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President's Message
Delays in realization of the dues, has been a perennial problem faced by MSMEs. Though, it is a worldwide problem, in India it has become larger over the years. The delayed payment Act which was later subsumed in MSMED Act 2006 has been manifestation of the frustration of the legislators with corporates and prescribed penal interest. The Act also provided for an elaborate mechanism of Facilitation Councils- quasi judicial bodies, in every State to implement the provisions of Acts pertaining to delay in payments. In a few States the mechanism worked better than others. However, problems persisted. Last year, following the Prime Minister’s announcement of MSME package, a notification was issued by Ministry of MSME that all ‘Companies’ buying from MSMEs would have to pay their dues within 45 days. Ministry of Corporate Affairs, regulator of Companies, has also responded with an Order requiring all Companies to file the instances of MSME payment delay to Ministry in a prescribed format with reasons of delay. Disclosure is a powerful tool and will deter erring Corporates to pay-up before it gets too late. FISME wholeheartedly welcomes the move. We shall closely follow the disclosures of these companies and further seek action on defaulters who would disclose but still wouldn’t pay.
"
A multi-sector delegation organized by SME & Entrepreneurship Federation of Maldives (SEFM) visited FISME on 15th Feb 2019 in New Delhi.
Led by SEFM President Abdul Latheef, the delegation comprised of SMEs from Tours and Travels, Construction, IT and logistics among others.
The delegation received by Former FSIEM President and Hon. Counselor of Rawanda H.E. Mr. Mohan Suresh.
If you’re anything like me, you go through the sinusoidal motions of the entrepreneurship journey rather swiftly. One day you feel like you’re falling apart, and just the next instant, you feel like you’re going to take over the world. Entrepreneurship is tough––and it most certainly is emotionally draining.
I won’t lie to you, it can be exasperating. To counter this problem over the last few years, though, I have made a conscious effort of trying to stay balanced. This includes a seemingly ‘simple-in-theory-but-difficult-to-pull-off’ combination of altering my mindset and practicing some activities every day. They’ve changed my life for the better.
Having a new Governor at the helm of the Reserve Bank of India seems to have wrought a sea change in the Monetary Policy Committee’s view on the state of the Indian economy, its inflation outlook and the liquidity situation in the debt markets. It has surprised market participants with a 25-basis point cut in its repo rate and switched its policy stance from ‘calibrated tightening’ to ‘neutral’, when the markets were primed for another do-nothing policy review. With the RBI now on the same page as the Centre on the need for accommodation, this rate cut, coming on top of a please-all Budget, seems designed to infuse animal spirits into a tired economy.
Eyeing to facilitate India’s cashew industry, the government is working on scraping the import duty on cashew kernel, said Suresh Prabhu, Commerce & Industry Minister.
Addressing the Kaju India 2019 global cashew buyer-seller meet organised by the Cashew Export Promotion Council of India (CEPCI), he said “The government reduced customs duty to 2.5 per cent on cashew kernel and is now working on 0 per cent import duty.”
Inflation based on wholesale prices fell to 10-month low of 2.76 per cent in January over the previous month on easing prices of fuel and some food items, according to official government data.
The Wholesale Price Index (WPI)-based inflation stood at 3.8 per cent in December 2018, and 3.02 per cent in January 2018. The index for manufacture of textiles group declined by 0.3 percent to 118.8 (provisional) from 119.2 (provisional) for the previous month due to lower price of synthetic yarn, manufacture of knitted & crocheted fabrics, manufacture of cordage, rope, twine & netting, manufacture of other textiles, texturized & twisted yarn and weaving & finishing of textiles (1% each).
India’s industrial production grew by 2.4 % in December, a month after recording a 17 -month low growth due to poor show from the manufacturing sector.
Data released by the Central Statistics Office showed while mining and electricity output reduced to -1% and 4.4%respectively in December, manufacturing expanded by 2.7% during the month. Lead indicators for IIP remain sluggish, yet a relatively favourable base and a seasonally strong month contributed to the uptick.
In November 2018, manufacturing, which constitutes 77.63 per cent of IIP, shrank 0.4 per cent versus 10.4 per cent growth a year ago.
The Reserve Bank of India (RBI) will ensure that there is no liquidity scarcity to any sector, said Shaktikanta Das, RBI Governor which surprised the market with 25 bps rate cut.
At the customary post-policy presser, Das said “We are continuously monitoring the liquidity situation and will ensure that there is no liquidity scarcity to any sector.” So far this fiscal year, total durable liquidity injected through open market operations has reached Rs 2.36 lakh crore, Das told reporters.
Loans to the tune of Rs 20,900 crore have been sanctioned under the 100-days outreach programme for MSMEs across 104 districts announced in November.
