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  The FISME Factor  


President's Message
Mr Animesh SaxenaIt is devoid of common sense that how could Governments set target for Revenue collection irrespective of economic growth. The GST collection targets handed to Tax authorities for the nest year is higher when economy is at its lowest ebb in decades. Such a target setting, unfortunately, gives a licence to inspectors to hound and harass a lot of tax payers and raise tax demand even when tax is not legally due. Many of such exaggerated demands are eventually challenged and reversed at appellate/ tribunals/ higher courts but not before businesses to spend additional resources both time and money. This practice proves especially onerous for MSMEs who cannot afford lengthy legal battles. In stead of squeezing people who are already paying taxes, Government should spend more time and energy in expanding the base, improving compliance and including those items that are still outside GST net. "
Animesh Saxena, President, FISME
Vol VII, Issue 193: Dec 15, 2019
FISME holds consultations with Minister Nitin Gadkari on MSME issues
Business Banter: Lessons from Entrepreneurs
Startup Entrepreneurs Need to Take Business Intelligence Seriously in 2020
Macro Metre
In order to boost revenue shortfall, govt may hike GST rates on various items
RBI keeps repo rate unchanged at 5.15 per cent
Domestic Digest
IP facilitation cell launched for startups, SMEs and innovators Knowledge and News Network (KNN)
DC MSME puts up details of Eco Friendly & Import Substitute Technologies from CSIR Labs for putting up units by MSMEs on its website
Finance Ministry asks MSMEs to visit their bank branches to seek necessary support & assistance under MSME outreach initiative
State Scan
Ending Inspector Raj: UP govt to go online to grant licence, permits from DICs Knowledge and News Network (KNN)
HP Govt passes MSME bill in state assembly
Telangana eyes $100 billion revenues from pharma, med tech
World Watch
Korean giant to invest Rs 900 cr into Textile Park in Telangana
Walmart to train 50,000 MSMEs in next 5 yrs to help enhance capacity and supply chain
Knowledge Store
How this farmer’s son built an agritech startup to bring business and scale to agriculture in rural India
...And A Lot More

FISME holds consultations with Minister Nitin Gadkari on MSME issues

A delegation of Federation of Indian Micro and Small & Medium Enterprises (FISME) met Union Minister of MSME Nitin Gadkari in the national capital along with Rajendra Agrawal, Member of Parliament from Meerut. A memo of demands and suggestions was handed to the Minister. FISME delegation was led by Dr. Animesh Saxena, President, FISME and accompanied by two Past Presidents- Dinesh Singhal and Neeraj Kedia along with the Secretary General Anil Bhardwaj. FISME spelled out long term reforms to induce competitiveness which included need to review and shrink role of Government as Conglomerate or as business person procuring and supplying large number of goods and services.
Business Banter: Lessons from Entrepreneurs

Startup Entrepreneurs Need to Take Business Intelligence Seriously in 2020

Startup entrepreneurs face a world of opportunities, but they also face a large swath of challenges and a heavy amount of competition. It should come as little surprise then that data from Statistic Brain reveals that more than 50 percent of startups in the United States don’t last longer than four years. While there are many issues that can make or break the success of a startup, one area that is becomingly increasingly important for companies of all sizes is business intelligence (BI). Today’s startup founders have access to a wide range of tools that offer historical and predictive data analyses to spur better decision-making.
Writing on the Wall

From cup to lip: Improvements in ease of doing business need meaningful backup from government

Prime Minister Narendra Modi has reportedly brainstormed with relevant ministries to further improve India’s position in World Bank’s ease of doing business rankings. In the last edition India ranked 63, up 14 places in a year. A consistent improvement here, following the advent of NDA, is an outcome of conscious effort. It’s an important aspect of overall economic policy as the extent of investment is influenced by the ease with which businesses can be begun and run. In this context, the continued focus is praiseworthy. Ironically, however, investment has been lacklustre in the period India’s ease of doing business ranking improved. For sure, this ranking is not the only factor influencing investment decisions. But the disconnect with investment demands a closer look at what is happening. The ease of doing business ranking is based on measuring 12 metrics in two cities, Delhi and Mumbai. In future, Kolkata and Bengaluru will be added as the World Bank expands the scope of the annual review.

