SME Digital World

Category: SME

AI to Boost Global GDP by Trillions by 2030

AI to Boost Global GDP by Trillions by 2030

Artificial Intelligence is set to significantly reshape the global economy, with projections indicating a substantial boost to GDP. A recent report estimates that AI could add nearly $15.7 trillion to global GDP by 2030. This transformative technology is rapidly changing industries and creating new opportunities for economic growth across the world.

The report highlights a disparity in AI adoption rates. Developed economies are leading the charge, with over 66 per cent having national AI strategies. In contrast, only 30 per cent of developing economies and a mere 12 per cent of least-developed economies have similar strategies in place. This difference underscores the need for broader access to AI resources and expertise to ensure inclusive global economic growth.

The race to harness the power of AI hinges on four key elements: computing power, data availability, sophisticated models, and skilled talent. While nations like the US and China are currently at the forefront, many other countries have the potential to make significant advancements by focusing on specific AI interventions. The potential impact of AI on global GDP makes it a crucial area of focus for policymakers and businesses alike.
Sectors Experiencing Growth
Certain sectors are experiencing more rapid AI integration than others, primarily due to the availability of large datasets and clear applications. The financial services and retail industries are leading the way in adopting AI solutions, leveraging data-rich environments to enhance customer service, streamline operations, and improve decision-making. These sectors have readily embraced AI to gain a competitive edge and drive economic growth.

However, the report also indicates that socially critical sectors such as agriculture and public services are lagging behind in AI adoption. These sectors often face challenges related to fragmented infrastructure, limited funding, and difficulty in demonstrating a clear return on investment. Overcoming these hurdles is essential to unlock the potential of AI to address critical societal needs and contribute to broader economic growth. Increased investment and strategic planning are needed to accelerate AI adoption in these vital areas by 2030.

The uneven distribution of AI adoption across sectors highlights the need for targeted interventions and support. Addressing the specific challenges faced by sectors like agriculture and public services is crucial to ensure that the benefits of AI are shared more equitably across the global economy. By fostering innovation and providing resources to these sectors, we can unlock new opportunities for economic growth and improve the lives of citizens worldwide. The projected $15.7 trillion boost to global GDP by 2030 hinges on widespread AI adoption.
Challenges And Considerations
Despite the immense potential of AI to boost the global economy, several challenges and considerations must be addressed to ensure responsible and equitable deployment. One significant hurdle is the ethical implications of AI, particularly concerning bias in algorithms and the potential for job displacement. Careful consideration must be given to developing AI systems that are fair, transparent, and accountable.

Another key challenge is the need for robust data privacy and security measures. As AI systems rely on vast amounts of data, it is crucial to protect individuals’ privacy and prevent data breaches. Implementing strong data governance frameworks and investing in cybersecurity are essential to building trust in AI and fostering its widespread adoption. The report highlights the importance of addressing these concerns to unlock the full potential of AI to add $15.7 trillion to global GDP by 2030.

Furthermore, the skills gap poses a significant obstacle to realizing the benefits of AI. As AI technologies become more prevalent, there is a growing need for workers with the skills to develop, deploy, and maintain these systems. Investing in education and training programs is crucial to equip individuals with the skills they need to thrive in the AI-driven global economy. Bridging the skills gap will not only drive economic growth but also ensure that the benefits of AI are shared more broadly.

September 11, 2025
How US Tariffs Are Reshaping the Indian SME Landscape
The introduction of tariffs by the United States has ripple effects far beyond headline trade figures. For India’s vast SME sector — a backbone of employment, manufacturing and exports — these policy shifts create both immediate shocks and longer-term strategic imperatives. This analysis unpacks the practical impact of US tariffs on Indian SMEs, and outlines pragmatic responses business leaders and policymakers should prioritise.

1. Executive summary

US tariff measures raise the cost of accessing that market and can reduce demand for affected products. Indian SMEs experience this as reduced orders, margin pressure, higher compliance burdens and the need for rapid operational adjustments. At the same time, tariffs create opportunities for re-orientation toward new markets, product upgrading and domestic demand capture — provided SMEs act decisively and with support.

Container ship at port with tariff notices and SME consignments

2. How tariffs hit SMEs — the transmission channels

2.1 Export demand shock

Tariffs make Indian exports less price-competitive in the US. For SMEs that rely on a narrow product range and a small set of overseas buyers, this often translates into cancelled or deferred orders, inventory build-up and cash-flow stress.

2.2 Margin compression and cost passthrough

To maintain volumes some exporters may absorb tariff-related costs, squeezing margins. Others attempt to pass costs to buyers, risking demand loss. SMEs with limited pricing power and thin working capital reserves are particularly vulnerable.

2.3 Input and supply-chain disruptions

Tariffs often trigger supply-chain reconfigurations — sourcing shifts, longer lead times and compliance checks. Suppliers of intermediate goods face volatility, and smaller firms with single-source dependencies can be disproportionately affected.

2.4 Compliance, documentation and non-tariff barriers

Tariff changes are frequently accompanied by stricter documentation and customs scrutiny. SMEs must invest time and money to upgrade compliance capabilities — an overhead many are ill-prepared for.

SME owner reviewing export orders on a laptop in a workshop

3. Sectoral and firm-level differences

3.1 Export-oriented manufacturers

Small exporters of textiles, leather goods, light engineering and certain niche manufactured products feel the immediate impact most strongly. Their resilience depends on product differentiation, ability to shift buyers, and access to finance for working capital.

3.2 Service and domestic-focused SMEs

SMEs serving the domestic market are indirectly affected through currency, input-cost and demand dynamics. Some may benefit if buyers substitute imported US products with local alternatives — presenting a domestic growth opportunity.

3.3 SMEs in integrated value chains

Firms embedded in value chains that include US-linked buyers will feel knock-on effects even if they do not export directly. Reduced exports upstream can reduce procurement and production downstream.

4. Immediate business implications
- Short-term cash-flow strain from delayed or cancelled orders.
- Increased working capital needs to carry inventory or finance new supplier terms.
- Pressure to reprice products or accept lower margins.
- Need to invest in compliance, digital documentation and logistics alternatives.
5. Policy, finance and ecosystem responses

5.1 Government interventions that matter

Targeted measures can blunt the worst effects: export incentives, faster refunds of duties, easier access to trade finance, and credit guarantees for working capital. Skillful negotiation and market access diplomacy can also reduce friction for priority sectors.

