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President's Message
Budget proposal for 2018-19 has brought a mixed bag for the MSME sector. While there are positive announcements on additional financial allocations, further revitalising of MUDRA loan, extension of PF subsidy to all sectors etc., a lot of expectations remained unfulfilled. Simplification of labour laws and making cheques as dependable instruments are two demands made by almost the entire MSME fraternity during the pre budget meeting with Mr. Jaitley. But these do not find any place in his budget speech. For the last few years FISME is advocating for an easy lump sum payment by MSMEs towards all social security liabilities. While the proposal found acceptance in many Governmental confabulations, at the end of the day, the status quoists prevailed. Subsidy of EPF contributions, as proposed by the F M is a half way house, will neither lessen the enormous paper work involved in ESI and EPF nor will minimise the inspection raj. The much publicised Small Factories Act also remained on the paper. In fact, some of the states like Rajasthan are much ahead of the centre in easing of labour laws. Equally important was the demand to make cheques a reliable instrument. Though a law exists to punish cheque bouncing, the huge number of pending cases make the enforcing of the law almost impossible. In the past Mr. Jaitley mentioned repeatedly to take steps to make cheques a reliable instrument for trade credit, however, concrete steps are yet to be taken. The budget speech could take the issue up. Again all these do not minimise the Government’s efforts in unshackling the MSMEs from the archaic regulatory system. MSMEs will only look forward for a continuing ‘ease of doing business’ drive by the Government. "
FISME was called by the Parliamentary Standing Committee to present its viewpoint on the budget allocation 2018-19. The delegation from FISME informed the august committee about the crucial position of the MSME sector in the Indian economy and its 40% contribution in the exports. The delegation lamented Instead of handholding the MSMEs to reach new markets, most of the Government budget on ‘Market Assistance Initiative’ scheme for export promotion is diverted elsewhere. FISME delegation also informed the committee the pains of MSME exporters in getting refund of the IGST paid. While Government claims a streamline process for refund of the IGST, on the ground the refund is withheld due to one reason or other. The delegation insisted on the Committee to direct an early solution of the problem, else exports from the country will be seriously affected.
“How do I know if I have what it takes?” This question plagues almost every entrepreneur -- or would-be entrepreneur -- at some point in their career. If you really want to be successful as an entrepreneur, you need to invest in yourself and build valuable skills over time. So which skills should every entrepreneur have? 1. The ability to manage money
In order to effectively run a business, you need to be able to manage money. Answer these questions about your personal finances first: Do you know where your money goes each month? Do you make more than you spend? If the answer is no to both, you will struggle to manage your business’ money too.
Formalisation and, therefore, mainstreaming of micro, small and medium enterprises (MSMEs) has been taking place at a rapid place since demonetisation and the introduction of the Goods and Services Tax. The budget for the next fiscal accelerates this process by incentivising formalisation in such a way that it sets off a cycle of easing access to finance, lowering tax incidence, and encouraging job creation. With the economy in the process of digesting the two big reforms, capturing data on performance — from the so-called ‘digital exhaust’ — of the budget initiatives, will ultimately improve access to funding, and job creation among MSMEs.
Less than a month after he declared to the World Economic Forum that India was open for business, Prime Minister Narendra Modi has raised import duties to their highest in three decades, setting the stage for a protracted trade war.
As he prepares to seek re-election next year, Modi has been ensnared by a global wave of protectionism that could threaten the foreign direct investments India needs to achieve double-digit growth. He has made it more expensive to import parts for automobiles, cameras, televisions, electricity meters and smartphones, risking trade disputes from allies like the U.S. and Germany to rivals like China.
India’s factory output expanded at 7.1% in December, slower than the 25-month-high growth of 8.8% in November as mining and electricity production declined. However, it was healthier than the 2.4% growth clocked in the year-ago period.
Retail inflation in January eased to 5.07% on the back of lower food inflation. Data released by the Central Statistics Office on Monday showed a mild contraction in the country’s industrial activity, as measured by the Index of Industrial Production (IIP) even as manufacturing strengthened.
Retail inflation is expected to moderate and print at 5 per cent after rising consecutively for five months, helped largely by seasonal dip in vegetable prices, while trade deficit is also likely to improve, in January, says a foreign brokerage in a report.
Official data for consumer price inflation (CPI) for January, which stood at 5.2 per cent in December last, would be released by government tomorrow. Interestingly, while Morgan Stanley sees improvement in both inflation and trade deficit numbers in January, it has flagged concern that "moderate risks to macro stability are emerging on account of the wider-than-targeted fiscal deficits".