This was disclosed by Rajeev Kumar, Secretary in the Department of Financial Services at an outreach event for MSMEs in the textiles sector. He said “Loans to the tune of Rs 20,900 crore have been provided to MSMEs in 104 districts, including Rs 6,500 crore for the textiles sector enterprises.”
As many as 33 lakh MSMEs have been provided facilities under the 100-day outreach programme. Out of these, 6.36 lakh MSMEs in 39 districts are under the textiles sector, he added.
The Reserve Bank of India’s (RBI's) restructuring package for small businesses announced last month will help recast Rs 1 lakh crore of loans for 7 lakh eligible micro, small and medium enterprises (MSMEs), said a top government official.
Speaking at a post-budget interactive meeting with industry captains, Secretary of Department of Financial Services (DFS), Rajiv Kumar said, “As many as 7 lakh MSME units need restructuring.” They all can be restructured till March 2020 without downgrading the asset and Rs 1lakh crore worth loans will get restructured, he added.
The central government has approved the continuation of Credit Linked Capital Subsidy and Technology Up-gradation Scheme (CLCS-TUS) beyond 12th Plan for three years from 2017-18 to 2019-20.
The Cabinet Committee on Economic Affairs, chaired by the Prime Minister Narendra Modi has approved the Credit Linked Capital Subsidy and Technology Up-gradation Scheme (CLCS-TUS) with a total outlay of Rs.2900 crore.
Focusing on making healthcare more affordable and tap the potential of Micro, Small and Medium Enterprises (MSMEs) in the medical sector, IIT Kharagpur (IIT-KGP) will set up a research and technology development hub.
The Common Research and Technology Development Hub (CRTDH) is supported by the Department of Scientific and Industrial Research (DSIR), and will come up at the IIT-KGP campus. “Another key area of focus will be supporting growth and development of precision manufacturing of innovative technologies through MSMEs, so that India can reduce its massive burden of imported healthcare technologies,” Visiting Professor, School of Medical Science and Technology, IIT-KGP, Satadal Saha said while announcing the CRTDH project in Kolkata.
A homegrown start-up in Kerala that offers business banking solutions for Small and Medium Enterprises (SMEs) has successfully raised funding of USD 5 million from leading investors.
The company was part of the ‘Fund of Fund’ scheme of the Kerala Startup Mission (KSUM). Open, the neo-banking platform for SMEs, will use the funds to scale up the team and launch new products, including a credit card named DUO for start-ups, scheduled to be introduced in March.
Open bagged the funding of USD 5 million from a consortium led by Beenext, Speedinvest, and 3one4 Capital. Existing investors Unicorn India Ventures and Angellist Syndicate also participated in this round.
The Government has decided to develop defence industrial corridor in Uttar Pradesh to facilitate growth of Micro, Small and Medium Enterprises (MSMEs) and startups in state, the Parliament was informed.
Replying to a question in Lok Sabha, Minister of State for Defence, Dr Subhash Bhamre said “It has earmarked six nodal points for setting up of defence industrial corridor in Uttar Pradesh. These are Kanpur, Lucknow, Aligarh, Agra, Jhansi and Chitrakoot.”
To promote cleaner and competitive image of the Micro, Small and Medium Enterprises (MSME) sector in Surat district in Gujarat and its surrounding talukas, about 450 textile dyeing and printing mills in the city will be implemented with energy efficiency measures.
Surat will be first in the country to implement energy efficiency measures in dyeing and printing mills. Ministry of MSME and South Gujarat Textile Processors’ Association (SGTPA) signed a memorandum of understanding (MOU) for providing dedicated world-class technology support to implement energy efficient and eco-friendly technology and modernization of the textile mills in Surat cluster.
For the growth and development of Haryana, the state government has approved new policies for MSME and pharmaceutical sectors in the state.
The state cabinet approved the Micro, Small and Medium Enterprises (MSME) Policy 2019, which aims to create globally-competitive MSMEs in the state, an official release said. Besides attracting investment in state, the policy aims to promote balanced regional development through geographical dispersal of industry, increase the competitiveness of the MSMEs through cluster development and adoption of quality manufacturing practices, facilitate MSMEs in accessing domestic and export markets, provide a conducive eco-system for promotion and growth of MSMEs in the thrust sectors of Haryana.
Following the terrorist attack on CRPF convoy in Jammu and Kashmir's Pulwama district which killed over 42 CRPF personnel, India has withdrawn the Most Favoured Nation (MFN) status given to Pakistan.
The bilateral trade between India and Pakistan which stood close Rs. 17000 crore (2016) is set to shrink further following MFN withdrawal by India. While all signatories are required to extend MFN status to each other, Pakistan never extended the MFN status to India, while India did. The MFN clause is one of the most important principles under WTO which implies that if a country extends favourable duty concession to one country, it will have to extend to all other member countries under WTO.
