Latest news with #MSMEs
Mint
3 hours ago
- Business
- Mint
India to defend interest, pursue US talks in parallel
India has vowed to defend its national interest after the US imposed stiff tariffs on its goods, even as it works to conclude a trade deal that's in the best interests of both. On Thursday, economists counted the cost of tariffs on India's exports and growth, even as the stock market took the news in its stride. "The government attaches utmost importance to protecting and promoting the welfare of our farmers, workers, entrepreneurs, exporters, MSMEs and all sections of industry. We will take all necessary steps to secure and advance our national interest," commerce minister Piyush Goyal said in the parliament. The government is examining the implications of these tariffs and is engaged with all stakeholders, he said. Meanwhile, US President Donald Trump ratcheted up his rhetoric, a day after he announced a 25% tariff plus a penalty on Indian goods from 1 August. India and Russia "can take their dead economies down together", Trump commented, expressing displeasure over the continued trade and defence links between the two countries. Trump's announcement came ahead of a US trade team visiting India from 25 August. Despite the sour remarks, India will keep its focus on discussions with the US for a bilateral trade agreement (BTA) with a mutually beneficial outcome, said two people who are directly involved in the process. New Delhi has chosen not to retaliate, Mint reported on Wednesday. On Thursday, India's Nifty 50 index closed at 24,768.35, down 86.70 points or 0.35%, amid volatility triggered by US tariff concerns. Preliminary analysis suggests India could face a loss of nearly $10 billion in export value to the US if the tariffs stay for long, the first of the two people said, requesting anonymity. The loss would be a significant setback, with labour-intensive sectors such as textiles, footwear, gems and jewellery, and electronics likely to be hit the hardest. The US is not only India's largest trading partner but also one of the few major economies with which India enjoys a significant trade surplus. India's goods trade surplus with the US rose to $41.18 billion in fiscal year 2025 (FY25), up 16.6% from $35.33 billion a year ago. The increase was driven by an 11.6% rise in exports to $86.51 billion, while imports from the US grew 7.4% to $45.33 billion. In comparison, India's overall goods trade reported a deficit of $282.8 billion in FY25. According to government estimates, about 75.3% of India's merchandise exports to the US could be impacted by the proposed tariffs. 'There will be no change in priorities and strategies, which will remain the same as during the last five rounds of face-to-face talks that began in March following the joint statement issued by the leadership of both nations on 13 February,' said the second person mentioned above. Analysts agree that the tariffs will negatively impact India's GDP growth, with Goldman Sachs Economic Research projecting a potential direct hit of 0.2-0.3 percentage points on its CY25 real GDP growth estimate. While acknowledging the potential for a short-term hit, analysts like V.K. Vijayakumar from Geojit Investments and Aditi Raman from Moody's Analytics said that trade talks might lead to a lower final tariff rate and that India's domestically-driven economy offers some resilience against significant long-term impact. Madhavi Arora, chief economist at Emkay Global Financial Services, said the tariff would significantly raise the effective US duty on Indian goods from an average of 10.7% to about 22%, after factoring in higher duties on exempted sectors such as copper, steel and aluminium. This rate, she added, is already higher than what most Asian economies face, barring China. India exported goods worth $87 billion to the US in FY25, accounting for 2.3% of GDP, said Arora. Of this, engineering goods, electronics, drugs and pharmaceuticals, gems and jewellery, and textiles made up $65 billion. Meanwhile, India should continue to focus on manufacturing for the world, but with a more diversified 'US-plus' export market, even as the US tariff and penalty for trade with Russia have bared vulnerabilities, said experts. 'The latest set of tariff announcements has indeed exposed vulnerabilities in export-dependent growth models, necessitating a strategic recalibration of India's manufacturing framework,' said Rishi Shah, partner and economic advisory services leader, Grant Thornton Bharat. 