5.2 Financial instruments and support

SMEs should explore trade credit, invoice discounting, export factoring and government-backed loan schemes. Financial intermediaries can design short-tenor facilities to manage temporary order disruptions.

5.3 Trade facilitation and digitalisation

Streamlining customs processes, digitising documentation and adopting e-invoicing reduces compliance costs and delays. SMEs that incorporate digital trade tools will gain resilience against tariff-related frictions.

6. Strategic moves for SME leaders

SME owners should prioritise near-term stability and medium-term strategic repositioning. Key actions include:
- Market diversification — identify alternative export markets (EU, Middle East, ASEAN, Africa) and strengthen domestic distribution channels to reduce US-dependence.
- Product and value-upgrading — move from price-led offerings to differentiated, higher-value products or bundled services that are less tariff-sensitive.
- Cost optimisation — renegotiate supplier contracts, consolidate shipments, and seek preferential sourcing to protect margins.
- Strengthen buyer relationships — offer flexible terms, joint product development or localized packaging to retain key customers.
- Pool resources — SMEs can form export consortia or clusters to share compliance, logistics and marketing costs, improving bargaining power.
- Access working capital — proactively engage banks and government schemes for bridging finance while opportunities are pursued.
Infographic: Supply chain, tariffs, mitigation strategies for SMEs

7. A practical checklist for the next 90 days
1. Map your exposure: quantify orders, revenue and supplier links tied to the US market.
2. Run scenario stress-tests: forecast cash-flow under reduced demand and increased costs.
3. Engage buyers: renegotiate lead times, minimum order quantities and pricing where feasible.
4. Secure finance: approach banks, NBFCs and government programmes for short-term facilities.
5. Begin market scouting: shortlist 2–3 alternative markets and assess regulatory requirements.
6. Form partnerships: identify local industry peers for pooled logistics or joint marketing.
8. Longer term: building tariff-resilient SMEs

Tariff cycles are an enduring feature of geopolitical trade. Indian SMEs that invest in capabilities — digital processes, product innovation, export know-how and diversified customer bases — will not only survive tariff shocks but can gain market share as less agile competitors falter.

9. Conclusion

US tariff actions are a disruptive test for Indian SMEs. The impact is real — in lost orders, squeezed margins and compliance burdens — but it is also a catalyst for change. With timely financial support, nimble management, and coordinated policy measures, SMEs can mitigate near-term pain and reposition for sustained growth. Business leaders should treat this as both a risk management challenge and an opportunity to strengthen fundamentals for a more resilient future.

If you would like a tailored impact assessment for your business — including an exposure map, cash-flow scenarios and a market diversification plan — contact our advisory team to begin a 30-day recovery and repositioning roadmap.
August 29, 2025
MSMEs: 30% GDP & 28 Crore Jobs in the Indian Economy

