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President's Message
General elections 2019 loom. Therefore, just before the elections the Union Budget is not likely to be a full budget. But, it would be the last big opportunity for Government to make major economic moves, if it wants to. It presents another opportunity for MSMEs to push for our long standing demands. On top comes the need to bring self-discipline in the economic & commercial behaviour of Goverment. After all they are single largest buyer: amounting to almost one fourth of India’s GDP. So their behaviour sets precedence for the entire commercial activity: adherence to contracts, premium on quality, timely payments, after sales performence etc. Good quality and efficient procurement encourages quality manufacturers and an ineffcient procurement stymies quality manufacturers. So it’s time we moved to have standrds for public procurement to encourage development and growth of competitive manufacturers who may beging with supplying to Government and with time export wordwide.
"
At a time when businesses are undoubtedly following Darwin’s Theory of “survival of the fittest.” To survive, evolve and to sustain is the biggest question on every corporate panels draft list. It requires a well thought out strategy and a business plan which clearly outlines the short term and long term stepping points for a business to implement.
A recently published report clearly mentions that half of the startups survive more than five years and only one-third makes it to 10.
At a time when the current account deficit (CAD) is expected to hit 3% of GDP, you would have expected the government to do a lot more to improve India’s external finances. A combination of a $30-40 billion NRI bond, along with measures to boost exports, for instance, would have been a good idea.Similarly, there should have been an attempt to make a structural compression of India’s commodity imports—even without oil, these were around 30% of FY18 imports, and 53% with oil—by ensuring faster permissions for mining companies as well as a more attractive fiscal regime.Improving the gold bond scheme by making it more liquid was an equally obvious plan given the $8.4 billion Q1FY19 imports of gold...
Manufacturing growth picked up pace in September as did goods and services tax (GST) collections, but sentiment was tempered by slower infrastructure sector growth and tepid auto sales, separate sets of data released on Monday showed.
The Nikkei India Manufacturing Purchasing Managers’ Index strengthened in September to 52.2 from 51.7 in August. A reading over 50 on this survey-based index indicates expansion, anything below it reflects contraction.
Aiming to narrow down the rising current account deficit (CAD), the central government of India has raised import duty on 19 consumer goods including air-conditioners, refrigerators, washing machines, footwear, jewellery, furniture fittings and tableware.
Besides, government also introduced an import levy of 5 percent on the aviation turbine fuel (ATF) to check in the CAD and to improve the devaluing rupee. “The central government has taken tariff measures, by way of increase in the basic customs duty, to curb import of certain imported items,” said Finance Ministry release.
Government has mandated all the foreign e-commerce companies such as Amazon and Google, among many others to apply for Goods and Services Tax (GST) registration in all the states across the country separately in the next 10-12 days.
The government proposed Tax collected at source (TCS) for e-commerce companies and based on the recommendation of GST council, government has ruled that both Indian and foreign e-commerce companies are to collect tax at source from October 1, 2018.
Raising concern about the issue of declining export credit which has been impacting exporters including Micro Small and Medium Enterprises (MSMEs), Commerce & Industry Minister Suresh Prabhu has suggested the Finance Minister Arun Jaitley to consider loans to exporters as priority sector lending by banks.
Through a written communication to Finance Minister, Prabhu said that the sharp decline in export credit has now become a matter of concern as it is impacting exporters in general and MSME units in particular.
Government e- Marketplace is a great thought on providing marketplace to all the sellers, said Arun Kumar Panda, Secretary, Ministry of MSME.
Talking on the National Consultative Workshop for MSMEs, WSHGs and Start-ups on Government e-marketplace Panda said that everyone including Prime Minister Narendra Modi is talking about the immense potential that this e-market place holds for everyone in this country. He stressed it is not just beneficial for sellers but for buyers as well.
The bill to re-define Micro, Small and Medium Enterprises (MSMEs) on turnover basis has been reportedly opposed by various political parties as well as some trade bodies related with MSMEs including Rashtriya Swyamsevak Sangh (RSS) and Swadeshi Jagran Manch (SJM).