A recent World Bank report has predicted that bilateral trade potential between India and Pakistan is close to $37 billion if both countries remove trade barriers. However, the bilateral trade has always remained below potential due to strained political relations between eth neighbours.
International Labour Organisation (ILO) and Korea International Cooperation Agency (KOICA) have expressed their keen interest in setting up a mechanism for improving skills of MSMEs and startups in Odisha to improve their business sustainability and enhance competitiveness.
A delegation of KOICA led by its director Sang Hoon Jung and Senior Sustainable Enterprise Development Specialist of ILO Kelvin Sergeant met Chief Secretary Aditya Prasad Padhi here. With regard to this, ILO officials proposed capacity building of Startup Odisha and District Industries Centres (DICs) for upscaling innovation, startups and new generation entrepreneurship.
Whereas, KOICA team evinced their interest in assisting the skilled Odisha initiative, especially in areas of beauty and wellness, mechatronics and engineering.
The National Sample Survey Office's unemployment report (leaked not officially released) reveals that unemployment levels in 2017-18 have been at a 45-year high of 6.1% Office. Do you agree India faces a job crisis ?
The National Sample Survey Office's unemployment report (leaked not officially released) reveals that unemployment levels in 2017-18 have been at a 45-year high of 6.1% Office. Accoding to FISME factor 100 per cent of MSMEs think that the India faces a job crisis.
The three major milestones to a company’s success are a business plan, a strategic plan and an HR plan, the critical step here is to ensure that all three are integrated. An HR plan is the one that helps to train your employees to execute the business and the strategic plan.
Money matters: How to arrange funds for your small business
Money is the most critical element in starting and running a business and an entrepreneur has to find ways to get funding for his small business. There are different options that an entrepreneur can look at to fund his small business and each come with its own pros and cons. We take a look at some of the options and the things that an entrepreneur has to keep in mind.
What is common with brands like Campa Cola (soft drinks), HMT (watches), Ambassador (cars), Rajdoot (motorcycle), LML (scooters)? Once they all were iconic brands and people still remember them, but a recognisable brand does not always equal relevance. Like humans, brands also show signs of ageing.
Indian cotton textiles suffering serious disadvantages due to tariff issues in major markets: CITI
India’s cotton yarn and fabric exports are struggling because of the duty disadvantage faced by the Indian exporters in major markets, said Confederation of Indian Textile Industry (CITI).
How Boson White Water is making a sea of difference in the way apartments, IT parks recycle their water
India is already on the brink of a water crisis, with 21 cities looking at running out of groundwater by 2020, according to a report by the NITI Aayog. This situation is likely to further worsen in the next few decades, as the country’s population increases to 1.6 billion by 2050.
This intelligent box can make your office energy efficient, cuts down power bills by 20pc
In 2014, in an effort to reduce its burgeoning electricity costs by cutting down energy consumption, a leading private bank installed an unconventional Internet-of-Things (IoT)-led application in all its offices and branches.
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 2018
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
Delays in realization of the dues, has been a perennial problem faced by MSMEs. Though, it is a worldwide problem, in India it has become larger over the years. The delayed payment Act which was later subsumed in MSMED Act 2006 has been manifestation of the frustration of the legislators with corporates and prescribed penal interest. The Act also provided for an elaborate mechanism of Facilitation Councils- quasi judicial bodies, in every State to implement the provisions of Acts pertaining to delay in payments. In a few States the mechanism worked better than others. However, problems persisted. Last year, following the Prime Minister’s announcement of MSME package, a notification was issued by Ministry of MSME that all ‘Companies’ buying from MSMEs would have to pay their dues within 45 days. Ministry of Corporate Affairs, regulator of Companies, has also responded with an Order requiring all Companies to file the instances of MSME payment delay to Ministry in a prescribed format with reasons of delay. Disclosure is a powerful tool and will deter erring Corporates to pay-up before it gets too late. FISME wholeheartedly welcomes the move. We shall closely follow the disclosures of these companies and further seek action on defaulters who would disclose but still wouldn’t pay.
"
A multi-sector delegation organized by SME & Entrepreneurship Federation of Maldives (SEFM) visited FISME on 15th Feb 2019 in New Delhi.
Led by SEFM President Abdul Latheef, the delegation comprised of SMEs from Tours and Travels, Construction, IT and logistics among others.
The delegation received by Former FSIEM President and Hon. Counselor of Rawanda H.E. Mr. Mohan Suresh.
