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President's Message
The interim Budget- the last of the NDA-II has been presented. It was no secret that before the election it would be but a budget loaded with political message. That indeed was so. But if one looks deeply, the spending on populist measures have remained within limits as the budget deficit has hardly increased. Leaving cash in the hands of public through Income Tax benefits and relaxation in housing would certainly help revive demand and would be helpful for MSMEs indirectly. The PM had already announced a mega package for MSME sector in November. Therefore, we were not expecting some earth shattering bonanza. Nevertheless, the Finance Minister could have done little extra in terms of direct tax benefit to MSMEs or announced steps to ease credit. But overall, presented on the eve of election, it is a fairly balanced Budget.
"
A multi sector trade delegation from Taiwan visited New Delhi during the last week of January 2019. The visit to New Delhi was coordinated by TAITRA – Taiwan External Trade Development Council. During the visit the delegation had B2B on 24th January 2019 at hotel Le Meridien, New Delhi and FISME had actively facilitated support for the B2B meetings. The overwhelming response is a clear reflection of the interest of the Indian companies to do business with companies from Taiwan. The visiting delegation comprised of companies both from Industrial as well as Consumer products covering Machineries, Waste Water Treatment, Beauty & household products etc. Taiwan is aggressively focusing the Indian market and in the month of May 2019 the TAIWAN EXPO would be held at Pragati Maidan, New Delhi.
Remember the time you decided to venture out on your own? The days of struggle, the relentless researching, never ending enquiries, possible networking opportunities, word-of-mouth promotions, and a one-man army that was ready to take on the world. A while later when you succeeded in your area of expertise, you considered diversifying. But this decision had to be made after a thorough risk analysis.
Taking risks is a part of business. But if you kept saying yes to every risk, without weighing the pros and cons, you could have also lost your business. When it comes to maintaining the margins in the balance sheets, it can be extremely tempting to oblige to any project that comes along.
The Reserve Bank of India (RBI) has constituted an Expert Committee on micro, small and medium enterprises (MSMEs) to suggest long term solutions for the growth of MSME sector, an industry body said.
In a communication to its members, the Federation of Small and Medium Industries (FOSMI) said the Committee has sought suggestions from MSME Associations. In this regard, it has asked its members to send their inputs and suggestions pertaining to MSME by January 31, 2019.
Recognising the need to prevent injuries and accidents and provide a healthy working environment and also guard against all possible hazards and risks, the Steel Ministry has decided to set up a Safety Directorate to oversee the safety standards in the steel industry.
The directorate will be operational soon. The Steel Minister Chaudhary Birender Singh said both its CPSEs, Steel Authority of India Limited and RashtriyaIspat Nigam Limited(RINL), have comprehensive safety policies.
Ministry of Steel, Government of India, held its Parliamentary Consultative Committee meeting in Goa in which the issues related to mining activities of CPSEs under Steel ministry and safety in Steel Plants were discussed.
Prime Minister Narendra Modi confirmed that the budget will indeed be an Interim budget and not a vote-on-account.
He said this in his address at the Parliament ahead of the budget session. “The MPs should hold a meaningful debate in this session of the Parliament. We are eager to hold a debate on all important issues,” Modi added.
Modi has also urged all lawmakers to utilize this budget session of Parliament for having constructive debates.
Government will present its last budget on Friday before the general election.
After intense deliberation, the government has notified some changes in Section 56 of the Income Tax Act to ease the process for startups dealing with the issue of ‘Angel Tax’.
Latest amendments as notified by Department of Industrial Policy and Promotion (DIPP), provides simpler mechanism for startups to claim exemption from Angel Tax and prescribed a 45 days’ timeline for quick processing of such applications.
To ensure quick processing of Angel Tax exemption application, Central Board of Direct Taxes (CBDT) will evaluate and respond within 45 days of receiving applications from DIPP, tweeted DIPP.
The Oriental Bank of Commerce (OBC) will offer concession on interest rates to micro, small and medium enterprises (MSMEs) with good CIBIL MSME Rank (CMR).
