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President's Message
PM Modi’s first address on Independence day after coming back to power is important to take note. While setting priorities for social and political causes, he gave a clear message to administration that ‘wealth creators are nation’s wealth’. Before coming to power in 2014 Modi had an image of ‘business friendly’ politician in Gujarat. Seat of power in Delhi demanded, perhaps, a different image and many allude his drift away from effecting tougher reforms. The disruptions caused by demonetisation and then GST became highlights of NDA-II and further dampened spirits of businessmen. Now, with sinking economy and despondency in the business community, especially after spade of incidents of harassments of businessmen by tax officials, PM seems to be in a mood to take touch actions needed: privatization, reducing Government’s role in day to day business and curtail inspector raj. MSMEs remain at the receiving end of a hostile administration. Hopefully, the gaze of PM Modi will remain fixed on these issues till the older hostile structure against business is thrown out. And, India becomes a truly business friendly nation.
"
Many small-business owners want to grow their companies, and they want to do it fast. But if you rush into expansion without a plan, you risk losing everything you’ve worked so hard to build. Take Wise Acre Frozen Treats, which hired too many employees and bought too much equipment before they had the revenue or startup capital they needed; the company went bankrupt in just a few years.
To avoid making similar mistakes, heed these five tips for expanding your small business (the right way).
The automobile industry is in dire straits. Sales in July shrunk 18.71%, with the contraction in sales of cars being particularly sharp at 31%. Monthly sales have shrunk in 12 of the last 13 months. The state of the auto industry encapsulates a larger economic problem. Simply put, the economy is fast losing momentum with many sectors reporting a slowdown in demand. There is really no evidence that demand is going to revive in a month or two, as proxy indicators for it such as percentage increase in salaries for the universe of listed companies suggest a challenging time ahead...
The quick estimates of Index of Industrial Production (IIP) for the month of June 2019 stood at 130.2, which is 2.0 percent higher as compared to the level in the month of June 2018, according to data released.
The cumulative growth for the period April-June 2019 over the corresponding period of the previous year stands at 3.6 percent.
In terms of industries, eight out of the twenty three industry groups (as per 2-digit NIC-2008) in the manufacturing sector have shown positive growth during the month of June 2019 as compared to the corresponding month of the previous year.
India’s wholesale inflation hit a 25-month low in July, highlighting weak demand in the economy and triggering calls for further rate cuts by the Reserve Bank of India. Inflation as measured by the wholesale price index (WPI) stood at 1.08% in July, data showed on Wednesday, slowing sharply from 2.02% in June.
Inflation in manufactured products, with a weight of 64.23%, eased to 0.34% from 0.94%, suggesting lack of pricing power for manufacturers in the face of weak consumer demand.
The Reserve Bank of India's Monetary Policy Committee (MPC) cut key interest rate for the fourth consecutive time.
Reserve Bank of India's MPC cut repo rate by 35 basis points or 0.35 per cent to 5.40 per cent, the lowest in over nine years. Repo rate is the key interest rate at which the central bank lends short-term funds to commercial banks. The six-member monetary policy committee (MPC) also maintained the "accommodative" stance on the monetary policy.
Aiming to meet the financial requirements of productive sectors of economy including Micro Small and Medium Enterprises (MSME), retail and housing, government has issued a scheme regarding partial credit guarantee that would enable the public sector banks (PSBs) to purchase pooled assets of financially sound NBFCs amounting to Rs 1 lakh crore.
It is expected that this measure would provide liquidity to the NBFC Sector and, in turn, enable them to continue to play their role in meeting the financing requirements of the productive sectors of economy including MSMEs, retail and housing.
Reliance Group's Chairman Mukesh Ambani has announced Jio's special plans for Micro, Small and Medium Enterprises (MSMEs) that includes offering connectivity and business-related applications starting at just Rs 1,500 a month.
To run their (MSMEs) business, a bundle of connectivity, productivity and automation tools costs a micro and small business between Rs 15,000 and Rs 20,000 per month currently.
For a similar service, customers abroad pay over 1,000 dollars per month. Today we are taking the bold step of giving these applications along with our connectivity to small businesses for 1/10th the cost starting at Rs 1,500 per month, he added,.
The Finance Ministry has simplified the process of assessment in the case of Startup entities, according to an official release.
In cases where scrutiny assessments of Startup entities are pending, the CBDT has decided that DPIIT recognized startups, which have filed Form No 2 and whose cases are under ‘limited scrutiny’ on the single issue of applicability of section 56(2)(viib),the contention of the assessee will be summarily accepted. In case of Startup Companies recognized by DPIIT which have filed Form No 2 and whose cases have been selected under scrutiny to examine multiple issues including the issue of section 56(2) (viib), this issue will not be pursued during the assessment proceedings and inquiry on other issues will be carried out by the Assessing Officer only after obtaining approval of the supervisory authority, it added.
