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President's Message
There are media reports suggesting that Reserve Bank of India is asking Public Sector Banks (PSBs) under prompt corrective action to restrict their new loan exposure. Though apparently the advisory looks applicable to banks such as Dena Bank, Indian Overseas Bank and UCO Bank, knowing the functioning of PSBs and the tone and the tenor of RBI, it is feared that it chilling effect will be felt across all PSBs. That would be disastrous especially for MSMEs who have just started coming out of the double whammy of demonetization and GST. The Government and the RBI have to take steps to ward off the fear psychosis creeping in banking sector. It needs to be ensured that MSMEs’ financial needs whether renewal/ enhancement of working capital limits or sanction of new loans are not affected adversely.
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To intensify trade and investment between India and Mekong region, the Asian Development Bank (ADB) is supporting a project keeping dynamic SMEs at its center.
The project is also likely to include assisting setting up of special economic zones in India and three countries in Mekong regions namely Thailand, Vietnam, Cambodia
On the side lines of the ADB Annual Meeting held recently in Manila, the outlines of the project were shared with peer group and stakeholders. The project has emerged out of the study commissioned by ADB: ‘Facilitating SME FDI flows between India and Mekong region’.
Springtime renovations aren’t just reserved for homeowners. If anything, entrepreneurs and CEOs have an even greater obligation to renovate their business strategy in order to beat their competition. So, just as homeowners want to keep up with current design trends and routine maintenance, you need to revamp your business strategy to stay on your industry’s leading edge.
The great global retail battle has now truly arrived in India. Walmart closed a deal last week to buy Flipkart for $16 billion. Rival Amazon was also interested but perhaps lost out because it could have run into trouble with Indian competition regulations. Amazon promptly announced after the Flipkart sale that it would be pumping an additional Rs2,600 crore into its India operations. The past few years have seen the boundary between traditional retail and online commerce dissipate. Companies have tried to provide consumers with an integrated experience.
India’s wholesale inflation was at a 4-month high in April as it grew 3.18 per cent as the prices of some vegetables and fuel & power soared up.
According to the latest price data released by the commerce and industry ministry, WPI witnessed a growth of 2.47 percent in March and 3.85 percent April 2017. Wholesale inflation rate, measured by Wholesale Price Index (WPI), is a marker for price movements in bulk buys for traders and reflects the trends in shop-end prices approximately.
The central government has put forward a proposal whereby states can buy electricity from projects that are currently stuck without any power purchase agreements (PPAs), but are able to quote low rates. Under the plan, existing suppliers will get paid assured rates, states will get power cheaper and new projects will become operational, thus helping them generate a cash flow.
According to a report by a parliamentary committee, there are 34 stressed coal-based power projects. These include projects of JP Power, GMR and Essar. The 34 projects have a total capacity of 40,130 MW — 24,405MW commissioned and 15,725MW under construction. The total outstanding debt in these 34 stressed projects is Rs 1,74,468 crore.
With an aim to boost renewable power generation, the government today announced a national wind-solar hybrid policy, which seeks to promote new projects as well as hybridisation of the existing ones.
The government has set an ambitious target of achieving 175 gigawatt (gw) of installed capacity from renewable energy sources by 2022, which includes 100 gw of solar and 60 gw of wind power capacity. The total renewable power installed capacity in the country stood at about 70 gw last financial year.
Levy to help create a fund for the industry’s welfare, especially farmers
The Centre expects to mobilise about ₹6,700 crore annually by imposing a special cess on sugar.
A Group of State Finance Ministers, headed by Assam’s Himanta Biswa Sarma, is likely to meet this week to evolve a consensus on the proposal before taking it to the Goods and Service Tax (GST) Council for a final decision.
A senior government official told BusinessLine that the mop-up via the cess will be used to create a fund, which will “enable the Centre to make prompt interventions to protect the interests of farmers, in view of the extreme cyclical nature of industry”.