“Oriental Bank of Commerce is committed to driving access to finance for MSMEs while ensuring profitable growth of credit portfolios. By offering a lower rate of interest to our MSME customers who have a good credit history and CMR, we are rewarding good borrowers and promoting a disciplined credit culture along with ensuring healthy quality of our MSME portfolio,” said Mukesh Kumar Jain, Managing Director & Chief Executive Officer, Oriental Bank of Commerce.
Union Minister for Commerce & Industry and Civil Aviation Suresh Prabhu launched the Domestic Council for Gems & Jewellery, a new apex body for the sector.
He also announced that the new council would plan to be fully operational with an elected body by May 1, 2019, which has a significance both as Labour Day and Maharashtra Day. Speaking about the significance of the launch, the minister said that the tremendous potential of the sector could be unlocked by introducing new ideas, new technologies and an organised structure to the sector and integrating these with the affinity for gold and gold jewellery that has been an important part of Indian culture for centuries.
Issuing operational guidelines for implementing interest subvention scheme for MSMEs, Ministry of MSME said that the interest relief will be calculated at 2% points per annum.
The interest relief will be calculated on the incremental amount of working capital credit or incremental/new term loan disbursed by eligible institutions to eligible MSMEs from the date of disbursal/drawl or the date of notification of this scheme whichever is later computed on outstanding balance from time to time and received/recovered by the lending institution. The Ministry decided that a new scheme i.e. ‘Interest Subvention Scheme for Incremental credit to MSMEs 2018’ will be implemented over 2018-19 and 2019-20 with an allocation of Rs 975 crore.
The industries which have not taken No Objection Certificates (NOC) for harnessing groundwater using motor pump/submersible will not be able to use it after March 31, 2019.
In case any industry does so without the NOC then a penalty of Rs 5000 per day will be levied on it.
The Central Ground Water Authority (CGWA) under the Ministry of Water Resources, River Development and Ganga Rejuvenation has directed the all groundwater users including industrial, infrastructure and mining projects to submit applications for No Objection Certificate (NOC) to CGWA through NOCAP latest by March 31, 2019.
The Central Government and Goa Government would tie up to form clusters to make value-added products, said Union Commerce and Industry Minister Suresh Prabhu.
He was speaking at the inauguration ceremony of a new office and laboratory complex of the Export Inspection Agency at Margao in south Goa.
He said “It is our endeavour to increase India's exports from the current USD 321 billion to almost double in a few years. One of the principal potential areas for export is fisheries, especially at a time when for the first time, the country has come out with an agricultural policy," Prabhu said.
Union Defence Minister Nirmala Sitharaman unveiled Tamil Nadu’s aerospace and defence industrial policy 2019, at the inaugural session of the Global Investors Meet (GIM). The first copy was received by Tamil Nadu Chief Minister Edappadi K. Palaniswami.
Speaking with KNN India, Immediate Past President of Tamil Nadu Small and Tiny Industries Association (TANSTIA) C Babu said this policy will help in the development of MSME entrepreneurs in the aerospace, defence and defence-related sectors.
In a bid to boost startup ecosystem in Assam, the state-owned incubator for startups called 'Assam Startup - The Nest' was formally launched in Guwahati by Sarbananda Sonowal, Chief Minister of Assam.
The Nest will provide benefits like dedicated mentorship, capacity enhancement trainings, market connect, networking opportunities, branding and visibility, funding connect etc. to support budding entrepreneurs of Assam. Facilities like co-working space, lockers, high speed internet, conference and meeting rooms, shared services desks, etc are also available in ‘The Nest’ for the selected startup incubates.
The Directorate of Commercial Taxes, Government of West Bengal has come up with a scheme for settlement of pending Sales Tax/ VAT/ Entry Tax under the settlement scheme to help businesses in settling taxation disputes.
All tax disputes cases lying at different charges or Appellate/ Revisional/ Review forums or with Tax Recovery Officer/ Certificate Officer including entry tax has been included in the scheme.
