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Chautala renews offer to Cong, seeking floor test

Congress leader Bhupinder Singh Hooda addresses a press conference, in Bhiwani on Thursday. (ANI Photo)

However, three Jannayak Janta Party (JJP) MLAs met former CM Manohar Lal Khattar at the residence of state Panchayat Minister Mahipal Dhanda at Panipat

Amid the political crisis in Haryana brought on by the withdrawal of support to the BJP government by three Independent MLAs, former deputy chief minister and Jannayak Janta Party (JJP) supremo, Dushyant Chautala, wrote to Governor Bandaru Dattatreya on Thursday, seeking his urgent intervention in ending the prevailing political deadlock and impose President’s Rule if the incumbent was unable to prove its majority in the Assembly.

In his letter, Dushyant urged the Governor to seek a floor test at the earliest and impose President’s Rule if the government failed to prove its majority in the House.

“Given the developments and the clear stance of the party, i.e., JJP, which does not extend its support to the present government and is open to backing any other political party for government formation, it is evident that the incumbent government no longer commands a majority in the legislative assembly,” Dushyant wrote to the Governor.

Earlier in the day, the JJP chief renewed his offer of ‘outside support’ to the Congress in bringing down the incumbent BJP government, saying that the Governor is vested with the power to order a floor test, adding that if the government doesn’t have the majority, he should enforce President’s Rule in the state without wasting a second’s time.

Speaking to ANI, the former deputy CM said, “The government that was formed two months ago is now in a minority after two MLAs, who supported them–one from the BJP and the other an Independent MLA–resigned. Three Independent MLAs, who were with them, also withdrew support and conveyed the same to the Governor. The JJP has clearly stated that in the event of a No Confidence Motion against this government, we will support it. We have also written to the Governor, clearing our stand. Now, the onus is on the Congress to take this step (seek a floor test). They have to decide if they would do what’s necessary to corner and bring down this government.”

On May 7, the Haryana government suffered a big jolt after three independent MLAs withdrew support from the Nayab Saini government, pushing the dispensation into a minority. The three MLAs were Randhir Golan from Pundri, Dharmpal Gonder from Nilokheri and Sombir Singh Sangwan from Charkhi Dadri. All of them decided to extend support to the Congress.

However, the BJP appeared confident of retaining power, with former chief minister Manhora Lal Khattar claiming that several leaders of the Congress and the JJP were in touch with his party.

The development came amid the Lok Sabha polls and within two months after Nayab Saini took over as CM, replacing Khattar.

In the House of 90 members, the BJP has 39 MLAs, the Congress 30, the Jan Nayak Janata Party has 10, the Haryana Lokhit Party (HLP) has one, and the Indian National Lok Dal has one, along with seven Independents.

The BJP, which had 41 MLAs initially, were reduced to 39 after the Karnal and Rania seats fell vacant following the resignation of two MLAs.

Six of the seven Independent MLAs support the incumbent BJP earlier. However, with three Independents withdrawing support, the BJP, at present, has the support of only three Independents and one HLP MLA, taking its strength in the Assembly to 43 MLAs.

All 10 Lok Sabha seats in the state would go to the polls in the penultimate phase, on May 25.

Three JJP MLAs meet Khattar

Days after three Independent MLAs in Haryana withdrew their support to the Bharatiya Janata Party government in the state, three Jannayak Janta Party (JJP) MLAs met former Chief Minister Manohar Lal Khattar at the residence of state Panchayat Minister Mahipal Dhanda at Panipat on Thursday.

According to reports, JJP’s Devender Singh Babli, Jogi Ram Sihag and Ramniwas Surjakhera reached Dhanda’s residence in their respective vehicles.

However, Dhanda later clarified that the JJP MLAs had come to meet his family to inquire about the well-being of his ailing nephew.

Amid the political crisis in Haryana brought on by the withdrawal of support to the BJP government by three Independent MLAs, former deputy chief minister and JJP supremo, Dushyant Chautala, wrote to Governor Bandaru Dattatreya on Thursday, seeking his urgent intervention in ending the prevailing political deadlock and impose President’s Rule if the incumbent was unable to prove its majority in the Assembly.

