A consolidated view of market events, assembled from diverse sources.
A comprehensive CII-ISB study reveals that while 65.8% of Indian MSMEs use AI tools, only 21% deploy ERP or business software for operations, highlighting a significant technology adoption gap. The study, based on 2,919 MSMEs across all sectors, found that MSMEs require stronger support from larger companies in technology transfer, vendor development, and supply chain integration to enhance their competitiveness and export capabilities.
Coimbatore-based MSMEs and industry associations have urged the government for urgent relief measures including withdrawal of import duties and BIS orders for six months to address a ₹8,000-10,000 per tonne steel price surge and raw material shortages. Despite India becoming a net steel importer of 3.5 million metric tons in April-August (up 29.5% year-on-year), the steel ministry is unlikely to push for new import curbs in the near term.
Small and micro enterprises (MSEs) achieved a record 53% share of central government procurement worth ₹48,635 crore in H1 FY27, significantly exceeding the 25% mandate and up from 45.8% in the previous year. The government has approved a ₹10,000 crore SME Growth Fund and established an Integrated Transport and Logistics Authority to support MSME expansion, while recent reforms including the MSME Act 2026 and enhanced TReDS integration aim to address the ₹8.1 trillion locked in delayed payments.
India and the European Union have signed a landmark Free Trade Agreement on December 16, 2026, providing preferential access for over 99% of Indian exports to the EU market. While the FTA offers significant opportunities in textiles, leather, and other sectors, Indian firms have historically utilized only 20-30% of available FTA tariff preferences, highlighting implementation challenges that require enhanced government support and MSME capacity building.
India's hand and power tools exports are projected to surge over 25-fold from $1 billion currently to $25 billion by 2035, driven by rising manufacturing activity and technology adoption. The Tools & Equipment Expo 2026 in New Delhi highlighted the sector's growth potential, with industry experts emphasizing the need for deeper digital integration and Industry 4.0 adoption to capture this opportunity.
The Ministry of MSME has partnered with quick-commerce platform Blinkit to expand market access for PM Vishwakarma beneficiaries, currently piloting in Bengaluru with plans for nationwide rollout. The initiative will list handcrafted products from 30 lakh registered beneficiaries on the Blinkit app, providing digital commerce training and access to wider customer base beyond traditional markets.
Indian SMEs are significantly increasing cybersecurity spending with 84% planning investments over the next 12-24 months, driven by rising cyberattacks and growing awareness of security gaps. Despite increased spending intentions, a critical detection gap persists as only 12% of SMEs implement continuous 24/7 monitoring, while 73% remain dissatisfied with their current cybersecurity setup, highlighting the urgent need for improved operational capabilities.
More than 3,000 self-help group products from Uttar Pradesh are now available on major digital platforms including Amazon, Flipkart, and ONDC, with 543 Prerna Saras stores established to support physical sales. The initiative, launched under CM Yogi Adityanath's direction, aims to provide rural women entrepreneurs with comprehensive market access beyond traditional savings and credit activities.
The Federation of Indian Micro, Small and Medium Enterprises (FISME) has called for practical implementation of the New Delhi Declaration adopted at the 18th Brics Summit to enable MSMEs access to trade finance, technology, and overseas markets. The organization proposes creating interoperable mechanisms for MSME trade finance, reducing cross-border transaction costs, and establishing a Brics SME Forum with annual implementation scorecards to track progress in MSME cooperation.
Uttar Pradesh has launched the ₹50 crore Footwear, Leather and Non-Leather Sector Development Policy 2025, offering comprehensive financial incentives including 20-35% capital subsidies, land grants, and research support to boost the state's footwear manufacturing sector. The policy covers leather footwear, non-leather products, and allied industries with investment thresholds ranging from ₹50-150 crore for standalone units to ₹200+ crore for clusters, targeting employment generation and export competitiveness.