MSMEs: 30% GDP & 28 Crore Jobs in the Indian Economy

MSMEs are the true engines of growth, contributing over 30 per cent to GDP and 45 per cent to exports, according to an MSME Ministry official on Tuesday. They are also providing employment to more than 28 crore people, particularly with their presence across Tier-2 and Tier-3 cities. Addressing the CII MSME Growth Summit 2025, Additional Secretary and Development Commissioner, MSME Ministry, Dr Rajneesh, said that their resilience enabled India’s swift post-pandemic recovery, and they will be central to achieving the vision of Viksit Bharat.
In the last three years, the MSME Ministry has facilitated credit guarantees worth Rs 6.4 lakh crore, he said. He also noted that 100 technology centres are being established nationwide to strengthen MSME competitiveness. Stressing the need to shift from a price-centric approach to one anchored in quality, competitiveness, and technology adoption, Dr Rajneesh said that MSMEs must integrate into global value chains to drive India’s vision of becoming a Viksit Bharat by 2047.
CII National MSME Council Chairman and Rajratan Global Wire CMD Sunil Chordia said that focusing on formalisation and ease of doing business, capital access and investment, technology, innovation and productivity, skill development and workforce can enhance the competitiveness of MSMEs. CII National MSME Council Co-Chairman and Pon Pure Chemicals India Pvt Ltd CMD M. Ponnuswami stressed the importance of raising awareness among MSMEs in Tier-2 and Tier-3 cities about the opportunities offered by Industry 4.0, low-cost automation, and credit schemes.
Meanwhile, Somany Ceramics Chairman and Managing Director Shreekant Somany underscored that India’s growth story is inseparable from the success of MSMEs, which are evolving as global players with fast-rising exports. CII National Committee on Smart Manufacturing Chairman and Rockwell Automation Managing Director Dilip Sawhney noted that Industry 4.0 solutions are pivotal for MSMEs to overcome challenges of traceability and compliance that restrict their integration with global clients. CII’s Working Group on Technology, CII ASCON Council Chairman, and Siemens’ Director, Industry and Policy Vikram Gandotra emphasised that Indian industry can match global leaders like Germany and South Korea by embracing technology, innovation, and design excellence.
Job Creation Statistics
The sheer scale of employment generated by MSMEs is a testament to their vital role in the Indian economy. Providing livelihoods to over 28 crore individuals, these enterprises serve as a crucial source of income and economic empowerment, particularly in regions beyond major metropolitan areas. The decentralised nature of MSMEs allows them to reach into the heart of Tier-2 and Tier-3 cities, creating job opportunities where they are often most needed and contributing to a more balanced distribution of wealth and development across the country.
Furthermore, the employment landscape within MSMEs is diverse, encompassing a wide range of skills and expertise. From traditional crafts and manufacturing to emerging technology and service sectors, these enterprises offer opportunities for both skilled and unskilled workers, playing a significant role in absorbing a large portion of the Indian workforce. This capacity to provide varied employment options is particularly important in a country with a young and rapidly growing population, ensuring that individuals have access to meaningful work and can contribute to the nation’s economic progress.
The impact of MSME employment extends beyond individual livelihoods, contributing significantly to overall social and economic stability. By providing stable income sources and fostering entrepreneurship at the grassroots level, these enterprises help to reduce poverty, improve living standards, and create a more inclusive and equitable society. The multiplier effect of MSME employment is considerable, as increased income leads to higher consumption, investment, and further economic activity, creating a virtuous cycle of growth and development.
Moreover, the job creation potential of MSMEs is not limited to direct employment within the enterprises themselves. The growth and expansion of MSMEs also stimulate demand for supporting industries and services, leading to indirect job creation in sectors such as transportation, logistics, finance, and marketing. This interconnectedness highlights the broader economic impact of MSMEs and their role in fostering a vibrant and dynamic ecosystem that supports employment generation across various sectors.
Key Drivers Of Msme Growth
The sustained growth of MSMEs is propelled by several interconnected factors. Firstly, the ongoing formalisation of the sector is crucial. Streamlining regulations, simplifying compliance procedures, and providing incentives for registration encourages more enterprises to enter the formal economy. This, in turn, facilitates access to credit, government schemes, and other benefits, fostering growth and competitiveness.
Secondly, access to capital and investment is paramount. MSMEs often face challenges in securing adequate funding for expansion, modernisation, and working capital. Initiatives aimed at improving credit access, promoting venture capital investment, and establishing dedicated MSME funding mechanisms are essential for unlocking their growth potential.
Thirdly, technology adoption and innovation are key drivers. Embracing Industry 4.0 technologies, such as automation, artificial intelligence, and data analytics, can significantly enhance productivity, efficiency, and competitiveness. Promoting technology transfer, providing training and support for technology adoption, and fostering a culture of innovation are vital for enabling MSMEs to leverage these advancements.
Fourthly, skill development and workforce enhancement are critical. Equipping the workforce with the skills and knowledge required to operate in a rapidly evolving technological landscape is essential for ensuring the success of MSMEs. Investing in vocational training, promoting apprenticeships, and fostering collaboration between industry and educational institutions can help to bridge the skills gap and create a skilled workforce that meets the needs of MSMEs.
A supportive ecosystem is essential. This includes a conducive regulatory environment, access to infrastructure, and effective support services. Streamlining regulations, reducing bureaucratic hurdles, improving infrastructure connectivity, and providing access to market information and business advisory services can create a more enabling environment for MSMEs to thrive.
Impact On Indian Economy
The collective impact of MSMEs on the Indian economy is far-reaching and multifaceted. Beyond their direct contributions to GDP, exports, and employment, these enterprises play a crucial role in fostering innovation, promoting regional development, and enhancing social inclusion. Their widespread presence across diverse sectors and regions makes them a vital engine for driving sustainable and inclusive economic growth.
MSMEs are often at the forefront of innovation, developing new products, services, and business models that cater to local needs and contribute to overall economic dynamism. Their agility and adaptability allow them to respond quickly to changing market conditions and emerging opportunities, fostering a culture of entrepreneurship and experimentation that drives economic progress.
Moreover, MSMEs play a crucial role in promoting regional development by creating jobs and generating income in areas beyond major metropolitan centres. Their decentralised nature allows them to contribute to a more balanced distribution of wealth and development across the country, reducing regional disparities and fostering greater social cohesion.
MSMEs also contribute significantly to social inclusion by providing opportunities for marginalised communities and promoting entrepreneurship among women and other underrepresented groups. Their ability to create jobs and generate income in local communities empowers individuals and families, improving living standards and fostering greater social equity.
The integration of MSMEs into global value chains is essential for enhancing their competitiveness and driving India’s vision of becoming a Viksit Bharat by 2047. By participating in global trade and investment flows, MSMEs can access new markets, technologies, and expertise, enhancing their productivity and contributing to overall economic growth.
The impact of MSMEs on the Indian economy is undeniable. Their contributions to GDP, exports, employment, innovation, regional development, and social inclusion make them a vital engine for driving sustainable and inclusive economic growth. By fostering a supportive ecosystem and empowering MSMEs to thrive, India can unlock their full potential and achieve its vision of becoming a prosperous and equitable nation.

August 28, 2025
MSMEs: Quality Key for Defence & Aerospace Supply Chain

MSMEs: Quality Key for Defence & Aerospace Supply Chain

Micro, Small and Medium Enterprises (MSMEs) operating within the defence and aerospace sectors must rigorously adhere to stringent quality standards to effectively integrate into the global supply chain. This was the key message delivered by Bharat Electronics Limited (BEL) chairman and managing director, Manoj Jain, at the curtain-raiser of the 7th edition of the India Manufacturing Show (IMS), also known as the ‘Aerospace & Defence Engineering Expo’.

Jain emphasised that unwavering commitment to quality and achieving the appropriate certification are non-negotiable for MSMEs seeking to participate in the highly competitive global arena. He stated explicitly that “MSMEs must align with stringent quality and certification standards if they are to be part of the global supply chain.” This adherence to standards is crucial not only for accessing global markets but also for ensuring the reliability and performance of defence and aerospace products, ultimately boosting exports.

Furthermore, Jain highlighted the need for flexibility from both large industries and MSMEs, while stressing that this flexibility should never come at the expense of regulatory compliance. Maintaining high standards alongside adaptability is vital for fostering a robust and responsive manufacturing ecosystem within the defence and aerospace industries.
Msmes’ Challenges Outlined
Despite the clear imperative for MSMEs to meet exacting quality standards, significant challenges remain in their journey towards integration into the defence and aerospace global supply chain. One of the primary hurdles is the cost associated with achieving the necessary certification. For many smaller enterprises, the investment required for testing, documentation, and process upgrades can be prohibitively expensive. This financial strain often limits their ability to compete with larger, more established players in the market.

Another significant obstacle lies in accessing the latest technologies and expertise. MSMEs frequently lack the resources to invest in advanced manufacturing equipment or to hire skilled personnel with specialised knowledge of aerospace and defence requirements. This technology gap can hinder their ability to produce components that meet the stringent specifications demanded by prime contractors and international partners. The government and industry bodies need to facilitate technology transfer and skill development programs to bridge this gap.