Earlier in the day, the JJP chief renewed his offer of ‘outside support’ to the Congress in bringing down the incumbent BJP government.

On May 7, the Haryana government suffered a big jolt after three independent MLAs withdrew support from the Nayab Saini government, pushing the dispensation into a minority. The three MLAs were Randhir Golan from Pundri, Dharmpal Gonder from Nilokheri and Sombir Singh Sangwan from Charkhi Dadri. All of them decided to extend support to the Congress.

However, the BJP appeared confident of retaining power, with former chief minister Manhora Lal Khattar claiming that several leaders of the Congress and the JJP were in touch with his party.

The development came amid the Lok Sabha polls and within two months after Nayab Saini took over as CM, replacing Khattar.

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Air India Express crew agree to restore ops

All unhappy crew members are ready to join office with immediate effect and management is ready to revoked all termination letter…reports Asian Lite News

In a meeting that continued for about four and a half hours regarding the human resource crisis at Air India Express, an agreement was reached with the crew members addressing all their concerns.

Both the crew and management members have agreed to restore normal airline operations. Consequently, the termination of 25 crew members has been overturned.

All unhappy crew members are ready to join office with immediate effect and management is ready to revoked all termination letter, crew members said.

The meeting was held at the office of the Chief Labour Commissioner (CLC). Four officers, alongside the Chief Human Resource Officer of Air India Express, were also present at the meeting.

Approximately 20 senior crew members also participated.

Should the crew members’ demands remain unmet, another meeting is scheduled to convene on May 28.

About 85 flights were cancelled due to sudden sick leave calls from crew members.

On Wednesday, Air India Express apologised for the inconvenience after its flights, most of them international, were either cancelled or delayed due to senior crew members calling in sick.

The sudden shortage of crew members led to flights being grounded, affecting both domestic and international routes. Sources said that some senior crew members switched off their mobile phones just before flight operations, citing health issues.

The Ministry of Civil Aviation had called for a detailed report from Air India Express regarding the matter and had urged the airline to promptly resolve the issues.

This incident at Air India Express comes shortly after Vistara encountered similar issues in April, when hundreds of flights were affected due to pilots calling in sick.

“On appeal of the Chief Labour Commissioner (Central) the management agreed to reinstate 25 cabin crew who have been terminated on May 7 and May 8 for reporting sick as a concerted action immediately. The management will review the cases of these cabin crew as per service regulations,” it further read.

“The representatives of the management assured that all the issues of cabin crew raised before the management and during conciliation proceedings will be looked into and resolved. The conciliation proceeding is adjourned and fixed for May 28 at 3 p.m.,” the note added.

Over 80 flights were cancelled on Thursday following the mass sick leave taken by the cabin crew of Air India Express, said an official.

“We will be operating 283 flights today. We have mobilised all resources and Air India will support us by operating on 20 of our routes. However, 85 of our flights stand cancelled and we urge our guests booked to fly with us to check if their flight is affected by the disruption before heading to the airport,” said the Air India Express spokesperson.

“We are pleased with the progress we made at the conciliation meeting and welcome our cabin crew colleagues back at work. This will help us swiftly restore our flight schedule and fulfil our commitments to our guests. We sincerely apologise to those inconvenienced by these unintended disruptions. It is not in keeping with our usual service standards, and we will review it internally to ensure accountability. As we gradually bring our operations back to normalcy, we urge our guests booked to fly with us to check their flight status before heading to the airport. If their flight is cancelled, or delayed beyond 3 hours, they may opt for a full refund or reschedule to a later date without any fees,” the spokesperson added.

The breakthrough will come as a relief to passengers, hundreds of whom were left stranded, especially on Wednesday when the sudden cancellations began. Air India Express CEO Aloke Singh had written to employees on Wednesday and said that the number of flights being operated will be reduced over the next few days, but all cabin crew members are expected to return to work immediately and services are likely to be normalised in three-four days.

An Air India Express spokesperson said, “We are pleased with the progress we made at the conciliation meeting and welcome our cabin crew colleagues back at work. This will help us swiftly restore our flight schedule and fulfil our commitments to our guests. We sincerely apologise to those inconvenienced by these unintended disruptions.”

