Laghu Udyog Bharati

Weekly Insights for Entrepreneurs

India–UK Defence Deal: What It Means for Indian MSMEs

The India–UK defence pact—covering missile supply and naval electric propulsion—offers Indian MSMEs a pathway into high-tech supply chains and co-development roles.
Under this G2G agreement, MSMEs can win subcontracting roles in composites, power electronics, motors, control systems, battery systems, and software. With programmes like iDEX, SRIJAN, and corridor clusters (UP, Tamil Nadu), small firms can access grants, infrastructure, and collaboration.
To capitalize, MSMEs must achieve key certifications (e.g. AS9100), invest in quality/testing, form consortia, and ensure export-control compliance.

Pan-India survey to make MSMEs more competitive

The MSME ministry is likely to roll out a pan-India survey to assess issues plaguing micro and small enterprises and design policies that will make them more competitive and cost-effective, said MSME ministry additional secretary Rajneesh.
“We are planning to conduct a pan-India exercise on cost and competitiveness for MSMEs, reaching at the cluster level, get feedback from MSMEs about the issues and sectoral problems that they face,” he said.
He also pointed out that micro and small enterprises in different areas of the country across sectors have distinct problems, and 'solutions for them cannot be straitjacketed. The survey will help understand area and sector-specific challenges of MSMEs.'

UPI Crosses 500 Million Consumers, 65 Million Merchants, Driving Financial Inclusion And MSME Growth

UPI now is significantly amplifying financial inclusion and enabling MSME growth nationwide.
Because UPI penetrates 99% of India’s pincodes, small enterprises—even in remote areas—can participate in digital commerce and access formal payment systems.
In districts with high UPI adoption, business loans have risen 4.2× since FY 23, and 80% of merchants credit tools like UPI Soundbox with productivity gains.
Innovations like UPI Autopay, tap-and-pay, and credit integration expand embedded finance, offering MSMEs smoother cash flow, easier credit access, and modern transaction infrastructure.

PFRDA to launch schemes for gig workers, MSMEs: S Ramann

The Pension Fund Regulatory and Development Authority (PFRDA) plans to roll out pension schemes targeting MSMEs (alongside gig workers, FPOs and SHGs), aiming to deepen coverage of formal retirement savings.
For MSMEs, this offers a new tool to extend social security benefits to their workforce—especially contract or informal staff—through structured pension products.
The regulator is also rethinking investment rules (e.g. possible inclusion of commodities) and proposing reforms to forced annuity norms, addressing feedback that minimum 40% annuity is restrictive.
MSMEs may gain an avenue to enhance employee welfare and retention via regulated pension schemes while navigating more flexible investment and exit options.

India Minicorn Tracker: Mapping The Next Wave Of High-Growth Startups

India’s startup landscape is home to 70K tech startups, 125 unicorns and 115 soonicorns that have redefined scale in emerging markets.
As unicorns mature and soonicorns inch closer to the billion-dollar mark, a new breed of startups is quietly rising — the minicorns. Valued between $100 Mn and $200 Mn, they form the crucial bridge between early growth and market leadership, offering a window into India’s next wave of scalable, capital-efficient innovation.
India is home to 67 minicorns that have collectively raised nearly $3 Bn since inception.
Ecommerce tops the charts with 16 minicorns, followed by fintech (10) and AI (8), reflecting India’s shift towards tech-driven, capital-efficient business models
With 21 minicorns, Bengaluru remains India’s leading hub for future unicorns, trailed by Delhi NCR (18) and Mumbai (14), signalling a geographically widening innovation base.

How GIFT City's new forex settlement system can be a game-changer for India

It means that transactions in foreign currency by entities within GIFT IFSC can now be settled in real time or near real time, instead of the current delays of 36-48 hours under traditional correspondent banking.
This positions GIFT City among the select group of global financial centres (such as Hong Kong, Tokyo, Manila) that have local infrastructure to settle foreign currency transactions. With this infrastructure in place, the system aims to reduce settlement time dramatically, enhance liquidity management, lower settlement risk, and improve operational efficiency.
Initially, the system will support US dollar transactions, with scope to add other foreign currencies over time.

Centre unveils draft labour policy to build a future-ready workforce

Marking a shift from regulation to facilitation, Shram Shakti Niti 2025 repositions the ministry as a proactive “employment facilitator.” The policy aims to drive convergence among workers, employers, and training institutions through trusted, data-backed systems, the ministry said in a statement.
Central to this approach is the National Career Service (NCS), which will serve as India’s Digital Public Infrastructure for Employment, offering AI-enabled job matching, credential verification, and skill alignment across sectors and regions.
By integrating key national databases such as EPFO, ESIC, e-Shram, and NCS into a unified labour stack, the policy envisions an inclusive and interoperable digital ecosystem that supports lifelong learning, social protection, and income security.