3D Experience major Dassault Systemes has launched "3DEXPERIENCE on WHEELS 2018", a platform to connect with the MSMEs as well as industrial hubs in tier II cities in India.
The 3DEXPERIENCE platform offers end-to-end engineering, manufacturing and business capabilities to enable SMEs to generate efficiency, cost-effectiveness and reductions in accumulated waste by harnessing the data essential to the operation of their enterprise.
To ensure that the domestic prices of pulses do not fall below the minimum support price, the government has tightened norms for the import of pulses.
A quota system has been introduced by the government for millers and refiners for the import of tur, moong and urad, according to a notification by the Directorate General of Foreign Trade (DGFT). To avail this quota, dal millers have to submit applications between May 15 and 25. The allocation of quota for each beneficiary will be notified on June 1 and millers have to complete their imports by August 31, the DGFT said.
A quota of 2 million tonnes import on tur and 3 million tonnes on moong and urad together has been imposed by DGFT.
To improve India’s ranking in the ease of doing business and to ensure faster resolution of matters relating to commercial disputes; the centre has promulgated an ordinance to amend the Commercial Courts, Commercial Division and Commercial Appellate Division of High Courts Act, 2015.
The bill received the Presidents’ accord on May 3rd which was approved by the Union Cabinet chaired by the Prime Minister Narendra Modi on March 7, 2018. The notification published in the official gazette said “since the Parliament was not in session and the President is satisfied that circumstances exist which render it necessary for him to take immediate action, the ordinance had been promulgated.”
An initiative which would help towards incubating more start-ups and promote industry collaboration, Indian Institute of Technology Delhi (IIT-D) is setting up three Research Parks in Delhi and Haryana.
The objective of the parks is to facilitate design and development of advanced technology, to establish avenues of engagement with industry, transfer knowledge and create value.
The whole agenda to set up these Research Parks is to bring industry and budding entrepreneurs onto a single platform to facilitate innovation and research.
Since the announcement of Rs 6000 crore special package for textiles by the Ministry of Textiles in June 2016, there has been an increase in investments as well as exports have boosted, a survey by Apparel Export Promotion Council (APEC) said.
As per the survey report, the 6000 crore special package generated additional investment of around Rs 2500 crore and additional employment of around a lakh in the first 12 months of the roll out.
The proposed Micro Small and Medium Enterprises (MSMEs) Green Industrial Park by Telangana Government at Dandu Malkapur village in Yadadri-Bhongir district that aims to encourage MSMEs in the region and promote pollution-free industrialization is finally ready for the foundation stone laying ceremony.
Telangana Chief Minister K Chandrashekhar Rao is expected to lay the foundation stone around June-July as preliminary infrastructure development is nearing completion and the park will commence its operations within 18 months thereafter.
In a bid to facilitate the sick units of Punjab MSME sector for their growth and survival the Punjab Government will soon bring one time settlement policy in the state, said the Minister for Industry and Commerce Sunder Sham Arora, while addressing the gathering of industrialists during his maiden visit to the industrial hub of the state.
Further to give stimulus to the industrial development the Minister promised to build an industrial friendly environment in the state.
In a bid to encourage the food processing sector in the state comprising for a fair share of Micro, Small and Medium Enterprises (MSMEs), Andhra Pradesh Chief Minister N. Chandrababu Nadu reiterated the need to facilitate growth in food processing sector.
Speaking on the need to push for further development of Food Processing industry, the Chief Minister said, “Every department needs to take a holistic approach on prosperity. I am happy that there has been a great development in Food processing but we are growing at only 10% but we need to aim for 25 %.”
As many as three dedicated portals for the micro, small and medium enterprises (MSMEs) where the entrepreneurs can obtain benefits of various services like NOCs, licenses, job opportunities, bank loans etc have been launched in Tamil Nadu.