“As we gradually bring our operations back to normalcy, we urge our guests booked to fly with us to check their flight status before heading to the airport. If their flight is cancelled, or delayed beyond 3 hours, they may opt for a full refund or reschedule to a later date without any fees,” the spokesperson added.

The airline had to cancel flights after 300 senior cabin crew members began reporting sick at the last minute starting Tuesday night and then switched off their cellphones. What precipitated the crisis were new employment terms and modifications in the compensation package, sources had said. Crew members had also alleged a lack of equality in the treatment of staff.

It had come to light on Thursday that the airline had sacked 25 of the crew members who had called in sick. The others said they would not return to work until they were reinstated.

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US Denies Meddling in Indian Elections

“We don’t involve ourselves in elections in India, as we don’t involve ourselves in elections anywhere in the world,” said US official

The US has denied any involvement in India’s ongoing Lok Sabha elections, saying that it has adopted the same policy for such events taking place anywhere in the world.

“Of course, we don’t involve ourselves in elections in India, as we don’t involve ourselves in elections anywhere in the world. Those are decisions for the people of India to make,” US State Department Spokesperson Matthew Miller said during a media briefing in Washington on Thursday.

Miller was responding to a question asking for his reaction on Russian Foreign Ministry spokesperson Maria Zakharova’s comments on Wednesday where she had said that the US is trying to “complicate” the ongoing Lok Sabha elections in India, by making “regular unfounded accusations” on threats to religious freedom in the country.

The US State Department official also refused to react to the ongoing investigation on the alleged plot to assassinate Sikh separatist leader Gurpatwant Singh Pannun.

“There is a publicly-returned indictment that contains alleged facts. They’re allegations until they’re proven before a jury that anyone can go and read. I won’t speak to them here because, of course, it’s an ongoing legal matter. And I’ll leave it at that,” said Miller.

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Jaishankar’s Bid to Boost India-Maldives ties

Jaishankar mentioned India extending financial support to Maldives “on favourable terms” in the past and also mentioned New Delhi being the “first responder” on numerous occasions….reports Asian Lite News

India on Thursday reminded Maldives that it has been a key provider of development assistance to the island nation and several projects funded by New Delhi have benefited the lives of thousands of people in the country.

“India has been a key provider of development assistance to the Maldives. Our projects have benefited the lives of people of your country; contributed directly to the quality of life. They range from infrastructure projects and social initiatives to medical evacuation and health facilities,” External Affairs Minister S. Jaishankar said during his meeting with Moosa Zameer, Foreign Minister of Maldives, who is on his first official visit to India since assuming office.

In his opening remarks, Jaishankar mentioned India extending financial support to Maldives “on favourable terms” in the past and also mentioned New Delhi being the “first responder” on numerous occasions.

“Our cooperation has also enhanced the security and well-being of your country through shared activities, equipment provisioning, capacity building and training. It is in our common interest that we reach an understanding on how best we take our relationship forward,” said the EAM.

The meeting, Jaishankar stated, was an opportunity to discuss the mutual relationship and chart out future directions.

“As close and proximate neighbours, the development of our ties is obviously based on mutual interests and reciprocal sensitivity. As far as India is concerned, these are articulated in terms of our ‘Neighbourhood First’ policy and ‘SAGAR’ vision,” he said.

In spite of the recent sour ties between the two neighbouring countries after President Mohamed Muizzu came to power in Maldives last year, India recently announced limited exports of essential goods including sugar, wheat, rice, onions and eggs as a goodwill gesture.

“A pleasure to meet with Dr. S. Jaishankar, Minister of External Affairs of India, in New Delhi. We reflected on our long history of bilateral partnership shared by mutual respect and understanding. We exchanged perspectives on increasing engagement and exchanges between Maldives and India, both bilaterally and in the international arena,” Zameer posted on X after the meeting with Jaishankar.

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Russia Accuses US of Interfering in Indian Elections

Russia Accuses US of Meddling in Indian Affairs, Alleges Election Interference…reports Asian Lite News

Targeting the US for interfering in India’s internal affairs, Russia has said that Washington is trying to “complicate” the ongoing Lok Sabha elections, including by making “regular unfounded accusations” on threats to religious freedom in the country.

