The week that was in MSME sector and other top stories
Here’s what happened in the MSME ecosystem this week.
India's aspiration to become a $5-trillion economy by 2028 hinges significantly on the development of micro, small, and medium enterprises (MSMEs) to bolster overall growth. As the MSME sector expands, the government is actively working to foster its growth, implementing measures to alleviate the challenges faced by MSMEs. But there are challenges that still hinder their growth.
Here’s what happened this week in the sector.
Launch of Trade Connect ePlatform
Commerce Minister Piyush Goyal announced the imminent commencement of work on the Trade Connect ePlatform. This intermediary platform is designed to streamline connections between Indian exporters, entrepreneurs, and various international trade stakeholders.
Addressing the second meeting of the reconstituted Board of Trade, the minister said the platform is expected to be operational within the next three to four months and will enhance collaboration and streamline trade processes.
"The ePlatform is expected to provide facilitation for new and aspiring exporters, information on various regulations to access markets, sectors, export trends, easy access of benefits under free trade agreements, access to sector-specific events, along with a facility to address trade-related queries to officials in Government of India and associated entities to get expert advice," read a statement.
Bombay High Court dismisses petition of 19 MSMEs
The petitions lodged by 19 MSMEs challenging the categorisation of their status as non-performing assets (NPAs) by banks and non-banking financial companies (NBFCs) have been rejected by the Bombay High Court.
The division bench of the Bombay High Court, comprising Justices BP Colabawalla and MM Sathaye, rejected the argument of the MSMEs that the banks and NBFCs should have implemented revival and rehabilitation measures outlined in a 2015 notification issued under the MSMED Act, 2006 before declaring them as NPAs, according to a report by Bar and Bench, an online portal for Indian legal news.
According to the court's decision, the MSMEs are required to submit an application to the banks or NBFCs to initiate the process outlined in the notification. This signifies that the banks and NBFCs are not obliged to initiate a rehabilitation or restructuring process independently; instead, they must await a formal application from the MSMEs, as stated in the report.
Other top pick of the week
Stanley’s rise from garage to IPO glory
Luxury sofa and home décor company Stanley Lifestyles Ltd plans to go public later this year.
For owner Sunil Suresh, the journey of building a luxury brand from scratch has been long and arduous. He says the idea to start a luxury brand came after he realised that India, despite being known as a price-sensitive market, had a space for luxury products and that people were ready to pay more for quality.
Originating in a modest garage, Stanley Lifestyles has evolved into a prominent enterprise with six factories and 63 stores spread throughout India, boasting an extensive product line of 3,000 SKUs. Suresh says that the company has secured a commanding 50% market share in the luxury furniture segment, primarily dominating the Bengaluru market.
Stanley’s headquarters, encompassing 2 lakh square feet, is situated in Electronic City, Bengaluru.
