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India-EU Trade Council Hosts EV Battery Recycling Startup Event

India-EU Trade Council Hosts EV Battery Recycling Startup Event

The India-European Union Trade and Technology Council (TTC) Working Group 2 organized a startup matchmaking event on June 20, 2024, featuring twelve high-impact solution providers in EV Battery Recycling Technologies. This event offered startups and SMEs an exclusive platform to pitch their innovative technologies, spanning the entire battery recycling value chain, from collection to valuable mineral extraction.
Participating Startups
The event featured twelve startups selected through a rigorous process based on scientific merit, market readiness, and cooperation prospects. The selected Indian startups included Lohum, LW3 Pvt Ltd., BatX Energies, Evergreen Lithium Recycling Pvt Ltd., Metastable Materials Pvt Ltd., and CENALL Waste Management LLP. The EU startups were Alterity, Ecomet Refining, Eneris, Primobius, RockTech, and Tozero.
Opening Remarks and Key Interventions
The matchmaking event began with opening remarks from H.E. Mr. Saurabh Kumar, Ambassador of India to Belgium, Luxembourg, and the EU, and H.E. Mr. Herve Delphin, Ambassador, Delegation of the European Union to India. They emphasized the importance of fostering innovation and cooperation in green technologies, particularly in the rapidly growing EV sector.
Key interventions were provided by Professor Ajay Kumar Sood, Principal Scientific Adviser to the Government of India, and Mr. Marc Lemaitre, Director-General for Research and Innovation at the European Commission.
Professor Ajay Kumar Sood highlighted the benefits of the exchange trip for selected startups, stating, “This matchmaking event today brings together the best talents and technologies in the battery recycling space on both sides, giving them an exclusive platform for exchange, networking, and prospective investments.”
Mr. Marc Lemaitre emphasized the significance of innovation in the EU-India partnership, noting, “Every step towards advanced battery recycling is a significant carbon win for our environment. This matchmaking event is such a step by bringing together innovative startups from both regions that want to scale up green solutions under the umbrella of the EU-India Trade and Technology Council.”
Additional Attendees
The event was also attended by Dr. Parvinder Maini, Scientific Secretary, Office of PSA, Mr. Sukumar Mishra, Director, IIT (ISM) Dhanbad, and Mr. Karthick Athmanathan, Honorary PSA Fellow.
Next Steps
As a follow-up, three startups from India and three from the EU will be awarded a week-long market immersion experience in the respective regions. During this visit, the selected companies will engage with interested stakeholders, explore potential collaborations, and gain insights into the local market landscape. This initiative presents opportunities for establishing pilot projects, commercial ventures, and co-development initiatives, fostering a robust innovation ecosystem in EV battery recycling.

June 21, 2024
Karnataka Aiming for 15-16% Industrial Growth: Chief Minister Siddaramaiah