Speaking to KNN India, Co-convenor of SJM, Ashwini Mahajan said if this bill is enacted, MSMEs will lose their distinct identity as the turnover amount is very high.
“No-where in the world, turnover is sole criteria to define MSMEs,” he added.
He said that it is ironical that the country like India where small scale provides a lot of employment is being discouraged.
To update MSMEs about various schemes and works done by the Ministry of Micro, Small and Medium Enterprises (MSMEs), Union Minister of State (Independent Charge) for Ministry of MSME Giriraj Singh launched ‘MSME Insider’-a monthly newsletter of the Ministry.
Speaking on the occasion, Giriraj Singh said that the e-newsletter will give information of the activities undertaken by the Ministry and also act as a bridge between the Ministry and the millions of MSME units spread across the country.
In a bid to help Indian SME companies to grow financially, A&A business consulting has announced the launch of two flagship programs for SME sector.
The program called "SPEED for Business and Strategic Alliance in Business “are the two programs that will support the development of SME sector capabilities thus increasing the overall contribution of the sector to the GDP," said Sanjay Sharma, President of the consulting department.
He reiterated that the ministry's mission is creating employment and said this e-newsletter will assist in the regular flow of information about the sector to the MSMEs and will also help in developing a two-way communication between the Ministry and its stakeholders.
The foreign direct investment (FDI) in food processing sector has already touched the USD 1-billion mark so far this year, said Harsimrat Kaur Badal, Food Processing Minister.
Speaking at the Confederation of Indian Industries (CII) event on post harvest and logistics, Badal said “We touched USD 1-billion mark. This is a tip of the iceberg; we have to go a long way.”
According to the official data, FDI in the food processing sector was USD 904.9 million in the 2017-18 fiscal, while it was around USD 727.22 million, USD 505.88 million and USD 515.86 million in 2016-17, 2015-16 and 2014-15, respectively.
A memorandum comprising of 20 demands and issues has been presented to Gunjan Krishna, Commissioner of Micro, Small and Medium Industries (MSME) by Mysore industries Association (MIA), at a meeting of all Industries association held under the aegis of Karnataka.
MIA Secretary Suresh Kumar Jain and Treasurer Manjunath presented the MoU.
A delegation of MIA, representing Industries of Mysore, Mandya & Chamarajanagara districts, met MSME Commissioner Gunjan Krishna and submitted the memorandum comprising 20 demands and issues pertaining to industries of the region.
In an effort to boost tourism in Uttarakhand, the state cabinet has approved a Tourism Policy which accords industry status to the sector, besides listing a series of benefits and exemptions for some 28 related commercial activities.
Minister Madan Kaushik clarified that after the tourism sector was accorded the industry status, 28 allied commercial activities would be entitled to the benefits and exemptions startups and industries in the Micro, Small and Medium Enterprises (MSME) sector were entitled to.
He said, “Like the MSME sector, entrepreneurs who set up units related to those 28 ventures will be provided exemptions and benefits through the subsidy granted by the central government.”
Madhya Pradesh will be the new destination for start-ups in the country, said Shivraj Singh Chouhan, Chief Minister of Madhya Pradesh.
Expressing his views while addressing the young entrepreneurs at Start-up Conclave, Chouhan said that youth of Madhya Pradesh will be provided loan up to Rs 10 lakh without interest and seed capital for startups.
He said that the Innovation Council for the state will be formed and startups will be provided better environment and facilities.
“Madhya Pradesh will become an Entrepreneur Network”, Minister added.
The state of Plywood industry in Kerala after floods is very bad as near about 70 factories dealing in plywood trade suffered huge damages, M.M Mujeeb Rahman, President of Sawmill Owners & Plywood Manufacturers Association (SOPMA) told KNN.
He said, 400 factories deal in plywood trade in Perumbavoor out of which 70 factories were directly affected and of those 70, the condition of 40 factories is very grim. He said the situation is out of control as damages are so large that it will be difficult to recover.
Because of floods, raw materials, machinery, finished plywood and electrification got damaged, he added.