India's tea exports touched a 36-year high of 240.7 million kilograms during calendar 2017, Tea Board data said.
The record was in 1981 when exports reached 241.25 million kilograms.
Tea exports in 2017 were 8.20 per cent (or 18.23 million kilograms) up from the previous year, the Tea Board said, adding that the value of exports was Rs 4731.66 crore, which was an increase of 5.90 per cent over the previous year.
Exports from north India touched 148.41 million kilograms, while those from south India was 92.27 million kilograms.
The government is considering to remove export duty on sugar to boost shipments in view of fall in domestic prices on estimated rise in production, Food and Consumer Affairs Minister Ram Vilas Paswan said today.
At present, there is 20 per cent export duty on sugar.
"Sugar production is estimated to rise nearly 24.9 million tonnes in 2017-18 season (October-September) from 20.2 million tonnes in the previous year," Paswan told reporters.
In a move that would speed up recognition of bad loans, the RBI has come out with a revised framework on restructuring of stressed assets under which it requires lenders to classify a loan as a non-performing asset (NPA) immediately upon restructuring.
RBI said it has issued various instructions aimed at resolution of stressed assets in the economy, including introduction of certain specific schemes at different points of time. In view of the enactment of the Insolvency and Bankruptcy Code, 2016 (IBC), it has been decided to substitute the existing guidelines with a harmonised and simplified generic framework for resolution of stressed assets.
In a relief for the MSMEs, the Reserve Bank of India (RBI) today announced measures for the MSME borrowers who have registered under Goods & Services Tax (GST) and has also announced removal of Credit Caps on MSME (Services) under Priority Sector.
In a Statement on Developmental and Regulatory Policies – February 2018, RBI said “The formalisation of business through registration under Goods and Services Tax (GST) adversely impacted cash flows of the smaller entities during the transition phase with consequent difficulties in meeting their repayment obligations to banks and non-banking financial companies (NBFCs).”
In a notification, The Reserve Bank announced that it has come out with a revised framework on restructuring of stressed assets under which it requires lenders to classify a loan as a non-performing asset (NPA) immediately upon restructuring, however the notification doesn’t mention about the micro, small and medium enterprises (MSMEs) under the new Special Mention Account (SMA) norm.
Talking to KNN, Dr. Yerram Raju, Economist said that the MSMEs for long have been not treated fairly by the Reserve Bank when it comes to framework under SMA norm and revival.
Mamata Banerjee led Bengal Government is planning to come out with a Comprehensive Incentive Policy which would have clear indicators regarding every incentive and facility available to a person keen on investing in setting up units in any field.
All India Trinamool Congress (AITC) said in a release, “In order to ensure a structured approach to the giving of various incentives for setting up different types of industries in Bengal, the State Government is soon going to come up with a Comprehensive Incentive Policy.”
In the wake of unseasonal rains and hailstorms lashing Maharashtra since Sunday, the government on Wednesday announced a compensation package of Rs 200 crore for farmers who suffered damage to standing crops.
"An immediate aid package of Rs 200 crore has been cleared by the government to be disbursed as per existing norms and various parameters," said Agriculture Minister Pandurang Fudkar.
In a move that would bring huge relief to the small industries, Rajasthan Chief Minister Vasundhara Raje has proposed, in the budget, to reduce stamp duty for several transactions and full exemption of interest rates and penalty on unpaid stamp duty. Moreover, the CM has proposed to do away with stamp duty on loans for startups and under Mudra scheme.
The proposal comes despite the states have not much options to extend tax relief post GST.
Eyeing at boosting the textile sector of the state including the Micro, Small and Medium Enterprises (MSMEs), the Telangana State Industrial Infrastructure Corporation (TSIIC) has proposed establishment of small and medium scale textile parks or clusters spread over 50-100 acre each.
The state government is likely to provide special subsidies and incentives for the units in these proposed parks. The main focus of the parks would be to encourage reverse migration of weavers to their home state.
In a bid to strengthen ties, India-Bangladesh held bilateral talks, at the level of Commerce Secretary in Dhaka recently.
The Indian delegation was led by Ms. Rita Teaotia, Commerce Secretary and the Bangladesh delegation was headed by Shubhashish Bose, Secretary, Ministry of Commerce, Government of Bangladesh.
The two sides held extensive and productive discussions on a variety of issues concerning bilateral trade and economic relations, including development and up-gradation of infrastructure at border trading points, further expansion of the Border Haats of the two countries, identification and resolution of non-tariff issues affecting bilateral trade, regional connectivity under BBIN MVA and ease of investment, a release from the government informed.
