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Credit guarantee scheme aims to boost India’s export competitiveness

Mumbai: The Union Cabinet’s approval of the Credit Guarantee Scheme for Exporters (CGSE) is expected to provide a significant boost to India’s export-oriented industries, particularly micro, small and medium enterprises (MSMEs). The scheme, to be implemented by the Department of Financial Services (DFS) through the National Credit Guarantee Trustee Company Limited (NCGTCL), will extend collateral-free credit support of up to ₹20,000 crore to eligible exporters. Member Lending Institutions (MLIs) will receive 100 per cent guarantee coverage, reducing risk and enabling them to provide additional credit facilities to businesses engaged in international trade. A management committee chaired by the secretary of the DFS will oversee implementation, ensuring accountability and monitoring progress.

Exports remain a critical pillar of the Indian economy, accounting for nearly 21 per cent of gross domestic product (GDP) in FY2024-25 and contributing substantially to foreign exchange reserves. Export-oriented industries directly and indirectly employ more than 45 million people, with MSMEs responsible for nearly 45 per cent of total exports. The CGSE is therefore positioned to strengthen liquidity across a wide base of enterprises, ensuring smoother operations and supporting employment in sectors that are highly sensitive to global demand fluctuations.

The scheme is expected to enhance the global competitiveness of Indian exporters by enabling them to diversify into new and emerging markets. Access to collateral-free credit will allow businesses to invest in product development, expand production capacity and meet compliance requirements in overseas markets. For MSMEs, which often face difficulties in securing affordable finance, the guarantee mechanism offers a pathway to scale operations and participate more effectively in global supply chains.

India has set an ambitious target of achieving $1 trillion in exports, and sustained growth in this area is vital for maintaining macroeconomic stability. By addressing liquidity constraints, the CGSE provides exporters with the financial flexibility needed to navigate tariff barriers, rising costs and slowing demand in traditional markets. The scheme also reinforces the government’s broader objective of building resilience in the economy and advancing the vision of Aatmanirbhar Bharat.

Export-oriented industries such as textiles, engineering goods, pharmaceuticals and handicrafts stand to benefit from the initiative. These sectors have consistently contributed to India’s trade performance but face challenges in accessing timely credit. The CGSE offers a structured solution by reducing risk for lenders and ensuring that exporters, particularly smaller firms, are not excluded from financial support due to lack of collateral.

To make this scheme a success, effective execution will be essential, along with exporters’ ability to use the additional liquidity for expanding markets and strengthening competitiveness. If carried out efficiently, the CGSE has the potential to play a pivotal role in sustaining export growth while supporting millions of jobs connected to the sector.

(Write to us at editorial@bombaychamber.com)

Government targets startups, industrial players with ₹100 crore biomass hydrogen fund

Mumbai: The Indian government has unveiled a ₹100 crore funding initiative aimed squarely at startups, industrial players and research institutions developing biomass-based green hydrogen technologies. The initiative invites proposals for pilot projects that convert biomass and waste materials into green hydrogen, with the Biotechnology Industry Research Assistance Council (BIRAC) designated to oversee its implementation. Union Minister for New & Renewable Energy Pralhad Joshi unveiled the scheme at the 3rd International Conference on Green Hydrogen in New Delhi, highlighting the importance of diversifying hydrogen production pathways beyond conventional electrolysis.

The initiative falls under the National Green Hydrogen Mission (NGHM), launched in 2023 with a budget of ₹19,744 crore. The mission aims to decarbonise hard-to-abate sectors and position India as a global hub for green hydrogen. According to the Ministry of New and Renewable Energy, the scheme is intended to catalyse innovation in thermochemical and biochemical conversion processes, as well as in hydrogen storage, transport and end-use applications. Each selected project could receive up to ₹5 crore, with the goal of demonstrating scalable and cost-effective solutions.

The move comes amid growing interest in alternative hydrogen pathways that can leverage India’s agricultural and organic waste streams. By supporting decentralised production models, the government hopes to reduce reliance on water-intensive electrolysis and promote rural innovation.

The NGHM has already made headway through its Strategic Interventions for Green Hydrogen Transition (SIGHT) programme. Incentives have been awarded for 3,000 MW per annum of domestic electrolyser manufacturing and 8.62 lakh metric tonnes per annum of green hydrogen production. India currently records the world’s lowest green ammonia price at ₹49.75 per kg for 7.24 lakh metric tonnes per annum of output.

Additional investments include ₹132 crore in green steel pilots, ₹208 crore for hydrogen-fuelled vehicles and refuelling stations, and ₹35 crore for the country’s first hydrogen bunkering facility at V.O. Chidambaranar Port. The government has also approved 43 hydrogen-related skill qualifications and certified over 6,300 trainees to support workforce development.

Speaking at the conference, Principal Scientific Adviser Prof. Ajay K. Sood noted that India enjoys a cost advantage in green hydrogen production compared to several other nations, which could enable it to become a major exporter to markets such as the European Union, Japan and South Korea.

The biomass pilot scheme is expected to attract early-stage innovators and contribute to the broader goal of building a resilient and inclusive hydrogen ecosystem. As India moves towards its target of 500 GW of renewable capacity by 2030, the success of such initiatives will be critical in shaping the country’s energy transition.

(Write to us at editorial@bombaychamber.com)

Union Commerce and Industry Minister Shri Piyush Goyal addresses the 4th AGM of Mobile and Electronic Devices Export Promotion Council

Union Minister of Commerce and Industry Shri Piyush Goyal was the Chief Guest at the 4th Annual General Meeting (AGM) of the Mobile and Electronic Devices Export Promotion Council (MEDEPC) held today at Vanijya Bhawan, New Delhi.The meeting was convened in the presence of senior officials from the Ministry of Commerce and Industry, the Directorate General of Foreign Trade (DGFT), and leading representatives from India’s electronics and mobile export ecosystem.