'Our 'Make in India' initiative's emphasis on scaling production capacity remains fundamentally sound, but the current trade environment underscores the need for a more nuanced approach centred on innovation-led industrial development.' India must now elevate industrial security to the 'same strategic priority we've accorded food security and energy security over the past decades', said Shah. On the issue of penalties for buying Russian oil, the second person said that it is not yet clear, as it remains to be seen in what form they might be imposed. To be sure, Trump had pressed India to change its stance and allow greater access to American goods in the Indian market. Mint was the first to report on 11 June that US has changed its stance and was firm on the demand to open critical sectors like agriculture, dairy and access to US's GM seeds and agricultural products as well as digital trade. Negotiations for a bilateral trade agreement (BTA) began in March 2025 and have since progressed through five rounds of physical meetings and multiple virtual sessions. The Terms of Reference for the agreement were finalized on 29 March during the first round in New Delhi, Goyal told Parliament. The government is currently examining the implications of the steep tariffs and is actively consulting with exporters and industry stakeholders to assess the impact, he said. The revised tariff is expected to impact agricultural exports to the US significantly. 'This sudden hike could seriously dent profitability and slow down export momentum for products like basmati rice, pulses, grapes, and makhana,' said Anil Kumar SG, founder of Samunnati, an agri value chain solutions provider. However, Apparel Export Promotion Council chairman Sudhir Sekhri believes that the 25% tariff is not a major cause for concern as long as tariffs on competing countries like Vietnam and Bangladesh are not revised downward from current levels. 'Apparel exports are expected to slow down until the announcement of an interim BTA, which we hope will be concluded between October and December 2025. The penalty remains a grey area, and we expect the government to negotiate this with the US,' Sekhri said. The US remains a key market for Indian ready-made garments, accounting for 33% of India's total garment exports in 2024. India's total merchandise exports, excluding petroleum, reached a record $374.1 billion in FY25, up 6% from $352.9 billion a year earlier.
The Star
3 hours ago
- Business
- The Star
30 years of empowering MSMEs
KUALA LUMPUR: The Credit Guarantee Corporation Malaysia's (CGC) 30th FI/DFI & SME Awards 2024 marked three decades of nurturing growth and resilience within the country's micro, small and medium enterprise (MSME) sector. The prestigious awards ceremony, held yesterday at Hilton Kuala Lumpur, was officiated by Bank Negara governor Datuk Seri Abdul Rasheed Ghaffour, underscoring the national significance of CGC's mission in empowering MSMEs and mid-tier companies (MTCs) as key drivers of economic development. CGC chairman Datuk Mohammed Hussein as well as president and chief executive officer Datuk Mohd Zamree Mohd Ishak were present at the event. Also in attendance were chairmen and chief executive officers from leading financial institutions (FIs), development financial institutions (DFIs), Islamic financial institutions (IFIs), MTCs and MSMEs, as well as representatives from trade chambers, related agencies and the media. Star Media Group Bhd group chief executive officer Chan Seng Fatt, chief operating officer Lydia Wang and senior general manager Sharon Lee were among the guests. Awards were presented across three categories – Top FI Partner Awards, Merdeka Awards and SME Awards – recognising 24 outstanding recipients for their contributions in financing, innovation and entrepreneurial success. In his special address, Abdul Rasheed said micro and SMEs are the backbone of the economy, accounting for 97% of business establishments, 39% of GDP and nearly half of total employment. 'MSMEs are central in our journey to drive innovation, create jobs and foster economic growth and diversification,' he added. For 2024, CGC recognised top-performing financial partners and exemplary MSMEs for their contributions to the sector. CIMB Islamic Bank Bhd was named Best Financial Partner, Top Islamic FI Partner and Top Bumiputera SMEs FI Partner. Other leading institutions such as Alliance Bank Malaysia Bhd, OCBC Bank (M) Bhd and Standard Chartered Bank Malaysia Bhd were recognised as Top Conventional FI Partners. OCBC Al-Amin Bank Bhd and Standard Chartered Saadiq Bhd were named among the Top Islamic FI Partners, while Bank Simpanan Nasional was awarded Top FI Partner – imSME. Special recognition went to Bank Muamalat Malaysia Bhd for New Strategic Partnership, while Alliance Bank Malaysia Bhd, Bank Kerjasama Rakyat Malaysia Bhd and Bank Simpanan Nasional received awards for Innovation Excellence. Commemorating the success of MSMEs and MTCs, the Merdeka Awards were presented to Serai Group, Keyfield International Bhd, VSD Automation Sdn Bhd, Gading Kencana Sdn Bhd and Mydin Mohamed Holdings Bhd. Shopee Mobile Malaysia Sdn Bhd received the Merdeka Digital Excellence Special Recognition for its efforts in empowering MSMEs through digital platforms. Other top performers included the recipients of the SME Awards, comprising MFZ Izdihar Enterprise, A&Z North Rich Trading and Era Kejuruteraan for G1 and G2 contractors, and Rintiz Rezky (M) Sdn Bhd, LP Group Sdn Bhd and Perawah Enterprise for G3 contractors and above. The CGC Developmental Award recognised the sales growth and potential of Nozoly Food Industry Sdn Bhd, Jaqued Holdings Sdn Bhd and TLE Trading Sdn Bhd over 24 months. Mohammed said CGC is very much like that of a gardener. 