Karnataka Aiming for 15-16% Industrial Growth: Chief Minister Siddaramaiah

BENGALURU: Chief Minister Siddaramaiah announced on Wednesday that Karnataka is targeting an industrial growth rate of 15-16% annually. He highlighted the state’s proactive approach to policymaking and its industrial policy, which offers best-in-class incentives to attract global investors.
Key Points from the Global Investors Meet 2025 Curtain Raiser
– Global Investment Destination: Karnataka has positioned itself as a premier destination for global investments, being the second-highest recipient of FDI inflows in India, with 22% of the nation’s total FDI over the last five years.
– Growth Targets: The CM stated that the state has experienced a 9.3% growth rate in industries over the past decade and aims to achieve a $1-trillion GDP by 2032.
– Global Investors Meet 2025: Scheduled for February 12-14 at Bangalore Palace, this event will see over 5,000 senior delegates and 100+ speakers. The theme, ‘Reimagining Growth,’ will include 30+ technical and cultural sessions on topics such as AI, Industry 5.0, Web 3.0 & Blockchain, Smart Computing, and Cybersecurity.
Initiatives and Highlights
– SME Connect ’25: Launched by Large and Medium Industries Minister MB Patil, this platform aims to expand business opportunities for SMEs. Gunjan Krishna, Commissioner for Industrial Development, emphasized the importance of SMEs, which provide 41% of employment.
– VentuRISE – Global Startup Challenge: This second edition aims to recognize and support startups in sectors like Electronic System Design and Manufacturing (ESDM), Clean Mobility, and Aerospace & Defence.
R&D and Innovation Leadership
– Global R&D Contribution: IT-BT Minister Priyank Kharge noted that Karnataka contributes 22% to global R&D and leads in exports, FDI, and technology services.
– Educational and Innovation Hub: With over 250 colleges, 44 universities, and 25,000 startups, Karnataka is a capital of R&D and innovation. The state’s commitment to industry-friendly policies and continuous investment in science, technology, and education drives sustainable growth and better standards of living.
Industry Insights
– Collaboration and Innovation: Ramesh Ramadurai, Past Chairman of CII Karnataka & MD of 3M India, emphasized the importance of augmenting resources, understanding customer needs, and developing valuable solutions. Building infrastructure and fostering partnerships are key to transitioning to groundbreaking new products.
Chief Minister Siddaramaiah’s announcements and the initiatives discussed at the Global Investors Meet 2025 highlight Karnataka’s ambitious plans for significant industrial growth and its strategy to attract global investments and foster innovation.

June 20, 2024
Economists Emphasize Employment Generation and Manufacturing Boost in Upcoming Budget

Economists Emphasize Employment Generation and Manufacturing Boost in Upcoming Budget

During a pre-Budget consultation with Finance Minister Nirmala Sitharaman, economists stressed the importance of focusing the upcoming Budget on employment generation and strengthening the manufacturing sector. Highlighting concerns over unemployment, they urged the government to prioritize job creation. There was a consensus that with the economy showing resilience, stimulating consumption demand would not be a significant challenge.
Economists participating in the consultation, including National Co-convenor of Swadeshi Jagran Manch Ashwani Mahajan, Director and Chief Executive of the Institute for Studies in Industrial Development (ISID) Nagesh Kumar, and TCA Anant, emphasized these priorities.

Key Points from the Consultation

– Employment Generation: Economists highlighted unemployment as a major issue and recommended the government focus on creating jobs.
– Manufacturing Sector: Emphasis was placed on promoting the manufacturing sector, with a particular focus on MSMEs and the textile industry. Nagesh Kumar suggested expanding the scope of the Production Linked Incentive (PLI) scheme.

Statements from Participants

After the meeting, Ashwani Mahajan mentioned that “unemployment is a big issue, and the government should focus on generating jobs.” He added that given the economy’s resilience, consumption demand would not pose a problem.
Nagesh Kumar noted the need to push the manufacturing sector and called for incentives to support MSMEs and the textile sector. He also recommended expanding the PLI scheme to further promote manufacturing.

Official Statement

The Ministry of Finance posted on X (formerly Twitter) about the meeting: “Union Minister for Finance & Corporate Affairs Smt. @nsitharaman chairs the first Pre-Budget Consultations with leading economists in connection with the forthcoming General Budget 2024-25 in New Delhi, today.” The post also mentioned the attendance of Union Minister of State for Finance Shri @mppchaudhary, Finance Secretary, and other key officials.

Upcoming Budget Presentation

Finance Minister Nirmala Sitharaman is expected to present the Union Budget for the 2024-25 fiscal year in the last week of July.

