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President's Message
" The situation of MSMEs is much more precarious at ground than what is apparent. The economy had barely started to limp back to normalcy when the transitional pangs of GST and its design issues posed another set of challenges for businesses. A recent RBI study (reported in Indian Express 3rd Oct 2017) shows a new wave of NPAs might be in the offing in MSME sector especially those who were already having weak financial health. The liquidity crunch which began with demonetisation was aggravated due to delay in refunds of GST input credit especially for exporters. Further, because of slacking of demand the situation has become really worrying. FISME has initiated a process of briefing the top decision makers-both in the government and outside, about the problems faced by MSMEs. The objective of these meetings is to help develop a unified response to support MSMEs to reverse the negative trend sooner than later. "
I discovered the entrepreneur in me, quite accidentally. But I leveraged every opportunity that life presented to me.
When I got laid off during the dotcom burst in 2000, instead of getting another job I returned to Chennai to set up my own office and launch matrimonial services portal full time. There Were Quite a Few Challenges at the Start
Firstly, the concept of online matrimony was new to the traditional audience. Added to it was the dotcom burst of 2000, I had to rebuild confidence of people before starting another online brand. And thirdly, I had limitiations in terms of resources and funds which is needed to start a company.
The heads of two companies that are considered yardsticks of the broader economy have recently spoken out about the problems they are facing. Hindustan Unilever chief executive Sanjiv Mehta said in a presentation to investors that rural demand for its products has been weak because of the lingering effects of demonetization as well as the farm crisis. Larsen & Toubro group executive chairman Anil Naik said that private sector companies are not in a position to launch new projects because of the excess debt they have on their balance sheets.
India is expected to be a USD 6 trillion economy -- the third largest in the world -- in the next 10 years, majorly helped by digitisation, says a report.
According to global brokerage Morgan Stanley, India's digitisation drive would provide a boost of 50-75 basis points to GDP growth in the coming decade. "We estimate that digitisation will provide a boost of 50-75 basis points to GDP growth and forecast that India will grow to USD 6 trillion economy and achieve upper-middle income status by by 2026-27," Morgan Stanley head India research and India equity strategist Ridham Desai told reporters here.
Crude oil prices in the international market have come substantially down, but surprisingly the prices of petroleum products in India are on the rise, pinching the common man's pocket. But then where is the huge money, being earned through several hikes in indirect taxes, going?
Well, according to the government's response to an RTI application, even as the money in the common man's pockets seems to have developed wings, it is the government coffers that are benefiting from the high prices of petroleum products.
Helped by large shipments of chilli, spices exports from India grew 35 per cent in quantitative terms in the first quarter of fiscal 2017–18.
The total export of spices rose to 3,06,990 tonnes in terms of quantity during the period from 2,27, 938 tonnes a year ago.
Chilli became the most exported spice during April–June 2017 with the shipment of 1,33,000 tonnes. “Chilli has been the most demanded Indian spice and has fulfilled the increasing international demand for quality spices in global markets.
The total exports of finished steel for the month of August registered an upward trend, registering a surge of over 36 per cent, a report by the Joint Plant Committee under the Ministry of Steel informed.
According to the report, the export of finished steel in August from India stood at 0.923 million tonne, whereas the volume during the same period of the previous year was around 0.679 million tonne.
Citing statistics for the April-August period, the export registered positive number of 3.73 million tonne as compared to the 2.37 per cent figure of the corresponding month in the previous year.
India’s spinning sector has been witnessing challenges on multiple fronts over the past few quarters. As per a recent report by ICRABSE 0.91 %, while exports continue to fall due to weak demand from one of the key markets, China; domestic demand also slowed down in the first quarter of FY2018 amid focus on inventory clearance prior to GST implementation, which affected offtake and hence production volumes. Q1 FY2018 was the fourth consecutive quarter wherein companies in ICRA’s sample reported a Y-o-Y decline in volumes.
Rain and humidity in southern India over the last few weeks have increased pest attacks on tea bushes in plantations and brought down output.