Media Monitor

Macro Metre

In order to boost revenue shortfall, govt may hike GST rates on various items

Mobile phones and fabric might get costlier as in order to boost revenue collection, the goods and services tax (GST) on these items may be hiked by the GST Council next week. According to various media reports, the structure of higher tax rates on inputs than on final products is resulting in a huge input tax credit outgo. The items which have seen an inverted duty structure include fabric bags, shoes, tractors etc. The GST rate on phone parts and batteries is 18 per cent whereas on the final product i.e. mobile phones, the same is 12 per cent, triggering an inverted tax structure which leads to unutilized input tax credit and hence issuance of refunds by the government.

UNIDO to grant 80 per cent for energy efficiency in industries

The United Nations Industrial Development Organisation (UNIDO) has announced 80% grants in the 10 clusters including the Surat textile cluster, for the automation of various sectors identified under the energy efficiency technology scheme programme. The owners will have to bear remaining 20 per cent cost. Reportedly, a meeting was held on Friday, where 10 different clusters from the country participated to discuss financial issues and setting up of the revolving fund for the project. The ministry of Micro, Small and Medium Enterprises (MSME) in association with UNIDO have jointly launched the project under ‘promoting market transformation for energy efficiency in MSME’ with the support of the Global Environment Facility (GEF).

RBI keeps repo rate unchanged at 5.15 per cent

The Reserve Bank of India (RBI) on Thursday kept repo rate unchanged at 5.15 per cent in its fifth bi-monthly policy review of the year. In its last monetary policy review, the central bank cut the key policy rates by 25 basis points (100 basis points = 1 per cent). Since February 2019, the repo rate has been cut by a total of 135 bps. "After the introduction of the external benchmark system, most banks have linked their lending rates to the policy repo rate of the Reserve Bank. The median term deposit rate has declined by 47 bps during February-November 2019. The weighted average term deposit rate declined by 9 bps in October as against a decline of just 7 bps in eight months during February-September. This augurs well for transmission to lending rates, going forward," the apex bank said in its monetary policy statement.

Domestic Digest

IP facilitation cell launched for startups, SMEs and innovators

T-Works has launched its in-house Intellectual Property Facilitation Cell (IPFC) to enable innovators secure their inventions by drafting and filing patent applications at a highly subsidised fee. T-Works is set to be India’s largest prototyping center and the IPFC will facilitate startups, Small and Medium Enterprises (SME’s), makers, and rural innovators protect their IPRs by drafting applications for patent registration, copyrights, trademarks, and industrial designs at highly affordable rates.

Govt busy in setting up new MSMEs; sick units being neglected, says Industries bodies

Amid slowdown, where both state and centre government is looking to pave the way for Micro Small and Medium Enterprises (MSMEs) by providing special subsidy schemes to the new ones but somewhere, they are lacking in adopting the steps, which are needed for the revival of sick units, says Industries bodies. Reportedly, The Tamil Nadu Boilers Association (TNBA) Treasurer Rajappa Rajkumar has alleged that government is promoting new MSME Units by providing attractive schemes but at the same time they are lacking in reviving the sick units.

DC MSME puts up details of Eco Friendly & Import Substitute Technologies from CSIR Labs for putting up units by MSMEs on its website

In order to provide handhold support to aspiring entrepreneurs adopt eco-friendly technologies to start units, the Office of the Development Commissioner- MSME (DC MSME) has put up on its website the details of Eco Friendly & Import Substitute Technologies from CSIR Labs for putting up units by MSMEs. DC MSME has given list and details of as many as 10 such technologies – --- 1. Anaerobic Gas lift Reactor (AGR): A High rate bio-methanation technology to treat organic solid waste for the generation of biogas and bio manure

Finance Ministry asks MSMEs to visit their bank branches to seek necessary support & assistance under MSME outreach initiative

The Department of Financial Services under the Ministry of Finance, Government of India has launched Micro, Small and Medium Enterprises Outreach Initiative from December 7, 2019 to January 6, 2020. The initiative is to support MSMEs, where all Public Sector Banks will offer enhancement in working capital limits for Standard Accounts up to 25 per cent of the working capital limits. Under the initiative restructuring of stressed standard assets, as needed, on priority and in timely manner will also be done. New term loans and solutions for delayed receivables and Bill Discounting and Trade Finance will also be done under the initiative.
State Scan

Uttar Pradesh    

Ending Inspector Raj: UP govt to go online to grant licence, permits from DICs

In order to give a push to industrial activity, the state government has decided to switch online as the applications from industrialists and entrepreneurs seeking licence or permit at the District Industries Centres (DIC) would be replace with online requests. The Uttar Pradesh government, led by Yogi Adityanath has geared up for restructuring the DIC which is known as 'licence permit raj’, will soon be integrated into digital functioning of the state government.