Tamil Nadu Chief Minister Edappadi K Palaniswami has launched three updated websites for the benefit of Micro, Small and Medium Enterprises (MSME) sector.
The first portal https://easybusiness.tn.gov.in/msme has been updated at a cost of Rs 9.33 lakh and it is an updated version of the single window portal already running for giving approvals for starting new industries in Tamil Nadu.
The US decision to reimpose sanctions on Iran may help boost India's exports of agri-commodities such as tea, basmati rice, soyabean meal and sugar to Iran in the coming months, mainly due to rupee-riyal payment mechanism, trade insiders said.
Tea industry executives, for example, said exports of premium orthodox tea will increase as Sri Lanka, the major competitor to Indian orthodox tea in the world market, will have to deal in dollar with Iran, which may have some impact on their exports.
Aiming to make local small and medium enterprises (SMEs) technology savvy, Zimbabwe and India has signed a Memorandum of Understanding (MoU) extending the Indo-Zimbabwe project designed to enhance capacity and capability of SME sector.
The project was formed in 2006 to technologically equip SMEs in various sectors, said Dr Mike Bimha Industry, Commerce and Enterprise Development Minister, during the signing ceremony in Harare.
In a move which would boost Indian pharmaceutical industry and medicine exporters, China has removed import duties on as many as 28 medicines, including all cancer drugs, from May 1.
Chinese Ambassador to India Luo Zhaohui, in a tweet, said, “China has exempted import tariffs (duties) for 28 drugs, including all cancer drugs, from May 1st. Good news for India’s pharmaceutical industry and medicine export to China. I believe this will help reduce trade imbalance between China and India in the future.”
Nordic economic powerhouse Sweden wants to co-create products with India to build long-term relationship for the global marketNSE 0.00 %.
Last month during Indian PM trip to Sweden both countries signed agreements to begin a strategic innovation partnership.
Swedish Minister for Enterprise and Innovation, Mikael Damberg notes, “Sweden has learned that co-creation is a way of building long-term relationships in the world market, Stockholm also understands that knowing different customers are key for different markets. India and Sweden can even export to other markets – a third country.”
The surge in GST collection during April shows the economy is again on a growth mode?
According to the FISME Factor, 100 per cent of Micro, Small & Medium Enterprises agree that the economy is again on growth track with the surge in GST collection during April shows.
Develop the HR Strategy for 2018 with these 5 Steps
Every organization starts implementing a renewed corporate strategic plan the minute the new fiscal year begins. A good annual strategy for the coming year from the HR manager helps align the organization’s human capital with its year’s overall targets and objectives resulting into the desired ROI in a cost efficient manner. Let’s go backward and look at how the HR manager can develop a well-rounded strategy for the organization.
Health of your business: How much does your capital actually cost?
Every business is financed through a mix of Debt (borrowed funds) and Equity (owned funds) financing.
How much of each component should be used depends on the riskiness of the business and availability of funding, besides the relevance of each type. Broadly, Equity is less risky with respect to cash flow commitments but is much more expensive compared to Debt.
Your First Customer is Your First Success: Here's How to Go About It
When Sachin Bansal resigned from Flipkart (after its acquisition by Walmart), Binny Bansal wrote an emotional piece bidding goodbye to his dear friend. He started the note by talking about how they got their first customer. When a man from Telangana (then Andhra Pradesh) mentioned on the internet that he was unable to find a certain book, another man with the username Sachin replied with a link that led the seeker of the book to Flipkart. And that’s how Flipkart got its customer.
Tamil Nadu MSMEs need strict measures to revive the sector: Industry writes to CM Palaniswami
Raising serious concerns over lack of incentives for MSMEs in Tamil Nadu, Industrial Estate Manufacturers Association (IEMA) has written a letter to chief minister Edappadi K. Palaniswami.
Through the letter, the manufacturing MSME units have demanded strict measures to revive the sector.
