SME Round up: January 2020

  • Industry News
  • Apr 30,20
During January 2020, there was a broad-based decline across all 4 indices, according to CARE Ratings' Monthly SME Roundup report.
SME Round up: January 2020

During January 2020, there was a broad-based decline across all 4 indices, according to CARE Ratings' Monthly SME Roundup report. Broad indices including Sensex and Nifty ended lower by 1.3% and 1.7% respectively during the month. Both the SME indices also ended lower with Nifty SME Emerge Index registering a decline of 0.1% while BSE SME IPO index recording a steep decline of 4.1%.

In January 2020, the Government also presented the budget with a slew of positive measures aimed at the MSME sector. The total allocation made to the Ministry of Micro, Small and Medium Enterprises in FY21 stood at Rs 7572 crores, 8% higher from the revised estimates of FY20(RE). Budget saw introduction of a scheme to provide subordinate debt for entrepreneurs of MSMEs which will be counted as quasi-equity and will be fully guaranteed through Credit Guarantee Trust for Medium and Small Entrepreneurs. The turnover limit for businesses to get their books of accounts audited by an accountant was raised from Rs 1 crores to Rs 5 crore which would benefit the MSME segment.

It also proposed to extend the window for restructuring of bank loans availed by MSMEs till

March 31, 2021 has been put in front of the RBI o Enabling NBFCs to extend invoice financing to the MSMEs through TReDS which will enhance their economic and financial sustainability. Budget also announced the launch of App-based invoice financing loans product to obviate the problem of delayed payments of MSME.

The bank credit to MSMEs has grown at a CAGR of 15% in the last decade. Services sector accounts for over 60% of the total bank credit disbursed to MSME sector and thus has been driving the overall MSME credit. As of November 22, 2019, the outstanding credit disbursed to MSME segment totalled Rs 10.57 lkh crs. The incremental bank credit to MSME segment has witnessed a contraction of 0.9% during March- November 2019 compared with negligible growth in the comparable period a year ago. The incremental credit to manufacturing segment contracted by 3.3% during the period while the incremental credit to services sector witnessed marginal growth of 0.4%.

Meanwhile, following preparation of a draft discussion paper on “Promoting Technology Adoption by MSMEs – Mission Document” by the MSME Ministry, it has sought comments from the stakeholders for the same. This mission focusses on activities modelled around seven different pillars including emerging technology, human capital, access to finance, infrastructure, market place, policy and governance, and knowledge creation.

To Read the complete CARE Ratings Report, Click here

Related Stories

Smart Manufacturing
Automation, digitalisation and electrification must go hand in hand

Automation, digitalisation and electrification must go hand in hand

….this is ABB’s vision, says Subrata Karmakar, President- Robotics and Discrete Automation, ABB India in this interview. The company follows a 5-step process of Enable, Integrate, Model, Analyse..

Read more
Automation & Robotics
FICCI’s report on SMEs in India shows increase in tech adoption

FICCI’s report on SMEs in India shows increase in tech adoption

The Federation of Indian Chambers of Commerce and Industry released its report on Small and Medium Enterprises (SMEs) in India in New Delhi. The report highlights how SMEs are adapting to the digita..

Read more
Auto & Auto Components
Auto component sector forecasts moderate growth in FY 2024

Auto component sector forecasts moderate growth in FY 2024

Small and medium enterprises (SMEs) in the auto component sector are anticipating a more moderate 8-10% growth in the fiscal year 2024.

Read more

Related Products

Heavy Industrial Ovens

INDUSTRIAL SUPPLIES

Hansa Enterprises offers a wide range of heavy industrial ovens.


Read more

Request a Quote

High Quality Industrial Ovens

INDUSTRIAL SUPPLIES

Hansa Enterprises offers a wide range of high quality industrial ovens. Read more

Request a Quote

Hydro Extractor

INDUSTRIAL SUPPLIES

Guruson International offers a wide range of cone hydro extractor. Read more

Request a Quote

Hi There!

Now get regular updates from IPF Magazine on WhatsApp!

Click on link below, message us with a simple hi, and SAVE our number

You will have subscribed to our Industrial News on Whatsapp! Enjoy

+91 84228 74016

Reach out to us

Call us at +91 8108603000 or

Schedule a Call Back