The ET Make in India SME Regional Summits reached their fifth destination of 2025 on July 18, arriving in Surat to spotlight one of India's most critical industrial hubs. As the nation's leading platform for hyperlocal micro, small, and medium enterprise (MSME) engagement, these summits create vital connections between enterprises, industry enablers, and policy architects. The carefully-curated gatherings deliver precision networking that acknowledges the distinct advantages and challenges facing each regional cluster.
Under the theme 'Make in Surat, scale for the world', the edition zeroed in on a city uniquely positioned at the intersection of traditional industrial strength and modern economic transformation. With 90% of the world's diamonds processed here through approximately 4,000 diamond factories and 30 million metres of fabric produced daily, Surat demonstrates unparalleled industrial concentration. The city's remarkable efficiency is rooted in the fact that it accounts for 25% of Gujarat's GDP despite accounting for less than 11% of the state’s geographical area. And at the heart of Surat’s growth are the thousands of MSMEs that form the backbone of its economy.
Recognising the unique needs of Surat's diverse MSME landscape, the summit’s banking and lending partner IDBI Bank has developed a comprehensive suite of specialised services designed to address everything from cash flow management to foreign exchange risks. Speaking at the ET SME Summit - Surat, IDBI Bank Executive Director Nagaraj Garla outlined how the institution is supporting local entrepreneurs with tailored solutions.
Revolutionising cash flow management
For MSMEs, effective cash flow management determines the difference between success and failure. IDBI Bank has introduced a technology-enabled product that leverages Account Aggregator (AA) and digital end-to-end money lending infrastructure, enabling loan decisions within 10-15 minutes. Such rapid-fire lending addresses one of the most pressing concerns for small businesses operating in seasonal industries:
"Cash flow management is absolutely critical," explained Mr. Garla. "If you were to identify one factor that distinguishes successful MSMEs from the rest, it's the effective management of cash flow."
The bank also offers products to help MSMEs manage both receivables and payments, including participation in the TReDS and GeM Sahay platforms. Both allow businesses to quickly access funds against invoices, providing immediate liquidity when needed most.
Supporting diamond and export industries
Surat's diamond industry faces unique challenges, particularly in managing foreign exchange risks and global payment uncertainties. IDBI Bank has positioned specialised treasury teams in Surat, Ahmedabad, and Mumbai to provide expert guidance on forex products, including forward contracts, options, and currency swaps.
These export-focused solutions include packing credit for pre-shipment funding, post-shipment credit in both INR and foreign currency, and ECGC-backed products. With new Free Trade Agreements being signed, particularly in textiles, the bank emphasises the importance of professional forex risk management for aspiring global players.
Breaking down collateral barriers
Traditional banking usually requires substantial collateral, creating barriers for first-generation entrepreneurs and asset-light businesses. At the ET Make in India SME Regional Summit - Surat, Mr. Garla explained that IDBI has adapted to changing times, leveraging government schemes like CGTMSE coverage (extending up to ₹10 crore for most businesses and ₹20 crore for exporters and startups) and the new Individual Guarantee Scheme for capital expenditure up to ₹100 crore.
"While collateral remains important, its role has significantly reduced," he noted, acknowledging that viable businesses can now access funding without traditional security requirements.
And that’s not all
Later in the evening, IDBI Bank General Managers CS Arya and Sherine Mendez demonstrated how the institution has transformed its traditional industrial development expertise into a comprehensive MSME-focused banking ecosystem. This philosophy extends to traders, vendors, dealers, and entrepreneurs, ensuring that regardless of scale or profession, every enterprise finds appropriate financial support.
Their presentation at the ET SME Summit Surat focused on the following:
1) Innovation-driven working capital solutions
IDBI Bank has two products that eliminate traditional banking friction. MSME Express offers instant loan sanctions up to ₹25 lakh without requiring branch visits or prior banking relationships, while the PSU Supplier Loan provides collateral-free financing ranging from ₹40,000-₹10 lakh, with instant disbursal upon purchase order verification. These products reflect the bank's commitment to leveraging technology for seamless financial access, supported by robust trade finance capabilities that process approximately 200,000 invoices monthly across various platforms, maintaining a 5% market share in supply chain finance.
2) Sector-specific expertise and global reach
IDBI’s sectoral specialisation spans services, manufacturing, construction equipment, healthcare, and food processing, offering both traditional products like working capital and letters of credit alongside innovative solutions such as trade credit and port finance.
Its international capabilities are equally impressive, providing export finance solutions in over 100 currencies, forex risk management, and collateral-free loans up to ₹10 crore under CGTMSE. This is reinforced by dedicated infrastructure, including specialist MSME branches, trained relationship managers, and centralised processing centres.
Conclusion: Practical wisdom for MSME success
Drawing from over three decades of experience, Mr. Garla wrapped up his fireside chat by sharing three critical success principles for MSME entrepreneurs:
The ET Make in India SME Regional Summits, ET MSME Day, and ET MSME Awards are flagship initiatives to celebrate the versatility and success of India’s MSME sector. If you lead or are part of a micro, small, or medium enterprise, register for the ET MSME Awards 2025 before August 31, 2025.