The scope of the scheme has been widened by including pending cases where notices quantifying the amount payable have been issued and also different types of penalty cases, even when no appeal/ revision/ review has been filed.
Vietnam has invited Micro, Small and Medium Enterprises (MSMEs) of Odisha for trade across various sectors with the country.
Speaking at a seminar on “Credit and Marketing Linkage to MSMEs and Exporters”, Vietnamese Ambassador to India Pham Sanh Chau invited MSMEs of Odisha in sectors particularly, food processing, travel, tourism, pharma, health care, handloom and handicraft sector for trade with Vietnam.
He expressed his happiness that the quantum of trade between India and Vietnam has increased by 40% during 2018.
Citing the analogy of MSMEs in Vietnam with that of Odisha, he suggested for adopting “Consumer Goods & Services in Odisha”.
India and China have recently signed the protocol for exports of Indian tobacco leaves to China.
Commerce Secretary, Dr. Anup Wadhawan, was on a two-day official visit to Beijing last week, according to an official release on Monday.
During the visit from 21st to 22nd January 2019, he had bilateral meeting with Zhang Jiwen, Vice Minister of General Administration of China Customs (GACC).
Quality tobacco on par with international standards is available in India at competitive prices and there is good potential for export of Indian tobacco to China.
The revival of the phytosanitory protocol with China will pave the way for revival of Indian tobacco exports to China and prove economically beneficial to Indian farmers.
Taiwan's technological expertise will benefit the Indian Micro, Small and Medium Enterprises (MSMEs) as Taiwanese technology has frog leaped in the last few years, said Chung-Kwang Tien, Ambassador of Taiwan in India adding that it will help meet India’s demand for development. While talking to KNN India on the sidelines of Convergence India, Tien said, “From manufacturing of high-technology to the knowledge based innovation driven economy, I think Taiwan technological expertise will help MSMEs in India, provided the fact that Taiwan’s economy is 97% MSMEs.”
Skilled introvert vs charismatic extrovert, who will rise faster?
Each individual is important for an organisation— from the base line to the top management— but senior leaders hold the reins of the company in their hands because of their strategic position and are responsible for the growth and development of the organisation. While there are many contestants fighting for that coveted space, only a handful actually reach there. This is because the tapering top of the pyramid can accommodate very few.
#5 Financial Assets Every Early Stage Entrepreneur Should Consider While Investing
Entrepreneurship is a very risky game, especially during the early stages where you are bootstrapping the scale the idea into an actual business.
It also during these times, founders often ignore exhaust the personal investments to build their dream empire. However, just because you are an entrepreneur doesn’t really translate into you will be successful.
With consumers having the ability to research, compare and purchase products and services on the fly, it’s easy to believe that brand loyalty is an ancient concept. Yet according to a recent survey of consumers, more than 90 percent of them consider themselves highly loyal to their preferred brands.
Traders will suffer huge loss on shutting half of Gurugram e-way lanes at Delhi border
Traders will suffer a huge loss as 16-17 of the expressway’s 32 lanes at the border will be closed to make space for construction of an underpass near Ambience mall, said Manmohan Gaind, Vice President of MIWA.
While talking to KNN he said that traders will have great difficulty as there is no other alternative route for them.
How this Manipur-based entrepreneur is bringing healthcare to people’s doorsteps in the Northeast
Healthcare startup Thangvung Privilege Services has a privilege card that offers financial assistance for medical emergencies at zero percent EMI and 24X7 doorstep medicine delivery.
Lian Thangvung was in a fix. It was 2 am and Lian’s neighbour’s child – who was suffering from a kidney ailment – was writhing in pain. Lian and his neighbour hunted around for a medical store that would be open that late hour in their neighbourhood of Churachanpur in Manipur but came back empty-handed.
Online platform GUVI helps engineers learn technical subjects in regional languages.
Arunprakash M says his stint in a data warehousing start-up in Bengaluru gave him an entirely new perspective on work. He had previously worked in large companies, including at Honeywell in Madurai.
