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    MSME BUDGET

    Liquidity unlocked, access denied: With rating rules, how TReDS leaves most MSMEs behind

    Despite the government’s TReDS push, experts say the RBI’s move to ease onboarding lacks clarity as credit ratings continue to be a key bottleneck, limiting MSME participation.

    TReDS tweak to ease MSME credit flow amid global pressure

    Banks are set to boost credit flow to MSMEs as regulators ease onboarding for the Trade Receivables Discounting System (TReDS). This move aims to improve liquidity and working capital efficiency for small businesses facing global economic strains. Revised guidelines and government mandates further support this shift towards dynamic, cash flow-based financing, crucial for timely payments and business growth.

    As India's MSME sector matures, IDBI Bank's Sumit Phakka says the lending framework must keep pace

    India's small businesses are now driving economic growth. New government budgets are boosting MSME financing and support. Digital tools are helping banks understand these businesses better. This shift is enabling more MSMEs to access credit and contribute to 'Make in India' and 'Make for the World' initiatives. Defence and auto components are key growth areas.

    IDBI Bank DMD Sumit Phakka | MSME Lending, Budget 2026 & Credit Growth Strategy
    MSMEs seek force majeure relief amid Gulf war disruptions

    Small businesses supplying the government are seeking relief from contract penalties. They want the Centre to invoke force majeure due to global supply chain issues stemming from the Gulf war. This mirrors measures taken during Covid-19. The government is examining these requests. Exporters are also receiving support through schemes and extended credit periods.

    Will the coming earnings season(s) ring in more trouble for India Inc and investors?

    When a large, diversified group with exposure across autos, IT, hotels, retail, consumer, industrials, aviation, and infrastructure starts preparing internally for cost pressure and slower demand, it is probably a signal that things will get tough. This is still an inference, but a grounded one: If a conglomerate with that breadth is belt-tightening, the risk is unlikely to be isolated to one sector. And that is something one should not ignore.

    The Economic Times
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