Rajkot has a long and proud history of Indian manufacturing, built on the hard work of small and medium enterprises. For decades, local workshops have produced reliable, high-quality engineering goods that are used across the country. This steady progress has shaped Rajkot into a trusted manufacturing hub, where skills are passed down through generations and industry continues to thrive.
This strong foundation set the stage for the recent SME Summit held in the city. Entrepreneurs, industry experts, and policymakers came together to discuss how Rajkot’s local strengths can drive wider growth in Indian manufacturing. In this blog, we will break down these lessons and share practical insights for MSME businesses and entrepreneurs who want to grow from a local unit into a successful national presence.
What is the ET Make in India SME Regional Summit?
The ET Make in India SME Regional Summit is a nationwide initiative creating exciting opportunities for MSME growth in India. Held across twenty cities, it gives MSME businesses the chance to meet industry leaders and policymakers, share their real challenges, and learn practical ways to grow. The summit also highlights funding options, government schemes, and innovative ideas that can help small businesses thrive.
Together, these efforts make the summit a valuable platform for MSMEs. It provides clear takeaways and practical lessons for businesses that want to strengthen their foundation and confidently move toward the next stage of growth.
Strategic Insights into the Policy and Economic Landscape of 2026
The summit opened with a discussion on the current economic landscape and the role of government policies in driving MSME growth in India. With MSMEs contributing around 30% of GDP and providing employment to over 330 million people, the focus is now shifting toward building long-term strength through better infrastructure, innovation, and research.
- Budget 2026 Priorities: The Union Budget 2026 places strong emphasis on MSMEs with increased support for research innovation and infrastructure development across the country.
- India-US Trade Impact: Recent trade agreements between India and the United States are expected to create new opportunities for MSMEs, allowing Indian manufacturers to become part of global supply chains.
- Champion Status for MSMEs: MSMEs have been given champion status along with a ₹10,000 crore growth fund to provide stability and support business expansion.
- Government Support Ecosystem: Government bodies such as the National Small Industries Corporation are helping MSMEs by offering discounted input materials, easier access to credit, and support services to stay competitive.
Highlights and Lessons on Business Finance for MSMEs
As the summit progressed, the focus shifted to a basic but crucial challenge for MSMEs, which is access to finance. Despite strong policy support, many MSMEs struggle to grow due to limited access to MSME loans, making timely and affordable credit a key challenge. The discussions made it clear that closing this financing gap is key to helping MSMEs turn opportunities into long-term growth.
- Beyond Collateral: Traditional collateral requirements continue to limit micro enterprises, reinforcing the need for more flexible and growth-focused lending approaches.
- Policy-Backed Credit: Mitesh Ladani, Joint Commissioner of Industries, explained how government-backed programmes are making MSME loans more accessible, reducing risk for lenders and helping businesses secure funding.
- Banks as Partners: Nagaraj Garla of IDBI Bank emphasised that as MSMEs expand beyond local markets, banks must evolve from being just lenders to becoming long-term financial partners.
To effectively address these financing challenges, MSMEs need access to credit that is both timely and affordable. LendingKart supports this need by offering collateral-free business loans at reasonable interest rates. Through technology-driven credit assessment, it helps MSMEs secure funding, manage cash flow, invest in growth, and expand with confidence.
Also Read- How are India’s new FTA creating export credit opportunities for MSME IN 2026
The Role of Capital Markets in Scaling Up
As MSMEs grow, their goals often go beyond what regular bank loans can support. While loans help in the early stages, businesses that want to expand at a national level usually need larger funding without the pressure of monthly interest payments. This is where capital markets become an important option.
Radha Kirthivasan from BSE India shared that SME listings on the stock exchange are increasing steadily. Earlier, only large companies could raise money from the markets, but today, a dedicated SME platform allows smaller businesses to raise funds from investors who believe in their vision. This helps MSMEs move from being privately run businesses to more professionally managed companies.
This growing trust is clearly seen in the numbers. In 2021, only 59 SME issues were listed, while by 2025, the number increased to 269. Funds raised during this period also grew sharply from around ₹300 crore to nearly ₹12,000 crore. Apart from raising money, listing also encourages better record-keeping, transparency, and accountability. This makes MSMEs more reliable in the eyes of large partners and quality customers, making capital markets a strong growth path for businesses aiming to build long-term value.
Innovation and Integration for MSMEs Growth
Building on the idea of using capital markets for growth, the summit also emphasised that funding alone is not enough for MSMEs to succeed. Continuous innovation is key. Raj Hadvani of Gopal Namkeen shared how his company used automation to reduce costs while maintaining consistent quality. The key takeaway is that small, consistent innovations can significantly boost growth and competitiveness.
Integration with the local manufacturing ecosystem is another powerful tool for growth. Rajkot’s community thrives because companies collaborate, share technology, and support each other. MSMEs that integrate with nearby units reduce reliance on external suppliers, respond faster to market changes, and build a stronger, more resilient business. Whether through shared resources or joint marketing, working together locally can unlock national-level success.
Wrapping Up
The ET Make in India SME Regional Summit in Rajkot showcased the immense opportunities awaiting India’s MSME businesses. The journey from a small local enterprise to a national leader is challenging but achievable through smart financial planning, leveraging government support, and a commitment to constant innovation.
With global demand rising for quality products, Indian manufacturing is entering a golden era. Now is the time to scale with the focus on building systems that can grow. With the right mindset and support, your local success can inspire a nationwide impact.
Frequently Asked Questions (FAQs)
1. Can an MSME benefit from joining an industrial cluster?
Yes. Clusters let MSMEs share resources, access better infrastructure and government support, and learn from peers. In cities like Rajkot, clusters help small units compete with larger companies and drive growth.
2. What are the legal challenges of selling products across different Indian states?
Selling across states involves varying regulations, GST compliance, and state-specific transport rules. Accurate documentation and digital accounting help stay compliant and avoid legal issues.
3. What are the common mistakes MSMEs make when they first start to scale?
Under Section 43B(h), if you don’t pay your MSME suppliers within the stipulated 15 or 45 days, you cannot claim that expense as a deduction in that financial year. This can significantly increase your taxable income and your tax bill.
4. How does LendingKart address collateral challenges for MSMEs?
LendingKart provides loans without requiring physical assets as collateral, helping MSMEs access the funds they need quickly. This allows small business owners to invest in growth, upgrade machinery, and expand into new markets without risking their property.
5. How can a manufacturing unit in a Tier-II city like Rajkot attract professional talent for national expansion?
Offer a clear career-path, a modern work environment, and use digital tools to make your unit attractive. With cities like Rajkot emerging as start-up hubs, investing in your employer brand helps build a team for national growth.
