Category: Latest articles

  • Best ERP Software for SMEs in India (2025 Edition)

    Best ERP Software for SMEs in India (2025 Edition)

    ERP

    Best ERP Software for SMEs in India (2025 Edition)

    In today’s fast-evolving business landscape, small and medium-sized enterprises (SMEs) in India are increasingly recognizing the importance of digital tools for growth. One of the most critical tools among them is ERP software – a solution that centralizes operations, automates processes, and offers real-time visibility across departments.

    But with dozens of ERP solutions in the market, choosing the right one can be overwhelming. To make your decision easier, we’ve curated a list of the best ERP software for Indian SMEs in 2025, starting with a powerful homegrown solution: Vision ERP.

    Why SMEs Need ERP Software in 2025

    ERP (Enterprise Resource Planning) software is no longer just for large enterprises. Today’s SMEs need to manage increasing complexity from inventory and compliance to multi-location operations and customer expectations. Here’s how ERP helps:

    • Real-time business insights
    • Automation of repetitive tasks
    • Smarter inventory control
    • Scalable infrastructure for growth
    • Better compliance and audit readiness

    With cloud-based and AI-powered ERP systems becoming more affordable, SMEs now have access to enterprise-level tools at SME-level costs.

    1. Vision ERP by Proteus

    Vision ERP is a robust, AI-powered ERP solution designed specifically for Indian SMEs. Built by Proteus Technologies, this cloud-native software caters to diverse industries like pharmaceuticals, food processing, engineering, FMCG, and textiles.

    Standout Features:

    • AI-driven automation and predictive insights
    • Fast implementation (go live in days)
    • User-friendly, mobile-accessible interface
    • Industry-specific modules for faster onboarding
    • Real-time dashboards and reporting

     

    1. Zoho One (Zoho ERP)

    Zoho One offers a comprehensive suite of cloud applications that functions as an ERP for startups and service-driven SMEs. It’s ideal for teams looking for quick deployment and easy usability.

    Key Benefits:

    • Budget-friendly
    • Cloud-based and mobile-ready
    • Strong CRM, HR, and finance integration

    1. TallyPrime with Cloud Access

    Tally has long been the go-to software for accounting in India. With the advent of Tally on Cloud, it has become a basic ERP alternative for SMEs focusing on inventory and financial management.

    Why Consider It:

    • Easy transition for existing Tally users
    • Ideal for basic finance and stock control
    • Familiar and simple interface

     

    1. SAP Business One

    For SMEs that are scaling rapidly and require robust features, SAP Business One is a powerful ERP platform offering deep functionality and strong global support.

    Strengths:

    • Advanced reporting and analytics
    • Strong integration ecosystem
    • Best suited for manufacturing and distribution businesses

    1. ERPNext

    ERPNext is an open-source ERP developed in India, ideal for companies that prefer flexibility and in-house customization.

    Notable Features:

    • Modular structure with apps for CRM, HR, and Projects
    • Suitable for manufacturing, retail, and education sectors

    Active open-source community for support

    The best ERP solution for your business depends on your industry, budget, and how fast you want to scale. While global tools like SAP and Zoho offer depth and brand recognition, Indian solutions like Vision ERP stand out for their speed of implementation, localized features, and industry-specific flexibility.

    As we move deeper into 2025, SMEs that adopt smart ERP systems will have a clear edge in efficiency, decision-making, and growth readiness.

  • G7 pledges joint effort on AI adoption

    G7 pledges joint effort on AI adoption

    g7

    G7 pledges joint effort on AI adoption

    Leaders at the G7 Summit have pledged a joint effort to accelerate the adoption of artificial intelligence across various sectors. Recognising the transformative potential of AI technology, the G7 nations are committed to working together to boost its integration within the public sector. This initiative aims to improve efficiency, enhance services, and foster innovation across government operations.

    A key priority is supporting small and medium-sized enterprises (SMEs) in their digital transformation journey. The G7 recognises that SMEs often face unique challenges in accessing and implementing AI solutions. Therefore, the focus will be on helping SMEs adopt and develop safe, secure, and trustworthy AI systems, ensuring they can benefit from this technology and remain competitive in the global market. This cooperation will facilitate the sharing of best practices and resources, empowering SMEs to leverage AI for growth and efficiency.

    The G7 also acknowledges the significant energy demands associated with AI. A crucial aspect of their joint effort involves addressing these energy challenges and exploring the potential of AI in driving energy efficiency and innovation. This includes developing AI-powered solutions for optimising energy consumption, improving grid management, and accelerating the development of renewable energy sources. By harnessing AI, the G7 aims to create a more sustainable and energy-efficient future.

    Key Areas Of Collaboration

    The G7 nations are set to intensify their cooperation in several key areas to drive responsible artificial intelligence development and deployment. One primary focus is on establishing common standards and frameworks for AI, ensuring interoperability and facilitating cross-border data flows. This collaborative approach will promote a level playing field for businesses and researchers, encouraging innovation and preventing fragmentation of the global AI landscape. Harmonising regulations and guidelines is crucial for fostering trust and confidence in AI technology.

    Another vital area of collaboration centres on promoting AI skills development and education. The G7 recognises the need to equip the workforce with the necessary skills to thrive in an AI-driven economy. This involves investing in education and training programmes that focus on AI-related skills, such as data science, machine learning, and AI ethics. By fostering a skilled workforce, the G7 aims to ensure that its citizens can fully participate in and benefit from the digital transformation powered by AI.

    Furthermore, the G7 is committed to supporting research and development in AI, particularly in areas that address societal challenges. This includes funding research into AI applications for healthcare, climate change, and sustainable development. By pooling resources and expertise, the G7 nations can accelerate the development of innovative AI solutions that contribute to solving pressing global issues. This collaborative approach to research and development will help unlock the full potential of artificial intelligence for the benefit of humanity.