Speaking on the occasion, Union Minister Shri Piyush Goyal underscored the need to deepen domestic capabilities across the electronics value chain, noting that greater self-reliance in both finished products and components will be key to sustaining India’s export momentum and reducing import dependence.

India’s electronics manufacturing sector is witnessing a period of unprecedented transformation — propelled by visionary policy initiatives, record investments, and expanding global partnerships. Aligned with the Hon’ble Prime Minister’s vision of achieving USD 500 billion in electronics manufacturing by 2030, India has rapidly positioned itself as a reliable global hub for electronics design, production, and exports.

India’s export performance reflects a remarkable growth story, with overall electronics exports surging by 41.9%, reaching USD 22.2 billion during April–September 2025, compared to USD 15.6 billion in the same period last year. Smartphone exports grew by an impressive 58%, touching USD 13.38 billion, up from USD 8.47 billion in the corresponding period of 2024. In FY 2024–25, India recorded USD 38.6 billion in electronics exports, a 32.6% year-on-year increase, firmly establishing its expanding role in global value chains. India now ranks as the third-largest smartphone exporter globally, a significant milestone in the country’s journey toward manufacturing leadership.

India’s deepening participation in global value chains (GVCs) underscores its transformation into a resilient and trusted manufacturing hub, offering stability and scale amid global supply chain realignments. Increasing domestic sourcing of critical components — including batteries, chargers, camera and display modules — has further enhanced local value addition and self-reliance.

Under the guidance of the Ministry of Commerce & Industry and DGFT, the government has undertaken a series of measures to simplify trade operations and enhance export competitiveness. Initiatives such as customs automation, single-window clearances, and export facilitation cells across major ports and industrial clusters have streamlined logistics and reduced compliance burdens for exporters.

Ongoing Free Trade Agreement (FTA) negotiations with the EU, UK, and EFTA aim to unlock new market access opportunities for Indian electronics manufacturers. Meanwhile, the Electronics Component Manufacturing Scheme (ECMS) and the Production Linked Incentive (PLI) schemes are accelerating domestic manufacturing depth and reducing import dependence.

The AGM also discussed India’s roadmap to achieve USD 180–200 billion in electronics exports by 2031, emphasizing the importance of policy consistency, robust infrastructure, green energy integration, and active industry collaboration.

As the apex export promotion body for mobile phones and electronic devices, MEDEPC continues to play a central role in bridging industry and government priorities. By identifying policy bottlenecks, supporting exporters, and aligning with the industry’s growth vision, MEDEPC is driving initiatives that strengthen India’s global competitiveness and export capabilities.

The meeting concluded with an acknowledgment of the Ministry of Commerce & Industry, DGFT, and all stakeholders for their continued support in shaping India’s electronics manufacturing and export success story.

About MEDEPC

The Mobile and Electronic Devices Export Promotion Council (MEDEPC), established under the aegis of the Ministry of Commerce & Industry, Government of India, serves as the apex body promoting exports of mobile phones, components, and electronic devices from India. Working closely with DGFT and the Department of Commerce, MEDEPC facilitates exporter support, policy advocacy, and global representation of India’s electronics industry. Through continuous engagement with industry and government, the Council is advancing India’s vision of becoming a trusted global hub for electronics manufacturing and exports.

Union Minister of Commerce and Industry Shri Piyush Goyal Highlights Transformative Impact of PM GatiShakti on India’s Infrastructure and Development Vision

Union Minister of Commerce and Industry, Shri Piyush Goyal, during the commemoration of four years of the PM GatiShakti National Master Plan (NMP) in New Delhi today, highlighted the transformative impact of this path-breaking initiative launched four years ago on this very day.

Union Minister noted that PM GatiShakti brings both speed and strength, and that it is not an ordinary programme. PM GatiShakti has a very deep meaning, emerging from Prime Minister Narendra Modi’s vision and nearly two decades of serious reflection on how infrastructure projects can be better planned and implemented to serve the people of India. During his years as the head of government, the Prime Minister has been known for bringing innovative thinking into governance and has had a clear vision of making India a prosperous and developed nation, added the Minister. Shri Goyal emphasized that collectively, all stakeholders are committed to making India a developed country by 2047, with PM GatiShakti playing a critical role in that journey.

Shri Piyush Goyal launched and unveiled several key initiatives during the commemorative event to further strengthen India’s infrastructure planning and development ecosystem. He opened the PM GatiShakti National Master Plan (NMP) platform to the private sector through a Query-Based Analytics Mechanism developed by Bhaskaracharya National Institute for Space Applications and Geo-informatics (BISAG-N), enabling wider access to geospatial data and advanced analytics. He released the PM GatiShakti Compendium Volume-3, which highlights successful use cases and best practices, and launched the PMGS NMP Dashboard, a comprehensive multi-sector reporting system for monitoring progress and deriving actionable insights. Shri Goyal also introduced the Knowledge Management System (KMS) to promote cross-learning and knowledge sharing among Ministries, Departments, and States/UTs, and unveiled PM GatiShakti – Offshore, a dedicated digital platform for integrated planning and management of offshore development across multiple sectors. In addition, he launched the Data Uploading & Management System (DUMS) to enhance decentralized, real-time data ownership and accountability, rolled out the PMGS District Master Plan (DMP) for Aspirational Districts to strengthen data-driven local infrastructure development and holistic regional growth, and introduced the Logistics Excellence, Advancement and Performance Shield (LEAPS) 2025 to recognize outstanding leadership and innovation across logistics sectors.