'We plant, nurture and harvest. And, in between, whenever there's a severe catastrophe, we play a rehabilitative role. Embracing this philosophy of 'economic gardening', we nurture MSMEs from root to harvest,' he added. CGC remains steadfast in its mission to provide financial assistance to MSMEs and MTCs that are unserved and underserved by traditional financing avenues. It aims to promote the growth and development of competitive, dynamic and viable businesses through targeted assistance, encompassing both financial and non-financial support. As of 2024, CGC has facilitated guarantees and financing worth over RM99.4bil through financial institutions, benefiting more than 532,000 MSMEs.
Time of India
9 hours ago
- Business
- Time of India
Punjab needs an industrial cluster in every dist: Experts
Ludhiana: Policy experts and industry veterans raised serious concerns about Punjab's underutilisation of flagship schemes aimed at promoting entrepreneurship and MSME development recently. Sanjeev Chaddha, professor and head of the management development centre at MGSIPA, said there should be at least one industrial cluster per district to support small businesses and local manufacturing. "States like Haryana have 50 to 55 MSME clusters in operation. Southern states are also making full use of these schemes. But Punjab's figures remain negligible," he added. He introduced several central and state govt schemes that industrialists and new entrepreneurs must make use of. He also pointed out that Punjab has not implemented even a single project under the ASPIRE scheme, which is specifically designed to promote rural entrepreneurship through livelihood business incubators (LBIs) and technology business incubators (TBIs). "ASPIRE offers up to Rs 1 crore in grants for setting up rural incubators, 100% support for govt-promoted LBIs, and 50% support for private or PPP models. Many states have used this to boost rural jobs," Chaddha said. by Taboola by Taboola Sponsored Links Sponsored Links Promoted Links Promoted Links You May Like Unsold 2021 Cars Now Almost Free - Prices May Surprise You Unsold Cars | Search Ads Learn More Undo "ASPIRE has been in 27 states, with 109 LBIs, 1.08 lakh beneficiaries. For example, UP has 13,656 beneficiaries and Maharashtra 9,599 beneficiaries trained. Punjab has no approved LBIs or trained beneficiaries yet," he added. He was speaking during a capacity building workshop as part of the RAMP (raising and accelerating MSME performance) initiative. It was attended by small entrepreneurs and MSME stakeholders. Chaddha also explained how the cluster development programme provides shared infrastructure like common facility centres, R&D labs, and training units — especially useful for small and micro industries. "In Haryana, SPVs (special purpose vehicles) of 50 to 55 small industries have come together to form independent, successful units. Punjab should adopt this model across all districts," he said. Sanjeev Gupta, former chief GM of SML ISUZU, shared practical challenges and mindset barriers faced by MSMEs. "Most small entrepreneurs try to manage everything themselves — from GST to production. This limits growth and innovation," he said. He stressed the importance of delegation, outsourcing, and innovation to reduce production costs. "Even Maruti cannot keep raising car prices despite increasing costs of power, material, and labour. Instead, they improve efficiency, targeting at least 1% cost reduction annually. MSMEs must adopt a similar approach." Gupta also emphasised the role of workplace culture and employee ownership models in enhancing productivity. "At Infosys, even drivers and gardeners became crorepatis through Employee Stock Ownership Plans (ESOPs). If employees feel like stakeholders, they stay committed and perform better," he said. He encouraged entrepreneurs to treat daily product improvement and cost innovation as a continuous process rather than an occasional goal. Chaddha ended the session with a motivational message for budding entrepreneurs. "Ambani and Adani began from humble backgrounds. The only difference is they fully used every opportunity and scheme available. Punjab's entrepreneurs can do the same." BOX PUNJAB LAGGING BEHIND States like Haryana have 50 to 55 MSME clusters in operation. Southern states are also making full use of these schemes. But Punjab's figures remain negligible Sanjeev Chaddha, professor and head of the management development centre at MGSIPA Most small entrepreneurs try to manage everything themselves — from GST to production. This limits growth and innovation. Sanjeev Gupta, former chief GM of SML ISUZU
India.com
13 hours ago
- Business
- India.com
Commerce Minister Piyush Goyal reacts on Donald Trump's 25 % tariffs, says 'India to...'