Eyeing at strengthening bilateral relations between the two countries, a high level delegation from UAE met Minister of Commerce and Industry, Suresh Prabhu.
Prabhu during the meeting highlighted to the visiting delegation that India has a very strong services sector and India and UAE could formulate a comprehensive economic partnership for developing third country markets in Africa, Latin America and Central Asia.
The UAE delegation raised that the country is moving ahead from being an oil economy towards the path of becoming a knowledge based economy.
Trade between India and the US is estimated to have jumped substantially from USD 118 billion in 2016 to USD 140 billion in 2017, according to an advocacy group that aims to promote bilateral trade.
In 2016, India was the ninth largest trading partner of the US and one of the major countries with which America has had trade deficit of more than USD30 billion. This is expected to continue in 2017 as well, an issue which has repeatedly been raised by President Donald Trump and his top officials in their interaction with their Indian counterpart.
: Indian exports have risen by 12.36 percent in December 2017 according to reports. Do you think that momentum in exports growth will continue?
According to FISME Factor, as Indian exports have risen by 12.36 percent in December 2017, 60 percent of MSMEs think that momentum in exports growth will continue, 30 per think it will not continue and 20 percent can’t say.
Aditya Birla Group plans to invest to boost SME loan book
To boost retail and small and medium enterprises (SME) loan book, Aditya Birla Capital is planning to invest Rs 10 billion each year, administered by a non-bank finance company
Brands must seamlessly integrate their online and offline channels
As the year was slipping by, queer yet expected things were happening! Just like us, brands were living a life of their own. Some in slumber, some in denial, yet a few energetically doing somersaults, but all trying to differentiate..
Gujarat Revenue Min Kaushik say MSMEs dying, MSMEs say dedicated framework for revival 'must'
The Micro, Small and Medium Enterprises (MSMEs) of the state are not in the best shape, Gujarat Revenue Minister Kaushik Patel said recently during an interaction, responding to which the MSMEs have raised a need for a dedicated framework for the state MSMEs.
Bengaluru startup Emflux launches India’s first electric superbike Emflux One at Delhi Auto Expo
Emflux is a startup based out of Bengaluru that is building electric superbikes, as well as patented technology that can be used by other automobile manufacturers.
This Gorakhpur-based online seller is taking affordable ethnic wear to women across India
In 2008-2009, when e-commerce started the Indian market, it became the go-to business model for numerous e-tailers who did not have deep pockets to set up an offline store and wanted to sell their products at minimal costs.
The Central Statistics Office (CSO), Ministry of Statistics and Programme Implementation has released the Quick Estimates of Index of Industrial Production (IIP) with base 2011-12 for the month of December 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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Budget proposal for 2018-19 has brought a mixed bag for the MSME sector. While there are positive announcements on additional financial allocations, further revitalising of MUDRA loan, extension of PF subsidy to all sectors etc., a lot of expectations remained unfulfilled. Simplification of labour laws and making cheques as dependable instruments are two demands made by almost the entire MSME fraternity during the pre budget meeting with Mr. Jaitley. But these do not find any place in his budget speech. For the last few years FISME is advocating for an easy lump sum payment by MSMEs towards all social security liabilities. While the proposal found acceptance in many Governmental confabulations, at the end of the day, the status quoists prevailed. Subsidy of EPF contributions, as proposed by the F M is a half way house, will neither lessen the enormous paper work involved in ESI and EPF nor will minimise the inspection raj. The much publicised Small Factories Act also remained on the paper. In fact, some of the states like Rajasthan are much ahead of the centre in easing of labour laws. Equally important was the demand to make cheques a reliable instrument. Though a law exists to punish cheque bouncing, the huge number of pending cases make the enforcing of the law almost impossible. In the past Mr. Jaitley mentioned repeatedly to take steps to make cheques a reliable instrument for trade credit, however, concrete steps are yet to be taken. The budget speech could take the issue up. Again all these do not minimise the Government’s efforts in unshackling the MSMEs from the archaic regulatory system. MSMEs will only look forward for a continuing ‘ease of doing business’ drive by the Government. "
FISME was called by the Parliamentary Standing Committee to present its viewpoint on the budget allocation 2018-19. The delegation from FISME informed the august committee about the crucial position of the MSME sector in the Indian economy and its 40% contribution in the exports. The delegation lamented Instead of handholding the MSMEs to reach new markets, most of the Government budget on ‘Market Assistance Initiative’ scheme for export promotion is diverted elsewhere. FISME delegation also informed the committee the pains of MSME exporters in getting refund of the IGST paid. While Government claims a streamline process for refund of the IGST, on the ground the refund is withheld due to one reason or other. The delegation insisted on the Committee to direct an early solution of the problem, else exports from the country will be seriously affected.
