrepreneurs

RBI Introduces Lending Reforms To Ease MSME Credit, Aid Gold Loans, And Enhance Borrower Flexibility

Banks can now revise credit risk spreads on small business loans more frequently, ending the earlier three-year lock-in period.
This move allows lenders to lower EMIs or reduce interest outgo sooner. Borrowers may also opt to switch from floating to fixed rates during resets, though this is no longer mandatory.
The RBI has expanded lending to industries that use gold as raw material, such as jewellery manufacturing, moving beyond collateral-backed loans.
From January 2026, banks will also be barred from levying prepayment penalties on floating-rate retail loans, offering borrowers greater flexibility.

Centre planning amendment in Warehousing Act of 2007 to help small farmers, traders & MSMEs

The Centre plans to strengthen the framework governing warehousing operations and compliance by amending the Warehousing Development Regulation Act of 2007 making it mandatory for all warehouses storing ‘notified goods’ to get registered.
An extra layer of accreditation agencies will be removed to streamline operations to provide affordable services to the small and medium farmers, traders and MSMEs. The changes also include a shift from physical warehouse receipts to electronic warehouse receipts (e-NWRs).
The Bill aims to enhance the orderly development of the warehousing market through effective regulation by empowering the WDRA to regulate the registration and functioning of repositories and intermediaries.

Why MSME Brands Matter And What We Can Learn From Other Economies

A brand helps MSMEs rise above anonymity. It becomes a shorthand for trust because it signals quality and reliability. In crowded markets where many competitors offer similar goods, branding creates the decisive edge.
It moves the discussion away from who is cheapest and towards who is most trusted. This shift matters deeply because customers are willing to pay more for names they recognise, and that margin can be what protects an MSME during uncertain times.
Branding also expands access to new markets because distributors, exporters, and digital platforms are more comfortable working with firms whose identity conveys credibility.
Countries like Germany, Italy, Japan, and South Korea have shown that when small firms are encouraged to brand themselves, they do more than survive, they anchor entire economies.

IIT-Kanpur’s SIIC incubates 500+ startups, including 150 women-led ventures worth Rs 12,000 crore

The Startup Incubation and Innovation Centre (SIIC) has supported ventures across medtech, agritech, defence, aerospace, artificial intelligence, fintech, clean technology, and social tech.
IIT Kanpur stated that SIIC’s work aligns with national programmes such as Make in India, Vocal for Local, and Aatmanirbhar Bharat.
The Startup Incubation and Innovation Centre at IIT Kanpur is among the country’s earliest academic incubators. It offers infrastructure, mentorship, and partnerships with government and industry to support innovation-driven startups.
SIIC focuses on enabling ventures to scale from prototype to market-ready solutions, while aligning its activities with India’s broader innovation and self-reliance agenda.

Government invites proposals under PRIP scheme for industry, startup projects; may provide assistance up to ₹100 cr

With an approved outlay of Rs 5,000 crore, the scheme is expected to catalyse a Pharma-MedTech innovation pipeline by supporting around 300 projects, involving total R&D investment of about Rs 11,000 crore in new medicines, complex generics, biosimilars and novel medical devices.
Under the amended scheme, for early-stage projects, MSMEs and startups may apply for projects costing up to Rs 9 crore for assistance of up to Rs 5 crore.
For later-stage projects costing up to Rs 285 crore, MSMEs and startups may apply for assistance up to Rs 100 crore, it added.
The amended scheme offers several specific incentives to industry, MSMEs and startups to collaborate with academic and research government institutions of national repute.

RBI Monetary Policy: Repo Rate Unchanged, GDP Outlook Brightens

RBI released its Monetary Policy Report following the 57th meeting of the Monetary Policy Committee. RBI has kept the repo rate unchanged at 5.50% with a neutral stance. It signals a balanced approach that supports economic momentum while ensuring financial stability. The report further highlights resilient domestic demand, supportive financial conditions, and a stable external sector, reflecting a cautiously optimistic outlook for the Indian economy.
The RBI revised India’s GDP growth forecast for FY 2025-26 upwards to 6.8% from earlier estimate of 6.5%. India’s real GDP grew 7.8% in Q1 FY 2025-26, up from 7.4% in the previous quarter.
RBI has lowered its CPI inflation forecast for FY 2025–26 to 2.6%, down from 3.1%. Headline consumer price index (CPI) inflation declined for nine consecutive months to reach an 8-year low of 1.6 per cent in July 2025 before edging up to 2.1 per cent in August.

RBI unveils 22 measures to boost credit flow, ease home loan burden

The RBI announced a flurry of measures — twenty two of them, to be precise — aimed at boosting credit flows to the real economy and promoting ease of doing business while lowering banks’ costs. These include a nod for banks to fund acquisitions of Indian non-financial sector companies, upgraded ceilings for loans against securities and IPO financing, and tweaks to risk weights on home loans.
“We need to continue looking at rationalising our regulations so that the productive needs of the economy are met with the least of compliance burden, the least of cost. While at the same time, ensuring that wherever prudential measures are required, they are not compromised,” RBI Governor Sanjay Malhotra said.
In a separate move, the regulator announced a timeline for banks to transition to the expected credit loss (ECL) framework from the current incurred loss framework, giving them four years to amortise the additional provision requirements.

RBI unveils new measures for internationalisation of Indian Rupee

The apex bank said authorised dealer (AD) banks will now be permitted to extend loans in Indian Rupees to non-residents from Bhutan, Nepal and Sri Lanka for trade-related transactions. This is expected to deepen trade settlement in INR with neighbouring economies.
In a second move, the RBI plans to establish transparent reference rates for currencies of India’s major trading partners. The step aims to make pricing more predictable and strengthen the use of rupee in invoicing and settlement of international trade.
The third proposal seeks to widen the use of balances in Special Rupee Vostro Accounts (SRVAs). These balances, which currently facilitate trade settlement in local currency, will now be made eligible for investment in corporate bonds and commercial papers.