Reacting strongly to the recent report released by the United States Commission on International Religious Freedom (USCIRF), Russian Foreign Ministry spokesperson Maria Zakharova said Washington not only “groundlessly” accuses India, but also many other states.

“Regular unfounded accusations by the United States against New Delhi – we see that they groundlessly accuse not only India, but also many other states – of violating religious freedoms are a reflection of the United States’ misunderstanding of the national mentality, the historical context of the development of the Indian state and disrespect for India as a state,” Zakharova told mediapersons in Moscow on Wednesday.

“I am sure that this also comes from the neocolonial mentality, the mentality of the colonial period, the period of the slave trade, and imperialism… This does not only apply to India. The reason is the desire to unbalance the internal political situation in India in order to complicate the general parliamentary elections taking place in the country. Of course, this is part of interference in India’s internal affairs,” added the Russian MFA spokesperson.

During the regular media briefing, Zakharova was also asked about a report published in a US newspaper that accused an Indian official of a “foiled assassination” plot on foreign soil.

Russian Foreign Ministry spokeswoman Maria Zakharova. (Credit: Twitter/ @mfa_russia)

“According to the information we have, Washington has not yet provided any reliable evidence of the involvement of Indian citizens in the preparation of the murder of a certain G.S. Pannun. Speculation on this topic in the absence of evidence is unacceptable,” stated Zakharova.

Last week, India slammed the USCIRF report, saying that the agency’s efforts to interfere in India’s ongoing elections will never succeed.

“They have been releasing their reports earlier as well, in earlier years. The USCIRF is known as a biased organization with a political agenda. They continue to publish their propaganda on India masquerading as part of an annual report. We really have no expectation that USCIRF will even seek to understand India’s diverse, pluralistic and democratic ethos. Their efforts to interfere in the largest electoral exercise of the world will never succeed,” MEA spokesperson Randhir Jaiswal told reporters in New Delhi.

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Head, Sharma’s Heroics Seal Quick Victory

SRH in this season of IPL have scored with an economy of 11.37 in the power play overs, and yet again reached 100 under six overs only…reports Asian Lite News

Travis Head hammered 30 balls 89 and Abhishek Sharma slammed 75 off 38 as Sunrisers Hyderabad thrashed Lucknow Super Giants by ten wickets and chased down the target of 166 runs in just 9.4 overs overs at Rajiv Gandhi International Cricket Stadium, here on Wednesday.

Abhishek and Travis completely destroyed the LSG bowling attack.

SRH in this season of IPL have scored with an economy of 11.37 in the power play overs, and yet again reached 100 under six overs only. LSG opened their bowling with Krishnappa Gowtham and Yash Thakur expectedly, but SRH got off to a flyer.

Travis hits Gowtham for 22 runs followed by Abhishek taking four fours off Thakur.

The hitting never stopped even after the fifties, as both batters were on a destructive mode to help SRH chase down the target in less than 10 overs.

Head smashed a half-century and this time in just 16 balls. It was some astonishing hitting from Head, who was just picking his spots and sending them there no matter where the ball is pitched, no matter the pace. One of the incredible was a back-foot off-drive off Ravi Bishnoi for a huge six over long-off.

Then there was a swat down the wicket straight of mid-off off Naveen-ul-Haq. He was 58 off 18 now, and went past 500 for the tournament, and also had hit the most fours in this IPL. SRH were 87 for 0 in five overs. That was four times what LSG were at this point.

In all T20 cricket, only seven times have 100 or more been scored in the powerplay, SRH have the top two scores, both in this year of IPL. It seemed slow by comparison, but Abhishek Sharma reached his fifty in 19 balls with a straight six off Ayush Badoni as SRH reached 120 for 0 in 6.3 overs.

As many as 14 sixes and 16 fours were hit in the chase which meant every second ball reached the boundary.

Earlier, Bhuvneshwar Kumar led the way with figures of 4-0-12-2, conceding only in denominations of one, completely shutting down the LSG top order, which scored just 66 in the first 11.2 overs. The unbeaten 99-run stand between Ayush Badoni and Nicholas Pooran guided LSG to a respectable total.