    Addressing Ai Risks

    Recognising the potential risks associated with artificial intelligence, the G7 is committed to addressing these challenges proactively. A key focus is on mitigating biases in AI systems to ensure fairness and prevent discrimination. The G7 nations will work together to develop methodologies for identifying and rectifying biases in AI algorithms and datasets. This collaborative effort aims to promote equitable outcomes and prevent the perpetuation of societal inequalities through AI technology. Ensuring transparency and accountability in AI systems is also vital to build public trust and confidence.

    Another critical area involves addressing cybersecurity threats related to AI. As AI systems become more integrated into critical infrastructure and sensitive applications, protecting them from malicious attacks is paramount. The G7 will collaborate on developing robust cybersecurity frameworks and best practices for AI, including measures to prevent data breaches, algorithmic manipulation, and other forms of cybercrime. Strengthening international cooperation on cybersecurity is essential to safeguard the integrity and reliability of AI systems. This includes promoting information sharing and joint exercises to enhance preparedness and response capabilities.

    The G7 also acknowledges the importance of addressing the potential misuse of AI for malicious purposes, such as autonomous weapons and surveillance technologies. They are committed to working together to establish ethical guidelines and legal frameworks that govern the development and deployment of AI in these sensitive areas. This includes promoting responsible innovation and preventing the use of AI in ways that violate human rights or undermine international security. The G7’s cooperation aims to ensure that AI technology is used for the benefit of humanity and not as a tool for harm.

    Global Ai Governance

    The G7 nations recognise that the governance of artificial intelligence requires a global perspective. They are dedicated to fostering international cooperation to establish common principles and standards for AI governance. This includes working with international organisations, such as the United Nations and the OECD, to promote a harmonised approach to AI regulation and ethics. By engaging in multilateral dialogue, the G7 aims to ensure that AI is developed and deployed responsibly on a global scale, addressing concerns related to data privacy, security, and human rights. This collaborative effort is essential for building a trusted and inclusive AI ecosystem.

    A central aspect of global AI governance is promoting interoperability and avoiding fragmentation. The G7 seeks to facilitate the seamless flow of data and AI technologies across borders, while respecting national laws and regulations. This involves establishing common frameworks for data governance, including data protection and cross-border data transfers. By fostering interoperability, the G7 aims to unlock the full potential of artificial intelligence for global innovation and economic growth. This also requires addressing potential barriers to trade and investment in AI, such as discriminatory practices and protectionist measures.

    Furthermore, the G7 recognises the importance of promoting ethical considerations in AI development and deployment worldwide. This includes establishing ethical guidelines and frameworks that address issues such as bias, fairness, and accountability. The G7 nations will work together to promote responsible innovation in AI, ensuring that the technology is used for the benefit of all and does not exacerbate existing inequalities. By championing ethical AI, the G7 aims to build public trust and confidence in this transformative technology and promote its responsible adoption across the globe. This requires ongoing dialogue and collaboration with stakeholders, including governments, industry, academia, and civil society.

  • Top 5 Cloud ERP Software in India

    Top 5 Cloud ERP Software in India

    ERP Software

    Top 5 Cloud ERP Software in India

    In today’s rapidly evolving business environment, Cloud ERP software is becoming a game-changer for businesses of all sizes. With improved accessibility, reduced costs, and real-time data management, cloud-based ERP solutions are enabling companies to streamline operations and boost efficiency.

    What is Cloud ERP and How Does It Work?

    Cloud ERP (Enterprise Resource Planning) is a software hosted on a cloud platform that helps businesses manage their core functions – such as finance, inventory, sales, HR, and procurement – from a centralized system accessible via the internet. Unlike traditional ERP systems that require heavy on-premise infrastructure, cloud ERP offers scalability, flexibility, and lower upfront investment.

    Users can access cloud ERP platforms anytime, anywhere through a web browser. The system is regularly updated, and maintenance is handled by the provider, reducing IT overhead for businesses.

    Why Cloud ERP Is Important for Indian Businesses

    India’s SME and mid-market sector is booming. However, these businesses often struggle with fragmented data, manual processes, and limited visibility. This is where cloud-based ERP systems become essential:

    • Cost-effective and scalable
    • Real-time data access and analytics
    • Faster implementation and updates
    • Improved collaboration across locations
    • Enhanced data security and compliance

    Top 5 Cloud ERP Software in India

    1.Vision ERP by Proteus

    Vision ERP is a powerful AI-powered cloud ERP tailored for mid to small industries in India. It supports industry-specific templates for pharmaceuticals, food & beverages, textiles, engineering, life sciences, and more.

    Key Features:

    • AI-driven automation for smarter decision-making
    • Self-customizable modules to fit your business
    • Scalable and quick to implement
    • Cloud-native with built-in business intelligence
    • Ideal for fast-growing companies and SMEs

    2. SAP Business One

    A well-known name globally, SAP Business One offers a localized cloud ERP solution for Indian businesses. It is suited for SMEs seeking an integrated platform for finance, operations, and CRM.

    Pros:

    • Strong analytics and reporting tools
    • Trusted global support
    • Suitable for manufacturing and retail sectors

     

    3. TallyPrime with Tally on Cloud

    Tally is a household name in Indian accounting. With Tally on Cloud, businesses can now experience TallyPrime in a cloud environment, making it easier to access across locations.

    Pros:

    • Familiar UI for Indian businesses
    • Great for accounting and inventory
    • Affordable for small businesses

    4. Oracle NetSuite ERP

    A leading cloud ERP for growing enterprises, Oracle NetSuite provides a robust suite for finance, CRM, eCommerce, and supply chain management.

    Pros:

    • Strong financial management features
    • Good scalability for fast-growing firms
    • Excellent integration capabilities

    5. Zoho ERP (Zoho One)

    Zoho offers a bundle of business applications, and Zoho One functions like an ERP for small and medium-sized enterprises. It includes tools for sales, finance, HR, and operations.