“How do I know if I have what it takes?” This question plagues almost every entrepreneur -- or would-be entrepreneur -- at some point in their career. If you really want to be successful as an entrepreneur, you need to invest in yourself and build valuable skills over time. So which skills should every entrepreneur have? 1. The ability to manage money
In order to effectively run a business, you need to be able to manage money. Answer these questions about your personal finances first: Do you know where your money goes each month? Do you make more than you spend? If the answer is no to both, you will struggle to manage your business’ money too.
Less than a month after he declared to the World Economic Forum that India was open for business, Prime Minister Narendra Modi has raised import duties to their highest in three decades, setting the stage for a protracted trade war.
As he prepares to seek re-election next year, Modi has been ensnared by a global wave of protectionism that could threaten the foreign direct investments India needs to achieve double-digit growth. He has made it more expensive to import parts for automobiles, cameras, televisions, electricity meters and smartphones, risking trade disputes from allies like the U.S. and Germany to rivals like China.
India’s factory output expanded at 7.1% in December, slower than the 25-month-high growth of 8.8% in November as mining and electricity production declined. However, it was healthier than the 2.4% growth clocked in the year-ago period.
Retail inflation in January eased to 5.07% on the back of lower food inflation. Data released by the Central Statistics Office on Monday showed a mild contraction in the country’s industrial activity, as measured by the Index of Industrial Production (IIP) even as manufacturing strengthened.
Retail inflation is expected to moderate and print at 5 per cent after rising consecutively for five months, helped largely by seasonal dip in vegetable prices, while trade deficit is also likely to improve, in January, says a foreign brokerage in a report.
Official data for consumer price inflation (CPI) for January, which stood at 5.2 per cent in December last, would be released by government tomorrow. Interestingly, while Morgan Stanley sees improvement in both inflation and trade deficit numbers in January, it has flagged concern that "moderate risks to macro stability are emerging on account of the wider-than-targeted fiscal deficits".
India's tea exports touched a 36-year high of 240.7 million kilograms during calendar 2017, Tea Board data said.
The record was in 1981 when exports reached 241.25 million kilograms.
Tea exports in 2017 were 8.20 per cent (or 18.23 million kilograms) up from the previous year, the Tea Board said, adding that the value of exports was Rs 4731.66 crore, which was an increase of 5.90 per cent over the previous year.
Exports from north India touched 148.41 million kilograms, while those from south India was 92.27 million kilograms.
The government is considering to remove export duty on sugar to boost shipments in view of fall in domestic prices on estimated rise in production, Food and Consumer Affairs Minister Ram Vilas Paswan said today.
At present, there is 20 per cent export duty on sugar.
"Sugar production is estimated to rise nearly 24.9 million tonnes in 2017-18 season (October-September) from 20.2 million tonnes in the previous year," Paswan told reporters.
In a move that would speed up recognition of bad loans, the RBI has come out with a revised framework on restructuring of stressed assets under which it requires lenders to classify a loan as a non-performing asset (NPA) immediately upon restructuring.
RBI said it has issued various instructions aimed at resolution of stressed assets in the economy, including introduction of certain specific schemes at different points of time. In view of the enactment of the Insolvency and Bankruptcy Code, 2016 (IBC), it has been decided to substitute the existing guidelines with a harmonised and simplified generic framework for resolution of stressed assets.
In a relief for the MSMEs, the Reserve Bank of India (RBI) today announced measures for the MSME borrowers who have registered under Goods & Services Tax (GST) and has also announced removal of Credit Caps on MSME (Services) under Priority Sector.
In a Statement on Developmental and Regulatory Policies – February 2018, RBI said “The formalisation of business through registration under Goods and Services Tax (GST) adversely impacted cash flows of the smaller entities during the transition phase with consequent difficulties in meeting their repayment obligations to banks and non-banking financial companies (NBFCs).”
In a notification, The Reserve Bank announced that it has come out with a revised framework on restructuring of stressed assets under which it requires lenders to classify a loan as a non-performing asset (NPA) immediately upon restructuring, however the notification doesn’t mention about the micro, small and medium enterprises (MSMEs) under the new Special Mention Account (SMA) norm.