There was so much water in the factories' basements that it drowned away all the equipments and machinery, said Rahman.
India and Morocco have entered into an agreement for deepening cooperation in the Micro Small and Medium Enterprises (MSMEs) sector.
The MoU was signed by CMD, National Small Industries Corporation (NSIC), Ravindra Nath and Director General, Maroc PME, Rabri Barrazouka.
Through this MoU, NSIC and Maroc PME will work together to enhance cooperation opportunities between the micro, small and medium enterprises (MSMEs) of the two countries.
This move will facilitate transfer of Indian technologies and products to the North African nation. Ministry of MSME, Joint Secretary, Alka Arora, who is leading the official delegation along with CMD NSIC to Morocco, held bilateral meetings with Othman El Ferdaous, Secretary of State in the Ministry of Industry, Investment and Trade and Digital Economy and with other related departments.
“Both sides discussed the ways and means to synergize the strengths of both countries in MSME Sector in terms of capacity building, sharing of experiences, exchange of business delegations for creating linkages, JVs and technology transfers,” according to a statement released.
The Royal Thai Consulate, Consul-General, Ekapol Poolpipat said at an interactive meeting that India and Thailand have emerged as prominent trade and economic partners and both countries offer ample opportunities for cooperation in several sectors of mutual complementarities.
Thailand has initiated discussions with the officials of the Government of Maharashtra for bilateral cooperation in areas of mutual interest and is keen to participate in investment Summits such as Magnetic Maharashtra as and when it takes place in the state.
Poolpipat was leading an official delegation from Thailand to explore opportunities for trade and economic cooperation with Maharashtra.
Harvest and post-harvest technologies, digital technologies and film production & distribution are the three three prominent sectors identified by Poolpipat as focus areas for collaboration between both the countries.
West Bengal Chief Minister Mamta Banerjee has invited Italian companies to invest in Bengal and assured them of all government support.
Speaking at the business meet in Milan (Itlay), jointly organized by ASSOLOMBARDA, Italian Trade Commission, FICCI and the Bengal Government, Banerjee said the mix of Itlay expertise in technology and Bengal expertise in steel and mining would take the growth of both the countries on different trajectory.
Banerjee, who is on a 12-day visit Europe since September 16 to attract investment, had earlier been to Germany.
She said “if you have the vision, Bengal has the mission, if you have the action, Bengal has the reaction, if you have the technology, Bengal has the manpower.”
At the business meet there were detailed discussions on the possibilities of investment from Italy in sectors like infrastructure, manufacturing, design and innovation, ICT, leather, textiles, agro-processing, tourism and automobiles.
Do you think that the measures announced by the government to stabilise the Indian currency may stop rupee sliding?
According to FISME factor, 60% of Micro, Small & Medium Enterprises think that the measures announced by the government to stabilise the Indian currency may stop rupee sliding, 20% think it will not while 20% can’t say.
Leaders have to sometimes drive intentional drastic change for the growth of their organisations or lead people in times of inevitable unavoidable change that stares them in their faces. How they take their people through it can range from inspiring and motivating them or on the other end, create fear and chaos.
5 Proven Steps to Manage The Finance Of a Growing Company
A growing company is quantified by increasing customers, resources and profits. As the company grows, there should be good business habits instituted in its workflow. And one of the crucial business habits is having an effective financial planning.
6 steps to grow your business with marketing automation
Now that you know about marketing automation a little better, let us go a step further. However, if you have not read my previous articles, do take a look at the piece where I discussed what is marketing automation and how to automate your sales and marketing functions.
Pimpri Chinchwad MSMEs facing tough time due to high power tariff rates: PCSIA Pres
Since the implementation of high power tariff rates, Pimpri-Chinchwad's Micro, Small and Medium Enterprises (MSMEs) have been facing tough time, President of Pimpri Chinchwad Small Industries Association, Sandip Belsare, told KNN India.
Smur Agro Ventures: Making organic farming sector healthy again
While more and more people demand organic produce, India accounts for a meagre 2.59% of the total organic cultivation in the world. It is this dismal number which led Rakesh Sahni, Udayan Arya, Meghna Arya and Shalu Sahni to get together and start Smur Agro Ventures.