Furthermore, navigating the complex regulatory landscape presents a considerable challenge. Defence and aerospace industries are heavily regulated, with intricate compliance requirements that can be difficult for MSMEs to understand and implement. The lack of awareness and understanding of these standards can lead to errors and delays, potentially jeopardising their chances of securing contracts. Simplifying regulatory processes and providing clear guidance and support to MSMEs are essential steps to unlock their potential in boosting defence exports and fortifying the global supply chain.
Global Opportunities Await
For MSMEs that successfully navigate the challenges and embrace stringent quality standards and certification, significant global opportunities await within the defence and aerospace sectors. The increasing emphasis on indigenisation and self-reliance in many countries, including India, creates a burgeoning demand for locally sourced components and services. This shift presents a unique chance for MSMEs to step up and become integral parts of the global supply chain.

Specifically, the growing global aerospace market, driven by increasing air travel and defence spending, offers substantial prospects for MSMEs specialising in areas such as precision engineering, electronics, and software development. By demonstrating their commitment to quality and adhering to international standards, these enterprises can secure contracts with major aerospace manufacturers and suppliers worldwide. This will not only enhance their revenue streams but also contribute to the overall growth of the domestic manufacturing base.

Furthermore, the defence sector’s continuous need for upgrades and modernisation presents another avenue for MSMEs to thrive. Opportunities exist in providing components for military aircraft, naval vessels, and land-based systems. By focusing on innovation and developing cutting-edge technologies, MSMEs can position themselves as valuable partners to large defence contractors, both domestically and internationally. The focus on quality and exports can help these MSMEs integrate into the global supply chain.

August 4, 2025
Telecom Cyber Security Draft: Industry Concerns

Telecom Cyber Security Draft: Industry Concerns

Leading industry bodies, including the Broadband India Forum (BIF), the Internet and Mobile Association of India (IAMAI), NASSCOM, and CUTS International, have voiced serious concerns regarding the Department of Telecommunications (DoT)’s proposed Draft Telecommunication (Telecom Cyber Security) Amendment Rules, 2025. They caution that these draft rules could lead to excessive regulations, increased compliance burdens, and heightened privacy risks for India’s digital economy. The DoT aims to strengthen cyber security and reduce telecom-related fraud with these amendments.

However, industry stakeholders argue that the proposed amendments significantly overstep the legislative scope of the Telecom Act, 2023. A primary concern is the creation of a new category of regulated entities: “Telecommunication Identifier User Entities” (TIUEs). This move would extend telecom regulations to a broad spectrum of non-telecom digital service providers. IAMAI, in its submission, highlights that the proposed definition of TIUEs could bring nearly all digital platforms using mobile numbers – including e-commerce apps, delivery services, digital wallets, and even schools or hospitals – under the purview of telecom regulations.

Echoing similar concerns, BIF contends that the creation and regulation of TIUEs was “not envisaged” in the Telecom Act, 2023. They argue that imposing binding obligations through delegated legislation exceeds constitutional limits. BIF further notes that “TIUEs do not operate at the network layer” and neither assign nor manage telecom identifiers. Consequently, the proposed rules are deemed irrelevant to their operations. The industry bodies believe that the draft rules, in their current form, could stifle innovation and hinder the growth of India’s digital economy.
Key Provisions Challenged
A central point of contention lies in the broad definition of “telecommunication identifier.” Industry bodies express concerns that the draft rules could interpret this definition so widely that it encompasses virtually any online service that utilises a phone number for user authentication or communication. This expansive interpretation, they argue, would subject a vast array of businesses, far beyond traditional telecom operators, to stringent cyber security regulations and compliance requirements.

Another key provision under scrutiny involves the mandated security practices for TIUEs. The draft rules outline a series of obligations, including implementing robust data encryption, conducting regular security audits, and reporting cyber security incidents to the DoT. Industry representatives argue that these requirements are overly prescriptive and do not adequately consider the diverse nature and risk profiles of different TIUEs. They fear that a one-size-fits-all approach could place an undue burden on smaller businesses and startups, potentially hindering their ability to compete effectively.

Furthermore, the proposed data localisation requirements have raised concerns. The draft rules stipulate that certain categories of user data must be stored within India. While the intent behind this provision is to enhance data security and privacy, industry stakeholders worry about the potential costs and complexities associated with complying with such requirements. They argue that forced data localisation could increase operational expenses, limit access to global cloud services, and potentially fragment the digital ecosystem. These concerns highlight the need for a more nuanced and risk-based approach to data governance.
Potential Impacts Assessed
The potential impacts of these draft rules on India’s digital landscape are significant, according to industry bodies. The primary concern revolves around increased compliance costs. Many smaller companies and start-ups may lack the resources to implement the stringent cyber security measures and reporting mechanisms mandated by the proposed regulations. This could create a barrier to entry, stifling innovation and hindering the growth of the digital economy.

Furthermore, the broadened scope of telecom regulations raises concerns about potential overlaps and inconsistencies with existing legal frameworks, particularly the Information Technology Act, 2000 and the upcoming Digital Personal Data Protection Act, 2023. This regulatory uncertainty could create confusion among businesses and lead to increased litigation. Industry experts suggest that a more harmonised and coordinated approach to cyber security regulation is needed to avoid duplication and ensure clarity.

Another potential impact is on user privacy. The draft rules grant the DoT extensive powers to access and monitor user data for cyber security purposes. While the intention is to protect users from online threats, there are concerns that these powers could be misused or lead to excessive surveillance. Industry bodies emphasise the need for robust safeguards to protect user privacy and ensure transparency in data collection and usage practices. They advocate for a clear and well-defined legal framework that balances the need for cyber security with the fundamental right to privacy.

The industry also fears a chilling effect on foreign investment. The increased regulatory burden and data localisation requirements could make India less attractive as a destination for foreign companies seeking to expand their digital operations. This could have a detrimental impact on India’s competitiveness in the global digital economy. Stakeholders urge the government to carefully consider the potential economic consequences of the draft rules and to engage in meaningful consultations with industry before finalising the regulations. A balanced approach is crucial to fostering a thriving and secure digital ecosystem.