According to tea planters, unprecedented heavy rains in August and September in Kerala and parts of Tamil Nadu have led to increased attacks by tea mosquito bug (TMB) in the plantations in some regions. Tea production in south India rose 15.5 million kg between January and July this year. However, this may not amount to growth as tea production in south India had plunged in 2016 due to a drought, with output touching only 212.9 million kg compared with the yearly average of 240 million kg.
The handmade product industry comprising of different sectors including carpet is heading towards losing its hold it once had on the global market in the aftermath as the Micro, Small and Medium Enterprises in the sector continue to face the heat of nuances under the Goods and Services tax (GST), Carpet Export Promotion Council (CEPC) said.
Talking to KNN, Mahavir Pratap Sharma, Chairman of the Carpet Export Promotion Council (CEPC) informed that the situation of the country’s export is bleak and visible to everyone.
The newly rolled out Goods and Services Tax (GST) is proving to be fatal for the Micro, Small and Medium Enterprises (MSMEs) involved in the machine tools making sector as the product is placed under the 18 per cent tax slab, Chamber of Industrial and Commercial Undertakings (CICU) informed.
Talking to KNN, Upkar Singh Ahuja, General Secretary of CICU informed that with almost three months into the GST, the situation is moving from bad to worse for the MSMEs involved in machine tool business.
In the recently approved Electric Vehicle and Energy Storage Policy 2017, the Karnataka Government has announced a set of incentives and concessions for different sectors including the Micro, Small and Medium Enterprises (MSMEs).
According to the policy, the government will extend incentives and concessions to the MSMEs involved in the manufacturing of electric vehicle and its components including motors power trains, power electronic kits.
The Bihar drug controller authority earlier issued a notification banning the combination of levofloxacin and ofloxacin, without issuing the proper show-cause and inviting replies, pharma MSME association Confederation of Indian Pharmaceutical Industry (CIPI) said.
CIPI in a press statement informed that it has sought clarification on the ban notification of levofloxacin and ofloxacin, for pediatric use in the state.
The Asian Development Bank (ADB) has decided to give financial assistance of 300 million US dollars (USD) to West Bengal in order to carry forward further reforms, All India Trinamool Congress has said.
According to a press release by the ADB, the board of the bank approved the assistance to continue a comprehensive series of fiscal reforms in West Bengal to bring about more accessible, affordable, and high quality public services.
Eyeing at boosting the khadi sector in the state of Uttar Pradesh, the state government is in the process of drafting the khadi policy, State MSME Minister Satyadev Pachauri informed.
Pachauri in a press interview said that the Uttar Pradesh government has drafted the policy keeping in mind that the need of the hour is to introduce the trend to the youth.
He further said that the theme for the draft framework had been ‘Khadi for Youth, Khadi For Nation’.
Also, the policy will focus on equipping the sector by encouraging the use of solar charkha for the making of the fabric.
French companies are exploring investment opportunities in India in areas of defence, infrastructure, renewable energy, and waste & water management & recycling.
A 45-member French delegation from sectors such as transport, logistics, ports & shipping, energy, environment, construction, infrastructure, digital sector, bank, insurance and legal services is in the city.
"We are visiting India to take advantage of the very good momentum created between India and France. We've most of the solutions to the challenges India faced in sectors like defence, infrastructure for rail, roads, ports, renewable energy, waste and water management. We can provide technologies in these sectors," MEDEF (French federation of entrepreneurs) president Pierre Gattaz told PTI here.
Eyeing at increased cooperation among the two countries, the 2nd Biennial Trade Ministers Forum (BTMF) meeting was held between India and Indonesia recently in the national capital.
The Indian delegation led by Commerce Minister Suresh Prabhu met the Indonesian delegation agreeing for convening early meeting of the working group. The prime focus of this group would be to layout agenda for boosting trade and investment between the two countries.
Eyeing at increased investments, South African diplomats invited Indian entrepreneurs to explore the various business opportunities that their country has got to offer; the South African government is willing to offer incentives for the Indian entrepreneurs in order to encourage investments, the diplomats informed.