With free online distance learning programme, EasyShiksha is empowering students from small towns and villages
With digitisation, students today go online to access information related to their college education and for study materials to prepare for competitive exams and gain an insight and real-time information about educational institutions.
This Gurugram-based start-up brings cashless remote diagnosis to villages
The plight of the Indian farmer is not new news. Stuck in the debt cycle and falling victim to extreme weather conditions, farmers hardly save enough to address their health issues. According to a Lancet report, healthcare expenditure pushes an additional 39 million people back into poverty in India every year.
Providing a cure to this solution, a Gurugram-based start-up Gramin Health Care is taking baby steps to provide primary healthcare to farmers at a nominal rate.
The Central Statistics Office (CSO), Ministry of Statistics and Programme Implementation has revised the Base Year of the Consumer Price Index (CPI) from 2010=100 to 2012=100 with effect from the release of indices for the month of January 2015.
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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There are media reports suggesting that Reserve Bank of India is asking Public Sector Banks (PSBs) under prompt corrective action to restrict their new loan exposure. Though apparently the advisory looks applicable to banks such as Dena Bank, Indian Overseas Bank and UCO Bank, knowing the functioning of PSBs and the tone and the tenor of RBI, it is feared that it chilling effect will be felt across all PSBs. That would be disastrous especially for MSMEs who have just started coming out of the double whammy of demonetization and GST. The Government and the RBI have to take steps to ward off the fear psychosis creeping in banking sector. It needs to be ensured that MSMEs’ financial needs whether renewal/ enhancement of working capital limits or sanction of new loans are not affected adversely.
"
To intensify trade and investment between India and Mekong region, the Asian Development Bank (ADB) is supporting a project keeping dynamic SMEs at its center.
The project is also likely to include assisting setting up of special economic zones in India and three countries in Mekong regions namely Thailand, Vietnam, Cambodia
On the side lines of the ADB Annual Meeting held recently in Manila, the outlines of the project were shared with peer group and stakeholders. The project has emerged out of the study commissioned by ADB: ‘Facilitating SME FDI flows between India and Mekong region’.
Springtime renovations aren’t just reserved for homeowners. If anything, entrepreneurs and CEOs have an even greater obligation to renovate their business strategy in order to beat their competition. So, just as homeowners want to keep up with current design trends and routine maintenance, you need to revamp your business strategy to stay on your industry’s leading edge.
India’s wholesale inflation was at a 4-month high in April as it grew 3.18 per cent as the prices of some vegetables and fuel & power soared up.
According to the latest price data released by the commerce and industry ministry, WPI witnessed a growth of 2.47 percent in March and 3.85 percent April 2017. Wholesale inflation rate, measured by Wholesale Price Index (WPI), is a marker for price movements in bulk buys for traders and reflects the trends in shop-end prices approximately.
The central government has put forward a proposal whereby states can buy electricity from projects that are currently stuck without any power purchase agreements (PPAs), but are able to quote low rates. Under the plan, existing suppliers will get paid assured rates, states will get power cheaper and new projects will become operational, thus helping them generate a cash flow.
According to a report by a parliamentary committee, there are 34 stressed coal-based power projects. These include projects of JP Power, GMR and Essar. The 34 projects have a total capacity of 40,130 MW — 24,405MW commissioned and 15,725MW under construction. The total outstanding debt in these 34 stressed projects is Rs 1,74,468 crore.
With an aim to boost renewable power generation, the government today announced a national wind-solar hybrid policy, which seeks to promote new projects as well as hybridisation of the existing ones.
The government has set an ambitious target of achieving 175 gigawatt (gw) of installed capacity from renewable energy sources by 2022, which includes 100 gw of solar and 60 gw of wind power capacity. The total renewable power installed capacity in the country stood at about 70 gw last financial year.
3D Experience major Dassault Systemes has launched "3DEXPERIENCE on WHEELS 2018", a platform to connect with the MSMEs as well as industrial hubs in tier II cities in India.