Brief score:

Lucknow Super Giants 165 for 4 in 20 overs (Ayush Badoni 55 not out, Nicholas Pooran 48 not out; Bhuvneshwar Kumar 2-12, Pat Cummins 1-47) lost to Sunrisers Hyderabad 167 for 0 in 9.4 overs (Travis Head 89 not out, Abhishek Sharma 75) by ten wickets

Mumbai Indians Knocked Out

The five-time champions Mumbai Indians get knocked out from the Indian Premier League (IPL) 2024 after Sunrisers Hyderabad thrashed Lucknow Super Giants by ten wickets, here at Rajiv Gandhi International Cricket Stadium, on Wednesday.

The Hardik Pandya-led side has only won four games out of 12 thus far, falling short of expectations. Even if MI wins their next two games, they will only have 12 points after eight losses already.

But SRH’s victory ensured they advanced to 14 points in the standings. With DC and LSG set to face on May 14, one of the two would also get 14 points which means MI will not be able to make the cut.

Due to the fact that the loser will be eliminated from the competition, the PBKS vs RCB match is now a “do or die” situation for both sides.

Earlier, Travis Head hammered 30 balls 89 and Abhishek Sharma slammed 75 off 38 as Sunrisers Hyderabad thrashed Lucknow Super Giants by ten wickets and chased down the target of 166 runs in just 9.4 overs at Rajiv Gandhi International Cricket Stadium, here on Wednesday night.

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Can Vijay Shekhar Sharma Fix Paytm’s Woes?

In the midst of the changes, Paytm’s CEO, Vijay Shekhar Sharma, is stepping up significantly to collaborate directly with the new senior leadership…reports Asian Lite News

The shares of Paytm have crashed about 50 per cent this year, amid high-profile exits, the RBI ban on certain businesses of Paytm Payments Bank Ltd (PPBL), and fresh reports about some lending partners revoking loan guarantees due to repayment defaults from customers.

The Paytm stock closed at Rs 317.15 on Wednesday, a decline of another 5 per cent and breaking its all-time low of Rs 318 on February 16 this year.

As the share price continues to hit the lower circuit amid fresh uncertainties, the market capitalisation of One 97 Communications, the parent company of Paytm, has declined to about $2.5 billion.

The digital payment services major was once valued at nearly $20 billion, at the time of its initial public offering (IPO) in 2021. The stock has been tumbling since then, especially since January this year, when the Central Bank acted against certain businesses of the Paytm Payments Bank.

Meanwhile, top-level exits continue at Paytm.

Ajay Vikram Singh, chief business officer (CBO) of the UPI and user growth vertical, Bipin Kaul, CBO of offline payments, and Sandeepan Kashyap, CBO of the consumer payments vertical, have stepped down amid “ongoing restructuring”.

These senior executives moved on after the sudden resignation of Bhavesh Gupta, President and COO at Paytm, who has taken a career break due to “personal reasons”, and will be transitioning to an advisory role.

Other senior exits at the company in recent months include Paytm Payments Bank MD and CEO, Surinder Chawla, One 97 Communications’ chief marketing officer, Sumit Mathur, and Praveen Sharma, senior vice president of business, according to reports.

Amid the upheaval, Paytm CEO Vijay Shekhar Sharma is now taking charge in a big way, to work directly with the new senior leadership.

“We are committed to ensuring sustained growth across key business verticals as we are going through a restructuring initiative that signals a reinvigorated approach under Paytm’s CEO. These changes are part of our approach to strengthen Paytm’s next line of leaders,” the company said in a statement.

The company plans to expand its leadership team to build a large and profitable payment and financial services distribution business. “These robust leaders will work directly with the CEO and other senior management leaders fostering innovation and strengthening the group structure for sustainability and regulatory compliance,” according to the company.

Paytm.

UPI migration On Track

In an official statement, fintech company Paytm on Wednesday informed that it is actively collaborating with its banking partners to ensure a smooth transition to its new Unified Payments Interface (UPI) platform for merchants and consumers alike.