The Central Statistics Office (CSO), Ministry of Statistics and Programme Implementation has revised the First Revised Estimates of National Income, Consumption Expenditure, Saving and Capital Formation for the financial year 2017-18
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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The interim Budget- the last of the NDA-II has been presented. It was no secret that before the election it would be but a budget loaded with political message. That indeed was so. But if one looks deeply, the spending on populist measures have remained within limits as the budget deficit has hardly increased. Leaving cash in the hands of public through Income Tax benefits and relaxation in housing would certainly help revive demand and would be helpful for MSMEs indirectly. The PM had already announced a mega package for MSME sector in November. Therefore, we were not expecting some earth shattering bonanza. Nevertheless, the Finance Minister could have done little extra in terms of direct tax benefit to MSMEs or announced steps to ease credit. But overall, presented on the eve of election, it is a fairly balanced Budget.
"
A multi sector trade delegation from Taiwan visited New Delhi during the last week of January 2019. The visit to New Delhi was coordinated by TAITRA – Taiwan External Trade Development Council. During the visit the delegation had B2B on 24th January 2019 at hotel Le Meridien, New Delhi and FISME had actively facilitated support for the B2B meetings. The overwhelming response is a clear reflection of the interest of the Indian companies to do business with companies from Taiwan. The visiting delegation comprised of companies both from Industrial as well as Consumer products covering Machineries, Waste Water Treatment, Beauty & household products etc. Taiwan is aggressively focusing the Indian market and in the month of May 2019 the TAIWAN EXPO would be held at Pragati Maidan, New Delhi.
Remember the time you decided to venture out on your own? The days of struggle, the relentless researching, never ending enquiries, possible networking opportunities, word-of-mouth promotions, and a one-man army that was ready to take on the world. A while later when you succeeded in your area of expertise, you considered diversifying. But this decision had to be made after a thorough risk analysis.
Taking risks is a part of business. But if you kept saying yes to every risk, without weighing the pros and cons, you could have also lost your business. When it comes to maintaining the margins in the balance sheets, it can be extremely tempting to oblige to any project that comes along.
The Reserve Bank of India (RBI) has constituted an Expert Committee on micro, small and medium enterprises (MSMEs) to suggest long term solutions for the growth of MSME sector, an industry body said.
In a communication to its members, the Federation of Small and Medium Industries (FOSMI) said the Committee has sought suggestions from MSME Associations. In this regard, it has asked its members to send their inputs and suggestions pertaining to MSME by January 31, 2019.
Recognising the need to prevent injuries and accidents and provide a healthy working environment and also guard against all possible hazards and risks, the Steel Ministry has decided to set up a Safety Directorate to oversee the safety standards in the steel industry.
The directorate will be operational soon. The Steel Minister Chaudhary Birender Singh said both its CPSEs, Steel Authority of India Limited and RashtriyaIspat Nigam Limited(RINL), have comprehensive safety policies.
Ministry of Steel, Government of India, held its Parliamentary Consultative Committee meeting in Goa in which the issues related to mining activities of CPSEs under Steel ministry and safety in Steel Plants were discussed.
Prime Minister Narendra Modi confirmed that the budget will indeed be an Interim budget and not a vote-on-account.
He said this in his address at the Parliament ahead of the budget session. “The MPs should hold a meaningful debate in this session of the Parliament. We are eager to hold a debate on all important issues,” Modi added.
Modi has also urged all lawmakers to utilize this budget session of Parliament for having constructive debates.
Government will present its last budget on Friday before the general election.
After intense deliberation, the government has notified some changes in Section 56 of the Income Tax Act to ease the process for startups dealing with the issue of ‘Angel Tax’.
Latest amendments as notified by Department of Industrial Policy and Promotion (DIPP), provides simpler mechanism for startups to claim exemption from Angel Tax and prescribed a 45 days’ timeline for quick processing of such applications.
To ensure quick processing of Angel Tax exemption application, Central Board of Direct Taxes (CBDT) will evaluate and respond within 45 days of receiving applications from DIPP, tweeted DIPP.