Himachal Pradesh    

HP Govt passes MSME bill in state assembly

Amid uproar and walkout by Congress, the Himachal Pradesh Assembly passed the HP Micro, Small and Medium Enterprises (MSMEs facilitation of establishment and operation) Bill, 2019 on Friday. With the help of this MSME bill, any person willing to set up a Micro Small and Medium Enterprises in the state, will be exempted from taking approvals from government departments for three years Chief Minister Jai Ram Thakur criticizes the congress for walkout and said instead of adopting the procedure for proposing amendment for discussion in the bill, the opposition created uproar in the House.


Telangana eyes $100 billion revenues from pharma, med tech

The Telangana Government is planning to double the turnover from its rapidly growing pharmaceutical and medical technology industry. According to Jayesh Ranjan, Principal Secretary of IT and industries, the government is looking to increase the revenues from these two sectors from USD 50 billion to USD 100 billion by 2030. He also announced the state government’s partnership with Switzerland for 17th edition of the BioAsia Conclave, which will see 50 countries come together to share their ideas and experiences. Switzerland, consistently ranked No.1 in innovation, is widely known for innovation in big pharma with the presence of eminent pharma and life-sciences companies like Novartis, Roche, Lonza, and Ferring Pharma.


Karnataka MSMEs demand lower turnover limit for TReDS

A delegation of Federation of the Karnataka Chamber of Commerce and Industry (FKCCI) met the Union Minister of Micro Small and Medium Enterprises (MSME) Nitin Gadkari and demanded a reduction in interest rates on a par with housing loans, and a lower turnover limit for trade receivables in the e-Discounting System (TReDs). A delegation of MSMEs led by C R Janardhana, President FKCCI, met Nitin Gadkari and raised the various issues affecting the MSME sector. Reportedly, the minister said that he was aware of the issues faced by the MSMEs. There are policies in the making for the development of rural areas, the agricultural sector and MSMEs.
World Watch


Korean giant to invest Rs 900 cr into Textile Park in Telangana

Korean textile and apparel major Youngone Corporation will invest more than Rs 900 crore in the Kakatiya Mega Textile Park (KMTP) coming up in Telangana's Warangal district. The Korean company on Wednesday signed the final agreement with the Telangana government in the presence of IT & Industries Minister K T Rama Rao, Indian Ambassador to Korea Sripriya Ranganathan and Korean Ambassador to India Shin Bongkil. Youngone Corporation will set up its facility on 290 acres and the production will involve manufacturing of knitted and woven garments for outdoor wear and technical textile products, predominantly for export, an official release said.
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United States of America    

Walmart to train 50,000 MSMEs in next 5 yrs to help enhance capacity and supply chain

Retail major Walmart has launched a programmed called "Walmart Vriddhi Supplier Development Program" to help 50,000 micro, small and medium enterprises (MSMEs) in India to enhance their capability and supply chain. Judith McKenna, President and CEO, Walmart International said, “Under the initiative, the company which owns the e-commerce major Flipkart, aims to train around 50,000 MSMEs in the next five years, across 25 institutes. "The Vriddhi programme will encourage Indian suppliers to make for online and offline customers around the world, including -- but not limited to -- the supply chains of Flipkart and Walmart. Whether a supplier has ambitions domestically or around the globe, Walmart Vriddhi will give them the tools they need to succeed," she said.
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FISME’s official Twitter handle
Knowledge and News Network (KNN)
KNN India’s official Twitter handle
Anil Bhardwaj, Secretary General
Other Events