Ben Joubert, Deputy High Commissioner of South Africa to India, during an interactive session on ‘Emerging Business Opportunities in South Africa’ highlighted that their country has huge potential with a well-expanded market with over 200 million ready consumers.
What is outlook for growth of GDP during rest of the year?
According to the FISME Factor, with the continued fall in GDP growth, 57.1 percent of Micro, Small & Medium Enterprises think that RBI should step in and lower rates to revive economy while 14.3 percent think otherwise. 28.6 percent can’t say.
While sales and marketing have always functioned hand in hand, futuristic industry experts believe it’s time HR and marketing came together. Despite the fact that the two functions seem too distinct in the roles they play in making a business successful, there is a remarkable connection between them, which can work wonders for a business, when realised.
6 Money Management Tips for First-Time Entrepreneurs
How many times have you been told that saving money is a good thing? Financial specialists recommend that you save a bit of money every month, but that's easier said than done. After all, it’s not uncommon for people to live paycheck to paycheck.
Convince & Convert With These Top 8 Email Marketing Strategies
Most of the time, our inbox are flooded with barrage of mailers and newsletter promoting their services and brands that do little then just giving us more work to do like deleting them without reading or un-subscribing them.
Textile MSMEs to be severely affected under new duty drawback rates: SIMA
With the government’s notification on new duty drawback rates, the Micro, Small and Medium Enterprises (MSMEs) in the textile sector fear severe implications, Southern India Mills Association informed.
How This Mother-daughter Duo is Reaping the Profits of Organic Farming
Numerous initiatives by various state governments to promote organic farming in India have prompted biotech engineer Likitha Bhanu to seek options in the agriculture sector for building a career.
Tech 30 startup Oorjan aims to bring affordable solar energy to Indian households
The Mumbai-based startup offers solutions to set up and maintain solar panels for households and businesses with an aim to take solar energy to the maximum number of people. To that end, it offers flexible design options, and most importantly, helping with securing financing.
The Central Statistics Office (CSO), Ministry of Statistics and Programme Implementation, has released quick estimates of index of industrial production and use-based Index for the month of July, 2017
FISME regularly receives monthly reports on the economies of various countries from their missions in India. These reports provide information on key economic parameters, trade related information and all news relevant for importers and exporters. In this edition you can take a look at reports on:
Write your comments on the FISME Factor. Share your views and suggestions on MSME issues. Win prize! The best mail will get a special book every fortnight.
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This Newsletter is edited by the FISME Secretariat. We welcome contributions as well as comments and suggestions. Please write to newsletter@fisme.org.in
" The situation of MSMEs is much more precarious at ground than what is apparent. The economy had barely started to limp back to normalcy when the transitional pangs of GST and its design issues posed another set of challenges for businesses. A recent RBI study (reported in Indian Express 3rd Oct 2017) shows a new wave of NPAs might be in the offing in MSME sector especially those who were already having weak financial health. The liquidity crunch which began with demonetisation was aggravated due to delay in refunds of GST input credit especially for exporters. Further, because of slacking of demand the situation has become really worrying. FISME has initiated a process of briefing the top decision makers-both in the government and outside, about the problems faced by MSMEs. The objective of these meetings is to help develop a unified response to support MSMEs to reverse the negative trend sooner than later. "
I discovered the entrepreneur in me, quite accidentally. But I leveraged every opportunity that life presented to me.
When I got laid off during the dotcom burst in 2000, instead of getting another job I returned to Chennai to set up my own office and launch matrimonial services portal full time. There Were Quite a Few Challenges at the Start
Firstly, the concept of online matrimony was new to the traditional audience. Added to it was the dotcom burst of 2000, I had to rebuild confidence of people before starting another online brand. And thirdly, I had limitiations in terms of resources and funds which is needed to start a company.
India is expected to be a USD 6 trillion economy -- the third largest in the world -- in the next 10 years, majorly helped by digitisation, says a report.