Shri Piyush Goyal highlighted that when PM GatiShakti was launched, the Hon’ble Prime Minister had emphasized that with the resolve of Atmanirbhar Bharat, the foundation for the next 25 years of development was being laid. He stated that PM GatiShakti has emerged as a vital bridge between macro-level planning and micro-level implementation, serving as an effective tool that transcends sectors and institutions. He added that the initiative carries game-changing implications for national development, as it is no longer limited to planning road alignments or railway routes, but now facilitates far deeper integration in national planning and execution.

Shri Goyal further informed that the launch of the PM GatiShakti District Master Plan for 112 Aspirational Districts, now mapped within a single integrated database, will help address the holistic developmental needs of these regions. He said the initiative is designed to ensure that growth reaches the last person at the bottom of the pyramid, thereby promoting inclusive and sustainable development. The District Master Plan supports area-based planning across key sectors including health care, education, logistics, industrial development, environmental management, safety and security, mineral resource utilization, and renewable energy generation. He noted that PM GatiShakti marks a paradigm shift from piecemeal approaches to an integrated model of comprehensive area planning.

Shri Goyal highlighted that logistics costs have drastically reduced, particularly with improvements in last-mile connectivity. Previously, transportation of coal from mines to power plants involved multiple loading and unloading steps, leading to inefficiency, increased costs, and material losses. Streamlining last-mile connectivity at mines and power plants has dramatically lowered the cost of electricity and improved overall logistics efficiency. Across the country, ministries, states, and town planners benefit from PM GatiShakti, which has expanded into multiple areas over the past four years.

The Compendium (Volume-3) of Best Practices and Successful Use Cases was released today by the Union Minister. This compendium demonstrates the diverse initiatives and tangible impacts of PM GatiShakti on citizens’ lives.

The Minister highlighted that in the last budget, it was announced that the public would be granted access to the databases of PM GatiShakti. The Union Minister was pleased to note that Bhaskaracharya National Institute for Space Applications and Geo-informatics (BISAG-N) and the department have prepared themselves so that the public can start using the databases of PM GatiShakti through the Unified Geospatial Interface, enabling easier access and utilization of the data for planning and decision-making purposes, added the Minister.

The Union Minister highlighted that a comprehensive multi-sector reporting system has been launched to track how PM GatiShakti is impacting the development of various regions through the area-based planning approach now being adopted. The decentralized data sharing module ensures that information is accessible and emphasizes the importance of maintaining up-to-date databases. A proper dashboard will support planning and data dissemination to the public, enhancing transparency and facilitating evidence-based decision-making.

The Minister stated that a key focus of the initiative is to reach aspirational districts, ensuring that area-specific planning addresses local needs while lifting these regions out of infrastructure deficits. This effort represents a collective commitment from both state governments and the central government to foster inclusive development and equitable access to resources, added the Minister

Shri Goyal said that the launch of LEAPS, the Logistics Excellence, Advancement and Performance Shield, marks another milestone, recognizing the efforts of stakeholders in improving efficiency and effectiveness in logistics nationwide. The achievements of the past four years are remarkable, and there is a clear vision for PM GatiShakti to evolve into a larger initiative that transcends ministries, departments, states, and Union Territories, added the Union Minister.

The Minister highlighted that with expansions into ocean resource mapping, wind energy planning, offshore and underground cable routes, telecom and data networks, and even future undersea electricity transmission, the scope, scale, and impact of PM GatiShakti are undergoing a significant transformation. Shri Goyal added that the government is working to elevate this initiative beyond physical and social infrastructure to a platform that connects citizens, industries, and planners. In doing so, PM GatiShakti is becoming a central tool for national and human development, driving India toward greater heights and realizing the vision of a Viksit Bharat 2047, added Shri Goyal.

The Union Minister emphasized that PM GatiShakti is now evolving beyond physical infrastructure to social infrastructure, human development, industry engagement, and digital integration. The initiative has become a centerpiece of national development, promoting integrated, inclusive, and data-driven growth. It is now being applied to offshore resource mapping and exploration, including planning for wind energy, offshore and underground cables, optic cables for telecom and data, and future undersea electricity transmission. The scale, scope, and reach of PM GatiShakti are undergoing a massive transformation, with the government actively working to elevate it to the next level. This expansion aims to integrate physical and social infrastructure, increase citizen and industry engagement, and position PM GatiShakti as a strategic tool for human development and national progress, ultimately contributing to the vision of Viksit Bharat 2047, added the Minister.

Shri Piyush Goyal also emphasized that the initiative has brought about a paradigm shift in the way India plans and executes major infrastructure projects. By integrating data from multiple Ministries and States, the initiative has created an evidence-based decision-making tool. The Minister highlighted that the new initiatives launched, including the opening of the NMP platform to the private sector, the launch of the Knowledge Management System, and the unveiling of PM GatiShakti–Offshore, will further enhance data-driven planning, foster cross-sectoral collaboration, and accelerate integrated, sustainable development across the nation.

The event witnessed the participation of over 200 officials from Central Ministries, Departments, States/UTs, and industry associations. Union Minister of State for Commerce and Industry Shri Jitin Prasada and Minister of Public Works of Madhya Pradesh Shri Rakesh Singh also highlighted the evolution of PM GatiShakti at the event.

Over the past four years, PM GatiShakti has transformed India’s infrastructure planning in India through innovative digital tools, integrated platforms, and multi-sectoral collaboration. With continued expansion and inclusion of new stakeholders, the initiative is set to accelerate India’s infrastructure vision, drive economic progress, and improve the quality of life for citizens. PM GatiShakti is not just building projects—it is shaping the future of India.