Amid dynamic market challenges, the company said it remains resilient, steadfast in its commitment to fortify the UPI ecosystem and expand financial inclusion across India.

A Paytm spokesperson said, “We are collaborating with our banking partners to facilitate the migration of both merchants and consumers, which is progressing steadily. Our core business model focuses on acquiring consumers and merchants and offering them a range of financial services.”

“With new payment partnerships with leading banks and financial institutions, we have expanded opportunities to enhance our services. We are committed to growing the UPI ecosystem in partnership with NPCI, extending it to every nook and corner of India,” the spokesperson added.

This transition period is essential to ensure compliance with regulatory guidelines and to seamlessly transition existing users to new UPI handles.

Recognizing the vital role of UPI in India’s digital economy, Paytm said it remains committed to maintaining its market share and fostering a competitive ecosystem.

Despite temporary constraints on new customer onboarding, Paytm affirms its status as a preferred mobile payments platform among users and is actively taking significant steps to broaden its market presence.

To empower its wallet users, Paytm said it has enabled small-value payments through the UPI Lite feature on its app. UPI Lite not only speeds up processing times but also keeps bank statements clutter-free, making it easier and quicker for users to handle transactions up to a maximum limit of Rs 500 per transaction.

Additionally, the company is focusing on integrating RuPay Credit Cards on UPI. This initiative will allow customers to more frequently use their credit cards while benefiting merchants by increasing consumption and expanding their participation in the credit ecosystem through the acceptance of credit card payments.

According to the Company’s statement, as Paytm looks ahead it remains focused on its mission to empower millions of Indians with convenient and secure digital payment solutions.

The Company said, by fostering collaboration with banking partners and prioritizing customer satisfaction, Paytm is poised to emerge stronger from this transitional phase, reaffirming its position as a trailblazer in India’s digital payments revolution. (ANI)

ALSO READ: More high-level exits at Paytm

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Lam Research’s Expansion Plans in India

Lam Research Corporation pledged nearly Rs 241 crore in software licenses to upskill 2,800 students in the country…reports Asian Lite News

As India begins its ambitious semiconductor journey under the vision of Prime Minister Narendra Modi, US-based Lam Research Corporation on Wednesday announced plans to expand its global chip fabrication equipment supply chain to include India.

The company said in a statement that it is exploring India-based suppliers who can collaborate to fulfill the need for precision components, custom parts, high purity gas delivery systems and other assemblies that go into cutting-edge semiconductor wafer fabrication equipment.

“By enhancing Lam’s strong global supply infrastructure with capabilities from local suppliers, integrators and other strategic providers, we look to enhance the flexibility of our supply chain, while further supporting the semiconductor ecosystem in India,” said Rangesh Raghavan, corporate vice president and general manager at Lam Research India.

Last month, Lam Research Corporation, a global supplier of innovative wafer fabrication equipment, pledged nearly Rs 241 crore in software licenses to upskill 2,800 students in the country, in collaboration with the Indian Semiconductor Mission (ISM) and Indian Institute of Science, to prepare a future-ready workforce.

As demand for semiconductors increases, there is an even greater need for collaboration and global engagement of expertise, intellectual property, materials, and talent, said Lam, which has been operating in India for more than 20 years.

“Leveraging the infrastructure and talent of our India Center of Engineering, our new proactive initiative to drive supply chain growth in India also has the capacity to contribute to improved performance, sustainability, and enhanced capabilities for our customers regionally and across Asia,” said Karthik Rammohan, group vice president and head of global operations at Lam Research.

PM Modi laid the foundation stone for three semiconductor projects worth Rs 1.25 lakh crore in March.

According to the government, the first ‘Make in India’ chip will be available in December, from the US-based Micron Technology’s semiconductor plant in Gujarat.

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Transforming MSMEs: Fueling ‘Viksit Bharat’

Playing a major role for economic growth, the MSME sector provides more than 112 million jobs, the second largest after agriculture in India, writes Surya Tiwari

While tabling the interim budget for 2024-25 in Parliament in Febraury, Finance Minister Nirmala Sitharaman said the government is working to make India the third largest economy of the world in the next few years and a developed nation by 2047. 