July 31, 2025
SIDBI MSME Outlook Survey: India’s Small Business Economy

SIDBI MSME Outlook Survey: India’s Small Business Economy

The latest findings from SIDBI’s MSME outlook survey reveal a strengthening business confidence among Indian Micro, Small, and Medium Enterprises (MSMEs). The Composite MSME Business Confidence Index (M-BCI) for the first quarter of FY2026 (April–June 2025) has climbed to 63.75, a notable increase from 60.82 in the previous quarter. This positive shift indicates a generally favourable business environment for small business across India.

Manufacturing and trading sectors have experienced particularly sharp improvements in confidence. The services sector, while already strong, continues to maintain a high confidence level above 60, demonstrating sustained optimism within this segment of the MSME economy.

Looking ahead, the outlook remains promising. The Composite MSME Business Expectations Index (M-BEI) currently stands at 62.19 for the next quarter. Projections show a further rise to 67.88 for the corresponding quarter next year, indicating a robust long-term outlook. Sentiments are especially strong in the trading and services sectors, with the M-BEI for Q1FY2027 recorded at 68.32 and 68.24 respectively.

While a moderate dip in expectation indices is observed for Q2FY2026, this likely reflects near-term global uncertainties impacting the MSME sector. However, the overall trend suggests that long-term optimism remains firmly intact, pointing towards continued growth and resilience within the MSME economy.
Msme Sector Challenges
Despite the overall positive sentiment reflected in the latest MSME outlook survey, the sector continues to grapple with a number of significant challenges. Access to adequate and timely finance remains a persistent hurdle for many small business in India. While the survey indicates improvements in working capital availability, many MSMEs, particularly those in rural or underserved areas, still struggle to secure loans and credit at competitive interest rates. This financial constraint often limits their ability to invest in technology upgrades, expand operations, and effectively manage their cash flow.

Another key challenge highlighted by the survey is the availability of skilled labour. The rapid pace of technological advancements and evolving industry demands require MSMEs to have access to a workforce equipped with the necessary skills and expertise. However, many MSMEs face difficulties in attracting and retaining skilled employees, leading to skill gaps and hindering their productivity and competitiveness. Addressing this skills gap through targeted training programmes and industry-academia collaborations is crucial for the sustained growth of the MSME economy.

The survey also sheds light on the challenges related to the ease of doing business. Complex regulatory procedures, bureaucratic hurdles, and compliance requirements often create significant obstacles for MSMEs, diverting their time and resources away from core business activities. Streamlining regulatory processes, reducing compliance burdens, and promoting a more business-friendly environment are essential for fostering the growth and development of the MSME sector. Additionally, global economic uncertainties and supply chain disruptions continue to pose challenges for MSMEs, impacting their sales, profitability, and overall business outlook. The April-June 2025 period may bring specific challenges, requiring proactive measures to mitigate potential risks.

In addition to these challenges, MSMEs are also facing increasing competition from larger enterprises and global players. To remain competitive, MSMEs need to embrace innovation, adopt new technologies, and enhance their product and service offerings. SIDBI plays a crucial role in supporting MSMEs in overcoming these challenges by providing access to finance, promoting skill development, and advocating for policy reforms that create a more conducive business environment for the MSME sector in India.
Sidbi’s Response
In response to the challenges and opportunities identified in the outlook survey, SIDBI is actively engaged in a multi-pronged approach to support the MSME sector. A key focus area is enhancing access to finance for small business. SIDBI offers a range of financial products and services tailored to the specific needs of MSMEs, including term loans, working capital finance, and equity investments. It is also actively promoting digital lending platforms and fintech solutions to improve the efficiency and reach of its financial assistance programmes. SIDBI has significantly scaled up its partnerships with banks and other financial institutions to enhance credit flow to MSMEs across India, particularly in underserved regions.

Recognising the critical importance of skill development, SIDBI is also investing in initiatives to address the skills gap in the MSME sector. It supports training programmes and vocational courses that equip MSME employees with the skills and knowledge required to thrive in a rapidly evolving business environment. SIDBI also facilitates industry-academia collaborations to ensure that training programmes are aligned with the needs of the MSME sector. These programmes aim to boost the productivity and competitiveness of the MSME economy.

Furthermore, SIDBI actively advocates for policy reforms that promote a more conducive business environment for MSMEs. It works closely with government agencies and other stakeholders to streamline regulatory processes, reduce compliance burdens, and promote ease of doing business. SIDBI also plays a crucial role in creating awareness about government schemes and initiatives designed to support the MSME sector. This includes providing guidance and support to MSMEs in accessing these schemes and complying with relevant regulations. The April-June 2025 period is likely to see further refinements in SIDBI’s approach, informed by the findings of the MSME outlook survey, ensuring its interventions remain relevant and impactful for small business in India. SIDBI’s commitment is to foster a vibrant and resilient MSME economy.