The Central Statistics Office (CSO), Ministry of Statistics and Programme Implementation has been bringing out the employment related statistics in the formal sector since April, 2018 covering the period September 2017 onwards.
“
Dance to your own music and take some risks in life, because it is often the risk taker who changes the course of history and contribute to the well-being of millions of lives.
”
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.
send mail to: newsletter@fisme.org.in
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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
General elections 2019 loom. Therefore, just before the elections the Union Budget is not likely to be a full budget. But, it would be the last big opportunity for Government to make major economic moves, if it wants to. It presents another opportunity for MSMEs to push for our long standing demands. On top comes the need to bring self-discipline in the economic & commercial behaviour of Goverment. After all they are single largest buyer: amounting to almost one fourth of India’s GDP. So their behaviour sets precedence for the entire commercial activity: adherence to contracts, premium on quality, timely payments, after sales performence etc. Good quality and efficient procurement encourages quality manufacturers and an ineffcient procurement stymies quality manufacturers. So it’s time we moved to have standrds for public procurement to encourage development and growth of competitive manufacturers who may beging with supplying to Government and with time export wordwide.
"
At a time when businesses are undoubtedly following Darwin’s Theory of “survival of the fittest.” To survive, evolve and to sustain is the biggest question on every corporate panels draft list. It requires a well thought out strategy and a business plan which clearly outlines the short term and long term stepping points for a business to implement.
A recently published report clearly mentions that half of the startups survive more than five years and only one-third makes it to 10.
Manufacturing growth picked up pace in September as did goods and services tax (GST) collections, but sentiment was tempered by slower infrastructure sector growth and tepid auto sales, separate sets of data released on Monday showed.
The Nikkei India Manufacturing Purchasing Managers’ Index strengthened in September to 52.2 from 51.7 in August. A reading over 50 on this survey-based index indicates expansion, anything below it reflects contraction.
Aiming to narrow down the rising current account deficit (CAD), the central government of India has raised import duty on 19 consumer goods including air-conditioners, refrigerators, washing machines, footwear, jewellery, furniture fittings and tableware.
Besides, government also introduced an import levy of 5 percent on the aviation turbine fuel (ATF) to check in the CAD and to improve the devaluing rupee. “The central government has taken tariff measures, by way of increase in the basic customs duty, to curb import of certain imported items,” said Finance Ministry release.
Government has mandated all the foreign e-commerce companies such as Amazon and Google, among many others to apply for Goods and Services Tax (GST) registration in all the states across the country separately in the next 10-12 days.
The government proposed Tax collected at source (TCS) for e-commerce companies and based on the recommendation of GST council, government has ruled that both Indian and foreign e-commerce companies are to collect tax at source from October 1, 2018.
Raising concern about the issue of declining export credit which has been impacting exporters including Micro Small and Medium Enterprises (MSMEs), Commerce & Industry Minister Suresh Prabhu has suggested the Finance Minister Arun Jaitley to consider loans to exporters as priority sector lending by banks.
Through a written communication to Finance Minister, Prabhu said that the sharp decline in export credit has now become a matter of concern as it is impacting exporters in general and MSME units in particular.
Government e- Marketplace is a great thought on providing marketplace to all the sellers, said Arun Kumar Panda, Secretary, Ministry of MSME.
Talking on the National Consultative Workshop for MSMEs, WSHGs and Start-ups on Government e-marketplace Panda said that everyone including Prime Minister Narendra Modi is talking about the immense potential that this e-market place holds for everyone in this country. He stressed it is not just beneficial for sellers but for buyers as well.
The bill to re-define Micro, Small and Medium Enterprises (MSMEs) on turnover basis has been reportedly opposed by various political parties as well as some trade bodies related with MSMEs including Rashtriya Swyamsevak Sangh (RSS) and Swadeshi Jagran Manch (SJM).