Piyush Goyal- File image New Delhi: India will take all necessary steps to safeguard and promote national interest, Commerce and Industry Minister Piyush Goyal said on Thursday, a day after US President Donald Trump announced 25 per cent tariffs plus a penalty on domestic exports to America from August 1. In a suo motu statement in both the houses of Parliament, he said, the government is examining the implications of these tariffs and is engaged with all stakeholders including exporters and industry for taking feedback of their assessment of the situation. 'The government attaches the utmost importance to protecting and promoting the welfare of our farmers, workers, entrepreneurs, exporters, MSMEs and all sections of industry. We will take all necessary steps to secure and advance our national interest,' he said. US President Donald Trump on Wednesday announced the imposition of a 25 per cent tariff on all goods coming from India starting August 1, plus an unspecified penalty for buying Russian crude oil and military equipment. The surprise announcement came amid a US trade team visiting India from August 25 for the sixth round of negotiations for the proposed bilateral trade agreement. Goyal's remarks are important as India has hardened its stance on giving duty concessions to the US on agriculture and dairy sectors — a key demand of America in the trade talks with India. New Delhi has never opened dairy sector in any of its earlier signed free trade pacts. The agri sector is a politically sensitive for India as about 700 million rural livelihoods are dependent on it. Lowering duties would also pose risk to national food security. The two countries have been negotiating a bilateral trade agreement (BTA) since March with an aim to more than double the bilateral trade in goods and services to USD 500 billion by 2030 from the current USD 191 billion. So far five rounds of talks have been completed. For the sixth round, the US team is visiting India from August 25. They are aiming to conclude the first phase of the agreement by fall (October-November) this year. The two sides are also looking at an interim trade deal before the BTA. The US wants duty concessions on certain industrial goods, automobiles, especially electric vehicles, wines, petrochemical products, and agri goods, dairy items, apples, tree nuts, and genetically modified crops. On the other hand, India is seeking the removal of additional tariffs. It is also seeking the easing of tariffs on steel and aluminium (50 per cent) and the auto (25 per cent) sectors. Against these, India has reserved its right under the WTO (World Trade Organization) norms to impose retaliatory duties. The country is also seeking duty concessions for labour-intensive sectors, such as textiles, gems and jewellery, leather goods, garments, plastics, chemicals, shrimp, oil seeds, grapes, and bananas in the proposed trade pact. When asked about the implications of the tariff announcement on ongoing negotiations for the pact, sources said the next round of talks are scheduled for August. 'Let us wait and watch how things evolves. The ball is in the US court,' said one of the sources. On the quantum of penalty and the structure of the 25 per cent tariff, they said: 'There is no clarity on that. we are waiting for the executive order of the US on this for the clarity.' US President Donald Trump is 'frustrated' with the lack of progress on trade talks with India and feels that the 25 per cent tariff imposed on the country will 'address and remedy' the situation, the White House economic adviser suggested on Wednesday. The commerce minister also said that in just over a decade, India has rapidly transformed from being one of the fragile five to the fastest growing major economy in the world and it is also widely expected that India will become the third largest economy in a few years. Today, he said, international institutions and economists see India as the bright spot in the global economy as the country is contributing to almost 16 per cent of global growth. Trump has once again mounted a sharp attack on India and Russia for their close ties and said he doesn't care what New India does with Moscow. 'I don't care what India does with Russia. They can take their dead economies down together, for all I care,' he said, adding, 'we have done very little business with India, their tariffs are too high, among the highest in the world.' Goyal said that in the last decade, the government has taken measures to promote India as the manufacturing hub of the world, driven by the 'Make in India' initiative. He added that in an increasingly protectionist world, India has done mutually beneficial trade agreements with UAE, UK, Australia and EFTA countries. 'We are also committed to similar trade agreements with other countries. We are consistently working for the welfare of the farmers and Indian agriculture, to promote prosperity and ensure food security,' the minister noted. During 2021-25, the US was India's largest trading partner. The US accounts for about 18 per cent of India's total goods exports, 6.22 per cent in imports, and 10.73 per cent in bilateral trade. With America, India had a trade surplus (the difference between imports and exports) of USD 35.32 billion in goods in 2023-24. It was USD 41 billion in 2024-25. In 2024-25, bilateral trade between India and the US reached USD 186 billion. India exported USD 86.5 billion in goods while importing USD 45.3 billion.