June 20, 2024
Bolstering the Aerospace Sector: The Vital Role of MSMEs and the Need for Government Support

Bolstering the Aerospace Sector: The Vital Role of MSMEs and the Need for Government Support

The Indian aerospace and defense market is projected to soar to USD 54.4 billion by 2033, a significant leap from its valuation of USD 27.1 billion in 2024, growing at a CAGR of 6.99% during the forecast period. This rapid growth, highlighted by Custom Market Insights, underscores the sector’s dynamic expansion fueled by increasing manufacturing demands from both domestic and international aircraft carriers. This surge necessitates advancements in innovation and technology for the design, development, and production of critical components and systems, including aircraft engines.
To meet this burgeoning demand, top industry players like Hindustan Aeronautics Limited (HAL), Tata Advanced Systems Limited (TASL), and L&T Aerospace must collaborate with smaller, technologically adept players. Here, Micro, Small, and Medium Enterprises (MSMEs) become indispensable. Known as the backbone of the Indian economy, MSMEs foster innovation, generate employment, and promote equitable development. Their agility and expertise in producing a wide range of aerospace components make them vital to the supply chain, ensuring timely delivery to manufacturers and distributors, unlike larger organizations burdened by bureaucratic processes.
Recognizing the importance of a robust supply chain, the Indian government is pushing for “Make in India,” particularly in the Aerospace and Defense (A&D) sector. Samir V. Kamat, Secretary of the Department of Defence R&D and Chairman of DRDO, emphasized the government’s aim to increase indigenous content in the defense and aerospace sector to over 70% in the next 3-4 years, highlighting the critical role of MSMEs in this endeavor. This push was echoed by Prime Minister Narendra Modi during the 2015 Aero India Air Show, reinforcing the theme of ‘Make in India’.
Government initiatives like the Defence Offset Policy encourage the development of synergistic sectors such as civil aerospace and internal security, providing special incentives for MSMEs. Regular interactions with vendors and stakeholders help address concerns, fostering a collaborative environment.
While reduced imports and record-high defense exports in A&D are promising, further improvements are needed for India to compete globally. Service or product-linked incentives could foster collaboration between large companies and MSMEs. Simplifying regulations for cross-border transactions with global supply chains and striving for self-reliance in the aerospace industry are crucial steps. Additionally, a clear Aerospace Policy, an independent nodal agency for collaboration, and increased government spending focused on small startups, MSMEs, and academia are necessary to fuel research and development for sustainable growth.
The future of the Indian aerospace sector hinges on the symbiotic relationship between big companies, MSMEs, and the government. By introducing industry-friendly schemes, addressing regulatory challenges, incentivizing partnerships, and promoting large-scale manufacturing, India can emerge as a global aerospace hub, competing with world leaders.

June 18, 2024
New Challenges and Opportunities for the Dairy Industry Amid Changing Customer Behavior

New Challenges and Opportunities for the Dairy Industry Amid Changing Customer Behavior