PM GatiShakti Marks Four Years with Launch of Transformative Initiatives by Union Minister of Commerce and Industry, Shri Piyush Goyal

On the occasion of celebrations marking four years of PM GatiShakti National Master Plan (NMP), the Union Minister of Commerce and Industry, Shri Piyush Goyal, today launched a series of transformative initiatives by the Logistics Division, Department for Promotion of Industry and Internal Trade (DPIIT). These initiatives aim to drive socio-economic development by strengthening infrastructure planning, enhancing last-mile connectivity, and ensuring adequate infrastructure to support holistic growth.

Shri Goyal highlighted that the Government had developed and launched the PM GatiShakti District Master Plans (PMGS-DMP) for 28 Aspirational Districts in October 2024. The plans facilitate geospatial-based planning for critical social and economic infrastructure such as schools, health centres, anganwadis, roads, and water pipelines using the PM GatiShakti platform.
To enable effective planning, five sector-specific tools were developed for schools, health centres, anganwadis, roads, and water pipelines. Comprehensive capacity-building training for district teams was conducted at BISAG-N, Gandhinagar, Gujarat, in December 2024, followed by regular regional workshops and online sessions for officers across districts and States.

Districts have already begun developing practical use cases for area development, including road widening projects such as the Damoh–Jabalpur road from two to four lanes, solar park site selection in Damoh, administrative boundary planning, drinking water provision under the Jal Jeevan Mission, electrification of unelectrified villages, road connectivity for unconnected habitations, and watershed management planning in Baran district.

Building on these successes, the PM GatiShakti District Master Plan is now being progressively rolled out across all 112 Aspirational Districts, enabling data-driven, integrated planning for social and economic infrastructure development nationwide.
Shri Goyal also launched a series of transformative initiatives under the PM GatiShakti National Master Plan, aimed at enhancing infrastructure planning, data-driven decision-making, and cross-sectoral collaboration. The launches include the Knowledge Management System (KMS), Decentralized Data Uploading and Management System (DUMS), PMGS NMP Dashboard as part of the Comprehensive Multi-Sector Reporting System, and PM GatiShakti Compendium Volume-3.

Shri Goyal noted that over the past four years, numerous Ministries and States have undertaken innovative measures, developed digital tools, and created use cases demonstrating how geospatial planning can be leveraged to improve infrastructure development and decision-making. The Knowledge Management System serves as a centralized repository of digital tools, use cases, SOPs, compendiums, and training resources, promoting replicability, scalability, and cross-learning across Ministries, Departments, and States/UTs.

At the core of the KMS is the integrated NMP Dashboard, which provides real-time insights into onboarded data layers, registered users, planned projects, and reported issues through the Issue Management System, forming the basis of the Comprehensive Multi-Sector Reporting System. Complementing this, the Decentralized Data Uploading and Management System ensures accurate, uniform, and accountable data management through a three-stage workflow of data upload by designated managers, review by nodal officers, and final publication by BISAG-N, enhancing transparency, operational efficiency, and multi-sectoral coordination.

The launch of PM GatiShakti Compendium Volume-3 showcases a wide range of on-ground success stories across infrastructure, social, and economic sectors, demonstrating the transformative impact of PM GatiShakti in driving integrated development, improving connectivity, and fostering inclusive growth across India.

With these initiatives, PM GatiShakti continues to set new benchmarks in integrated infrastructure planning, data-driven governance, and inclusive development, reinforcing India’s vision of a modern, connected, and resilient nation.

Millions of MSME workers remain uninsured, reveals new data from NI-MSME

Mumbai: Despite employing over 110 million people across India, micro, small and medium enterprises (MSMEs) continue to fall short in providing basic health protection to their workforce. New data from the National Institute for Micro, Small and Medium Enterprises (NI-MSME) shows that fewer than one in 10 MSMEs offer group health insurance to employees, a figure that underscores a significant gap in workplace benefits across the sector.

The findings are particularly concerning given the scale of the MSME ecosystem, which comprises more than 63 million enterprises nationwide. While group health insurance is often the first and only form of coverage for salaried workers, most MSME employees remain uninsured, especially those in informal or unregistered businesses. This leaves millions vulnerable to medical emergencies without financial support from their employer.

The adoption of group health insurance is highest in urban, Tier 1 service sectors such as information technology and financial services. In contrast, industries with higher physical risk – including manufacturing, construction and retail – show markedly lower coverage rates. Micro and small enterprises are the least likely to offer any form of employee insurance, according to the NI-MSME data.

Several factors contribute to this low uptake. Cost remains a primary concern, with many small business owners assuming that group insurance is prohibitively expensive or only viable for larger firms. There is also a widespread lack of awareness about affordable, customisable plans now available in the market.

Digitisation plays a role too, MSMEs that operate offline are less likely to engage with digital insurance platforms that simplify enrolment and claims. Crucially, there is no regulatory mandate requiring MSMEs to provide group health insurance, unlike schemes such as the Employees’ State Insurance Corporation (ESIC) or Provident Fund.

However, the landscape is beginning to shift. Insurers and fintech companies have introduced bite-sized group health plans tailored for small teams, with premiums starting as low as ₹100 to ₹150 per employee per month. These plans often include features such as zero paperwork, instant onboarding, and optional add-ons like outpatient cover or teleconsultation services. The Insurance Regulatory and Development Authority of India (IRDAI) has also encouraged insurers to design simplified group products specifically for micro and small businesses.

Some state governments are exploring incentives to boost adoption, including GST waivers and partial premium contributions. These efforts aim to make health insurance more accessible and relevant for MSMEs, aligning with broader national goals around universal health coverage and financial inclusion.