Borneo Post
14 hours ago
- Business
- Borneo Post
MyCIF reaches out to MSMEs and entrepreneurs in Sabah
In a walk-about tour of 16 exhibition booths, Phoong engaged with SC-registered ECF and P2P platform operators and heard first-hand success stories from companies funded through MyCIF. KOTA KINABALU (July 31): Malaysia Co-Investment Fund (MyCIF) today reached out to micro, small and medium enterprises (MSMEs) in Sabah, for opportunities in funding business expansion and their working capital needs through equity crowdfunding (ECF) and peer-to-peer (P2P) financing. Sabah Minister of Industrial Development and Entrepreneurship Datuk Phoong Jin Zhe officiated the one-day roadshow themed 'Empowering Financing, Advancing Growth' in Kota Kinabalu. Around 300 representatives from business associations, government agencies, venture capital, private equity and MSMEs attended the event. Organised by the Securities Commission Malaysia (SC), the event was supported by Invest Sabah Bhd, a key development partner with deep local networks and strong links to state and federal MSME initiatives. It featured networking sessions, breakout discussions, and exhibitor booths where participants engaged with SC-registered ECF and P2P platform operators and heard first-hand success stories from companies funded through MyCIF. MyCIF, Malaysia's first public-private co-investment model, was set up by the Ministry of Finance under the 2019 Federal Budget. Administered by the SC, MyCIF has since co-invested in over 70,000 campaigns, benefiting more than 9,500 MSMEs nationwide. In 2024, the fund exceeded RM1 billion in total co-investments. It employs a 1:4 co-investment ratio under its General Scheme and a 1:2 ratio for targeted initiatives such as the Food Security and Environmental & Social Impact Schemes. SC Chairman Dato' Mohammad Faiz Azmi said that MyCIF has been a game-changer for MSME growth, providing much-needed capital that is often a challenge to access through traditional channels. 'The Sabah roadshow is integral to MyCIF's national outreach, designed to expand awareness of alternative financing among businesses across Malaysia,' he said. 'It provides entrepreneurs a direct insight into how ECF, P2P and MyCIF can fuel their growth at every stage. 'The government, through MyCIF, continues to support MSMEs as key engines of growth, innovation and job creation. This is evident in the RM40 million allocation under Budget 2025 to further expand access to ECF and P2P financing nationwide,' he said. Invest Sabah Chief Executive Officer Dr Firdausi Suffian welcomed the collaboration with the SC. 'Partnering with the SC in this event has enabled Invest Sabah to amplify its efforts in empowering local entrepreneurs. This roadshow is a vital platform for MSMEs in Sabah to gain insights and forge connections that can help propel their businesses forward,' he said. As of 2024, total funds raised through MyCIF co-investments alongside private investments have surpassed RM6 billion, enabling businesses to access funding via ECF and P2P financing platforms. MyCIF has attracted 4.1 times private investments for every ringgit co-invested, demonstrating a strong crowding-in effect. Over the past six years, MyCIF has played a pivotal role in improving access to alternative financing, fostering the growth of over 9,500 MSMEs in the local entrepreneurial ecosystem. This reflects the continued confidence and growing interest from both investors and MSMEs in alternative financing avenues. For more information on MyCIF, visit