The Ministry of Micro, Small and Medium Enterprises (MoMSME) has issued guidelines for Promotion of MSMEs in the north eastern region and Sikkim of the central sector scheme “Technology and Enterprise Resource Centres”.
The MoMSME has been working for the development of MSMEs in the country and felt for a need for special treatment as far as development of MSMEs in North Eastern Region & Sikkim is concerned.
The Punjab government would soon provide an exemption in the CLU (change in land use) and EDC (external development charges) to boost the development of private industrial parks in the State.
This was announced by Sunder Sham Arora, Industries and Commerce Minister of the State.
He said, “No CLU or EDC would be imposed on any part of the private industrial park”.
He stated that an area of at least 25 acres has been fixed for the setting up of private industrial parks with permission to be given for construction of residential and commercial establishments in 50 percent area.
For the development of downstream industries, the Odisha government is developing ‘Vision 2030’ to achieve more than 50 per cent value addition to the primary metal produced in the state, said Dibya Shankar Mishra, Industries Minister.
Addressing more than 60 steel manufacturing companies, the Minister said that Odisha provides an unparalleled conducive ecosystem for the steel industries to expand their manufacturing facilities. The meeting was held with an objective to discuss the vision of achieving 100 million tonne per annum (mtpa) capacity of steel production in Odisha.
Tirupur Exporters’ Association (TEA) has urged the Central Government to insulate Micro, Small and Medium Enterprises (MSMEs) from Basel III norms.
The association has also requested the government not to insist on credit rating before getting loans under Basel III norms.
The association has also requested the government not to insist on credit rating before getting loans under Basel III norms.
During a meeting with Finance Minister Nirmala Sitharaman and MSME Minister Nitin Gadkari, TEA President Raja M Shanmugham said the requirement of credit rating as per BASEL III norms before getting loans from banks was not necessary as the rating does not reflect the true nature of the whole knitwear garment sector or the real performance of the units.
Commerce and Industry Minister Piyush Goyal has urged companies in both India and Russia to come together to discuss partnership opportunities directly with each other, and to come up with concrete project proposals and substantial outcomes.
Goyal led a high-power delegation of Chief Ministers of Haryana, Gujarat, Uttar Pradesh and Goa and about 140 Indian companies to Vladivostok in Russia from August 11-13, 2019.
China on Monday promised to address India's growing concerns over the ballooning trade deficit and suggested expanding cooperation in areas like industrial production, tourism and border trade to achieve "overall balance" in bilateral commercial relations. India has repeatedly voiced concern over the trade imbalance which last year crossed a whopping USD 57.86 billion over USD 95.5 billion total bilateral trade. The trade deficit in 2018, according to the official Chinese data, climbed to USD 57.86 billion from USD 51.72 billion in 2017.
Israel and India are exploring to open new vistas of partnership in the world of finance, including collaboration between market regulators and allowing Israeli investment in corporate bonds, taking advantage of a favourable climate in both countries. The Securities and Exchange Board of India (Sebi) and its Israeli counterpart are exploring partnerships and the two sides are also focusing on cyber security collaboration to safeguard their financial markets, Israel’s ambassador to India Ron Malka told ET in an interview, ahead of Israeli Prime Minister Benjamin Netanyahu’s proposed visit to India next month.
The days have gone when people would stay at one job through their entire career. Global studies and research show that the median number of years that wage and salary workers have worked for their current employer is currently 4.6 years.
Should you take a personal loan for your business?
Loans can be of different types, but the primary ones we would tackle through this article are around business and personal loans. The two loans are different and meant for different purposes, but in many cases personal loans tend to be used for business.
5 Reasons Behind Your Failure in Network Marketing?
Network marketing is indeed one of the most thrilling industries nowadays. It proffers a good career and opportunities to create wealth for numerous people across the world as compared to any other business. It has been reported as the best platforms to retire on. However, network marketing is not everyone’s cup of tea.
Team Jammu stresses on constitutional measures to protect jobs of locals and their cultural identity
Narrating the abrogation of Article 370 as a historic decision by the Government of India, Team Jammu, a charitable trust, has stressed for constitutional measures in line with the pattern of neighboring Himachal Pradesh to protect job security of locals and their cultural identity.
How this Mumbai-based startup is tapping former servicemen to create neighbourhood watch networks
Technology has made life easier – you can order a cab to your doorstep, get food and groceries home delivered, and buy your medicines online. But what happens if you need help in your neighbourhood? Be it medical emergencies, accidents, harassment, lost and found cases, or any other situation, Mumbai-based Linkus Infratech promises help – that too from ex-servicemen – through its app, Bhonga.