July 31, 2025
Zee’s regional push SMEs India ads

Zee’s regional push SMEs India ads

Zee Entertainment Enterprises Limited (ZEEL) is sharpening its focus on regional markets as a key growth driver. This strategy involves significant investment in regional content and tailored advertising solutions for small and medium enterprises (SMEs). The company recognises the immense potential within India’s diverse linguistic and cultural landscapes, aiming to deepen its connection with audiences beyond the major metropolitan areas.
ZEEL’s approach includes producing original regional content across various genres, from drama and comedy to reality shows and movies. This caters to local tastes and preferences, fostering stronger viewer loyalty. The broadcaster is also actively seeking collaborations with regional talent and production houses to enhance authenticity and appeal. By creating content that resonates deeply with local communities, Zee aims to establish a dominant position in key regional markets across India.
Furthermore, Zee’s regional strategy incorporates specific SME ad plans designed to make advertising on its platform more accessible and affordable for local businesses. This initiative provides SMEs with the opportunity to reach their target audiences effectively through tailored advertising packages and support. The company believes that empowering SMEs to leverage the power of television advertising will not only boost their business growth but also contribute to the overall economic development of regional India.
Smes Advertising Growth
The advertising landscape in India is witnessing a significant shift, with small and medium enterprises (SMEs) emerging as a powerful force. Zee Entertainment recognises this trend and is actively tailoring its offerings to cater to the specific needs of these businesses. The growth in SME advertising is driven by factors such as increasing internet penetration, rising disposable incomes in Tier II and Tier III cities, and the growing awareness of the effectiveness of targeted advertising campaigns.
Zee Entertainment’s SME ad plans are designed to provide cost-effective and impactful advertising solutions. These plans often include bundled packages that combine television advertising with digital and on-ground activations, ensuring a comprehensive reach. By offering flexible pricing options and creative support, Zee aims to empower SMEs to effectively communicate their brand message and connect with their target audience. This strategic focus on SMEs is expected to contribute significantly to Zee’s overall advertising revenue growth.
Several factors contribute to the attractiveness of television advertising for SMEs. Firstly, television offers a wide reach, enabling businesses to connect with a large and diverse audience. Secondly, television advertising allows for creative storytelling, enabling brands to build a strong emotional connection with viewers. Finally, television advertising can drive brand awareness and generate leads, ultimately contributing to business growth. As SMEs continue to recognise the value of television advertising, Zee Entertainment is well-positioned to capitalise on this growing market segment with its innovative and SME-friendly ad solutions, especially with the rise of regional content consumption across India.
Challenges And Opportunities
While Zee Entertainment’s regional push and focus on SME ad plans present significant opportunities, they also come with inherent challenges. One of the primary hurdles is navigating the diverse regulatory landscape across different states in India. Each region has its own set of regulations pertaining to content, advertising, and broadcasting, requiring Zee to maintain a thorough understanding and compliance strategy. This can be complex and resource-intensive, demanding constant monitoring and adaptation.
Another challenge lies in accurately gauging the evolving preferences of regional audiences. What resonates in one region might not necessarily appeal to another. Therefore, Zee needs to invest heavily in market research and audience analytics to ensure its regional content remains relevant and engaging. Furthermore, competition from established regional players and emerging digital platforms is intensifying, putting pressure on Zee to continuously innovate and differentiate its offerings. Maintaining a competitive edge requires a proactive approach to content creation, distribution, and marketing.
Despite these challenges, the opportunities for Zee Entertainment in the regional markets are substantial. The increasing demand for regional content, coupled with the growing purchasing power of consumers in Tier II and Tier III cities, creates a fertile ground for growth. The success of SME ad plans depends on providing effective and measurable advertising solutions. Small and medium enterprises need to see a tangible return on their investment to continue advertising. This requires Zee to demonstrate the impact of its advertising campaigns through data-driven insights and performance metrics. By addressing these challenges effectively and capitalizing on the opportunities, Zee can solidify its position as a leading player in the Indian media and entertainment landscape.
Competitor Landscape
The media and entertainment landscape in India is intensely competitive, with numerous players vying for audience attention and advertising revenue. Zee Entertainment faces stiff competition from both national and regional broadcasters, as well as from rapidly growing digital platforms. Key competitors include Star India (now part of Disney), Sony Pictures Networks India, and Viacom18, all of which have a strong presence in both Hindi and regional language programming.
These established players boast extensive content libraries, deep pockets, and well-established distribution networks. They also invest heavily in original programming and sports rights, attracting a large and loyal viewership. In addition to these traditional broadcasters, Zee Entertainment also competes with digital streaming platforms such as Netflix, Amazon Prime Video, and Disney+ Hotstar. These platforms offer a wide range of content, including international shows, movies, and original Indian productions, catering to a diverse audience base.
The rise of digital platforms has further intensified competition for advertising revenue, as advertisers increasingly allocate their budgets to online channels. This shift poses a challenge for Zee Entertainment, which relies heavily on television advertising revenue. To remain competitive, Zee Entertainment needs to continue investing in high-quality regional content, strengthen its digital presence through ZEE5, and offer innovative SME ad plans that deliver demonstrable value to small and medium enterprises. By effectively navigating this complex competitor landscape, Zee Entertainment can maintain its position as a leading player in the Indian media and entertainment industry.

July 18, 2025
Union Education Minister Dharmendra Pradhan inaugurates agricultural technology centre in Meerut

Union Education Minister Dharmendra Pradhan inaugurates agricultural technology centre in Meerut