The implications for workers are significant. Without employer-sponsored insurance, many MSME employees face delays in seeking treatment due to cost concerns. Group plans typically offer advantages such as no medical checks, maternity cover, mental health support and lower premiums compared to individual policies – benefits that are often out of reach for those without formal employment benefits.

According to industry estimates, only eight to 10 million MSME employees are currently covered by group health plans. This represents a small fraction of the total workforce, and highlights the urgency of expanding coverage across the sector. With roughly 90 per cent of MSMEs operating informally and outside the purview of labour regulations, the challenge is not only financial but structural.

As India continues to push for inclusive growth, the MSME sector remains a critical focus area. Addressing the health insurance gap will require coordinated efforts from policymakers, insurers and industry bodies. For employers, the availability of flexible, low-cost plans presents an opportunity to enhance workplace security. For employees, initiating conversations around coverage could be the first step toward better protection.

The data paints a clear picture that health insurance is no longer a corporate luxury but a workplace necessity. Bridging the coverage gap in MSMEs is not just a matter of policy, but of equity and resilience.

(Write to us at editorial@bombaychamber.com)

Union Cabinet approves ₹69,725 crore to revive shipbuilding sector

Mumbai: In a major policy move aimed at revitalising the country’s maritime capabilities, the Union Cabinet has approved a ₹69,725 crore package to strengthen India’s shipbuilding and maritime infrastructure. The decision marks one of the most substantial investments in the sector to date and reflects a strategic shift toward enhancing domestic capacity, long-term financing, and technical expertise.

The package is built around a four-pillar framework that includes extending financial assistance for shipbuilding, establishing dedicated maritime funds, expanding shipyard infrastructure, and implementing legal and policy reforms. At the heart of the initiative is the extension of the Shipbuilding Financial Assistance Scheme (SBFAS) until 31 March 2036, with a corpus of ₹24,736 crore. The scheme is designed to incentivise domestic shipbuilding and includes a ₹4,001 crore allocation for Shipbreaking Credit Notes, aimed at supporting environmentally responsible dismantling of vessels.

A National Shipbuilding Mission will be set up to oversee the implementation of these measures, ensuring coordination across ministries and stakeholders. The Cabinet also approved the creation of a Maritime Development Fund (MDF) with a total corpus of ₹25,000 crore. This includes a ₹20,000 crore Maritime Investment Fund, in which the government will hold a 49 per cent stake, and a ₹5,000 crore Interest Incentivisation Fund to reduce the cost of debt and improve the viability of maritime projects.

The Shipbuilding Development Scheme (SbDS), with an outlay of ₹19,989 crore, is expected to expand India’s shipbuilding capacity to 4.5 million Gross Tonnage annually. It will support the development of mega shipbuilding clusters, infrastructure upgrades, and the establishment of the India Ship Technology Centre under the Indian Maritime University. The scheme also includes provisions for insurance and risk coverage to support shipbuilding ventures.

Taken together, the measures are projected to generate nearly 30 lakh jobs and attract investments of approximately ₹4.5 lakh crore into the maritime sector. The government expects the initiative to enhance national, energy, and food security by strengthening supply chain resilience and maritime logistics. It also aims to bolster India’s strategic autonomy in the Indo-Pacific region, where maritime infrastructure plays a critical role in geopolitical stability.

India’s maritime sector currently handles about 95 per cent of the country’s trade by volume and 70 per cent by value. Despite this centrality, domestic shipbuilding has struggled to compete globally due to limited financing options, outdated infrastructure, and policy bottlenecks. The new package seeks to address these structural challenges by offering targeted financial support and institutional reforms.

The emphasis on long-term financing through the MDF and the Maritime Investment Fund is particularly significant. Historically, the lack of affordable credit has been a major impediment to shipyard expansion and fleet modernisation. By reducing the effective cost of debt, the government hopes to make Indian shipbuilding projects more bankable and attractive to private investors.

The establishment of the India Ship Technology Centre is another key element of the package. It is expected to serve as a hub for research, innovation, and skill development, helping to build a technically proficient workforce and promote indigenous design capabilities. This aligns with broader efforts to reduce reliance on foreign technology and improve the competitiveness of Indian shipyards.

The Cabinet’s decision comes at a time when global shipping is undergoing rapid transformation, driven by digitalisation, decarbonisation, and shifting trade routes. India’s ability to adapt to these changes and position itself as a reliable shipbuilding hub will be critical to the long-term viability of the sector.

(Write to us at editorial@bombaychamber.com)

Bombay Chamber Hosts MSME Conclave 2025 – 2.0
Empowering India’s Growth Engines through Finance, Policy & Mediation

The Bombay Chamber of Commerce & Industry hosted the MSME Conclave 2025 – 2.0, themed Global Partnerships, Smart Finance & Dispute Resolution For MSME Growth. The conclave brought together policymakers, economists, international trade experts, mediators, industry leaders, and MSME representatives to deliberate on the challenges and opportunities shaping India’s micro, small, and medium enterprises (MSMEs).

With over 82.63 lakh MSME units in Maharashtra, contributing nearly 40% of the state’s Gross State Domestic Product and employing 1.3 crore people, the conclave underscored the sector’s critical role in driving inclusive growth, exports, and employment.

In his welcome address, Rajan Raje, Chairperson – MSME Forum, Bombay Chamber & CEO of Nichem Solutions, reflected on the Chamber’s 189-year-old legacy, and the role it has played in India’s development, serving as a bridge between regulatory bodies, industry, and society at large. This was followed by theme-setting remarks from Sunil Kumar Sharma, GM & Zonal Head, Bank of Baroda.