    Pros:

    • Budget-friendly
    • Easy to use
    • Wide range of integrations

     

  • Wpi inflation eases hitting a 14-month low of 0.39%.

    Wpi inflation eases hitting a 14-month low of 0.39%.

    NSE SME

    WPI Inflation eases hitting a 14-month low of 0.39%.

    India’s wholesale price index (WPI) inflation eased significantly in May 2025, hitting a 14-month low of 0.39%. This represents a considerable drop from 0.85% in April and 2.05% in March, according to data released by the Ministry of Commerce and Industry. The decline signals a continued moderation in price pressures within the Indian economy.

    Several factors contributed to this cooling of inflation. Primarily, falling prices of food items, fuel (particularly petrol and diesel), and manufactured products were major drivers. The consistent decline across these sectors suggests a broad-based disinflationary trend is taking hold. The softening of food inflation to 0.99%, marking its seventh consecutive monthly decline, also played a crucial role. Improved agricultural output, coupled with a favourable base effect, aided this decline.

    The fact that WPI inflation dipped into negative territory on a month-over-month basis, registering at -0.06%, further underscores the easing price pressures. This is welcome news alongside the concurrent decline in Consumer Price Index (CPI)-based retail inflation, which reached 2.82% in May, the lowest level seen since February 2019. These figures may provide an economic boost, and offer the RBI greater flexibility in its monetary policy decisions.

    Sectoral Price Movements

    A closer look at individual sectors reveals a nuanced picture of price movements in May. The primary articles category witnessed a substantial moderation in inflation, largely driven by easing food prices, as previously noted. Within this category, vegetables experienced significant price drops due to improved supply chains and favourable weather conditions. This downward pressure helped to offset some increases observed in other primary articles.

    Fuel and power also contributed significantly to the overall WPI easing. Petrol and diesel prices saw a notable decline, reflecting lower international crude oil prices and government measures aimed at reducing fuel taxes. This decrease had a cascading effect on transportation costs, further aiding disinflation. However, coal prices remained relatively stable, limiting the overall impact of the fuel and power category.

    In the manufactured products segment, several sub-sectors experienced price corrections. Basic metals, chemicals, and textiles all saw a moderation in wholesale price index inflation. This could be attributed to factors such as reduced input costs, subdued global demand, and increased domestic production capacity. Conversely, certain manufactured goods, such as machinery and equipment, witnessed slight price increases, potentially reflecting higher raw material costs or supply chain bottlenecks.

    Policy Implications Discussed

    The significant easing of WPI inflation to a 14-month low of 0.39% in May has prompted considerable discussion regarding its policy implications. The Reserve Bank of India (RBI) has already responded by revising its inflation projection for FY26 downwards, from 4% to 3.7%. This adjustment reflects the central bank’s confidence that the disinflationary trend will persist, creating space for potential monetary easing measures.

    Specifically, the data increases speculation about a possible repo rate cut in the coming months. With both WPI and CPI inflation trending downwards, the RBI may feel more comfortable reducing borrowing costs to stimulate economic activity. However, the central bank is likely to adopt a cautious approach, closely monitoring global economic conditions and potential risks to the inflation outlook, such as fluctuations in crude oil prices or unexpected supply chain disruptions. The 0.39% figure will be scrutinized alongside other economic indicators.

    Furthermore, the easing of wholesale price index inflation could influence government policies aimed at supporting specific sectors. For instance, the government may consider targeted interventions to address challenges faced by industries experiencing price declines, such as providing subsidies or incentives to boost production and competitiveness. This could be a way to turn the economic boost into long term growth. Conversely, sectors facing upward price pressures may warrant closer monitoring to prevent inflationary spillovers into the broader economy. The WPI data provides valuable insights for policymakers to fine-tune their strategies and ensure sustainable economic growth.

    Expert Analysis Provided

    Economists and market analysts are closely examining the latest WPI data to understand the underlying dynamics and potential future trajectory of inflation. Several experts believe that the 0.39% figure for May, a 14-month low, is a positive sign, indicating that the measures taken by the government and the RBI are starting to yield results. They point to the broad-based nature of the disinflation, encompassing food, fuel, and manufactured products, as evidence of a sustained downward trend.

    However, some analysts remain cautious, highlighting potential risks that could disrupt the current disinflationary path. They emphasize the importance of monitoring global commodity prices, particularly crude oil, and geopolitical developments, which could lead to supply chain disruptions and renewed inflationary pressures. Additionally, they note that the base effect, which has contributed to the recent decline in inflation, may fade in the coming months, potentially leading to a slower pace of disinflation.

    Several economists also highlight the impact of the easing inflation on corporate profitability. With input costs declining, companies may experience improved margins, potentially leading to increased investment and job creation. However, they caution that this benefit may be unevenly distributed across sectors, with some industries benefiting more than others. Experts generally agree that the current economic climate presents an opportunity for the government to implement structural reforms aimed at enhancing productivity and competitiveness, which would support sustainable economic growth and further tame inflation. This WPI data and the resulting economic boost, if managed well, could lead to long-term stability.

  • Govt plans unified platform for textile sector

    Govt plans unified platform for textile sector

    textile industry

    Govt plans unified platform for textile sector

    The government envisions the unified platform as a comprehensive digital ecosystem designed to tackle critical issues facing the textile sector. A central feature will be a real-time data dashboard, providing stakeholders with up-to-date information on market trends, export performance, and the effectiveness of various government schemes. This transparency aims to facilitate informed decision-making and proactive problem-solving.

    The platform will incorporate dedicated modules for addressing specific challenges. These modules will focus on areas such as skill development, technological upgrades, and access to finance. Furthermore, it will include a robust grievance redressal mechanism, enabling stakeholders to report issues and track their resolution in a timely manner. The goal is to create a user-friendly interface that streamlines communication and collaboration across the entire industry.

