India's MSME sector faces a significant formal credit gap of approximately Rs 60 lakh crore, with traditional channels meeting only a fraction of the demand. A new report suggests that a centralised, interoperable digital layer could effectively bridge this gap and enhance productivity across the formal business sector by digitising workflows and enabling cash-flow-based underwriting.
A top SBI official has highlighted the challenges bankers face in lending to MSMEs using only GST data, advocating for the integration of alternative data sources like power consumption and telecom records through credit bureaus to improve credit assessment.
Loans to micro, small and medium enterprises (MSMEs) in India saw moderated growth in April 2026, with early signs of stress emerging among micro borrowers and manufacturers, according to a report by credit bureau CRIF High Mark. The slowdown is attributed to potential impacts of global uncertainty.
CPI(ML) Liberation general secretary Dipankar Bhattacharya has strongly criticised the newly introduced Merchant Discount Rate (MDR) on select UPI transactions, labelling it a "UPI tax" and demanding its immediate rollback. He drew parallels with demonetisation, arguing that the new framework would negatively impact small shopkeepers, MSMEs, and ordinary citizens by increasing prices.
A career break does not erase the experience that came before it. But the labour market can act as though it does. The more women invest in building professional careers, the more costly an interruption can become. How, then, do we enable women to make a comeback? Whose responsibility is it? asks Radha Roy Biswas.
The Goods and Services Tax (GST) Council has announced that Input Tax Credit (ITC) will now be available on health and life insurance policies provided by employers to their employees, a move expected to significantly reduce costs for businesses, especially MSMEs.
RBI Governor Sanjay Malhotra stated that the central bank consistently views fintechs as 'valuable partners' in shaping India's future financial system, crediting the sector with expanding financial inclusion, enhancing customer experience, and streamlining credit delivery, particularly for MSMEs.
Civil Aviation Minister K Rammohan Naidu announced significant opportunities for Micro, Small, and Medium Enterprises (MSMEs) within India's rapidly expanding aviation sector. With Indian airlines ordering over 1,600 aircraft and the aerospace market projected to double by 2035, there's a massive scope for Indian suppliers to integrate into global aerospace supply chains, moving beyond assembly to design and manufacturing.
The Supreme Court has refused to grant an interim stay on the imposition of Merchant Discount Rate (MDR) on UPI person-to-merchant transactions exceeding Rs 2,000, which is set to take effect from October 15. The court has agreed to examine the challenge to this new fee and has issued notices to the Centre, RBI, and NPCI, seeking their responses within four weeks. A Public Interest Litigation (PIL) argues that the levy lacks statutory safeguards, transparency, and public consultation, and could adversely affect merchants and consumers.
Commerce Secretary Rajesh Agarwal highlighted the critical need for India to diversify its services exports beyond the dominant IT/ITeS and professional services sectors. Speaking at the Global Fintech Fest 2026, he emphasised the vast potential in the global financial services market, where India currently holds a small share, and stressed how fintech solutions, like UPI, can drive growth, reduce remittance costs, and support MSME trade finance, ultimately leading to sustainable economic expansion.
State Bank of India (SBI) is extensively using artificial intelligence to underwrite nearly Rs 1 lakh crore in MSME loans and automate the processing of cheques up to Rs 10,000. This AI adoption aims to enhance efficiency, free up employee bandwidth, and improve customer service across various banking functions.
India's deposit growth has reached a 15-year high of 17.8 per cent, primarily driven by a surge in foreign currency non-resident (bank), or FCNR(B), deposits. This influx of funds is expected to lead to a softening of corporate loan rates as banks seek to deploy their excess liquidity.
'Major unions should be included. If this goes on, decision-making will become heavily one-sided and we will be forced to continue our strikes.'
The Retailers Association of India (RAI) has voiced concerns that the government's new 0.4 per cent Merchant Discount Rate (MDR) on UPI transactions above Rs 2,000 could reverse the progress of digital payment adoption among small retailers. This fee, effective October 15, places the burden on merchants operating on thin margins, potentially pushing them back to cash transactions and undermining the government's formalisation agenda, especially ahead of the festive season.
Prime Minister Narendra Modi cautioned against the 'weaponisation' of technology and critical minerals at the BRICS summit, advocating for cooperation to foster shared prosperity. Concurrently, Chinese President Xi Jinping announced plans for an open-source AI ecosystem for BRICS nations, positioning Beijing as a key technology partner amid global AI competition.
'...as we believe with the adoption of AI, our IT services companies' revenue models will have to undergo a reset, which may in turn impact their potential for earnings growth.'
The Indian Parliament is scheduled for a significant legislative day, with the Lok Sabha set to consider and pass the Public Examinations (Prevention of Unfair Means) Amendment Bill, 2026. Concurrently, the Rajya Sabha will introduce the Micro, Small and Medium Enterprises Development (Amendment) Bill, 2026, and pass the Prevention of Insults to National Honour (Amendment) Bill, 2026, highlighting a busy agenda for both houses.