Setting the tone for the day, the Fireside Chat featured Beena Vaheed, Executive Director, Bank of Baroda, in conversation with Vishwanath Nair, Bureau Chief & Banking Editor, NDTV Profit. Addressing the common perception that banks have been hesitant to lend to MSMEs, Vaheed observed, “This is the opinion of the past. In 2025 alone, Bank of Baroda registered a 15% growth in credit to MSMEs. Digital lending has revolutionised the process—today MSMEs don’t need to walk into branches, paperwork has been simplified, and banks are moving towards cash-flow-based lending models.” On the subject of supply chain financing, she emphasised its centrality to the bank’s strategy, noting that “it has been a strategic growth engine for us. With deep relationships across PSUs and corporates, we have been able to act as a platform for ecosystem financing. This lowers transaction costs, reduces risk, and today nearly 60% of our MSME portfolio runs through supply chain financing.”

She further explained how digitalisation has accelerated credit delivery: “What used to take 59 minutes earlier, today even loans of ₹5 crore can be processed in 10–15 minutes, thanks to full back-end integration. We have already discounted 1.89 crore invoices amounting to ₹6.49 lakh crore.” Concluding the session, she underscored the bank’s role as a partner, not just a lender: “Our approach is not just to lend but to advise MSMEs—partnering with them and helping transform them into tomorrow’s large corporates.”

This was followed by presentations from Sandeep Prakash, Zonal Sales Manager, and Tania Das, Senior Manager Forex, both from Bank of Baroda, who outlined tailored financial solutions for MSMEs, and a presentation by Uma Iyer, DGM, New India Assurance Company Limited, who highlighted insurance as a vital safeguard for small enterprises.

The first panel discussion was moderated by R. Srinivasan, Co-Chairperson – MSME Forum, Bombay Chamber and Director, AIRA Consulting Pvt. Ltd., and featured Madan Sabnavis, Chief Economist at Bank of Baroda, Rishi Kant Tiwari, Joint Director (Regional Head) of FIEO (Western Region), and Namrata Jage, Founder of BharatFi. The session examined the impact of tariff escalations on MSMEs, with particular attention to exporters in sectors such as textiles, auto components, and engineering goods. The panellists discussed the rising cost pressures faced by enterprises, the need for diversifying markets to reduce vulnerabilities, and the importance of responsive policy and financial support to help MSMEs manage shrinking margins, delayed payments, and liquidity challenges.

The second panel discussion, “Unlocking Growth through Mediation – A New Era for MSMEs,” was introduced by Ashok Barat, Past President & Mentor – Dispute Resolution, Bombay Chamber and Director, Bata India Ltd., and moderated by Sandeep Khosla, Director General of the Bombay Chamber and Member of the Micro, Small Enterprises Facilitation Council (MSEFC). The panellists included Manissh Assarkar, Advocate, Corporate Lawyer & Mediator at Assarkar & Co.; Hasit B. Seth, Independent Counsel, Arbitrator & Mediator at HLaw Chambers; and Rajesh Doiphode, Former Industries Officer – MSEFC Konkan Thane, Government of Maharashtra.

The discussion broadly focused on the challenges MSMEs face with contractual disputes, the benefits of mediation as a cost- and time-efficient resolution method, and the importance of preventive legal practices. The panellists also explored the role of Micro, Small Enterprises Facilitation Councils, the need for stronger collaboration between chambers, facilitation councils, and government bodies, and the potential of digital platforms to make dispute resolution faster and more transparent.

In the sessions that followed, the focus shifted to international opportunities. Khosla introduced a business delegation to Cyprus. The discussions then expanded to a global canvas with Cristina Chiriboga, Chief Trade & Investment Officer of the Republic of Ecuador, sharing strategies to connect Indian MSMEs with Latin American markets; G Labane, Consul General of the Republic of South Africa, highlighting the country’s growing opportunities; and Vicente Gomis Ruiz, Economic & Commercial Counsellor at the Consulate General of Spain in Mumbai, presenting opportunities for collaboration in technology and green industries.

The conclave concluded with a strong call for greater collaboration between financial institutions, government, and industry bodies to build an enabling ecosystem that empowers MSMEs to scale globally and contribute significantly to India’s vision of self-reliance and sustainable growth. The MSME Conclave 2025 – 2.0 was supported by Bank of Baroda and New India Assurance Company Limited.

Bombay Chamber panel urges stable trade policy and credit support amid tariff strain

Mumbai: The Bombay Chamber of Commerce and Industry convened a high-level panel discussion titled ‘Tariffs, Trade and India’s Economic Future’, bringing together sectoral leaders to assess the impact of recent US tariff measures on Indian exports. The consensus was clear: while diversification and long-term reform are essential, immediate government intervention is critical to prevent lasting damage to employment and industry.

In his welcome address, Sandeep Khosla, Director General, Bombay Chamber, underscored the timeliness of the panel amid ongoing volatility surrounding US tariffs on Indian exports. He noted the pace at which the situation continues to evolve, marked by frequent developments and high-level diplomatic exchanges. This climate of uncertainty, he said, has made forward planning increasingly difficult for businesses. Against this backdrop, the panel aimed to examine the wide-ranging impact on Indian industries, particularly MSMEs, and highlight the importance of vigilance and adaptability in navigating the challenges ahead.

Moderating the panel, R. Srinivasan, Co-Chairperson of the MSME Forum at the Bombay Chamber and Director at AIRA Consulting, opened the discussion with a central question: Why is the United States such a crucial market for India, and how will the tariffs affect various sectors?