Speaking to KNN India, Co-convenor of SJM, Ashwini Mahajan said if this bill is enacted, MSMEs will lose their distinct identity as the turnover amount is very high.
“No-where in the world, turnover is sole criteria to define MSMEs,” he added.
He said that it is ironical that the country like India where small scale provides a lot of employment is being discouraged.
To update MSMEs about various schemes and works done by the Ministry of Micro, Small and Medium Enterprises (MSMEs), Union Minister of State (Independent Charge) for Ministry of MSME Giriraj Singh launched ‘MSME Insider’-a monthly newsletter of the Ministry.
Speaking on the occasion, Giriraj Singh said that the e-newsletter will give information of the activities undertaken by the Ministry and also act as a bridge between the Ministry and the millions of MSME units spread across the country.
In a bid to help Indian SME companies to grow financially, A&A business consulting has announced the launch of two flagship programs for SME sector.
The program called "SPEED for Business and Strategic Alliance in Business “are the two programs that will support the development of SME sector capabilities thus increasing the overall contribution of the sector to the GDP," said Sanjay Sharma, President of the consulting department.
He reiterated that the ministry's mission is creating employment and said this e-newsletter will assist in the regular flow of information about the sector to the MSMEs and will also help in developing a two-way communication between the Ministry and its stakeholders.
The foreign direct investment (FDI) in food processing sector has already touched the USD 1-billion mark so far this year, said Harsimrat Kaur Badal, Food Processing Minister.
Speaking at the Confederation of Indian Industries (CII) event on post harvest and logistics, Badal said “We touched USD 1-billion mark. This is a tip of the iceberg; we have to go a long way.”
According to the official data, FDI in the food processing sector was USD 904.9 million in the 2017-18 fiscal, while it was around USD 727.22 million, USD 505.88 million and USD 515.86 million in 2016-17, 2015-16 and 2014-15, respectively.
A memorandum comprising of 20 demands and issues has been presented to Gunjan Krishna, Commissioner of Micro, Small and Medium Industries (MSME) by Mysore industries Association (MIA), at a meeting of all Industries association held under the aegis of Karnataka.
MIA Secretary Suresh Kumar Jain and Treasurer Manjunath presented the MoU.
A delegation of MIA, representing Industries of Mysore, Mandya & Chamarajanagara districts, met MSME Commissioner Gunjan Krishna and submitted the memorandum comprising 20 demands and issues pertaining to industries of the region.
In an effort to boost tourism in Uttarakhand, the state cabinet has approved a Tourism Policy which accords industry status to the sector, besides listing a series of benefits and exemptions for some 28 related commercial activities.
Minister Madan Kaushik clarified that after the tourism sector was accorded the industry status, 28 allied commercial activities would be entitled to the benefits and exemptions startups and industries in the Micro, Small and Medium Enterprises (MSME) sector were entitled to.
He said, “Like the MSME sector, entrepreneurs who set up units related to those 28 ventures will be provided exemptions and benefits through the subsidy granted by the central government.”
Madhya Pradesh will be the new destination for start-ups in the country, said Shivraj Singh Chouhan, Chief Minister of Madhya Pradesh.
Expressing his views while addressing the young entrepreneurs at Start-up Conclave, Chouhan said that youth of Madhya Pradesh will be provided loan up to Rs 10 lakh without interest and seed capital for startups.
He said that the Innovation Council for the state will be formed and startups will be provided better environment and facilities.
“Madhya Pradesh will become an Entrepreneur Network”, Minister added.
The state of Plywood industry in Kerala after floods is very bad as near about 70 factories dealing in plywood trade suffered huge damages, M.M Mujeeb Rahman, President of Sawmill Owners & Plywood Manufacturers Association (SOPMA) told KNN.
He said, 400 factories deal in plywood trade in Perumbavoor out of which 70 factories were directly affected and of those 70, the condition of 40 factories is very grim. He said the situation is out of control as damages are so large that it will be difficult to recover.
Because of floods, raw materials, machinery, finished plywood and electrification got damaged, he added.
There was so much water in the factories' basements that it drowned away all the equipments and machinery, said Rahman.