The National Statistical Office (NSO), Ministry of Statistics and Programme Implementation is releasing CPI (Rural, Urban, Combined) on Base 2012=100 for the month of July 2019
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
PM Modi’s first address on Independence day after coming back to power is important to take note. While setting priorities for social and political causes, he gave a clear message to administration that ‘wealth creators are nation’s wealth’. Before coming to power in 2014 Modi had an image of ‘business friendly’ politician in Gujarat. Seat of power in Delhi demanded, perhaps, a different image and many allude his drift away from effecting tougher reforms. The disruptions caused by demonetisation and then GST became highlights of NDA-II and further dampened spirits of businessmen. Now, with sinking economy and despondency in the business community, especially after spade of incidents of harassments of businessmen by tax officials, PM seems to be in a mood to take touch actions needed: privatization, reducing Government’s role in day to day business and curtail inspector raj. MSMEs remain at the receiving end of a hostile administration. Hopefully, the gaze of PM Modi will remain fixed on these issues till the older hostile structure against business is thrown out. And, India becomes a truly business friendly nation.
"
Many small-business owners want to grow their companies, and they want to do it fast. But if you rush into expansion without a plan, you risk losing everything you’ve worked so hard to build. Take Wise Acre Frozen Treats, which hired too many employees and bought too much equipment before they had the revenue or startup capital they needed; the company went bankrupt in just a few years.
To avoid making similar mistakes, heed these five tips for expanding your small business (the right way).
The quick estimates of Index of Industrial Production (IIP) for the month of June 2019 stood at 130.2, which is 2.0 percent higher as compared to the level in the month of June 2018, according to data released.
The cumulative growth for the period April-June 2019 over the corresponding period of the previous year stands at 3.6 percent.
In terms of industries, eight out of the twenty three industry groups (as per 2-digit NIC-2008) in the manufacturing sector have shown positive growth during the month of June 2019 as compared to the corresponding month of the previous year.
India’s wholesale inflation hit a 25-month low in July, highlighting weak demand in the economy and triggering calls for further rate cuts by the Reserve Bank of India. Inflation as measured by the wholesale price index (WPI) stood at 1.08% in July, data showed on Wednesday, slowing sharply from 2.02% in June.
Inflation in manufactured products, with a weight of 64.23%, eased to 0.34% from 0.94%, suggesting lack of pricing power for manufacturers in the face of weak consumer demand.
The Reserve Bank of India's Monetary Policy Committee (MPC) cut key interest rate for the fourth consecutive time.
Reserve Bank of India's MPC cut repo rate by 35 basis points or 0.35 per cent to 5.40 per cent, the lowest in over nine years. Repo rate is the key interest rate at which the central bank lends short-term funds to commercial banks. The six-member monetary policy committee (MPC) also maintained the "accommodative" stance on the monetary policy.
Aiming to meet the financial requirements of productive sectors of economy including Micro Small and Medium Enterprises (MSME), retail and housing, government has issued a scheme regarding partial credit guarantee that would enable the public sector banks (PSBs) to purchase pooled assets of financially sound NBFCs amounting to Rs 1 lakh crore.
It is expected that this measure would provide liquidity to the NBFC Sector and, in turn, enable them to continue to play their role in meeting the financing requirements of the productive sectors of economy including MSMEs, retail and housing.
Reliance Group's Chairman Mukesh Ambani has announced Jio's special plans for Micro, Small and Medium Enterprises (MSMEs) that includes offering connectivity and business-related applications starting at just Rs 1,500 a month.
To run their (MSMEs) business, a bundle of connectivity, productivity and automation tools costs a micro and small business between Rs 15,000 and Rs 20,000 per month currently.
For a similar service, customers abroad pay over 1,000 dollars per month. Today we are taking the bold step of giving these applications along with our connectivity to small businesses for 1/10th the cost starting at Rs 1,500 per month, he added,.
The Finance Ministry has simplified the process of assessment in the case of Startup entities, according to an official release.
In cases where scrutiny assessments of Startup entities are pending, the CBDT has decided that DPIIT recognized startups, which have filed Form No 2 and whose cases are under ‘limited scrutiny’ on the single issue of applicability of section 56(2)(viib),the contention of the assessee will be summarily accepted. In case of Startup Companies recognized by DPIIT which have filed Form No 2 and whose cases have been selected under scrutiny to examine multiple issues including the issue of section 56(2) (viib), this issue will not be pursued during the assessment proceedings and inquiry on other issues will be carried out by the Assessing Officer only after obtaining approval of the supervisory authority, it added.