Elizabeth Master, Associate Director at Crisil Intelligence, responded by framing the US as a cornerstone of India’s export economy. “The US remains our most significant trading partner across various industries, especially in IT services. The new tariffs will have a measurable impact on India’s overall economic growth, even after accounting for recent Goods and Services Tax (GST) reductions,” she said. The effects, she added, ripple beyond the obvious sectors, noting that even IT services – initially considered resilient – have experienced project delays and revenue slowdowns due to broader economic uncertainty.

The gems and jewellery sector, according to Shaunak Parikh, Director at Mahendra Brothers Group and Vice Chairman of the Gem & Jewellery Export Promotion Council (GJEPC), faces acute challenges. “One-third of our exports go directly to the US,” Parikh said. “Front-loading shipments offered temporary relief, but the long-term threat is real. Competing countries are already positioning themselves to take our market share.” He emphasised the human cost, pointing out that the industry employs millions with highly specialised skills. “These are not easily transferable jobs. Layoffs here mean irreversible damage to livelihoods,” he said.

Samir Bhuta, Partner at Shreeji Exim Works LLP and member of the Apparel Export Promotion Council (AEPC), described the situation in the textiles and apparel sector as ‘COVID-like’. “Factories are running at half capacity. Workers are being laid off. The ecosystem – from suppliers to transporters – is collapsing,” he said. On the likelihood of US buyers lobbying on India’s behalf, Bhuta expressed scepticism saying, “They have alternatives. They are already shifting orders and demanding price cuts. Our margins are being squeezed to the bone.”

In contrast, Rajan Raje, Chairperson – MSME Forum, Bombay Chamber & CEO of Nichem Solutions, offered a more tempered view from the chemical industry. “Our exposure to the US is relatively limited,” he said. “Specialty chemicals may adapt better, provided there is support from both buyers and the government.” Raje also highlighted the burden of non-tariff barriers in the European Union, such as the REACH certification, which disproportionately affects MSMEs. “These are costly and time-consuming. We need to explore new markets in Africa and Latin America, possibly using gateway countries like Mexico and Egypt,” said Raje.

Agriculture presented a mixed picture. Abhay Dandwate, Chief Risk Officer and Head of Strategy at the National Bulk Handling Corporation, noted that while marine exports like shrimp are vulnerable, most Indian farmers – engaged in cereals, pulses and edible oils – are less exposed. “Export volumes had actually increased prior to the tariff announcement, but that growth is likely to stall,” he said. Dandwate cautioned against liberalising imports of genetically modified (GM) crops and dairy products from the US, citing political sensitivities and the potential impact on domestic prices.

Steering the conversation towards policy solutions, Srinivasan invited panellists to share their expectations from the government. He urged them to consider both immediate and long-term measures, including liquidity support, easing customs procedures and regulatory compliance, and structural reforms to improve competitiveness.

Bhuta reinforced the need for a pragmatic outlook. “Even with robust government efforts, ratifying and implementing trade agreements is a lengthy process, and that delay does little to support Indian businesses in the short term,” he said, adding that export volumes from alternative markets fall far short of those achievable in the US.

Parikh outlined the industry’s outreach to government authorities, advocating for measures reminiscent of the COVID-19 response. “We need interest equalisation schemes extended, packing credit deferred, and overdraft facilities made available,” he said. He also proposed allowing Special Economic Zone (SEZ) units to sell excess inventory locally under duty, and called for state-level support such as EMI restructuring and enhanced medical insurance for workers.

Stressing on the importance of consistent policy, Bhuta said, “We cannot operate under schemes that change every few months. We need long-term clarity.” He also called for baseline subsidies across textile-producing states and greater support for transitioning to manmade fibres and sustainable practices. “Global markets, especially Europe, will soon demand higher sustainability standards. We must be ready,” he pointed.

Rajan Raje questioned India’s reluctance to pursue a free trade agreement with the US, attributing the delay to political and emotional considerations. “We need a practical, forward-looking approach. Opening up agriculture to competition could prove beneficial in the long run, as demonstrated during earlier phases of liberalisation,” he said.

Dandwate returned to the theme of financial support, calling for emergency credit arrangements similar to those provided during the pandemic. “Policy consistency is essential – not just for farmers, but for traders and allied sectors,” he said.

Master summarised the industry’s predicament saying the current tariff situation is unviable. “Even a reduction to 20 per cent would offer some relief. Diversification is necessary, but we must first address the immediate pain points. With timely action, this crisis could become a catalyst for structural reform,” she said

The panel discussion was followed by an insightful presentation by Shri Vishwajeet G. Chimankar, Deputy Director General of Foreign Trade (DGFT), Ministry of Commerce and Industry, Government of India.

India’s trade strategy for 2025, as outlined by the DGFT, centres on responding to global tariff shifts and expanding export opportunities. “Following steep US tariffs on key Indian goods, the government resumed trade talks with major partners and signed a landmark agreement with the UK. The India–UK CETA eliminates duties on 99 per cent of Indian exports and facilitates professional mobility through simplified visa processes and dedicated quotas,” said Chimankar.

To reduce reliance on the US market, India has launched a Market Diversification Mission targeting 40 countries with high demand for textiles and apparel. Meanwhile, the DGFT’s Trade Connect platform, linked with ONDC and GeM, offers support to MSMEs and artisans in accessing global e-commerce platforms. Exporters are increasingly using platforms like Amazon and Alibaba, alongside digital marketing and virtual trade fairs, to promote their offerings. “These combined efforts aim to strengthen India’s trade balance, attract foreign investment, and lower export costs through regulatory cooperation and streamlined customs procedures,” Chimankar added.