India and Morocco have entered into an agreement for deepening cooperation in the Micro Small and Medium Enterprises (MSMEs) sector.
The MoU was signed by CMD, National Small Industries Corporation (NSIC), Ravindra Nath and Director General, Maroc PME, Rabri Barrazouka.
Through this MoU, NSIC and Maroc PME will work together to enhance cooperation opportunities between the micro, small and medium enterprises (MSMEs) of the two countries.
This move will facilitate transfer of Indian technologies and products to the North African nation. Ministry of MSME, Joint Secretary, Alka Arora, who is leading the official delegation along with CMD NSIC to Morocco, held bilateral meetings with Othman El Ferdaous, Secretary of State in the Ministry of Industry, Investment and Trade and Digital Economy and with other related departments.
“Both sides discussed the ways and means to synergize the strengths of both countries in MSME Sector in terms of capacity building, sharing of experiences, exchange of business delegations for creating linkages, JVs and technology transfers,” according to a statement released.
The Royal Thai Consulate, Consul-General, Ekapol Poolpipat said at an interactive meeting that India and Thailand have emerged as prominent trade and economic partners and both countries offer ample opportunities for cooperation in several sectors of mutual complementarities.
Thailand has initiated discussions with the officials of the Government of Maharashtra for bilateral cooperation in areas of mutual interest and is keen to participate in investment Summits such as Magnetic Maharashtra as and when it takes place in the state.
Poolpipat was leading an official delegation from Thailand to explore opportunities for trade and economic cooperation with Maharashtra.
Harvest and post-harvest technologies, digital technologies and film production & distribution are the three three prominent sectors identified by Poolpipat as focus areas for collaboration between both the countries.
West Bengal Chief Minister Mamta Banerjee has invited Italian companies to invest in Bengal and assured them of all government support.
Speaking at the business meet in Milan (Itlay), jointly organized by ASSOLOMBARDA, Italian Trade Commission, FICCI and the Bengal Government, Banerjee said the mix of Itlay expertise in technology and Bengal expertise in steel and mining would take the growth of both the countries on different trajectory.
Banerjee, who is on a 12-day visit Europe since September 16 to attract investment, had earlier been to Germany.
She said “if you have the vision, Bengal has the mission, if you have the action, Bengal has the reaction, if you have the technology, Bengal has the manpower.”
At the business meet there were detailed discussions on the possibilities of investment from Italy in sectors like infrastructure, manufacturing, design and innovation, ICT, leather, textiles, agro-processing, tourism and automobiles.
According to FISME factor, 60% of Micro, Small & Medium Enterprises think that the measures announced by the government to stabilise the Indian currency may stop rupee sliding, 20% think it will not while 20% can’t say. 
Leaders have to sometimes drive intentional drastic change for the growth of their organisations or lead people in times of inevitable unavoidable change that stares them in their faces. How they take their people through it can range from inspiring and motivating them or on the other end, create fear and chaos.
A growing company is quantified by increasing customers, resources and profits. As the company grows, there should be good business habits instituted in its workflow. And one of the crucial business habits is having an effective financial planning.
Now that you know about marketing automation a little better, let us go a step further. However, if you have not read my previous articles, do take a look at the piece where I discussed what is marketing automation and how to automate your sales and marketing functions.
Since the implementation of high power tariff rates, Pimpri-Chinchwad's Micro, Small and Medium Enterprises (MSMEs) have been facing tough time, President of Pimpri Chinchwad Small Industries Association, Sandip Belsare, told KNN India.
While more and more people demand organic produce, India accounts for a meagre 2.59% of the total organic cultivation in the world. It is this dismal number which led Rakesh Sahni, Udayan Arya, Meghna Arya and Shalu Sahni to get together and start Smur Agro Ventures.
Marvel fans will remember the Tesseract, a crystalline, cube-shaped vessel that housed one of the six Infinity Stones that possess unlimited energy.
“
Dance to your own music and take some risks in life, because it is often the risk taker who changes the course of history and contribute to the well-being of millions of lives.
”