The Ministry of Micro, Small and Medium Enterprises (MoMSME) has issued guidelines for Promotion of MSMEs in the north eastern region and Sikkim of the central sector scheme “Technology and Enterprise Resource Centres”.
The MoMSME has been working for the development of MSMEs in the country and felt for a need for special treatment as far as development of MSMEs in North Eastern Region & Sikkim is concerned.
The Punjab government would soon provide an exemption in the CLU (change in land use) and EDC (external development charges) to boost the development of private industrial parks in the State.
This was announced by Sunder Sham Arora, Industries and Commerce Minister of the State.
He said, “No CLU or EDC would be imposed on any part of the private industrial park”.
He stated that an area of at least 25 acres has been fixed for the setting up of private industrial parks with permission to be given for construction of residential and commercial establishments in 50 percent area.
For the development of downstream industries, the Odisha government is developing ‘Vision 2030’ to achieve more than 50 per cent value addition to the primary metal produced in the state, said Dibya Shankar Mishra, Industries Minister.
Addressing more than 60 steel manufacturing companies, the Minister said that Odisha provides an unparalleled conducive ecosystem for the steel industries to expand their manufacturing facilities. The meeting was held with an objective to discuss the vision of achieving 100 million tonne per annum (mtpa) capacity of steel production in Odisha.
Tirupur Exporters’ Association (TEA) has urged the Central Government to insulate Micro, Small and Medium Enterprises (MSMEs) from Basel III norms.
The association has also requested the government not to insist on credit rating before getting loans under Basel III norms.
The association has also requested the government not to insist on credit rating before getting loans under Basel III norms.
During a meeting with Finance Minister Nirmala Sitharaman and MSME Minister Nitin Gadkari, TEA President Raja M Shanmugham said the requirement of credit rating as per BASEL III norms before getting loans from banks was not necessary as the rating does not reflect the true nature of the whole knitwear garment sector or the real performance of the units.
Commerce and Industry Minister Piyush Goyal has urged companies in both India and Russia to come together to discuss partnership opportunities directly with each other, and to come up with concrete project proposals and substantial outcomes.
Goyal led a high-power delegation of Chief Ministers of Haryana, Gujarat, Uttar Pradesh and Goa and about 140 Indian companies to Vladivostok in Russia from August 11-13, 2019.
China on Monday promised to address India's growing concerns over the ballooning trade deficit and suggested expanding cooperation in areas like industrial production, tourism and border trade to achieve "overall balance" in bilateral commercial relations. India has repeatedly voiced concern over the trade imbalance which last year crossed a whopping USD 57.86 billion over USD 95.5 billion total bilateral trade. The trade deficit in 2018, according to the official Chinese data, climbed to USD 57.86 billion from USD 51.72 billion in 2017.
Israel and India are exploring to open new vistas of partnership in the world of finance, including collaboration between market regulators and allowing Israeli investment in corporate bonds, taking advantage of a favourable climate in both countries. The Securities and Exchange Board of India (Sebi) and its Israeli counterpart are exploring partnerships and the two sides are also focusing on cyber security collaboration to safeguard their financial markets, Israel’s ambassador to India Ron Malka told ET in an interview, ahead of Israeli Prime Minister Benjamin Netanyahu’s proposed visit to India next month.
According to FISME factor 60% of MSMEs think that ease of doing business is still a challenge in India while 40% don’t think so. 
The days have gone when people would stay at one job through their entire career. Global studies and research show that the median number of years that wage and salary workers have worked for their current employer is currently 4.6 years.
Loans can be of different types, but the primary ones we would tackle through this article are around business and personal loans. The two loans are different and meant for different purposes, but in many cases personal loans tend to be used for business.
Network marketing is indeed one of the most thrilling industries nowadays. It proffers a good career and opportunities to create wealth for numerous people across the world as compared to any other business. It has been reported as the best platforms to retire on. However, network marketing is not everyone’s cup of tea.
Narrating the abrogation of Article 370 as a historic decision by the Government of India, Team Jammu, a charitable trust, has stressed for constitutional measures in line with the pattern of neighboring Himachal Pradesh to protect job security of locals and their cultural identity.
Technology has made life easier – you can order a cab to your doorstep, get food and groceries home delivered, and buy your medicines online. But what happens if you need help in your neighbourhood? Be it medical emergencies, accidents, harassment, lost and found cases, or any other situation, Mumbai-based Linkus Infratech promises help – that too from ex-servicemen – through its app, Bhonga.
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Last week, Indian cricket captain Virat Kohli took to Instagram to share a team photograph from the just-concluded India-West Indies T20 series.
“
Our greatest weakness lies in giving up. The most certain way to succeed is always to try just one more time.
”