    Another key aspect of the unified platform is its integration with existing government portals and databases. This seamless data flow will minimise duplication of effort and ensure data accuracy. The platform will also leverage advanced analytics to identify emerging trends and potential bottlenecks in the textile sector. This proactive approach will allow the government and industry stakeholders to anticipate challenges and implement effective solutions.

    Benefits For Stakeholders

    The unified platform promises a multitude of benefits for all stakeholders across the textile sector. For businesses, particularly small and medium-sized enterprises (SMEs), the platform will offer improved access to information, technology, and markets. This will enable them to enhance their competitiveness, expand their operations, and increase their export potential. The platform’s data-driven insights will empower businesses to make informed decisions regarding production, marketing, and investment.

    The government stands to gain from improved monitoring and evaluation of its policies and programmes. The platform’s real-time data and analytics capabilities will provide valuable insights into the effectiveness of various interventions, allowing for course correction and optimisation. This will lead to more efficient resource allocation and improved outcomes for the textile sector as a whole. Furthermore, the platform will facilitate better coordination among different government agencies involved in the sector.

    Workers in the textile industry will benefit from improved access to training and skill development opportunities. The platform will provide information on available programmes and facilitate enrolment, leading to enhanced skills and better employment prospects. The grievance redressal mechanism will also empower workers to voice their concerns and seek resolution to workplace issues. This will contribute to a more equitable and inclusive working environment within the textile sector.

    The unified platform aims to create a more transparent, efficient, and collaborative ecosystem for the textile sector. By addressing critical issues and fostering innovation, the platform will contribute to the sector’s sustainable growth and enhance its contribution to the Indian economy. The improved communication and collaboration facilitated by the platform will also strengthen the relationship between the government, industry, and workers, leading to a more harmonious and productive environment.

    Implementation Timeline

    The government anticipates a phased rollout of the unified platform, commencing with a pilot project involving key stakeholders from various segments of the textile sector. This initial phase will focus on testing the platform’s functionality, gathering user feedback, and refining its features based on real-world experiences. The pilot project is expected to last for approximately six months, during which time a dedicated team will monitor its performance and address any technical issues that may arise.

    Following the successful completion of the pilot project, the unified platform will be progressively rolled out across the entire textile sector. This wider implementation will involve a comprehensive training programme for all stakeholders, ensuring they are equipped with the necessary skills to effectively utilise the platform’s features. The government intends to leverage existing industry associations and training institutions to deliver these training programmes. A help desk will be established to provide ongoing support and assistance to users.

    The complete implementation of the unified platform is projected to take approximately two years. This timeline allows for thorough testing, user training, and integration with existing systems. The government will closely monitor the progress of the implementation and make adjustments as needed to ensure its success. Regular updates on the implementation progress will be provided to stakeholders through various channels, including online portals and industry forums. The aim is to ensure transparency and maintain momentum throughout the implementation process, to ensure that the issues of the textile sector get speedy resolution.

    Challenges And Concerns

    Despite the ambitious goals of the unified platform, several challenges and concerns need careful consideration. Data security and privacy are paramount. The platform will handle sensitive business information, requiring robust security measures to prevent breaches and ensure confidentiality. Establishing clear protocols for data access, storage, and sharing will be crucial to building trust among stakeholders. The government needs to address these issues proactively.

    Ensuring equitable access to the platform for all stakeholders, particularly small and medium-sized enterprises (SMEs) in remote areas, is another significant hurdle. Many SMEs may lack the necessary infrastructure or digital literacy to fully utilise the platform’s features. The government may need to provide targeted support and training to bridge this digital divide and ensure that all stakeholders can benefit from the platform.

    Interoperability with existing systems and databases within the textile sector could also present challenges. Integrating the unified platform with diverse legacy systems may require significant technical expertise and resources. Standardising data formats and protocols will be essential to ensure seamless data flow and avoid compatibility issues. The platform should be adaptable to different technologies that the industry is using.

    Sustained engagement and collaboration among all stakeholders will be critical for the platform’s long-term success. Overcoming resistance to change and fostering a culture of collaboration may require proactive communication and outreach efforts. The government needs to demonstrate the platform’s value and address any concerns or reservations that stakeholders may have. A clear mechanism for addressing grievances and ensuring timely resolution of issues will also be essential for maintaining stakeholder confidence. If the platform does not get used by the industry it is designed for, it will not be a success.

  • Cloud solutions can reduce costs for indian smes

    Cloud solutions can reduce costs for indian smes

    sme

    Cloud computing offers a wealth of advantages for Indian SMEs, transforming how they operate and compete in today’s dynamic market. One of the most compelling reasons to adopt cloud solutions is the enhanced agility and flexibility they provide. Businesses can quickly adapt to changing market conditions, scale their operations up or down as needed, and access resources from anywhere with an internet connection. This level of responsiveness is crucial for SMEs looking to seize new opportunities and stay ahead of the competition.

    Another significant benefit lies in improved collaboration and communication. Cloud-based tools enable teams to work together seamlessly, regardless of their physical location. Documents can be shared and edited in real-time, projects can be managed more effectively, and communication channels are streamlined. This fosters a more productive and efficient work environment, leading to better outcomes for Indian SMEs.

    Furthermore, cloud solutions enhance data security and disaster recovery capabilities. Reputable cloud providers invest heavily in security infrastructure and protocols to protect data from cyber threats and other risks. In the event of a disaster, cloud-based data backups ensure business continuity and minimise downtime. This provides peace of mind for Indian SMEs, knowing that their valuable data is safe and accessible.

    The adoption of scalable solutions is another important advantage for SMEs. As their business grows, they can easily scale their cloud resources to meet increasing demands without significant upfront investment. This ensures that their IT infrastructure can support their growth trajectory, without the limitations of traditional on-premise systems.