The 3DEXPERIENCE platform offers end-to-end engineering, manufacturing and business capabilities to enable SMEs to generate efficiency, cost-effectiveness and reductions in accumulated waste by harnessing the data essential to the operation of their enterprise.
To ensure that the domestic prices of pulses do not fall below the minimum support price, the government has tightened norms for the import of pulses.
A quota system has been introduced by the government for millers and refiners for the import of tur, moong and urad, according to a notification by the Directorate General of Foreign Trade (DGFT). To avail this quota, dal millers have to submit applications between May 15 and 25. The allocation of quota for each beneficiary will be notified on June 1 and millers have to complete their imports by August 31, the DGFT said.
A quota of 2 million tonnes import on tur and 3 million tonnes on moong and urad together has been imposed by DGFT.
To improve India’s ranking in the ease of doing business and to ensure faster resolution of matters relating to commercial disputes; the centre has promulgated an ordinance to amend the Commercial Courts, Commercial Division and Commercial Appellate Division of High Courts Act, 2015.
The bill received the Presidents’ accord on May 3rd which was approved by the Union Cabinet chaired by the Prime Minister Narendra Modi on March 7, 2018. The notification published in the official gazette said “since the Parliament was not in session and the President is satisfied that circumstances exist which render it necessary for him to take immediate action, the ordinance had been promulgated.”
An initiative which would help towards incubating more start-ups and promote industry collaboration, Indian Institute of Technology Delhi (IIT-D) is setting up three Research Parks in Delhi and Haryana.
The objective of the parks is to facilitate design and development of advanced technology, to establish avenues of engagement with industry, transfer knowledge and create value.
The whole agenda to set up these Research Parks is to bring industry and budding entrepreneurs onto a single platform to facilitate innovation and research.
Since the announcement of Rs 6000 crore special package for textiles by the Ministry of Textiles in June 2016, there has been an increase in investments as well as exports have boosted, a survey by Apparel Export Promotion Council (APEC) said.
As per the survey report, the 6000 crore special package generated additional investment of around Rs 2500 crore and additional employment of around a lakh in the first 12 months of the roll out.
The proposed Micro Small and Medium Enterprises (MSMEs) Green Industrial Park by Telangana Government at Dandu Malkapur village in Yadadri-Bhongir district that aims to encourage MSMEs in the region and promote pollution-free industrialization is finally ready for the foundation stone laying ceremony.
Telangana Chief Minister K Chandrashekhar Rao is expected to lay the foundation stone around June-July as preliminary infrastructure development is nearing completion and the park will commence its operations within 18 months thereafter.
In a bid to facilitate the sick units of Punjab MSME sector for their growth and survival the Punjab Government will soon bring one time settlement policy in the state, said the Minister for Industry and Commerce Sunder Sham Arora, while addressing the gathering of industrialists during his maiden visit to the industrial hub of the state.
Further to give stimulus to the industrial development the Minister promised to build an industrial friendly environment in the state.
In a bid to encourage the food processing sector in the state comprising for a fair share of Micro, Small and Medium Enterprises (MSMEs), Andhra Pradesh Chief Minister N. Chandrababu Nadu reiterated the need to facilitate growth in food processing sector.
Speaking on the need to push for further development of Food Processing industry, the Chief Minister said, “Every department needs to take a holistic approach on prosperity. I am happy that there has been a great development in Food processing but we are growing at only 10% but we need to aim for 25 %.”
As many as three dedicated portals for the micro, small and medium enterprises (MSMEs) where the entrepreneurs can obtain benefits of various services like NOCs, licenses, job opportunities, bank loans etc have been launched in Tamil Nadu.
Tamil Nadu Chief Minister Edappadi K Palaniswami has launched three updated websites for the benefit of Micro, Small and Medium Enterprises (MSME) sector.