In this journey, how Micro, Small and Medium Enterprises (MSMEs) can play a role is important,  considering its largest presence, contribution in output, employment, and export promotion.
 
Importance of MSME
There are a total 63.39 million MSMEs enterprises in India. The sector provides more than 112 million jobs, the second largest after agriculture. In 2022-23, the contribution of MSMEs in total gross domestic product (GDP) was 29.2 percent. Its share in manufacturing output and export were respectively 36.2 per cent and 43.6 percent.
 
As per the Udyam Registration Portal, which gives the live record of data, as on February 29, there are 38.52 million registered enterprises which provide employment to 174.74 million people.  


 
Turnaround in MSME sector
 
Turnaround in the MSME sector came in the beginning of the 21th century as the small-scale sector was considered as the ‘growth sector of the millennium’. Some of the major decisions taken were encouraging FDI, credit guarantee, rehabilitation of sick units, technology and infrastructure development, and marketing support.

To make this vision possible, the government carved out the Ministry of Small Scale, separating it from the Ministry of Agro and Rural Industries. These two were jointly set up as a ministry in 1999. In 2006, the legal backing was given to the sector by promulgating MSME Development Act.
 
Then on May 9, 2007, subsequent to an amendment of the Government of India (Allocation of Business) Rules, 1961, erstwhile Ministry of Small Scale Industries and the Ministry of Agro and Rural Industries were merged to form the Ministry of Micro, Small and Medium Enterprises.
 
These moves provided not just the recognition to the sector but also combined its various tiers i.e., tiny (micro), ancillary, industry related service and business enterprises, export-oriented units, women enterprises, and small-scale industry, with demarcation based on investment criteria.
 
In the post Covid-19 period, the government has made it mandatory for central ministries/departments/central public sector enterprises to procure a minimum 25 percent annually from micro and small enterprises.
 
There are 358 items reserved for procurement and in FY 2023-24, up till December, the procurement was 35 percent. Another significant area of intervention is access to technology. The purpose is to increase the reach of MSMEs and make them achieve excellence both nationally and globally.
 
The component includes certification of MSMEs in lean manufacturing, zero effect zero defect (ZED), facilitating incubation, design, and Intellectual Property Rights (IPR) and tools and consultancy support. The emphasis is being laid on dealing with the issues of delayed payments to MSMEs, which very much affect their working as they operate at a low level of capital.

The government has launched MSME Samadhan portal for filing the grievances and monitoring outstanding dues to MSMEs from buyers of goods and services. 

There is also a MSME Champion portal that covers many aspects of e-governance such as guidance and advisory service with respect to finance, market, technology, raw-material etc, helping in navigating through various schemes, connecting with officials and so on.


Promotional measures
 
To revive the sector, the government introduced ‘Atmanirbhar Bharat Abhiyan,’ and offered Rs 20,000 crore as subordinate debt to provide equity support to the stressed MSMEs; Rs 50,000 crore through Fund of Funds (FoF) for capacity augmentation; Rs 3 lakh crore as collateral free automatic loans to benefit millions of people involved in the MSME sector.
 
To create more opportunities for domestic platers, the government also disallowed global tenders in procurements up to Rs 200 crore and made clearing of MSME dues by the government and public sector units within 45 days mandatory.
 
The long- term vision of the government is to make MSMEs a competitive, sustainable, and innovative sector. The government is providing credit support, skilling, and infrastructure. Self-Reliant India Fund is one such mechanism to provide growth capital to the viable and high growth MSMEs across the country.

Together with financial support, the government is very much concerned about market access, design, technology, and quality control. Some of the measures adopted include increasing access to markets through raising participation in national and international trade fairs and exhibitions, promoting e-commerce, training on packaging and branding, barcoding, connecting with GeM (Government e marketplace), support in setting up of retail outlets.


 
Earlier phase
 
Prior to independence and immediately after that, expansion and modernisation have been the guiding principles of national leadership. The interim report of the National Planning Committee, set up in October 1938, emphasized on improvement in technology in the sector.
 
In the first meeting of All India Cottage Industry Board held in December 1948, the then industry minister Syama Prasad Mukherjee gave major focus on adoption of modern technologies for small industries. Although modernisation was focused, the main thrust was given to protect the traditional village/cottage industry.
 