Faridabad Trade Fair

Date: 13 - 22 Dec 2019
Venue: Huda ground, Faridabad
See Details

Kerala Food Summit & Exposition

Date: 17 - 18 Dec 2019
Venue: Grand Hyatt Kochi, Kochi
See Details

The Griha Summit

Date: 17 - 18 Dec 2019
Venue: India Habitat Centre, New Delhi
See Details

International Uniform & Garment Manufacturers/Fair

Date: 17 - 19 Dec 2019
Venue: Bombay Exhibition Centre (BEC), Mumbai
See Details

Solar for PSUs

Date: 18 Dec 2019
Venue: Le Meridien New Delhi, New Delhi
See Details

Health and Medical Expo

Date: 18 - 20 Dec 2019
Venue: The NSIC, Secunderabad
See Details

Yarn, Fabric and Accessories Trade Show

Date: 18 - 20 Dec 2019
Venue: Ranbanka Heritage Resort Bhilwara, Bhilwara
See Details
Your Views

Do you think that India's move to 'exit' the RCEP deal was appropriate?

According to FISME factor 40% MSMEs think that India's move to 'exit' the RCEP deal was appropriate, 40% think it is not while 20% think otherwise.
Knowledge Store

HR Heuristics

How should companies control layoff anxiety

Pick up the newspaper and there is bound to be at least one story about some organisation downsizing or slashing jobs in order to cut costs. Simply reading such news day in and day out makes professionals anxious, worried and restless. During such fluid times, when the economy is going through a disturbing slump, it is the duty of the leaders and HR personnel in organisations to take the necessary steps to put employees’ layoff anxiety at ease.

Finance Fundamentals

4 Things SMEs Should Know When Taking a Loan

During an economic slowdown, small and medium enterprises (SMEs) are among the worst hit due to liquidity crisis in the market. Such is the case right now where SMEs are finding it difficult to raise business loans from banks and other non-banking financial companies (NBFCs) for their business needs.

Marketing Mantras

How to build a strong sales team with a tight startup budget

One of the many reasons startups fail is due to the poor quality of their sales teams. Most tech entrepreneurs have an engineering background, and thus lack the professional know-how of effectively building a sales team. They encounter obstacles when it comes to amplifying visibility to a target audience.

Policy Polemic

MSME units in J&K engaged in manufacturing of cement, tiles are on verge of closure

Bari Brahmana Industries Association (BBIA) held a meeting to discuss the issue of ban imposed on the extraction of sand & bajri due to which the Micro, Small and Medium Units (MSMEs) units engaged in the manufacturing of cement tiles and other related products facing acute problem and are on the verge of closure.

SME Special

How this farmer’s son built an agritech startup to bring business and scale to agriculture in rural India

Satish Sherawat’s father, a farmer, always told his son to aim for more in life and not be a farmer. And, for a long time, he heeded the advice and set his sights on other ambitions. Thinking back, he realises that farming, as a profession was looked down upon. And, when Satish looked deeper, he found that farmers thought of their profession as a vicious cycle, something they could just not live off. He found that they were heavily disadvantaged by the general lack of information and unavailability of essential products.

Success Story

This Kolkata-based logistics startup helps with seamless daily freight and reduced spends

India can save a whopping $50 billion if the cost of logistics and transportation is reduced from 14.4 percent of the GDP to nine percent. Compared to this, other developing countries spend less than eight percent of their GDP. Even with several players in long haul, short haul, and last mile logistics like Rivigo, Blackbuck, Blowhorn, LetsTransport, Fortigo, and LoadShare, there is a dire need for an organised space in India. This gap in the logistics market led Varun Biyani, Anup Agarwal, and Manisha Saraf to start SuperProcure in 2017 in Kolkata.


The National Statistical Office (NSO), 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 October 2019 stands at 127.7, which is 3.8 percent lower as compared to the level in the month of October 2018.

Quotable Quotes

“ Never stop fighting until you arrive at your destined place – that is, the unique you. Have an aim in life, continuously acquire knowledge, work hard, and have the perseverance to realize the great life. ”
– - Dr. A.P.J Abdul Kalam - An Indian scientist and Former President of India
Country Chronicles
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:
New Members

1 New Member Join FISME

1 New Members Join FISME during the period from 16th November 2019 to 30th November 2019
Reader Reactions

Write and Win prize!

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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Editorial Team:
Hon. Editor: Anil Bhardwaj
Asstt. Editor: Kalpana Sharma
Types setting & websdesigning: Sanjay Sachan  
Video & Photography:  Subhan Khan


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