An amendment to India’s Insolvency and Bankruptcy Code is being proposed to introduce “prepack” resolutions for MSMEs. The alternative framework aims to make insolvency outcomes quicker and more cost-effective than traditional processes, potentially reducing delays and legal expenses for small businesses facing financial stress.
UGRO Capital has stopped originating new loans in its low-yield, DSA-led book, marking a major shift toward profitability. The firm is cutting costs and exiting a model it says has offered thin margins, with an aim to lift yields and avoid future shareholder dilution. It plans to focus instead on MSME lending and merchant partnerships.
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The Association of Indian Entrepreneurs has warned that an LPG shortage could trigger job losses across the MSME sector. It has urged both the central and state governments to step in urgently, asking for direct LPG supply support and a temporary reduction in fuel duties to ease operating costs and prevent business disruptions.
Beyond wage protests, Noida and Greater Noida MSMEs say entrenched bureaucratic systems and legacy administrative practices are the real drag on growth. Industry stakeholders argue compliance burdens and outdated procedures are undermining momentum, adding time and cost pressures that smaller businesses struggle to absorb—leaving them trapped between operational demands and paperwork-heavy governance.
Banking sector asset quality is still holding up, but a new report expects slippages to rise in the near term. The pressure is concentrated in the retail and MSME segments, where stress is building. Even with today’s strong asset quality, investors may need to watch credit costs and delinquency trends closely as earnings approach.
India’s manufacturing MSME sector is still growing, but the momentum is weakening. A PHDCCI survey finds new orders and production rising, though at a slower pace than before. While the next quarter’s outlook is broadly positive, it comes with caution—suggesting external pressures are starting to bite into demand and expansion plans.
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New India Assurance is reshaping its strategy to reach India’s underinsured MSME ecosystem, focusing on accessibility rather than just reducing premiums. CMD Girija Subramanian says the company will introduce simpler products, explore parametric insurance in allied sectors, and prioritize speed in claims settlement to build trust and accelerate growth.
India’s MSME manufacturing sector expanded in the Jan–March period, but growth cooled as the West Asia crisis disrupted trade. Longer shipping times and higher costs affected momentum even as new orders and production rose. Hiring stayed largely steady, and businesses expect the next quarter to remain positive but cautious, hinging on timely policy support for sustained growth.
RBI’s monetary policy measures, including ECLGS, helped revive lending momentum for MSMEs. Credit to industry rebounded to 6.5% in February 2022 from just 1.0% a year earlier, supported by stronger flows to micro and small businesses and improving conditions in large industry. The turnaround is credited to policy-linked credit interventions.
The Centre has notified a framework for prepackaged insolvency resolution for MSMEs under the Insolvency and Bankruptcy Code. However, it has not yet set or notified the threshold amounts needed to trigger prepackaged insolvency. The move provides a legal pathway, but businesses may still face uncertainty until the key thresholds are announced.
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India and Korea have signed a MoU to strengthen ties focused on MSMEs. The agreement sets up a structured framework for ongoing dialogue on key MSME issues and encourages both sides to look for mutually beneficial opportunities. The ministry said the MoU is meant to create continuity in cooperation rather than one-off discussions.
MSME entrepreneurs in Noida and Greater Noida say a recent rise in wages and overtime rules is pushing up operating costs faster than revenue can follow. They argue policy changes are out of sync with ground realities and are urging the government for financial relief through subsidies and other supportive measures to prevent margin pressure from worsening.
A C-DEP and IIT Delhi report finds technology-enabled goods transportation can materially improve MSME operations. The study says 73% of MSMEs saw reduced transportation costs and 95% reported better on-time delivery. However, it warns that incorrect GST classification could undermine these benefits, turning compliance mistakes into operational losses.
FACSI has asked the Centre to give micro and small enterprises stronger support in the 2026 27 Union Budget, calling for GST relief, easier credit, and faster access to finance. It also wants a dedicated advisory council for MSMEs and simpler GST return processes, arguing that reducing compliance and funding friction could boost survival and growth.
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The Iran US conflict is pushing polymer and resin prices up roughly 60%, with freight rates reportedly rising as much as 10x. Even with a ceasefire in place, supply disruptions, shipping delays, and logistics snarls are squeezing MSMEs, weakening India’s plastics exporters and clouding export competitiveness.
UP MSMEs exporting to global markets are getting squeezed by the West Asia conflict. Exporters say shipments are getting delayed by as much as 60 days, while freight and related logistics costs have escalated by 20–30%. With uncertainty rising around order schedules and delivery timelines, businesses are facing mounting pressure on cash flows and planning.
NABARD has launched a Rs 2.62 lakh crore credit plan for Delhi aimed at inclusive growth across the National Capital Territory. The initiative focuses on tailored development pathways to improve access for MSMEs, including a proposed shift toward smaller “nano” and “mini” unit models designed to widen credit reach and support balanced regional development.
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