    Cost Reduction Strategies

    Indian SMEs can implement several effective strategies to achieve substantial cost reduction by leveraging cloud solutions. These strategies address various aspects of IT spending and operational efficiency, resulting in significant savings over time.

    Optimising Infrastructure Costs

    One of the primary ways cloud computing drives cost reduction is by optimising infrastructure costs. Instead of investing heavily in on-premise servers, hardware, and software licenses, SMEs can subscribe to cloud services on a pay-as-you-go basis. This eliminates the need for large upfront capital expenditures and reduces ongoing maintenance expenses. Here’s how:

    • Reduced Hardware Expenses: Cloud solutions remove the need to purchase and maintain physical servers, significantly lowering hardware costs.
    • Lower Energy Consumption: By outsourcing infrastructure to cloud providers, SMEs reduce their energy consumption and associated utility bills.
    • Decreased IT Staffing Costs: Cloud services often require less in-house IT support, leading to lower staffing costs for maintenance and management.

    Streamlining Operations and Automation

    Cloud solutions facilitate streamlining operations and automation, leading to improved efficiency and cost savings. By automating repetitive tasks and processes, SMEs can free up valuable time and resources for more strategic initiatives. This includes:

    • Automated Backups and Disaster Recovery: Cloud-based backup and disaster recovery solutions automate data protection, reducing the risk of data loss and minimising downtime in the event of a disaster.
    • Automated Software Updates: Cloud providers handle software updates and patching automatically, eliminating the need for manual intervention and reducing IT workload.
    • Workflow Automation: Cloud-based workflow automation tools streamline business processes, improving efficiency and reducing manual effort.

    Leveraging Scalable Solutions

    Scalable solutions enable Indian SMEs to optimise their resource allocation and avoid overspending on IT infrastructure. Businesses can easily scale their cloud resources up or down based on their actual needs, ensuring they only pay for what they use. This flexibility is particularly beneficial for SMEs with fluctuating workloads or seasonal demands.

    By adopting these cost reduction strategies, Indian SMEs can unlock the full potential of cloud solutions and achieve significant savings while improving their operational efficiency and competitiveness.

  • Small business confidence dips amid trade worries

    Small business confidence dips amid trade worries

    ASSOCHAM

    Small business confidence dips amid trade worries

    Small business confidence is taking a hit as concerns surrounding international trade escalate. The dip in the ASSOCHAM–Dun & Bradstreet Small Business Confidence Index (SBCI) for the April–June 2025 quarter reflects this growing anxiety. Many SMEs are worried about the potential ramifications of global trade uncertainty, including tariffs, trade wars, and disruptions to supply chains. These factors are casting a shadow over the business outlook for many firms.

    Specifically, businesses that are heavily reliant on exports or imports are feeling the pressure most acutely. Increased costs associated with tariffs and logistical challenges are squeezing profit margins. Some businesses are contemplating diversifying their supply chains or exploring alternative markets to mitigate the risks. However, these adjustments require time and investment, adding to the existing concerns about economic slowdown.

    The unease surrounding global trade is also affecting investment decisions. Many SMEs are adopting a more cautious approach, delaying or scaling back expansion plans until the outlook becomes clearer. This hesitancy to invest could have broader implications for economic growth, as SMEs are significant contributors to job creation and innovation. The situation in Q1FY26 remains uncertain, with many businesses closely monitoring developments in global trade negotiations.

    Confidence Index Declines

    Despite the dip, the index remains 6% higher on a year-on-year basis and well above its long-term average, reflecting a phase of cautious optimism among India’s small and medium enterprises (SMEs). India’s small business sentiment has seen a slight moderation in the April–June 2025 quarter, as the ASSOCHAM–Dun & Bradstreet Small Business Confidence Index (SBCI) edged down by 1.8% from the previous quarter, settling at 105.4.

    Despite the dip, the index remains 6% higher on a year-on-year basis and well above its long-term average, reflecting a phase of cautious optimism among India’s small and medium enterprises (SMEs).

    The decline in the SBCI signals a cooling off from the more buoyant sentiment observed in previous quarters. While still positive, the index level of 105.4 suggests that SMEs are becoming more circumspect about the immediate future. This moderation is primarily driven by concerns over global trade uncertainty and the potential for an economic slowdown, which are impacting their business outlook.

    Several factors contribute to the index’s decline. Rising input costs, coupled with fluctuating demand in both domestic and international markets, are putting pressure on SMEs. Furthermore, access to credit remains a challenge for many smaller businesses, hindering their ability to invest and expand. The situation in Q1FY26 will be critical in determining whether this is a temporary blip or a more sustained downward trend in small business confidence.

    Impact On Investment Plans

    The prevailing economic slowdown and global trade uncertainty are directly influencing the investment strategies of Indian SMEs. A noticeable trend is the postponement of capital expenditure, with many businesses opting to conserve resources rather than embark on new ventures or expand existing operations. This risk-averse approach stems from the fear that adverse trade policies or a further dip in demand could render new investments unprofitable.

    Specifically, planned investments in areas such as technology upgrades, infrastructure improvements, and workforce expansion are being reassessed. While some SMEs are proceeding with essential upgrades to maintain competitiveness, discretionary investments are largely on hold. This cautious stance could have a knock-on effect on innovation and productivity growth within the sector, potentially hindering long-term economic development. The impact on investment plans is a direct consequence of the decline in small business confidence.

    Furthermore, the availability of credit plays a crucial role in investment decisions. With increased uncertainty, lenders are becoming more stringent in their lending criteria, making it harder for SMEs to access the finance they need. This tightening of credit conditions further exacerbates the investment slowdown, particularly for smaller businesses that rely heavily on external funding. The outlook for Q1FY26 remains uncertain, with investment plans contingent on a more stable and predictable economic environment.

    Government Response Examined

    In response to the dip in small business confidence and the growing concerns surrounding global trade uncertainty, the government is actively exploring measures to support SMEs. These measures aim to mitigate the negative impacts of trade tensions and bolster the business outlook for smaller enterprises. Several initiatives are under consideration, focusing on easing access to credit, reducing regulatory burdens, and promoting domestic demand.