The dairy industry is currently navigating a landscape rich with opportunities and challenges. New sources such as plant-based dairy alternatives and a focus on sustainability, including precision farming and automation, are reshaping the sector. Additionally, the industry is expanding into new markets.
Ravin Saluja, Director of Sterling Agro Industries (Nova Dairy), highlights that the growing emphasis on health and wellness offers significant potential for dairy FMCG companies. “Consumers are increasingly seeking functional dairy products enriched with probiotics, vitamins, and minerals, catering to diverse dietary needs and preferences. By leveraging scientific research and innovation, dairy brands can capitalize on this trend to offer products that promote overall well-being and address specific health concerns,” Saluja explains.
The increasing popularity of plant-based diets and rising lactose intolerance have fueled the demand for dairy alternatives. “FMCG companies have the opportunity to diversify their product portfolios by introducing plant-based dairy alternatives made from almonds, soy, oats, and other plant sources. Embracing this trend enables dairy brands to tap into new consumer segments while contributing to sustainability goals and reducing environmental impact,” Saluja adds.
Aman J Jain, CEO and Co-Founder of Doodhvale emphasizes the importance of adapting to new trends. “Dairy brands should consider developing digital marketing approaches, interacting with customers on social networks, and offering personalized experiences. Steps toward long-term sustainability, transparency in production processes, and the use of sustainable materials can appeal to specific customers. Functional dairy products, plant-based and fortified creations can address various dietary choices and health needs,” Jain states.
Challenges for the Dairy Industry
The dairy industry faces mounting pressure to address sustainability and environmental challenges, such as greenhouse gas emissions, water usage, and animal welfare concerns. “FMCG companies must adopt sustainable practices throughout the value chain, from sourcing raw materials to packaging and distribution, to mitigate environmental impact and meet consumer expectations for ethical and eco-friendly products,” says Saluja.
Compliance with stringent regulatory requirements and quality standards also presents a challenge, particularly in a globalized marketplace with diverse regulatory frameworks. “Ensuring product safety, traceability, and adherence to labeling regulations is essential to maintain consumer trust in dairy products. FMCG companies must invest in robust quality assurance systems and compliance measures to navigate regulatory complexities and uphold industry standards,” Saluja notes.
Economic uncertainty, geopolitical tensions, and market volatility are significant challenges, affecting supply chain stability, pricing dynamics, and consumer spending patterns. Fluctuations in commodity prices, currency exchange rates, and geopolitical developments can disrupt operations and profitability, necessitating agile and adaptive strategies to manage risks and seize opportunities in dynamic market environments.
“The main problems that dairy industries face are fluctuating raw material prices, increasing regulatory measures, issues around emission reduction and water usage, ethical concerns for animal welfare, the shift in consumer behavior towards non-animal-based products, and the increasing prevalence of lactose intolerance and dairy product allergies,” Jain elaborates.
Furthermore, supply chain disruptions, workforce shortages, and the pressure to maintain sustainable operations add to the industry’s challenges.
Despite these challenges, stakeholders agree that the dairy sector has a promising future, provided it adapts effectively to changing consumer preferences.

June 17, 2024
Women constitute 36% of workforce in Indian start-ups and SMEs, finds HerKey report

HerKey Report: Women Constitute 36% of Workforce in Indian Start-Ups and SMEs

A recent HerKey study revealed that women represent 36% of the workforce in Indian startups and SMEs. The HerKey DivHERsity Benchmarking Report 2023–24 found that women make up 34% of the workforce across all surveyed companies, which included 300 firms.
Large enterprises led with a 38% women participation rate at the entry level, although this figure drops to 19% at mid-management and senior levels. Notably, the proportion of women hired in C-suite roles has decreased to 24% from the previous 37%, indicating a need for stronger measures to support women’s advancement to top leadership positions.
Neha Bagaria, Founder & CEO of HerKey, commented on the findings: “Women don’t face a constraint on ambition—they face a constraint on opportunity. The DivHERsity Benchmarking Report underscores the need for continued efforts to elevate women to leadership roles.”
The study highlighted that 84% of surveyed companies have initiatives dedicated to recruiting women, with 98% of large enterprises committed to gender diversity goals in hiring. Among these, 88% successfully met their objectives. Startups and SMEs are also making strides, with a 97% success rate in achieving gender diversity goals.
Additionally, 82% of large enterprises and 67% of SMEs and startups have launched programs to hire women returning to work. These initiatives have been highly successful, with 93% of women in large enterprises and 83% in startups and SMEs being hired through such programs.
Founded in 2015, HerKey collaborates with over 15,000 companies across India, helping them to recruit women employees.

