by Rajen KumarDildaar or Daag-daag? Redefining Delhi's Tagline?
Rather than forward a mail, which disturbed me no ends, to the Chief Minister Sheila Dikshit, I have thought it prudent that I share it with my readers. For, I am not sure if the mail...
Special ReportsMay 2013
According to, “The State of Food and Agriculture Report 2012”, “world agriculture needs to feed a projected population of more than 9 billion people by 2050, some 2 billion...
A Tool for Financial Inclusion and Consumer Empowerment in India
Financial literacy is considered an effective tool for financial inclusion as both go side by side. When people are aware about financial products and market they will be inclined towards financial products which will increase financial inclusion. Final goal of any financial program is to empower consumer.
Financial Restructuring of SMEs
SMEs are backbone of Indian economy. They contribute around 45% of industrial output, about 40% of exports and employ more than 60 million people. Across verticals, SME are worried a lot as the payments are getting delayed, customer confidence is slowing down and cost of doing business is moving northwards.
Promise, Protection & Practice - MSE Banking Code
How to get timely and adequate Finance is a very tough exercise for any Micro and Small, mainly Micro Enterprise. Government survey has indicated still 90% of total Micro units in India are to procure it from relatives, friends and private money lenders only. The 'Code of Bank's Commitment to Micro and Small Enterprises' [MSEs Banking Code] is therefore not only a ray of hope but an advancement and assertion in disbursement of credit to MSEs in general. When published for first time in May 2008, MSEs Banking Code was 'VOLUNTARY' and hence was merely Bankers Wish List, though called as commitment. The recently revised and declared in August 2012 MSEs Banking Code is 'the COMMITMENT' as the word voluntary finds no place now. This improvement is a welcome move on the part of Banking Codes and Standards Board of India [BCSBI]. As said by BCSBI, “the Code represents best practices agreed by us as our commitment to you.” [Here you = MSEs].
CGTMSE SCHEME -A WIN-WIN SITUATION
Micro, Small and Medium Enterprises constitute the backbone of the Indian economy. The 26 million MSEs in India contribute roughly 10% to the GDP, employ more than 60 million people and contribute almost 45% of the total manufacturing output and 40% of the total exports.
Credit Ratings Help SMEs to Access Capital
Prevailing information asymmetry within the MSMS sector impedes supply of adequate quantum of finance. The banking and financial service institutions are unable to take decisions due to lack of structured and analyzed information on the MSMEs. In such a scenario, credit rating for the MSMEs provides to be beneficial in building confidence of the formal channels of lending on the MSMEs.
Recent Trends in Credit Rating; Corporate Governance
An SMEs desire to obtain a credit rating is often motivated by its need for getting Bank finance at a subsidized rate / issuing debt-related instruments in capital market. However, information asymmetry problem is one of the major obstacles to the unit’s endeavor. To reduce the information asymmetry problem, the unit has to seek a credit rating from an independent credit rating agency.
Present State of our Economy The markets are in jittery, and for valid reasons. The rupee has hit an all-time low of Rs. 53 and macroeconomic indicators of the economy are sagging. Industrial production is on a downward spiral. Policymaking is ground to an apparent halt, and the rollback of the decision to open up multi-brand retail has sapped investor confidence. The negative growth registered in industrial production in October, a sharp 5.1% decline, and shows that industrial productivity is slowing far more rapidly than expected.
SME Enterprises: A Road Map to Fulfill an Under Delivered Promise!
The contribution of SME to the Indian economy is over 10% of the GDP. It accounts for nearly 35% of the manufacturing and 40% of the exports. The role of the SME in the employment generation can hardly be discounted. The SME sector is truly representative of the spirit of the Indian entrepreneurship. It is all about frugality in the business and survival of against all odds. It is based on native intelligence and being extremely street smart.
- Winner of appreciation award for promoting SMEs in India.
- 1st ever Indian magazine to penetrate tier II, III cities & the rural belt.
- Industry Partnerships include CII, FICCI, ASSOCHAM, PHDCC, AIMA, ITPO, SME Network, Federation of Indian Micro Small Enterprises (FISME)
- Official Magazine Partners for several national & international MSME events.
The Last Word
Times were when we celebrated with fervour and flavour hallowed days like 'Teacher's Day', 'Labour Day', 'Flag Day' etc. but as modern times invaded our lives, we borrowed 'days' for us. Today,...
We are looking for writers and experts to contribute original stories and articles. Send an email to firstname.lastname@example.org with your story idea and lets get talking.
Some of our valued contributors are...