NITI Aayog calls for pruning tax offences from 35 to six in new paper

It recommends a three-tier reform approach: first, fully decriminalising 12 offences that are administrative or technical in nature; second, retaining criminal liability for 17 offences but only where fraudulent or mala fide intent can be proven; and third, maintaining prosecution for six core offences involving deliberate and high-value tax evasion or fabrication of evidence.
Among other proposals, the paper calls for the removal of mandatory imprisonment provisions, restoration of judicial discretion in sentencing, and elimination of the reverse burden of proof, which currently presumes the taxpayer’s culpable intent.
It also suggests introducing flexible sentencing with non-custodial alternatives for first-time, or low-level offences, and setting up a mechanism for periodic legislative review of criminal provisions

India Set to Launch Carbon Market Portal by January, Targets Asia’s Carbon-Finance Leadership

The centralised digital platform will serve as the backbone of the country’s emerging carbon credit trading system—facilitating the creation, registration and issuance of carbon credits to help industries offset emissions by investing in cleaner technologies or purchasing credits from others.
The ICM portal is expected to manage the full lifecycle of carbon projects—from proposal submission to registration, validation, verification, issuance and renewal. It will cater to both compliance and voluntary carbon credit mechanisms.
The new portal could further help in elevating India as a strategic carbon-finance hub in Asia.
The global carbon credit market was valued between $531.2 billion and $656.8 billion in 2024.

RBI unveils four digital payments initiatives

The regulator launched AI based UPI HELP which provides assistance for payments, mandates, and dispute resolution.
It also launched 'IoT Payments' with UPI' for enabling transactions directly from connected devices such as cars, smart TVs, and wearables.
RBI also launched 'Banking Connect' an interoperable net banking solution offering seamless payments and standardized merchant onboarding.
The RBI also launched 'UPI Reserve Pay' that will allow users to securely block and manage credit limits for specific purposes across merchant and UPI apps.

IIT Bhilai develops dual-trigger 4D polymer

It can change shape in response to both temperature and pH, opening up possibilities for advancements. These “intelligent” materials can fold, expand, or contract on demand, offering potential applications in minimally invasive surgeries, targeted drug delivery, and adaptive prosthetics that respond to body heat.
The research promises to introduce innovations like injectable bio-robots, smart drug-delivery systems, and new-generation prosthetic parts that move naturally. Since the material reacts to small changes in temperature or chemical conditions, it could be used to self-open and release medicine exactly where needed in the body or gently change shape to match a patient's internal anatomy.
If further studies on biocompatibility and large-scale manufacturing go smoothly, we could see early prototype devices within the next few years, and clinical or commercial use in the near future, Dr. Banerjee said.

IISER develops cancer-fighting bacteria

Their project, titled ReSET (Reprogramming the Suppressive Environment of Tumour Microenvironment), tackles one of the biggest barriers in cancer therapy.
At the same time, they are developing a detection system capable of monitoring the progress of the therapy.
Together, these innovations mark a new frontier in the combined therapeutic and diagnostic approach to cancer treatment, the IISER Kolkata said.
In simple words, they are converting friendly microbes into living, targeted medicines that could one day work from inside the patient's body to make cancer treatment safer and more effective.

IIT-M finds way to break down chemicals in non-stick cookware

IIT Madras researchers have developed a method to break down PFAS (per- and polyfluoroalkyl substances), commonly used in non-stick cookware and food packaging, that pollute the environment.
The team demonstrated a strategy that uses sunlight and tiny metal particles to break PFAS, often called ‘forever chemicals' due to their resistance to degradation, into harmless components.
“Our work demonstrated a fundamentally new way of tackling PFAS by using sunlight and nanoscale materials. We believe this approach can complement existing treatment methods and, ultimately, inspire more sustainable technologies for cleaning up contaminated sites” said Prof Chaitanya Sharma Yamijala.
By combining solar energy, nanotech, and chemical modelling, this approach gives a foundation for next-generation water purification systems and shows how Indian research is contributing solutions to environmental issues.

DRDO and Tri-Services unveil IRSA 1.0 to Standardize Military Communication

Defence Research and Development Organisation (DRDO), in collaboration with the Integrated Defence Staff (IDS) and the Tri-Services, today released Indian Radio Software Architecture (IRSA) standard 1.0 to enable interoperability in Military Communication. It was released during the National workshop organised at DRDO Bhawan in New Delhi.
IRSA is a comprehensive software specification for Software Defined Radios (SDR), defining standardised interfaces, Application Programming Interface, execution environments, and waveform portability mechanisms.
The launch of IRSA represents a defining step in India’s journey toward self-reliance in defence communication technologies.

IIT-Gn develops alternative to harmful chemicals

A team at the Indian Institute of Technology, Gandhinagar (IIT-Gn) has created a sustainable, non-toxic water-repellent coating to advance next-generation energy technology. This innovation combines clay, plant-derived fatty acids, and cellulose to offer a safe, durable alternative to fluorinated chemicals that linger in the environment.
The coating creates stable dropwise condensation, essential for improving heat transfer in power, cooling, and desalination systems. It performs as well as widely-used fluorinated coatings but without the environmental harm.
This breakthrough supports global efforts to phase out Per- and polyfluoroalkyl substances (PFAS) with eco-friendly alternatives.

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