The Oriental Bank of Commerce (OBC) will offer concession on interest rates to micro, small and medium enterprises (MSMEs) with good CIBIL MSME Rank (CMR).
“Oriental Bank of Commerce is committed to driving access to finance for MSMEs while ensuring profitable growth of credit portfolios. By offering a lower rate of interest to our MSME customers who have a good credit history and CMR, we are rewarding good borrowers and promoting a disciplined credit culture along with ensuring healthy quality of our MSME portfolio,” said Mukesh Kumar Jain, Managing Director & Chief Executive Officer, Oriental Bank of Commerce.
Union Minister for Commerce & Industry and Civil Aviation Suresh Prabhu launched the Domestic Council for Gems & Jewellery, a new apex body for the sector.
He also announced that the new council would plan to be fully operational with an elected body by May 1, 2019, which has a significance both as Labour Day and Maharashtra Day. Speaking about the significance of the launch, the minister said that the tremendous potential of the sector could be unlocked by introducing new ideas, new technologies and an organised structure to the sector and integrating these with the affinity for gold and gold jewellery that has been an important part of Indian culture for centuries.
Issuing operational guidelines for implementing interest subvention scheme for MSMEs, Ministry of MSME said that the interest relief will be calculated at 2% points per annum.
The interest relief will be calculated on the incremental amount of working capital credit or incremental/new term loan disbursed by eligible institutions to eligible MSMEs from the date of disbursal/drawl or the date of notification of this scheme whichever is later computed on outstanding balance from time to time and received/recovered by the lending institution. The Ministry decided that a new scheme i.e. ‘Interest Subvention Scheme for Incremental credit to MSMEs 2018’ will be implemented over 2018-19 and 2019-20 with an allocation of Rs 975 crore.
The industries which have not taken No Objection Certificates (NOC) for harnessing groundwater using motor pump/submersible will not be able to use it after March 31, 2019.
In case any industry does so without the NOC then a penalty of Rs 5000 per day will be levied on it.
The Central Ground Water Authority (CGWA) under the Ministry of Water Resources, River Development and Ganga Rejuvenation has directed the all groundwater users including industrial, infrastructure and mining projects to submit applications for No Objection Certificate (NOC) to CGWA through NOCAP latest by March 31, 2019.
The Central Government and Goa Government would tie up to form clusters to make value-added products, said Union Commerce and Industry Minister Suresh Prabhu.
He was speaking at the inauguration ceremony of a new office and laboratory complex of the Export Inspection Agency at Margao in south Goa.
He said “It is our endeavour to increase India's exports from the current USD 321 billion to almost double in a few years. One of the principal potential areas for export is fisheries, especially at a time when for the first time, the country has come out with an agricultural policy," Prabhu said.
Union Defence Minister Nirmala Sitharaman unveiled Tamil Nadu’s aerospace and defence industrial policy 2019, at the inaugural session of the Global Investors Meet (GIM). The first copy was received by Tamil Nadu Chief Minister Edappadi K. Palaniswami.
Speaking with KNN India, Immediate Past President of Tamil Nadu Small and Tiny Industries Association (TANSTIA) C Babu said this policy will help in the development of MSME entrepreneurs in the aerospace, defence and defence-related sectors.
In a bid to boost startup ecosystem in Assam, the state-owned incubator for startups called 'Assam Startup - The Nest' was formally launched in Guwahati by Sarbananda Sonowal, Chief Minister of Assam.
The Nest will provide benefits like dedicated mentorship, capacity enhancement trainings, market connect, networking opportunities, branding and visibility, funding connect etc. to support budding entrepreneurs of Assam. Facilities like co-working space, lockers, high speed internet, conference and meeting rooms, shared services desks, etc are also available in ‘The Nest’ for the selected startup incubates.
The Directorate of Commercial Taxes, Government of West Bengal has come up with a scheme for settlement of pending Sales Tax/ VAT/ Entry Tax under the settlement scheme to help businesses in settling taxation disputes.