June 14, 2024
Startups Leverage ‘Value-Add’ Mentors for Growth

Startups Leverage ‘Value-Add’ Mentors for Growth

Shared resource model enables PE, VC firms to oversee management
Known for their expertise, ‘value-add professionals’ are becoming increasingly popular among private equity (PE) and venture capital (VC) firms. These firms are adopting a shared resource model, utilizing these experts to support their portfolio companies.
Under this model, experts are shared across various firms where PEs and VCs have invested. They suggest improvements in areas such as tech, legal, training, HR, operations, and brand building, implementing optimal methodologies. Typically, these professionals have extensive experience, having served as chief finance officers, chief marketing officers, or chief technology officers, or leading verticals like training, operations, and legal for at least 15-20 years.
According to TeamLease Services, India hosts around 1,700 VC and PE firms managing portfolios of about 15,000 companies. Approximately 35-40% of these firms, or 595-680 funds, utilize shared resources.
Firms like Motilal Oswal Alternates, Eximius Ventures, Elevation Capital, Prime Venture Partners, and Matrix Partners follow this model. Their shared resources teams collaborate closely with fund partners and portfolio company management teams.
Notable portfolio companies engaging shared resources include BimaKavach, Dairy Classic, Simpolo, Asian Footwears, Symbiotec Pharma, Ganesh Grains, Shuru, Vegapay, and Finarkein.
The shared resources concept has long been prevalent in established startup ecosystems such as the US and China. In India, it gained traction recently, especially following multiple corporate governance and ESG (environmental, social, and governance) issues.
“This model provides portfolio companies with access to expertise they may not have in-house or afford full-time,” said Vikram Ramasubramanian, partner at Inflection Point Ventures. Specialized mentors help establish robust frameworks, prevent mismanagement, foster transparency, integrate sustainable practices, and meet regulatory requirements, which are critical for long-term success.
The shared resources model allows startups to access expertise as needed, reducing overall costs. By leveraging mentors from shared resources, startups can save around 30-40% of their costs, depending on employee costs and numbers. This is because the need for deep expertise in every function on a full-time basis is low for most startups.
For example, a D2C company opening offline stores might only need an operations expert initially. Similarly, a startup might need a marketing expert when taking the digital route and understanding analytics.
Hiring CXOs can cost around ₹60-80 lakh per annum. Ravi Teja Gupta, founder of Guptaji Invests, emphasized that startup success depends more on spending than funding. “Many B2C startups spend around 30% on marketing, and many D2C companies spend around 40-50% on marketing. So, we hired proven experts in viral marketing,” he said. He added that some VC companies have increased their fund size and transitioned into PE companies by adopting this model.
The shared resources model benefits both funds and portfolio companies. For investors, it generates better results from portfolio companies and allows structured control without daily interference. It also protects startups from complications arising from poor corporate governance.
Vishal Tulsyan, MD and CEO of MO Alternates, noted that an organization is built by its support functions. “Every company must embrace tech significantly, but mid-sized companies often cannot afford a strong head of technology. Likewise, HR is a crucial function, but such talent is often unaffordable,” he said.

June 14, 2024
Compliance Burden Hampers MSME Chemical Units

Compliance Burden Hampers MSME Chemical Units

The extensive compliance requirements are stifling growth in India’s $220 billion chemical industry, particularly affecting MSMEs. Each unit in this labor-intensive sector must meet up to 635 compliance requirements monthly, posing a significant challenge, according to industry sources and analysts.
Rishi Agrawal, co-founder and CEO of TeamLease RegTech, noted, “Understanding the compliance needs is difficult for most MSMEs. The lack of training and skilled manpower further complicates compliance efforts.”
Frequent changes in regulatory and compliance norms exacerbate the issue. “For example, in the last week alone, there were 200 compliance changes, 700 in the past month, and approximately 1,963 in the current quarter,” Agrawal said. While large companies have in-house teams to manage these requirements, MSMEs face considerable difficulty.
Jaimin Vasa, chairman of the Gujarat Chemical Association, suggested, “There should be industry-specific general licensing instead of multiple regulations under various acts like the Factories Act, health, explosives, hazardous materials, and food safety.”
Compliance needs also vary by state, complicating matters for companies operating in multiple locations. Vasa added, “The government should simplify the application process and expedite clearances to assist units in meeting compliance requirements.”
Agrawal pointed out that rent-seeking is a major issue in obtaining the necessary registrations and licenses for manufacturing units. He suggested, “To address this, we need a controlled environment and support for private entrepreneurship. The rapid pace of digitalization can be a significant aid.”
India’s chemical industry is the sixth largest globally and third largest in Asia, accounting for about 11% of the country’s exports and projected to reach $1 trillion by 2040. The industry has improved significantly in the World Bank’s Ease of Doing Business rankings, rising from 142nd in 2014 to 63rd in 2019.