India eyes trade secrets law to plug big IP gap

The government has launched an exercise to assess the need for a standalone trade secrets law in India to protect unpatented inventions. At present, there is no specific trade secrets law in the country, and rights are enforced through the provisions of the Indian Contract Act, 1872.
The exercise follows the Law Commission's proposal of a Trade Secrets Bill, 2024, which defines a trade secret as technical or business information useful for business activities, such as manufacturing or marketing methods, that is kept secret and not publicly known.
The bill states that a trade secret holds commercial value, is kept confidential, and that disclosure would harm its holder. It grants rights to use, disclose, license, and pursue legal action in case of misappropriation.
Many countries, including the US, UK, Japan, China, and the EU, already have such laws.

Defence Ministry opens missile, shell production to private sector

The Defence Ministry has opened both the missile and the ammunition sector to private players as Indian armed forces should not run out of ammunition in case of a long war and be forced to procure them at high premium at a short notice from foreign vendors.
This means that the private sector will be allowed to manufacture 105 mm, 130 mm, 150 mm artillery shells, Pinaka missiles, 1000 pound bombs, mortar bombs, hand grenades, and medium and small caliber ammunition, said people familiar with the development.
The missile sector has been opened to private players as Operation Sindoor has shown that the future belongs to stand-off weapons and long range conventional missiles, the people cited above said . BDL and Bharat Electronics Limited (BEL) under DRDO are the sole manufacturers of missiles and surface to air missile systems such as Akash, Astra, Konkurs, Milan and also of torpedos.

IISc researchers develop new system to transform seawater into drinking water

The siphon-based thermal desalination system developed by the researchers uses a composite siphon which is a fabric wick paired with a grooved metallic surface.
The fabric draws salty water from a reservoir, while gravity ensures a smooth, continuous flow. Instead of allowing salt to crystallize, the siphon flushes it away before buildup occurs.
By stacking multiple evaporator–condenser pairs, the device recycles heat repeatedly, squeezing maximum output from each ray of sunshine.
The department said that the desalination unit is low-cost, scalable, and sustainable, relying only on simple materials such as aluminum and fabric.
The system can run on solar energy or waste heat, making it suitable for off-grid communities, disaster zones, and arid coastal regions. It can also handle extremely salty water (up to 20% salt) without clogging which is a major advance in brine treatment.

IIT Roorkee achieves breakthrough in Silicon-Perovskite Tandem Solar Cells, driving India’s Solar Atmanirbharta

A research team led by Prof. Soumitra Satapathi has successfully developed silicon-perovskite tandem solar cells with a record 30% power conversion efficiency (PCE)—a substantial leap from the ~24% efficiency of conventional silicon-based modules.
The IIT Roorkee team is now working on scaling this breakthrough for commercial production using slot-die coating, a technique suitable for manufacturing G12 and G12R wafer-sized perovskite mini-modules.
Commenting on the development, Prof. Satapathi said: “Our Silicon-Perovskite Tandem Solar Cells have the potential to transform India’s renewable energy landscape. By pushing efficiency beyond global benchmarks and ensuring indigenous development, we are not just building solar panels—we are building India’s energy independence.”

GPS, CSIR-NCL launch India’s first ethanol-to-SAF tech

Through this collaboration, GPS Renewables will commercialise CSIR-NCL’s patented catalyst technology, enabling one-step oligomerisation of ethylene and olefins to replicate Aviation Turbine Fuel. The project, branded NG SAF, will be India’s first ethanol-to-jet commercial-scale plant.
Currently, most SAF is produced globally through the HEFA route, which depends on used cooking oil and animal fats. In India, this is impractical due to limited UCO collection and import restrictions.
Instead, ethanol derived from 2G biomass will serve as the feedstock for NG SAF, offering a home-grown, scalable solution for decarbonising aviation.

IIT Roorkee’s Innovation in Eco-Friendly Tableware from Wheat Straw

In a breakthrough development, researchers at the INNOPAP Lab (Innovations in Paper and Packaging), in collaboration with Parason Machinery India Pvt. Ltd., Aurangabad, have successfully developed eco-friendly tableware made from wheat straw, an agricultural residue often burned after harvest.
By converting wheat straw into molded, biodegradable tableware, the team has created a safe, compostable, and sustainable alternative to plastics. Durable, heat-resistant, and food-safe, these products embody the philosophy of “Mitti se Mitti Tak” originating from the earth, serving people, and returning to the soil without causing harm.
It demonstrates the potential of science and engineering to deliver solutions that are both environmentally sound and economically viable, said Prof. Vibhore K. Rastogi, Department of Paper Technology, who leads the project.

India’s first decaf black tea launched by CSIR-NEIST Jorhat using local technology

Decaffeinated black tea, first of its kind in the country, produced by indigenous technology developed by scientists of Council of Scientific and Industrial Research (CSIR)-North East Institute of Science and Technology (NEIST), Jorhat, was launched by the Union Minister of State for Science and Technology Dr Jitendra Singh.
Decaffeinated tea, which removes the majority of caffeine from tea without disturbing the other polyphenols, has some important health benefits and is becoming popular day by day.
The decaffeinated technology was transferred to two parties in the presence of the Union Minister of State, Dr Jitendra Singh, Director General of CSIR Dr N Kalaiselvi and Director CSIR-NEIST, Jorhat, Dr Virendra M Tiwari.

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