    One key area of focus is streamlining the process for SMEs to obtain loans and credit facilities. The government is working with banks and financial institutions to encourage more lending to the sector, particularly for businesses affected by the economic slowdown. This includes exploring options such as credit guarantee schemes and interest rate subsidies to reduce the cost of borrowing for SMEs. Efforts are also underway to simplify compliance procedures and reduce the administrative burden on small businesses, freeing up resources for investment and growth.

    Furthermore, the government is actively promoting domestic demand to offset the impact of reduced export opportunities. This involves initiatives such as infrastructure development projects and incentives for local manufacturing. These efforts aim to create a more supportive environment for SMEs to thrive, despite the challenges posed by global trade uncertainty. The government’s response in Q1FY26 will be critical in shaping the future of small business confidence and ensuring the continued growth of the SME sector.

  • Fssai advisory on misleading “100%” food claims

    Fssai advisory on misleading “100%” food claims

    fssai

    Fssai advisory on misleading “100%” food claims

    The Food Safety and Standards Authority of India (FSSAI) has released a crucial advisory targeting misleading claims in food labelling and food advertising. This directive specifically addresses the use of “100%” claims on food product packaging. The FSSAI’s move aims to safeguard consumers from deceptive marketing practices and ensure accurate representation of food products. This advisory is a significant step towards strengthening food safety and food standards across India.

    The FSSAI’s advisory cautions Food Business Operators (FBOs) against using unqualified statements such as “100% pure”, “100% natural”, or “100% safe” on their products. These 100% claims can often mislead consumers into believing a product is entirely free from additives, contaminants, or processing, which may not always be the case. The regulator emphasises the need for transparent and truthful information on food labels to enable informed purchasing decisions.

    This advisory from the FSSAI is likely to have a considerable impact, particularly on SMEs and startups operating within India’s food sector. Many of these businesses rely heavily on marketing strategies that highlight perceived purity or naturalness to attract customers. The new guidelines will require them to reassess their current food labelling and food advertising practices to ensure compliance with food regulations and avoid potential penalties for misleading claims.

    Common Misleading Claims

    The FSSAI advisory highlights several common examples of misleading claims that FBOs often employ. One prevalent tactic involves using “100% natural” claims on products that have undergone significant processing or contain added ingredients. For example, a fruit juice labelled “100% natural” might contain added sugars or preservatives, contradicting the claim. Similarly, the term “100% pure” is frequently misused on products like honey or ghee, even when they may contain traces of adulterants or have been processed in a way that alters their original composition. These misleading claims undermine consumer trust and distort the market.

    Another area of concern is the use of “100% safe” claims. The FSSAI points out that no food product can be guaranteed to be entirely risk-free for all consumers. Factors such as individual allergies, sensitivities, or pre-existing health conditions can influence how a person reacts to a particular food. Therefore, making blanket “100% safe” statements on food packaging is considered misleading and potentially dangerous. The FSSAI emphasises that FBOs must avoid making unqualified safety assertions and instead focus on providing accurate information about ingredients, potential allergens, and proper usage instructions to promote food safety.

    Furthermore, the advisory addresses instances where companies use creative wording to imply a “100% claim” without explicitly stating it. This includes phrases like “made with 100% real ingredients” when only some of the ingredients meet that standard. Such subtle forms of deception also fall under the purview of the FSSAI’s scrutiny. The regulator is urging SMEs and larger businesses across India to review their food labelling and food advertising materials carefully to ensure they are not making any overt or implied misleading claims that could violate food regulations and compromise food standards. Compliance with these guidelines is crucial for maintaining consumer confidence and fostering a fair marketplace.

    Understanding The Regulations

    The FSSAI’s stance on “100% claims” is rooted in the Food Safety and Standards Act, 2006, and associated regulations. These regulations mandate that food labels must provide clear, accurate, and truthful information about the product’s contents, origin, and manufacturing process. The Act empowers the FSSAI to set food standards, regulate food manufacturing, distribution, and sale, and take action against FBOs that violate food regulations. The current advisory serves as a clarification and reinforcement of these existing legal provisions, specifically targeting the deceptive use of “100% claims” in food labelling and food advertising.

    Specifically, the FSSAI’s regulations pertaining to food labelling require that all ingredients be listed in descending order of weight, and any additives, preservatives, or processing aids must be clearly identified. Nutritional information, including calorie count, fat content, and sugar levels, must also be prominently displayed. The “100% claim”, when used, must be substantiated by verifiable evidence and not contradict any other information provided on the packaging. For instance, a product labelled “100% juice” must genuinely consist of only juice without any added sugars, preservatives, or artificial flavourings. Any deviation from these requirements can lead to enforcement action by the FSSAI.

    Furthermore, the FSSAI’s advisory draws attention to the broader principles of fair trade and consumer protection enshrined in Indian law. The Consumer Protection Act, 2019, prohibits unfair trade practices, including misleading food advertising and false representations about the quality, quantity, or composition of goods. By issuing this advisory, the FSSAI is reinforcing its commitment to upholding these principles and ensuring that consumers in India are not misled by deceptive marketing tactics. The FSSAI aims to create a level playing field for businesses while safeguarding the health and economic interests of consumers. This focus is important to improve food safety and food standards across India, especially for SMEs.

    Compliance And Enforcement

    The FSSAI has outlined a multi-pronged approach to ensure compliance with its advisory on misleading claims. This includes proactive monitoring of food labelling and food advertising across various platforms, from physical packaging to online advertisements. The FSSAI will conduct regular inspections of food manufacturing facilities and retail outlets to verify that FBOs are adhering to the guidelines. This rigorous oversight is designed to deter the use of misleading claims and promote transparency in the food sector. Consumers also play a vital role in enforcement by reporting suspected violations to the FSSAI.