Union Education Minister Dharmendra Pradhan officially opened the Agricultural Technology Innovation Centre at Sardar Vallabh Bhai Patel Agricultural University in Meerut. The inauguration underscores the government’s commitment to transforming farmers into successful entrepreneurs within the agriculture sector. The focus of the centre is to promote technology for the betterment of the farming community.
Union Minister Pradhan highlighted the crucial role of Artificial Intelligence (AI) in doubling farmers’ income and ensuring they receive fair prices for their produce. He specifically mentioned IIT Ropar’s leadership in the Centre of Excellence for AI in Agriculture, indicating a strong push for technological innovation in the sector.
Further supporting skill development among farmers, Mr. Pradhan announced the establishment of a Skill Development Centre at the university. This centre aims to boost farmer-focused research and encourage the creation of agricultural technology startups, fostering a vibrant ecosystem of innovation.
The event saw the attendance of Union Ministers Jayant Chaudhary and Surya Pratap Shahi. Mr. Chaudhary commended the collaboration between IIT and the Agriculture University, emphasizing that innovation would now directly reach farms, leading to a tangible and positive impact on the lives of farmers in Meerut and surrounding areas. This marks a significant step in bringing cutting-edge agricultural technology to the grassroots level.
Centre’s Key Objectives
The Agricultural Technology Innovation Centre in Meerut has several key objectives aimed at revolutionising the agriculture sector. A primary goal is to facilitate the seamless transfer of cutting-edge agricultural technology from research labs to the fields. This ensures that farmers can readily adopt new methods and tools to improve their productivity and efficiency.
Another crucial objective is to promote the use of data-driven insights in farming practices. By leveraging data analytics and AI, the centre seeks to provide farmers with real-time information on soil health, weather patterns, and crop diseases. This enables them to make informed decisions regarding irrigation, fertilisation, and pest control, optimising resource utilisation and minimising losses. Union Minister Pradhan believes that this data-centric approach will be transformative for the farming community.
Furthermore, the innovation centre aims to foster collaboration between researchers, agricultural technology startups, and farmers. By creating a platform for knowledge sharing and networking, the centre hopes to accelerate the development and adoption of innovative solutions tailored to the specific needs of the region. This collaborative environment is essential for driving sustainable growth and enhancing the competitiveness of the agriculture sector in Meerut and beyond.
The centre also prioritises skill development and capacity building among farmers. Through targeted training programmes and workshops, the centre will equip farmers with the necessary skills to operate and maintain new technologies effectively. This ensures that farmers are not just passive recipients of technology but active participants in its deployment and improvement. This emphasis on skill development is crucial for ensuring the long-term sustainability of the agricultural technology revolution.
Technology On Display
During the inauguration, a range of agricultural technologies were showcased, highlighting the potential impact on local farming practices. These included advanced drone systems for crop monitoring and spraying, precision irrigation systems that optimise water usage, and soil sensors that provide real-time data on nutrient levels. The exhibition aimed to demonstrate how these technologies can help farmers improve yields, reduce costs, and minimise environmental impact.
One of the key highlights was a demonstration of AI-powered agricultural robots designed for tasks such as weeding and harvesting. These robots use computer vision and machine learning to identify and selectively remove weeds, reducing the need for manual labour and chemical herbicides. Similarly, harvesting robots can efficiently pick ripe fruits and vegetables, minimising damage and reducing post-harvest losses. Union Minister Pradhan showed keen interest in the agricultural technology, interacting with the experts present.
Visitors also had the opportunity to explore various digital platforms designed to connect farmers with markets and provide access to financial services. These platforms enable farmers to sell their produce directly to consumers, bypassing intermediaries and increasing their profits. Additionally, they offer access to loans, insurance, and other financial products tailored to the needs of the agricultural community. The innovation centre aims to facilitate the adoption of these digital solutions to improve market access and financial inclusion for farmers in Meerut and surrounding regions.
The showcased agricultural technology also included demonstrations of improved seed varieties and organic farming methods. These innovations aim to enhance crop resilience, reduce dependence on chemical inputs, and promote sustainable agricultural practices. Farmers were particularly interested in learning about the potential of these technologies to improve soil health and reduce the environmental footprint of their farming operations. The inauguration event provided a valuable platform for farmers to interact with experts and learn about the latest advancements in sustainable agriculture.
Impact On Local Farmers
The establishment of the Agricultural Technology Innovation Centre in Meerut is poised to bring about significant changes in the lives of local farmers. Farmers in the region can anticipate increased access to cutting-edge agricultural technology, empowering them to enhance their productivity and profitability. The centre will serve as a hub for knowledge dissemination, providing farmers with the training and resources needed to effectively utilise new techniques and tools.
With the innovation centre’s focus on AI and data-driven farming, farmers can expect to make more informed decisions about their crops. Access to real-time data on soil conditions, weather patterns, and pest infestations will enable them to optimise resource allocation and minimise losses. This precision agriculture approach promises to boost yields and improve the overall efficiency of farming operations in the Meerut region.
Furthermore, the centre’s emphasis on collaboration between researchers, startups, and farmers is expected to foster a culture of innovation and entrepreneurship within the agricultural community. Local farmers will have the opportunity to engage with experts, share their experiences, and contribute to the development of solutions tailored to their specific needs. This collaborative ecosystem is essential for driving sustainable growth and enhancing the competitiveness of the agriculture sector.
The Skill Development Centre, announced during the inauguration by Union Minister Pradhan, will play a crucial role in equipping farmers with the skills needed to operate and maintain new technologies. This will ensure that farmers are not merely passive recipients of technology, but active participants in its deployment and improvement. This emphasis on skill development is essential for ensuring the long-term sustainability of the agricultural technology revolution in Meerut.
Ultimately, the Agricultural Technology Innovation Centre aims to empower local farmers to become more resilient, sustainable, and profitable. By providing access to the latest agricultural technology, fostering collaboration, and promoting skill development, the centre is expected to transform the agricultural landscape of Meerut and improve the livelihoods of countless farming families. The inauguration of this centre marks a significant step towards a more prosperous and technologically advanced future for agriculture in the region.

July 9, 2025
India’s logistics fragmentation persists, Delhivery SME head notes

India’s logistics fragmentation persists, Delhivery SME head notes

India’s logistics sector grapples with persistent fragmentation, creating significant hurdles for businesses, especially SMEs. The market’s vibrant nature, while offering choice, also presents challenges in ensuring consistent service quality and reliability. Numerous players, from large integrated logistics providers to regional specialists and hyperlocal services, compete for market share. This intense competition, coupled with government initiatives aimed at streamlining the sector, is reshaping the landscape.

According to Delhivery’s business head, Mohammed Ali, this fragmentation necessitates a strategic approach focused on delivering value. This value proposition encompasses a combination of reliability, speed, extensive reach, technological innovation, and superior customer service. Delhivery believes that by offering this comprehensive package, it can effectively navigate the complexities of the Indian logistics market and cater to the diverse needs of its clientele, particularly SMEs.

One of the key challenges arising from this fragmentation is the difficulty in establishing a seamless and efficient supply chain. The reliance on multiple vendors and varying service levels can lead to delays, increased costs, and reduced transparency. SMEs, often lacking the resources and expertise to manage these complexities, are particularly vulnerable to the negative impacts of a fragmented logistics ecosystem.
Impact On Small Businesses
India’s logistics sector grapples with persistent fragmentation, creating significant hurdles for businesses, especially SMEs. The market’s vibrant nature, while offering choice, also presents challenges in ensuring consistent service quality and reliability. Numerous players, from large integrated logistics providers to regional specialists and hyperlocal services, compete for market share. This intense competition, coupled with government initiatives aimed at streamlining the sector, is reshaping the landscape.

According to Delhivery’s business head, Mohammed Ali, this fragmentation necessitates a strategic approach focused on delivering value. This value proposition encompasses a combination of reliability, speed, extensive reach, technological innovation, and superior customer service. Delhivery believes that by offering this comprehensive package, it can effectively navigate the complexities of the Indian logistics market and cater to the diverse needs of its clientele, particularly SMEs.

One of the key challenges arising from this fragmentation is the difficulty in establishing a seamless and efficient supply chain. The reliance on multiple vendors and varying service levels can lead to delays, increased costs, and reduced transparency. SMEs, often lacking the resources and expertise to manage these complexities, are particularly vulnerable to the negative impacts of a fragmented logistics ecosystem.