All tax disputes cases lying at different charges or Appellate/ Revisional/ Review forums or with Tax Recovery Officer/ Certificate Officer including entry tax has been included in the scheme.
The scope of the scheme has been widened by including pending cases where notices quantifying the amount payable have been issued and also different types of penalty cases, even when no appeal/ revision/ review has been filed.
Vietnam has invited Micro, Small and Medium Enterprises (MSMEs) of Odisha for trade across various sectors with the country.
Speaking at a seminar on “Credit and Marketing Linkage to MSMEs and Exporters”, Vietnamese Ambassador to India Pham Sanh Chau invited MSMEs of Odisha in sectors particularly, food processing, travel, tourism, pharma, health care, handloom and handicraft sector for trade with Vietnam.
He expressed his happiness that the quantum of trade between India and Vietnam has increased by 40% during 2018.
Citing the analogy of MSMEs in Vietnam with that of Odisha, he suggested for adopting “Consumer Goods & Services in Odisha”.
India and China have recently signed the protocol for exports of Indian tobacco leaves to China.
Commerce Secretary, Dr. Anup Wadhawan, was on a two-day official visit to Beijing last week, according to an official release on Monday.
During the visit from 21st to 22nd January 2019, he had bilateral meeting with Zhang Jiwen, Vice Minister of General Administration of China Customs (GACC).
Quality tobacco on par with international standards is available in India at competitive prices and there is good potential for export of Indian tobacco to China.
The revival of the phytosanitory protocol with China will pave the way for revival of Indian tobacco exports to China and prove economically beneficial to Indian farmers.
Taiwan's technological expertise will benefit the Indian Micro, Small and Medium Enterprises (MSMEs) as Taiwanese technology has frog leaped in the last few years, said Chung-Kwang Tien, Ambassador of Taiwan in India adding that it will help meet India’s demand for development. While talking to KNN India on the sidelines of Convergence India, Tien said, “From manufacturing of high-technology to the knowledge based innovation driven economy, I think Taiwan technological expertise will help MSMEs in India, provided the fact that Taiwan’s economy is 97% MSMEs.”
According to FISME Factor 100 per cent MSMEs think that the RBI's Loan Restructuring Scheme Have a Significant Impact on MSME Growth. 
Each individual is important for an organisation— from the base line to the top management— but senior leaders hold the reins of the company in their hands because of their strategic position and are responsible for the growth and development of the organisation. While there are many contestants fighting for that coveted space, only a handful actually reach there. This is because the tapering top of the pyramid can accommodate very few.
Entrepreneurship is a very risky game, especially during the early stages where you are bootstrapping the scale the idea into an actual business.
It also during these times, founders often ignore exhaust the personal investments to build their dream empire. However, just because you are an entrepreneur doesn’t really translate into you will be successful.
With consumers having the ability to research, compare and purchase products and services on the fly, it’s easy to believe that brand loyalty is an ancient concept. Yet according to a recent survey of consumers, more than 90 percent of them consider themselves highly loyal to their preferred brands.
Traders will suffer a huge loss as 16-17 of the expressway’s 32 lanes at the border will be closed to make space for construction of an underpass near Ambience mall, said Manmohan Gaind, Vice President of MIWA.
While talking to KNN he said that traders will have great difficulty as there is no other alternative route for them.
Healthcare startup Thangvung Privilege Services has a privilege card that offers financial assistance for medical emergencies at zero percent EMI and 24X7 doorstep medicine delivery.
Lian Thangvung was in a fix. It was 2 am and Lian’s neighbour’s child – who was suffering from a kidney ailment – was writhing in pain. Lian and his neighbour hunted around for a medical store that would be open that late hour in their neighbourhood of Churachanpur in Manipur but came back empty-handed.
Online platform GUVI helps engineers learn technical subjects in regional languages.
Arunprakash M says his stint in a data warehousing start-up in Bengaluru gave him an entirely new perspective on work. He had previously worked in large companies, including at Honeywell in Madurai.