Under the theme 'Make in Surat, scale for the world', the edition zeroed in on a city uniquely positioned at the intersection of traditional industrial strength and modern economic transformation. With 90% of the world's diamonds processed here through approximately 4,000 diamond factories and 30 million metres of fabric produced daily, Surat demonstrates unparalleled industrial concentration. The city's remarkable efficiency is rooted in the fact that it accounts for 25% of Gujarat's GDP despite accounting for less than 11% of the state’s geographical area. And at the heart of Surat’s growth are the thousands of MSMEs that form the backbone of its economy.
Recognising the unique needs of Surat's diverse MSME landscape, the summit’s banking and lending partner IDBI Bank has developed a comprehensive suite of specialised services designed to address everything from cash flow management to foreign exchange risks. Speaking at the ET SME Summit - Surat, IDBI Bank Executive Director Nagaraj Garla outlined how the institution is supporting local entrepreneurs with tailored solutions.
Revolutionising cash flow management
For MSMEs, effective cash flow management determines the difference between success and failure. IDBI Bank has introduced a technology-enabled product that leverages Account Aggregator (AA) and digital end-to-end money lending infrastructure, enabling loan decisions within 10-15 minutes. Such rapid-fire lending addresses one of the most pressing concerns for small businesses operating in seasonal industries:
"Cash flow management is absolutely critical," explained Mr. Garla. "If you were to identify one factor that distinguishes successful MSMEs from the rest, it's the effective management of cash flow."
The bank also offers products to help MSMEs manage both receivables and payments, including participation in the TReDS and GeM Sahay platforms. Both allow businesses to quickly access funds against invoices, providing immediate liquidity when needed most.
Supporting diamond and export industries
Surat's diamond industry faces unique challenges, particularly in managing foreign exchange risks and global payment uncertainties. IDBI Bank has positioned specialised treasury teams in Surat, Ahmedabad, and Mumbai to provide expert guidance on forex products, including forward contracts, options, and currency swaps.
These export-focused solutions include packing credit for pre-shipment funding, post-shipment credit in both INR and foreign currency, and ECGC-backed products. With new Free Trade Agreements being signed, particularly in textiles, the bank emphasises the importance of professional forex risk management for aspiring global players.
Breaking down collateral barriers
Traditional banking usually requires substantial collateral, creating barriers for first-generation entrepreneurs and asset-light businesses. At the ET Make in India SME Regional Summit - Surat, Mr. Garla explained that IDBI has adapted to changing times, leveraging government schemes like CGTMSE coverage (extending up to ₹10 crore for most businesses and ₹20 crore for exporters and startups) and the new Individual Guarantee Scheme for capital expenditure up to ₹100 crore.
"While collateral remains important, its role has significantly reduced," he noted, acknowledging that viable businesses can now access funding without traditional security requirements.
And that’s not all
Later in the evening, IDBI Bank General Managers CS Arya and Sherine Mendez demonstrated how the institution has transformed its traditional industrial development expertise into a comprehensive MSME-focused banking ecosystem. This philosophy extends to traders, vendors, dealers, and entrepreneurs, ensuring that regardless of scale or profession, every enterprise finds appropriate financial support.
Their presentation at the ET SME Summit Surat focused on the following:
1) Innovation-driven working capital solutions
IDBI Bank has two products that eliminate traditional banking friction. MSME Express offers instant loan sanctions up to ₹25 lakh without requiring branch visits or prior banking relationships, while the PSU Supplier Loan provides collateral-free financing ranging from ₹40,000-₹10 lakh, with instant disbursal upon purchase order verification. These products reflect the bank's commitment to leveraging technology for seamless financial access, supported by robust trade finance capabilities that process approximately 200,000 invoices monthly across various platforms, maintaining a 5% market share in supply chain finance.
2) Sector-specific expertise and global reach
IDBI’s sectoral specialisation spans services, manufacturing, construction equipment, healthcare, and food processing, offering both traditional products like working capital and letters of credit alongside innovative solutions such as trade credit and port finance.
Its international capabilities are equally impressive, providing export finance solutions in over 100 currencies, forex risk management, and collateral-free loans up to ₹10 crore under CGTMSE. This is reinforced by dedicated infrastructure, including specialist MSME branches, trained relationship managers, and centralised processing centres.
Conclusion: Practical wisdom for MSME success
Drawing from over three decades of experience, Mr. Garla wrapped up his fireside chat by sharing three critical success principles for MSME entrepreneurs:
- Personal cash flow management: Promoters must handle cash flow personally rather than delegating this critical function
- Avoid fund diversion: Never use short-term working capital for long-term investments
- Personal wealth planning: Regularly set aside 0.5-1% of profits to build personal reserves as a safety net.
The ET Make in India SME Regional Summits, ET MSME Day, and ET MSME Awards are flagship initiatives to celebrate the versatility and success of India’s MSME sector. If you lead or are part of a micro, small, or medium enterprise, register for the ET MSME Awards 2025 before August 31, 2025.