The existing logistics fragmentation significantly impacts small businesses in India. SMEs often face difficulties negotiating favourable rates and service agreements with logistics providers due to their smaller shipping volumes. This puts them at a disadvantage compared to larger enterprises that can leverage their scale to secure better deals. Inefficient logistics can lead to increased operational costs, eroding profit margins for SMEs and hindering their ability to compete effectively in the market.

Furthermore, unreliable delivery schedules and a lack of real-time tracking capabilities can damage an SME’s reputation and customer relationships. In today’s fast-paced business environment, customers expect prompt and transparent delivery services. SMEs that cannot meet these expectations risk losing customers to competitors who offer superior logistics solutions. This highlights the critical need for SMEs to access reliable and cost-effective logistics services to maintain competitiveness and foster growth.

Access to technology also presents a hurdle. Many SMEs lack the resources to invest in sophisticated logistics management systems, making it difficult for them to optimise their supply chain operations. This can lead to inefficiencies in inventory management, order fulfilment, and route planning. The fragmented nature of the logistics sector further exacerbates these challenges, as SMEs often struggle to integrate their systems with those of multiple logistics providers.
Delhivery’s Perspective
Delhivery’s approach to tackling India’s logistics fragmentation centres around building a robust, technology-driven platform specifically tailored for SMEs. The business head emphasises that the company is deeply invested in understanding the unique challenges faced by these businesses and designing solutions that address their specific needs. This includes offering a range of value-added services such as warehousing, inventory management, and last-mile delivery, all integrated into a single, user-friendly platform.

According to Delhivery, technology plays a crucial role in streamlining the supply chain and improving efficiency. The company leverages advanced data analytics and machine learning algorithms to optimise routes, predict demand, and minimise delays. This technological prowess enables Delhivery to provide its SME clients with real-time visibility into their shipments, empowering them to proactively manage their logistics operations and enhance customer satisfaction. The business head stated that the company aims to empower SMEs with logistics capabilities previously only accessible to larger enterprises.

Delhivery also acknowledges the importance of fostering strong partnerships within the logistics ecosystem. They are actively collaborating with regional players and hyperlocal services to expand their reach and offer comprehensive coverage across India. This collaborative approach allows Delhivery to leverage the strengths of different players, creating a more resilient and efficient logistics network for its SME clients. The company believes that by working together, it can contribute to overcoming the challenges posed by fragmentation and driving sustainable growth in the sector.

July 9, 2025
Jitan ram manjhi visits mumbai msme technology centre

Jitan Ram Manjhi visits Mumbai MSME Technology Centre

Shri Jitan Ram Manjhi, Union Minister for the Ministry of Micro, Small & Medium Enterprises (MSME), paid a visit to the MSME Technology Centre, Institute for Design Of Electrical Measuring Instruments (IDEMI) Mumbai, on 3rd July 2025. The visit included a review meeting led by Shri Manjhi, followed by an extensive tour of the IDEMI Mumbai facilities.

During his time at the MSME Technology Centre, the Hon’ble Minister received an overview of components developed for the Chandrayaan mission. He also explored the state-of-the-art AR/VR laboratory. Furthermore, detailed presentations were delivered, focusing on key initiatives such as the Credit Guarantee Fund Trust for Micro and Small Enterprises (CGTMSE) and the PM Vishwakarma scheme, both crucial for supporting MSMEs across India.
Centre’s Technological Offerings
Shri Jitan Ram Manjhi, Union Minister for the Ministry of Micro, Small & Medium Enterprises (MSME), paid a visit to the MSME Technology Centre, Institute for Design Of Electrical Measuring Instruments (IDEMI) Mumbai, on 3rd July 2025. The visit included a review meeting led by Shri Manjhi, followed by an extensive tour of the IDEMI Mumbai facilities.

During his time at the MSME Technology Centre, the Hon’ble Minister received an overview of components developed for the Chandrayaan mission. He also explored the state-of-the-art AR/VR laboratory. Furthermore, detailed presentations were delivered, focusing on key initiatives such as the Credit Guarantee Fund Trust for Micro and Small Enterprises (CGTMSE) and the PM Vishwakarma scheme, both crucial for supporting MSMEs across India.

IDEMI Mumbai has demonstrated its capabilities by developing crucial components for ISRO, including cryogenic engine parts. The centre also produces specialised gauges for submarines and robotic tools used in delicate neurosurgery, showcasing its advanced engineering skills. In addition to these sophisticated applications, the MSME Technology Centre manufactures practical equipment such as soil testing tools and silk reeling machines, supporting farmers and women entrepreneurs in rural India.

The centre’s infrastructure includes advanced facilities for CAD/CAM, automation, tool design, and robotics. IDEMI Mumbai collaborates with leading organisations like the Indian Navy, BHEL, and GAIL to provide calibration and maintenance services for their instruments. Through its research and development efforts with BARC, the centre has created specialised tools for both agricultural and medical applications. Furthermore, it offers comprehensive design and manufacturing services, leveraging 3D modelling, reverse engineering, and rapid prototyping to meet diverse industry needs. The Ministry of Micro Small and Medium Enterprises supports such initiatives to boost technological advancement in the country.
Discussions And Outcomes
During the discussions, Shri Jitan Ram Manjhi conveyed his appreciation for the overall performance and significant contributions of the MSME Technology Centre, IDEMI Mumbai, to the MSME sector. He acknowledged the centre’s role in fostering technological advancement and providing crucial support to small businesses in India.

The Hon’ble Minister also offered valuable guidance on how to broaden the reach of the MSME Technology Centre’s advanced technology services and training programmes. He encouraged IDEMI Mumbai to explore opportunities to extend its services beyond the immediate Mumbai and Maharashtra region, aiming to benefit a larger number of MSMEs across India. This expansion would involve tailored programmes designed to meet the diverse needs of MSMEs in different regions.

Furthermore, discussions revolved around enhancing the centre’s collaboration with other institutions and industries to foster innovation and technology transfer. Shri Jitan Ram Manjhi emphasised the importance of aligning the centre’s activities with national priorities and emerging industry trends. The Ministry of Micro Small and Medium Enterprises aims to create an ecosystem that supports the growth and competitiveness of MSMEs across the nation, and IDEMI Mumbai plays a crucial role in this endeavour.

July 7, 2025