    In cases of non-compliance, the FSSAI has the authority to take a range of enforcement actions against FBOs. These actions may include issuing warning notices, imposing monetary penalties, suspending or cancelling licenses, and even initiating legal proceedings. The severity of the penalty will depend on the nature and extent of the violation, as well as the FBO’s history of compliance. The FSSAI is committed to ensuring that penalties are proportionate and serve as a deterrent against future violations. This firm stance underscores the FSSAI’s commitment to upholding food safety and food standards.

    To further support compliance, the FSSAI plans to conduct educational outreach programs for SMEs and other stakeholders in the food industry. These programs will provide guidance on best practices for food labelling and food advertising, as well as clarification on the specific requirements of the advisory. The FSSAI believes that education and awareness are crucial for fostering a culture of compliance within the industry. These outreach programs will help FBOs understand their obligations and avoid unintentional violations of food regulations. The FSSAI advisory is designed to protect consumers from misleading claims and promote fair competition in the Indian food market.

  • Up government boosts msme exports with upnva campaign

    Up government boosts msme exports with upnva campaign

    MSME

    Up government boosts msme exports with upnva campaign

    The Uttar Pradesh government has officially launched the UPNVA campaign, a strategic initiative designed to significantly boost exports from the state’s Micro, Small, and Medium Enterprises (MSME) sector. The campaign aims to provide a comprehensive support system for small businesses, enabling them to access global markets more effectively. UPNVA represents a multi-pronged approach, incorporating training programmes, financial assistance, and logistical support to empower MSMEs to compete on an international scale. The up government envisions this campaign as a catalyst for economic growth, fostering job creation and enhancing the overall competitiveness of Uttar Pradesh.

    The UPNVA campaign will focus on identifying and nurturing export-ready MSMEs across various sectors within Uttar Pradesh. It includes workshops on export procedures, quality control, and international marketing strategies. Furthermore, the campaign will facilitate participation in international trade fairs and exhibitions, providing a platform for MSMEs to showcase their products and establish valuable business connections. The upnva campaign seeks to streamline the export process, reducing bureaucratic hurdles and making it easier for small businesses to navigate the complexities of international trade. The ultimate goal is to drive substantial growth in msme exports from Uttar Pradesh.

    Msme Export Growth Strategy

    The UP government’s MSME export growth strategy hinges on several key pillars. Central to this is identifying high-potential sectors within Uttar Pradesh, such as handicrafts, textiles, leather goods, and agricultural products. The UPNVA campaign will then provide targeted support to businesses in these sectors, helping them to adapt their products and processes to meet international standards. This involves rigorous quality control measures, adherence to global certifications, and the adoption of sustainable production practices.

    Another crucial aspect of the strategy involves strengthening the export infrastructure within Uttar Pradesh. This includes improving transportation networks, streamlining customs procedures, and establishing dedicated export promotion zones. The UP government is also working to enhance access to export finance, providing MSMEs with the capital they need to scale up their operations and compete effectively in international markets. This support extends to helping small businesses navigate complex trade regulations and access market intelligence, ensuring they are well-informed and prepared to succeed.

    Furthermore, the strategy emphasises the importance of collaboration between government agencies, industry associations, and academic institutions. The UPNVA campaign will facilitate partnerships between MSMEs and research institutions, promoting innovation and the development of new exportable products. It will also work closely with industry associations to identify common challenges and develop collective solutions. This collaborative approach is essential to creating a supportive ecosystem for MSME exports and driving sustainable economic growth across Uttar Pradesh.

    Government Support Initiatives

    The Uttar Pradesh government is implementing a range of support initiatives to bolster the UPNVA campaign and ensure its success. These initiatives include financial assistance programmes, skill development training, and infrastructure improvements specifically designed to benefit MSMEs. Subsidised loans and credit guarantee schemes are available to help small businesses access the capital they need to expand their production capacity and fulfil export orders. The up government understands the financial constraints often faced by msmes and is committed to providing targeted financial support.

    Furthermore, the upnva campaign provides extensive skill development training to enhance the capabilities of workers in the MSME sector. These training programmes cover a wide range of topics, including modern manufacturing techniques, quality control procedures, and international marketing strategies. The goal is to equip MSMEs with the skills they need to produce high-quality goods that meet international standards and to effectively market their products to global customers. The up government believes that investing in human capital is essential for driving sustainable export growth.

    In addition to financial assistance and skill development, the up government is also focusing on improving the infrastructure that supports MSME exports. This includes upgrading transportation networks, streamlining customs procedures, and establishing dedicated export promotion zones. The aim is to reduce the time and cost associated with exporting goods from Uttar Pradesh, making it easier for small businesses to compete in international markets. These initiatives collectively contribute to a more conducive environment for MSME growth and facilitate increased exports from the region.

    Expected Economic Impact

    The UPNVA campaign is projected to have a significant and multifaceted economic impact on Uttar Pradesh. By fostering growth in MSME exports, the campaign is expected to generate substantial revenue for the state, contributing to overall economic prosperity. Increased exports will lead to higher production levels, creating new employment opportunities across various sectors. This will not only reduce unemployment rates but also improve the living standards of many families in Uttar Pradesh. The up government anticipates a significant boost to the state’s GDP as a direct result of the campaign’s success.

    Furthermore, the UPNVA campaign is expected to enhance the competitiveness of Uttar Pradesh’s MSME sector on a global scale. By providing small businesses with the necessary training, financial assistance, and logistical support, the campaign will enable them to produce higher-quality goods and services that meet international standards. This will not only increase exports but also attract foreign investment to the state, further stimulating economic growth. The long-term impact of the UPNVA campaign is expected to be a more diversified and resilient economy in Uttar Pradesh, less reliant on domestic markets and more capable of competing in the global arena.