Talking to KNN, Dr. Yerram Raju, Economist said that the MSMEs for long have been not treated fairly by the Reserve Bank when it comes to framework under SMA norm and revival.
Mamata Banerjee led Bengal Government is planning to come out with a Comprehensive Incentive Policy which would have clear indicators regarding every incentive and facility available to a person keen on investing in setting up units in any field.
All India Trinamool Congress (AITC) said in a release, “In order to ensure a structured approach to the giving of various incentives for setting up different types of industries in Bengal, the State Government is soon going to come up with a Comprehensive Incentive Policy.”
In the wake of unseasonal rains and hailstorms lashing Maharashtra since Sunday, the government on Wednesday announced a compensation package of Rs 200 crore for farmers who suffered damage to standing crops.
"An immediate aid package of Rs 200 crore has been cleared by the government to be disbursed as per existing norms and various parameters," said Agriculture Minister Pandurang Fudkar.
In a move that would bring huge relief to the small industries, Rajasthan Chief Minister Vasundhara Raje has proposed, in the budget, to reduce stamp duty for several transactions and full exemption of interest rates and penalty on unpaid stamp duty. Moreover, the CM has proposed to do away with stamp duty on loans for startups and under Mudra scheme.
The proposal comes despite the states have not much options to extend tax relief post GST.
Eyeing at boosting the textile sector of the state including the Micro, Small and Medium Enterprises (MSMEs), the Telangana State Industrial Infrastructure Corporation (TSIIC) has proposed establishment of small and medium scale textile parks or clusters spread over 50-100 acre each.
The state government is likely to provide special subsidies and incentives for the units in these proposed parks. The main focus of the parks would be to encourage reverse migration of weavers to their home state.
In a bid to strengthen ties, India-Bangladesh held bilateral talks, at the level of Commerce Secretary in Dhaka recently.
The Indian delegation was led by Ms. Rita Teaotia, Commerce Secretary and the Bangladesh delegation was headed by Shubhashish Bose, Secretary, Ministry of Commerce, Government of Bangladesh.
The two sides held extensive and productive discussions on a variety of issues concerning bilateral trade and economic relations, including development and up-gradation of infrastructure at border trading points, further expansion of the Border Haats of the two countries, identification and resolution of non-tariff issues affecting bilateral trade, regional connectivity under BBIN MVA and ease of investment, a release from the government informed.
Eyeing at strengthening bilateral relations between the two countries, a high level delegation from UAE met Minister of Commerce and Industry, Suresh Prabhu.
Prabhu during the meeting highlighted to the visiting delegation that India has a very strong services sector and India and UAE could formulate a comprehensive economic partnership for developing third country markets in Africa, Latin America and Central Asia.
The UAE delegation raised that the country is moving ahead from being an oil economy towards the path of becoming a knowledge based economy.
Trade between India and the US is estimated to have jumped substantially from USD 118 billion in 2016 to USD 140 billion in 2017, according to an advocacy group that aims to promote bilateral trade.
In 2016, India was the ninth largest trading partner of the US and one of the major countries with which America has had trade deficit of more than USD30 billion. This is expected to continue in 2017 as well, an issue which has repeatedly been raised by President Donald Trump and his top officials in their interaction with their Indian counterpart.
According to FISME Factor, as Indian exports have risen by 12.36 percent in December 2017, 60 percent of MSMEs think that momentum in exports growth will continue, 30 per think it will not continue and 20 percent can’t say. 
India is one of the world’s fastest growing major economies, recent concerns of a slowdown notwithstanding.
To boost retail and small and medium enterprises (SME) loan book, Aditya Birla Capital is planning to invest Rs 10 billion each year, administered by a non-bank finance company
As the year was slipping by, queer yet expected things were happening! Just like us, brands were living a life of their own. Some in slumber, some in denial, yet a few energetically doing somersaults, but all trying to differentiate..
The Micro, Small and Medium Enterprises (MSMEs) of the state are not in the best shape, Gujarat Revenue Minister Kaushik Patel said recently during an interaction, responding to which the MSMEs have raised a need for a dedicated framework for the state MSMEs.
Emflux is a startup based out of Bengaluru that is building electric superbikes, as well as patented technology that can be used by other automobile manufacturers.
In 2008-2009, when e-commerce started the Indian market, it became the go-to business model for numerous e-tailers who did not have deep pockets to set up an offline store and wanted to sell their products at minimal costs.
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Leadership is the self-confidence of working with people smarter than you.
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