In fact, protection became the main policy preoccupation as reflected in Industrial Policy, 1948 and First Five Year Plan (FYP) of 1951. Protective measures included reservation (better known as infant industry measures) in the sense that large scale industries were discouraged to set up units in a number of sectors.
 
With the adoption of Ford Foundation Team’s recommendation in 1953, the government started laying emphasis on promotional measures in terms of skilling, finance, technology, and marketing. Several organisations such as Small-Scale Industry Board, Central Small Industry Organisation, Small Industries Service Institutes and National Small Industries Corporation were set up for this purpose.

Parallel to this, the State Small Scale Industries Board was also set up. State Finance Corporations also came into being in many states by 1956. So, at the beginning of the second FYP (1956), the policy and organizational set up in relation to the small scale sector was crystallized.
 
At the time of economic liberalisation in 1991, 800 plus items were reserved for the small scale sector. However, economic reforms of 1991 initiated several measures including gradual de-reservation, foreign participation, infrastructure development and export promotion of this sector.


 
Conclusion
 
The sector is growing and becoming competitive in terms of investments it is receiving. In Tamil Nadu, for instance, of the total Rs 6.63 lakh crore pledged at Tamil Nadu Global Investor Meet 2024, nearly 10 percent (Rs 0.6 lakh crore) has been received by the MSME sector.
 
Likewise in Gujarat, of the total investment intentions of Rs 45.2 lakh crore registered between February 2019 and January 2024, Rs 1.96 lakh crore is pledged for the MSME sector.
 
(The writer is an Assistant Professor at ISID, a Delhi-based public-funded, non-profit autonomous institution; views expressed here are her own.) – India News Network

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Deadline Nears for UPI Market Share Cap

For the month of April, PhonePe led the UPI market with close to 49 per cent share across P2M (person to merchant) and P2P (person to person) transactions….reports Asian Lite News

As digital payment platforms, PhonePe and Google Pay, continue to have a duopoly in the Unified Payments Interface (UPI) market, the deadline by the National Payments Corporation of India (NPCI) to implement a 30 per cent market share cap on UPI services providers inches closer. Will NPCI implement or extend the deadline?

For the month of April, PhonePe led the UPI market with close to 49 per cent share across P2M (person to merchant) and P2P (person to person) transactions.

The company has maintained the top position in UPI transactions since November 2020.

On the other hand, Google Pay clocked 38 per cent UPI market share in April.

Meanwhile, Paytm’s market share in the UPI ecosystem came down to 8.4 per cent in April, a third consecutive drop for the fintech major every month.

To control such dominance by a few players in the UPI ecosystem, the NPCI had, in 2022, proposed the 30 per cent market share cap for UPI payment apps.

Back then, existing players were asked to restrict their market share to the mentioned limit within two years.

However, the market cap deadline was never implemented and the deadline to introduce the limit is December this year.

According to experts, the NPCI will review the UPI deadline by the end of this year and is most likely going to extend the deadline.

It is also “highly unlikely” that either the Reserve Bank of India (RBI) or the Ministry of Finance will advise the NPCI to issue a circular to enforce the market cap.

“Such a circular would likely face legal challenges and may not hold up in court,” they said.

When reached, NPCI did not immediately comment.

Meanwhile, RBI Governor Shaktikanta Das on Wednesday held a meeting with major stakeholders in the UPI ecosystem including banks, National Payments Corporation of India (NPCI), third party application providers and technology service providers during which potential strategies for further expanding the reach of UPI were discussed.

“The various suggestions received will be examined, and suitable action will be initiated in due course,” the RBI said.

There were wide-ranging discussions on various aspects to widen and deepen the adoption and usage of UPI at the meeting which was also attended by Deputy Governor T. Rabi Sankar along with senior officials of RBI.

The stakeholders shared their suggestions on strategies for scaling up of UPI infrastructure and expanding the products portfolio. The challenges being encountered by the ecosystem and innovative solutions for addressing them came up during the discussion, according to a RBI statement.

There was also brainstorming on innovative ideas to integrate potential users into the digital payments ecosystem.

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