    The success of the UPNVA campaign will also have a positive ripple effect on other sectors of the Uttar Pradesh economy. Increased demand for raw materials and components from MSMEs will benefit local suppliers, creating further employment opportunities and stimulating economic activity in rural areas. The campaign is also expected to promote innovation and entrepreneurship, as small businesses are encouraged to develop new products and services for export markets. The upnva campaign represents a strategic investment in the future of Uttar Pradesh, with the potential to transform the state into a major export hub.

  • India’s cashless journey, digital payments, Nirmala Sitharaman, last 11 years, financial revolution

    India’s cashless journey, digital payments, Nirmala Sitharaman, last 11 years, financial revolution

    nirmala sitharaman

    India’s cashless journey, digital payments, Nirmala Sitharaman, last 11 years, financial revolution

    India is currently undergoing a significant shift towards digital payments, establishing itself as a leader in the global fintech landscape. Recent data highlights the rapid adoption of Unified Payments Interface (UPI) with daily transactions exceeding ₹70,000 crore. The sheer volume of transactions, exemplified by 596 million transactions processed in a single day, demonstrates the extent to which digital payments are becoming the standard method of exchange for many Indians.

    The month of May showcased UPI’s robust growth, with 18.68 billion transactions recorded, an increase from 17.89 billion in April. This represents a 33 per cent year-on-year surge compared to the 14.03 billion transactions processed in May of the previous year. The value of these transactions also saw a substantial rise, reaching ₹25.14 lakh crore last month, marking a 5 per cent increase from ₹23.95 lakh crore in April and a 23 per cent rise from ₹20.45 lakh crore in May of the previous year.

    The average daily transaction volume now stands at 602 million, with an average daily transaction value of ₹81,106 crore. These figures underline the increasing reliance on UPI for both small and large transactions. The National Payments Corporation of India (NPCI) data shows UPI’s growing dominance in the country’s digital payments ecosystem. Its share in the total transaction volume has risen to 83.7 per cent in the current financial year, up from 79.7 per cent in the previous financial year. This reinforces UPI’s position as the primary driver of cashless transactions across India.

    Evolution over the last decade

    Over the past decade, India’s digital payment landscape has undergone a transformative evolution, driven by technological advancements, policy interventions, and a growing consumer appetite for convenient and secure transaction methods. The journey began with initial forays into electronic fund transfers and mobile banking, gradually gaining momentum with the introduction of innovative platforms and applications.

    The early 2010s witnessed the rise of mobile wallets and payment gateways, offering consumers alternatives to traditional banking channels. These platforms provided ease of use and accessibility, particularly for the tech-savvy urban population. However, adoption remained limited due to concerns about security, interoperability, and a lack of widespread awareness. The turning point came with the launch of the Unified Payments Interface (UPI) in 2016.

    UPI revolutionised the digital payments ecosystem by enabling seamless and instant money transfers between bank accounts using a single mobile application. Its interoperability, coupled with a user-friendly interface, facilitated widespread adoption across diverse demographics. The government’s push for financial inclusion, coupled with initiatives like demonetisation, further accelerated the shift towards digital transactions. The result has been exponential growth in digital payments, transforming India into a global leader in fintech innovation. This growth has not only streamlined financial transactions but also empowered small businesses and individuals, fostering economic growth and inclusion.

    Government initiatives and Nirmala Sitharaman’s role

    The Indian government has played a crucial role in fostering the growth of digital payments, with Finance Minister Nirmala Sitharaman being a prominent advocate for this financial transformation. Government policies and initiatives have been instrumental in creating an environment conducive to the adoption of cashless transactions. The emphasis on financial inclusion, combined with the promotion of digital literacy, has empowered citizens across various socio-economic backgrounds to participate in the digital economy.

    Nirmala Sitharaman has consistently highlighted the benefits of digital payments, emphasising their role in enhancing transparency, reducing corruption, and improving efficiency in financial transactions. Her support for initiatives like UPI has been pivotal in driving its widespread adoption. By actively promoting the use of digital platforms, the government aims to create a more robust and inclusive financial system. Sitharaman’s leadership in this area underscores the government’s commitment to leveraging technology for economic development and citizen empowerment.

    Furthermore, the government has implemented various schemes and incentives to encourage the use of digital payment methods. These include tax benefits for merchants accepting digital payments and awareness campaigns to educate the public about the security and convenience of cashless transactions. The collaborative efforts between the government, regulatory bodies, and private sector players have been essential in creating a vibrant and innovative digital payments ecosystem. This collaborative approach ensures that India remains at the forefront of the global digital payments revolution.

    Challenges and the future of cashless India

    Despite the impressive growth and widespread adoption of digital payments in India, several challenges remain. One of the most significant is the digital divide, with a substantial portion of the population still lacking access to the internet and smartphones. This disparity limits the reach of digital payment solutions, particularly in rural areas and among lower-income groups. Bridging this divide requires concerted efforts to improve digital infrastructure and promote digital literacy.

    Cybersecurity concerns also pose a significant challenge. As digital transactions increase, so does the risk of fraud and data breaches. Ensuring the security and integrity of digital payment systems is crucial for maintaining public trust and preventing financial losses. This necessitates robust cybersecurity measures, including advanced encryption technologies, fraud detection systems, and user awareness campaigns. Collaboration between financial institutions, technology providers, and regulatory bodies is essential to address these evolving threats.

    Looking ahead, the future of cashless India appears promising, with significant opportunities for further innovation and growth. The integration of emerging technologies like blockchain and artificial intelligence (AI) could enhance the security, efficiency, and accessibility of digital payment systems. For example, blockchain could provide a more transparent and secure platform for transactions, while AI could be used to detect and prevent fraudulent activities in real-time. Continued investment in digital infrastructure, coupled with supportive government policies, will be crucial for realising the full potential of cashless India. The focus should be on creating a seamless, secure, and inclusive digital payments ecosystem that benefits all citizens.

Login