The first portal https://easybusiness.tn.gov.in/msme has been updated at a cost of Rs 9.33 lakh and it is an updated version of the single window portal already running for giving approvals for starting new industries in Tamil Nadu.
The US decision to reimpose sanctions on Iran may help boost India's exports of agri-commodities such as tea, basmati rice, soyabean meal and sugar to Iran in the coming months, mainly due to rupee-riyal payment mechanism, trade insiders said.
Tea industry executives, for example, said exports of premium orthodox tea will increase as Sri Lanka, the major competitor to Indian orthodox tea in the world market, will have to deal in dollar with Iran, which may have some impact on their exports.
Aiming to make local small and medium enterprises (SMEs) technology savvy, Zimbabwe and India has signed a Memorandum of Understanding (MoU) extending the Indo-Zimbabwe project designed to enhance capacity and capability of SME sector.
The project was formed in 2006 to technologically equip SMEs in various sectors, said Dr Mike Bimha Industry, Commerce and Enterprise Development Minister, during the signing ceremony in Harare.
In a move which would boost Indian pharmaceutical industry and medicine exporters, China has removed import duties on as many as 28 medicines, including all cancer drugs, from May 1.
Chinese Ambassador to India Luo Zhaohui, in a tweet, said, “China has exempted import tariffs (duties) for 28 drugs, including all cancer drugs, from May 1st. Good news for India’s pharmaceutical industry and medicine export to China. I believe this will help reduce trade imbalance between China and India in the future.”
Nordic economic powerhouse Sweden wants to co-create products with India to build long-term relationship for the global marketNSE 0.00 %.
Last month during Indian PM trip to Sweden both countries signed agreements to begin a strategic innovation partnership.
Swedish Minister for Enterprise and Innovation, Mikael Damberg notes, “Sweden has learned that co-creation is a way of building long-term relationships in the world market, Stockholm also understands that knowing different customers are key for different markets. India and Sweden can even export to other markets – a third country.”
According to the FISME Factor, 100 per cent of Micro, Small & Medium Enterprises agree that the economy is again on growth track with the surge in GST collection during April shows. 
Every organization starts implementing a renewed corporate strategic plan the minute the new fiscal year begins. A good annual strategy for the coming year from the HR manager helps align the organization’s human capital with its year’s overall targets and objectives resulting into the desired ROI in a cost efficient manner. Let’s go backward and look at how the HR manager can develop a well-rounded strategy for the organization.
Every business is financed through a mix of Debt (borrowed funds) and Equity (owned funds) financing.
How much of each component should be used depends on the riskiness of the business and availability of funding, besides the relevance of each type. Broadly, Equity is less risky with respect to cash flow commitments but is much more expensive compared to Debt.
When Sachin Bansal resigned from Flipkart (after its acquisition by Walmart), Binny Bansal wrote an emotional piece bidding goodbye to his dear friend. He started the note by talking about how they got their first customer. When a man from Telangana (then Andhra Pradesh) mentioned on the internet that he was unable to find a certain book, another man with the username Sachin replied with a link that led the seeker of the book to Flipkart. And that’s how Flipkart got its customer.
Raising serious concerns over lack of incentives for MSMEs in Tamil Nadu, Industrial Estate Manufacturers Association (IEMA) has written a letter to chief minister Edappadi K. Palaniswami.
Through the letter, the manufacturing MSME units have demanded strict measures to revive the sector.
With digitisation, students today go online to access information related to their college education and for study materials to prepare for competitive exams and gain an insight and real-time information about educational institutions.
The plight of the Indian farmer is not new news. Stuck in the debt cycle and falling victim to extreme weather conditions, farmers hardly save enough to address their health issues. According to a Lancet report, healthcare expenditure pushes an additional 39 million people back into poverty in India every year.
Providing a cure to this solution, a Gurugram-based start-up Gramin Health Care is taking baby steps to provide primary healthcare to farmers at a nominal rate.