June 14, 2024
SBI Launches ‘SME Digital Business Loans’, Promising Sanction in 45 Minutes

SBI Launches ‘SME Digital Business Loans’, Promising Sanction in 45 Minutes

The State Bank of India (SBI), the nation’s largest lender, has introduced ‘SME Digital Business Loans’ aimed at approving loans within 45 minutes. This initiative targets micro, small, and medium enterprises (MSMEs), which SBI has identified as key to its growth and profitability over the next five years.
“This innovative product marks a significant leap forward in digitalisation by offering SMEs a digital loan journey with an end-to-end sanction turnaround time of up to 45 minutes,” SBI stated.
The new loan offering eliminates the need for traditional credit underwriting and lengthy appraisal processes, introducing a simpler, faster, and more accessible approach to MSME lending. For loans up to Rs 50 lakh, SBI has waived the requirement for financial statements, relying instead on transaction history and GST returns for appraisal.
SBI has developed a data-driven credit assessment engine that uses authentic data footprints from income tax returns (ITR), GST returns, and bank statements. This engine can provide sanction decisions within 10 seconds after the necessary details are submitted, without any human intervention.
“We are committed to setting a new industry benchmark with SME Digital Business Loans, underscoring our constant efforts to drive innovation in MSME lending,” said Dinesh Khara, chairman of SBI. “By leveraging the rich data footprint of MSME units in the ecosystem, we aim to provide the fastest and most intuitive lending process, further solidifying our position as the leading MSME lender in the country,” Khara added.
SBI’s outstanding SME loan portfolio has grown from Rs 2.67 trillion at the end of March 2020 to Rs 4.33 trillion at the end of March 2024. Additionally, the asset quality of this portfolio has improved, with gross non-performing assets decreasing from 9.43% in March 2020 to 3.75% in March 2024.

June 12, 2024
Policy Changes Expected from New Modi Government to Boost MSME Sector

Policy Changes Expected from New Modi Government to Boost MSME Sector

With the newly elected NDA government led by Prime Minister Narendra Modi preparing to announce ministry allocations, several policy changes are anticipated to enhance job creation, entrepreneurship, and business growth.
According to a report by CNBC-TV18, citing sources, at least nine policy changes are expected, some of which may be introduced in the upcoming July budget. These include higher indemnity for banks issuing loans to MSMEs, integrating MSMEs into production-linked incentive (PLI) schemes, and establishing a new institute to facilitate increased credit access for small businesses and enhance exports.
Additional anticipated changes include a revamp of the government’s Atal Innovation Mission to focus more on entrepreneurship and job generation, increased funding for the aspirational districts program, and more.
Industry experts are also advocating for increased support for MSMEs to drive job creation and export growth. Vijay Kalantri, Chairman of MVIRDC World Trade Center in Mumbai, emphasized the need for Prime Minister Modi to simplify regulations and expand the PLI scheme to boost industry and trade productivity.
“The capacity building is crucial to enable us to export more and employ more people,” said Kalantri.
One of the key changes expected is a revision of the 45-day payment rule for MSMEs to address delayed payment challenges. Last month, Finance Minister Nirmala Sitharaman hinted at potential changes during an interaction with MSMEs and local industries in Ludhiana. She mentioned that the government would consider repealing modifications to Section 43B of the Income Tax Act if MSMEs prefer operating without payment timeline uncertainties.
Additionally, the Federation of All India Vyapar Mandal (FAIVM) has called for extending the payment period for MSMEs from buyers to 180 days from the current 45 days. FAIVM President Jayendra Tanna indicated that the body will urge the new NDA government to implement this extension to better support MSMEs.

June 11, 2024