According to global brokerage Morgan Stanley, India's digitisation drive would provide a boost of 50-75 basis points to GDP growth in the coming decade. "We estimate that digitisation will provide a boost of 50-75 basis points to GDP growth and forecast that India will grow to USD 6 trillion economy and achieve upper-middle income status by by 2026-27," Morgan Stanley head India research and India equity strategist Ridham Desai told reporters here.
Crude oil prices in the international market have come substantially down, but surprisingly the prices of petroleum products in India are on the rise, pinching the common man's pocket. But then where is the huge money, being earned through several hikes in indirect taxes, going?
Well, according to the government's response to an RTI application, even as the money in the common man's pockets seems to have developed wings, it is the government coffers that are benefiting from the high prices of petroleum products.
Helped by large shipments of chilli, spices exports from India grew 35 per cent in quantitative terms in the first quarter of fiscal 2017–18.
The total export of spices rose to 3,06,990 tonnes in terms of quantity during the period from 2,27, 938 tonnes a year ago.
Chilli became the most exported spice during April–June 2017 with the shipment of 1,33,000 tonnes. “Chilli has been the most demanded Indian spice and has fulfilled the increasing international demand for quality spices in global markets.
The total exports of finished steel for the month of August registered an upward trend, registering a surge of over 36 per cent, a report by the Joint Plant Committee under the Ministry of Steel informed.
According to the report, the export of finished steel in August from India stood at 0.923 million tonne, whereas the volume during the same period of the previous year was around 0.679 million tonne.
Citing statistics for the April-August period, the export registered positive number of 3.73 million tonne as compared to the 2.37 per cent figure of the corresponding month in the previous year.
India’s spinning sector has been witnessing challenges on multiple fronts over the past few quarters. As per a recent report by ICRABSE 0.91 %, while exports continue to fall due to weak demand from one of the key markets, China; domestic demand also slowed down in the first quarter of FY2018 amid focus on inventory clearance prior to GST implementation, which affected offtake and hence production volumes. Q1 FY2018 was the fourth consecutive quarter wherein companies in ICRA’s sample reported a Y-o-Y decline in volumes.
Rain and humidity in southern India over the last few weeks have increased pest attacks on tea bushes in plantations and brought down output.
According to tea planters, unprecedented heavy rains in August and September in Kerala and parts of Tamil Nadu have led to increased attacks by tea mosquito bug (TMB) in the plantations in some regions. Tea production in south India rose 15.5 million kg between January and July this year. However, this may not amount to growth as tea production in south India had plunged in 2016 due to a drought, with output touching only 212.9 million kg compared with the yearly average of 240 million kg.
The handmade product industry comprising of different sectors including carpet is heading towards losing its hold it once had on the global market in the aftermath as the Micro, Small and Medium Enterprises in the sector continue to face the heat of nuances under the Goods and Services tax (GST), Carpet Export Promotion Council (CEPC) said.
Talking to KNN, Mahavir Pratap Sharma, Chairman of the Carpet Export Promotion Council (CEPC) informed that the situation of the country’s export is bleak and visible to everyone.
The newly rolled out Goods and Services Tax (GST) is proving to be fatal for the Micro, Small and Medium Enterprises (MSMEs) involved in the machine tools making sector as the product is placed under the 18 per cent tax slab, Chamber of Industrial and Commercial Undertakings (CICU) informed.
Talking to KNN, Upkar Singh Ahuja, General Secretary of CICU informed that with almost three months into the GST, the situation is moving from bad to worse for the MSMEs involved in machine tool business.
In the recently approved Electric Vehicle and Energy Storage Policy 2017, the Karnataka Government has announced a set of incentives and concessions for different sectors including the Micro, Small and Medium Enterprises (MSMEs).
According to the policy, the government will extend incentives and concessions to the MSMEs involved in the manufacturing of electric vehicle and its components including motors power trains, power electronic kits.