Sandeep Khosla closed the session with a vote of thanks, reflecting on the depth and relevance of the discussion. He noted that the panel had shed light on the multifaceted challenges arising from recent tariff changes, while also underscoring the resilience of Indian industry. Despite concerns over immediate disruptions, speakers agreed that a swift reconfiguration of production capacity was unlikely. There was cautious optimism, he said, around the prospect of remedial measures by November or December, suggesting that the economic fallout may be less severe than initially anticipated. Khosla concluded by thanking all participants for their thoughtful contributions and reaffirmed the Chamber’s commitment to supporting industry through the evolving trade landscape.

(Write to us at editorial@bombaychamber.com)

CSR pioneer Dr Bhaskar Chatterjee lauds Bombay Chamber’s role at its CSR Conclave themed Beyond Giving: Responsible CSR and Due Diligence

Mumbai:

At the recent CSR Conclave 2025 organised by the Bombay Chamber of Commerce & Industry, Dr Bhaskar Chatterjee, former Secretary to the Government of India and currently Senior Advisor at Deloitte India and Dua Consulting, delivered a compelling address on the evolution and future of Corporate Social Responsibility (CSR) in India. The Conclave was themed Beyond Giving: Responsible CSR and Due Diligence.

Widely regarded as one of the architects of India’s CSR framework, Dr Chatterjee, who was the Guest of Honour at the Conclave, reflected on the past decade of progress and the road ahead. He began by acknowledging the Chamber’s role in fostering dialogue around CSR and revisited the origins of India’s CSR legislation. 

Unlike its Western counterparts, India’s approach was shaped by a distinctly Bharatiya ethos, one that embedded social responsibility into the corporate fabric through legal mandates. Dr Chatterjee questioned the initial scepticism surrounding the legislation and highlighted how its unique features, such as board-level oversight and the requirement to allocate a percentage of profits (PoP) to CSR activities, have helped institutionalise the practice.

A key theme of his speech was the importance of linking CSR spending to profitability, thereby ensuring that companies contribute meaningfully without compromising financial stability. He emphasised the role of India’s vast network of non-governmental organisations (NGOs) and civil society organisations in executing CSR programmes, noting that their involvement has been instrumental in reaching underserved communities. Transparency and accountability, he argued, must remain central to CSR efforts, with companies publicly declaring their initiatives and outcomes.

Dr Chatterjee outlined the project-based approach that has become standard in Indian CSR –beginning with baseline surveys and need assessments, followed by structured funding, documentation, monitoring and social impact evaluation. This method, he said, has enabled companies to measure outcomes more effectively and align their efforts with community needs.

The growth of CSR in India has been significant. From just 8,000 companies participating a decade ago, the number has surged to over 28,000. Correspondingly, annual CSR spending has risen from ₹10,000 crore to ₹36,000 crore. Dr Chatterjee projected that this figure could reach ₹50,000 crore by 2030, provided the sector continues to innovate and expand its reach. He noted the emergence of academic programmes and professional courses in CSR as a positive sign of its growing legitimacy and impact.

In his welcome address, Rajiv Anand, President, Bombay Chamber, President, Bombay Chamber and MD & CEO, IndusInd Bank said, “Maharashtra has always been a land of enterprise, innovation, and social consciousness. The state’s growth story has been defined not only by industrial progress but also by its commitment to inclusive and sustainable development. And CSR has played a pivotal role in this journey, complementing government efforts and strengthening communities across the state. “

He added, “Despite progress, several challenges remain like the uneven distribution of CSR funds, with urban and already-developed states receiving more. Inadequate focus on outcome vs. output; underutilisation of funds by many eligible companies and limited capacity of smaller NGOs to meet compliance requirements.”

The highlight of the Conclave was the release of the Chamber’s first edition of the CSR Year Book which featured CSR case studies of 12 projects of leading corporates including Aditya Birla Capital Foundation, Ambuja Foundation, Axis Bank, Deutsche Bank AG, Godrej Consumer Products, Hindustan Unilever Limited, HSBC India, IndusInd Bank, Kotak Mahindra Group, Larsen & Toubro, Mahindra and Mahindra and Siemens.

The Conclave saw an reputed line up of speakers and thought leaders. A Fireside Chat between Luis Miranda, Chairperson and Co-Founder, Indian School of Public Policy and Chairperson, CORO India; Dr. Anand Bang, Advisor to CM, Govt. of Maharashtra and Jayant Rastogi, Global CEO, Magic Bus India Foundation focused on Aligning Purpose with Practice: CSR and Due Diligence. They outlined what corporates should do to be compliant and transformative and stressed on the need to encourage grassroots organisations. 

There were also two panel discussions. The panel on Risk Assessment and Grantee/Partner Selection was moderated by Romit Sen, Senior Vice President, Sustainability, HSBC India and the panelists included Abhejit Agarwal, Senior Vice President & Head – Sustainability and CSR, Axis Bank; Avilash Dwivedi, CSR Head, Mahindra & Mahindra (Automotive and farm Sector); Savita Mundhe, Head –  CSR School Education, JSW Foundation and Ahona Ghosh, General Manager – Sustainability, Godrej Consumer Products.

The second panel was on Call for a Robust Monitoring & Evaluation System for CSR Projects saw panelists Ruchi Khemka, CSR Head, Deutsche Bank AG; Anagha Mahajani, Chief Impact Officer,  Ambuja Foundation; Prachi Nautiyal – Vice President, Grant Management, Workplace Campaigns, Impact Assessment, United Way of Mumbai; Saloni Gupta, Regional Head (Corporate Advisory), Sattva and Manish Kumar, Head – ESG & CSR, ICICI Bank. The moderator was Dr Anantharaman Subramaniyan, Vice President – Head of Strategy, Sustainability, CSR at Siemens, Executive Coach & Mentor.