The Congress party has accused the Modi government of creating a "deep crisis" in India's job market due to its "flawed" economic and employment policies. Citing a media report on a 27% decline in new jobs at major companies, the opposition party stated that the government is engaged in "headline management" and "politics of distraction" instead of addressing the youth employment crisis.
BJP sources said the government would introduce a fresh Bill on the issue and has reached out to parties that opposed the earlier legislation.
'Improved law and order and transparent governance have helped change UP's investment image.'
Prime Minister Narendra Modi has introduced a 'Sapta Dhara' (seven-stream) reform framework, aiming to propel India into a developed nation by 2047. This comprehensive plan focuses on key sectors including manufacturing, agro-food processing, technology, logistics, defence, green and blue economy, and soft power, leveraging the nation's youth potential.
Change of guard in some states and evolving El Nino dynamics are triggering fresh actions on raging water-sharing disputes in several states.
'I've seen a lot of meetings over the years, but this was the first time I've seen the deputy chief minister and the industries minister sit through something like this with 200 to 300 industrialists, local residents and politicians from both the ruling side and Opposition, all in the same room.'
A Parliamentary Standing Committee on Commerce has urged the Indian government to swiftly conclude the proposed India-US Bilateral Trade Agreement (BTA), while ensuring India's interests are protected, recommending complete exemption for key export products like generic medicines and smartphones from future US tariff increases.
India's public sector banks (PSBs) have seen their net profit nearly treble over the past five years, reaching a record Rs 1.98 trillion in FY26, driven by significant improvements in asset quality and sustained lending growth across key economic sectors.
Bajaj Finance reported a strong Q1 FY27 performance with 24 per cent year-on-year AUM growth and a 28 per cent rise in consolidated profit after tax, driven by significant increases in consumer financing, gold loans, and commercial vehicle loans, alongside a strategic focus on digital transformation and AI.
State-owned Bank of Baroda (BoB) reported a 72 per cent year-on-year (Y-o-Y) drop in net profit to 1,278 crore for Q1FY27 due to a $600 million out-of-court settlement related to NMC Health Plc. In contrast, Bank of India (BoI) saw its net profit rise by 36.23 per cent Y-o-Y to 3,068 crore for the same quarter, driven by healthy loan growth and improved asset quality.
'The situation globally is quite challenging, but we have the confidence and courage of conviction that we will come out winners even in this challenging time.'
Bajaj Finance's shares fell more than 7 per cent on Tuesday after it trimmed growth guidance for FY26, from 24-25 per cent projected earlier to 22-23 per cent.
Rockwell Automation's CEO Blake Moret highlights India as the centrepiece of the company's Asian growth strategy, detailing its four-decade presence, significant employee base, and support for the 'Make in India' initiative. The company sees major opportunities in pharmaceuticals, automotive, food and beverage, and consumer products, with AI playing a crucial role in simplifying industrial automation and boosting productivity for Indian manufacturers, including MSMEs.
'You have seen the retrenchments by big corporates in the IT industry because they are not getting enough offers.' 'MSMEs in the manufacturing sector are really struggling. They do not know what to do. They are not able to predict what will happen tomorrow.'
Non-banking financial companies (NBFCs) reported encouraging results for Q4FY26 with improved asset quality and earnings, but analysts maintain a cautious near-term outlook due to geopolitical tensions, monsoon risks, and specific portfolio concerns.
Several non-banking financial companies (NBFCs) are observing an increase in early-stage delinquencies within their micro, small and medium enterprises (MSME) loan portfolios, primarily driven by supply chain disruptions and escalating raw material costs exacerbated by the ongoing conflict in West Asia.
Indian bank credit expanded by 16.08 per cent year-on-year in FY26, marking its fastest pace since FY24, while deposits grew by 13.47 per cent, according to RBI data. Experts caution that year-end figures may be inflated due to reporting date changes, but acknowledge strong momentum in corporate, MSME, and retail segments.
TVS Venu Group has agreed to acquire a minority stake of up to 9.9 per cent in Jana Small Finance Bank, including a 4.9 per cent ownership by TVS Motor Company, through a combination of primary issuance of warrants and a secondary purchase.
A government mandate requiring central public sector enterprises to use the Trade Receivables Discounting System (TReDS) for settling small business invoices is expected to significantly increase volumes on these platforms.
Retail giant Walmart has announced that India has become one of its fastest-growing sourcing hubs globally, with the company having procured over $40 billion worth of goods from the country. This initiative aims to expand supplier capabilities, improve compliance standards, and help Indian manufacturers scale exports worldwide.
The gems and jewellery industry anticipates challenging times following the government's decision to increase gold import duty to 15 per cent, a move that exporters warn could fuel the grey market and heighten smuggling risks.
'Unfortunately, today most ministers are busy with either election duty or praising duty. They are not interested in serving duty.' 'Ministers have become relaxed like retired people still holding onto jobs.' 'Look at how the NEET paper leaked. But there is no accountability.' 'After 12 years, they have become saturated. They are short of ideas.'
Commerce and Industry Minister Piyush Goyal announced that a US team is expected to visit India next month for trade talks, following an earlier Indian delegation's visit to Washington, DC, in April to finalise an interim pact and advance negotiations for a broader bilateral trade agreement.