The Bihar drug controller authority earlier issued a notification banning the combination of levofloxacin and ofloxacin, without issuing the proper show-cause and inviting replies, pharma MSME association Confederation of Indian Pharmaceutical Industry (CIPI) said.
CIPI in a press statement informed that it has sought clarification on the ban notification of levofloxacin and ofloxacin, for pediatric use in the state.
The Asian Development Bank (ADB) has decided to give financial assistance of 300 million US dollars (USD) to West Bengal in order to carry forward further reforms, All India Trinamool Congress has said.
According to a press release by the ADB, the board of the bank approved the assistance to continue a comprehensive series of fiscal reforms in West Bengal to bring about more accessible, affordable, and high quality public services.
Eyeing at boosting the khadi sector in the state of Uttar Pradesh, the state government is in the process of drafting the khadi policy, State MSME Minister Satyadev Pachauri informed.
Pachauri in a press interview said that the Uttar Pradesh government has drafted the policy keeping in mind that the need of the hour is to introduce the trend to the youth.
He further said that the theme for the draft framework had been ‘Khadi for Youth, Khadi For Nation’.
Also, the policy will focus on equipping the sector by encouraging the use of solar charkha for the making of the fabric.
French companies are exploring investment opportunities in India in areas of defence, infrastructure, renewable energy, and waste & water management & recycling.
A 45-member French delegation from sectors such as transport, logistics, ports & shipping, energy, environment, construction, infrastructure, digital sector, bank, insurance and legal services is in the city.
"We are visiting India to take advantage of the very good momentum created between India and France. We've most of the solutions to the challenges India faced in sectors like defence, infrastructure for rail, roads, ports, renewable energy, waste and water management. We can provide technologies in these sectors," MEDEF (French federation of entrepreneurs) president Pierre Gattaz told PTI here.
Eyeing at increased cooperation among the two countries, the 2nd Biennial Trade Ministers Forum (BTMF) meeting was held between India and Indonesia recently in the national capital.
The Indian delegation led by Commerce Minister Suresh Prabhu met the Indonesian delegation agreeing for convening early meeting of the working group. The prime focus of this group would be to layout agenda for boosting trade and investment between the two countries.
Eyeing at increased investments, South African diplomats invited Indian entrepreneurs to explore the various business opportunities that their country has got to offer; the South African government is willing to offer incentives for the Indian entrepreneurs in order to encourage investments, the diplomats informed.
Ben Joubert, Deputy High Commissioner of South Africa to India, during an interactive session on ‘Emerging Business Opportunities in South Africa’ highlighted that their country has huge potential with a well-expanded market with over 200 million ready consumers.
According to the FISME Factor, with the continued fall in GDP growth, 57.1 percent of Micro, Small & Medium Enterprises think that RBI should step in and lower rates to revive economy while 14.3 percent think otherwise. 28.6 percent can’t say. 
While sales and marketing have always functioned hand in hand, futuristic industry experts believe it’s time HR and marketing came together. Despite the fact that the two functions seem too distinct in the roles they play in making a business successful, there is a remarkable connection between them, which can work wonders for a business, when realised.
How many times have you been told that saving money is a good thing? Financial specialists recommend that you save a bit of money every month, but that's easier said than done. After all, it’s not uncommon for people to live paycheck to paycheck.
Most of the time, our inbox are flooded with barrage of mailers and newsletter promoting their services and brands that do little then just giving us more work to do like deleting them without reading or un-subscribing them.
With the government’s notification on new duty drawback rates, the Micro, Small and Medium Enterprises (MSMEs) in the textile sector fear severe implications, Southern India Mills Association informed.
Numerous initiatives by various state governments to promote organic farming in India have prompted biotech engineer Likitha Bhanu to seek options in the agriculture sector for building a career.
The Mumbai-based startup offers solutions to set up and maintain solar panels for households and businesses with an aim to take solar energy to the maximum number of people. To that end, it offers flexible design options, and most importantly, helping with securing financing.
“ Ethics must begin at the top of an organization. It is a leadership issue and the chief executive must set the example. ”