If you’re anything like me, you go through the sinusoidal motions of the entrepreneurship journey rather swiftly. One day you feel like you’re falling apart, and just the next instant, you feel like you’re going to take over the world. Entrepreneurship is tough––and it most certainly is emotionally draining.
I won’t lie to you, it can be exasperating. To counter this problem over the last few years, though, I have made a conscious effort of trying to stay balanced. This includes a seemingly ‘simple-in-theory-but-difficult-to-pull-off’ combination of altering my mindset and practicing some activities every day. They’ve changed my life for the better.
Eyeing to facilitate India’s cashew industry, the government is working on scraping the import duty on cashew kernel, said Suresh Prabhu, Commerce & Industry Minister.
Addressing the Kaju India 2019 global cashew buyer-seller meet organised by the Cashew Export Promotion Council of India (CEPCI), he said “The government reduced customs duty to 2.5 per cent on cashew kernel and is now working on 0 per cent import duty.”
Inflation based on wholesale prices fell to 10-month low of 2.76 per cent in January over the previous month on easing prices of fuel and some food items, according to official government data.
The Wholesale Price Index (WPI)-based inflation stood at 3.8 per cent in December 2018, and 3.02 per cent in January 2018. The index for manufacture of textiles group declined by 0.3 percent to 118.8 (provisional) from 119.2 (provisional) for the previous month due to lower price of synthetic yarn, manufacture of knitted & crocheted fabrics, manufacture of cordage, rope, twine & netting, manufacture of other textiles, texturized & twisted yarn and weaving & finishing of textiles (1% each).
India’s industrial production grew by 2.4 % in December, a month after recording a 17 -month low growth due to poor show from the manufacturing sector.
Data released by the Central Statistics Office showed while mining and electricity output reduced to -1% and 4.4%respectively in December, manufacturing expanded by 2.7% during the month. Lead indicators for IIP remain sluggish, yet a relatively favourable base and a seasonally strong month contributed to the uptick.
In November 2018, manufacturing, which constitutes 77.63 per cent of IIP, shrank 0.4 per cent versus 10.4 per cent growth a year ago.
The Reserve Bank of India (RBI) will ensure that there is no liquidity scarcity to any sector, said Shaktikanta Das, RBI Governor which surprised the market with 25 bps rate cut.
At the customary post-policy presser, Das said “We are continuously monitoring the liquidity situation and will ensure that there is no liquidity scarcity to any sector.” So far this fiscal year, total durable liquidity injected through open market operations has reached Rs 2.36 lakh crore, Das told reporters.
Loans to the tune of Rs 20,900 crore have been sanctioned under the 100-days outreach programme for MSMEs across 104 districts announced in November.
This was disclosed by Rajeev Kumar, Secretary in the Department of Financial Services at an outreach event for MSMEs in the textiles sector. He said “Loans to the tune of Rs 20,900 crore have been provided to MSMEs in 104 districts, including Rs 6,500 crore for the textiles sector enterprises.”
As many as 33 lakh MSMEs have been provided facilities under the 100-day outreach programme. Out of these, 6.36 lakh MSMEs in 39 districts are under the textiles sector, he added.
The Reserve Bank of India’s (RBI's) restructuring package for small businesses announced last month will help recast Rs 1 lakh crore of loans for 7 lakh eligible micro, small and medium enterprises (MSMEs), said a top government official.
Speaking at a post-budget interactive meeting with industry captains, Secretary of Department of Financial Services (DFS), Rajiv Kumar said, “As many as 7 lakh MSME units need restructuring.” They all can be restructured till March 2020 without downgrading the asset and Rs 1lakh crore worth loans will get restructured, he added.
The central government has approved the continuation of Credit Linked Capital Subsidy and Technology Up-gradation Scheme (CLCS-TUS) beyond 12th Plan for three years from 2017-18 to 2019-20.
The Cabinet Committee on Economic Affairs, chaired by the Prime Minister Narendra Modi has approved the Credit Linked Capital Subsidy and Technology Up-gradation Scheme (CLCS-TUS) with a total outlay of Rs.2900 crore.
Focusing on making healthcare more affordable and tap the potential of Micro, Small and Medium Enterprises (MSMEs) in the medical sector, IIT Kharagpur (IIT-KGP) will set up a research and technology development hub.
The Common Research and Technology Development Hub (CRTDH) is supported by the Department of Scientific and Industrial Research (DSIR), and will come up at the IIT-KGP campus. “Another key area of focus will be supporting growth and development of precision manufacturing of innovative technologies through MSMEs, so that India can reduce its massive burden of imported healthcare technologies,” Visiting Professor, School of Medical Science and Technology, IIT-KGP, Satadal Saha said while announcing the CRTDH project in Kolkata.
A homegrown start-up in Kerala that offers business banking solutions for Small and Medium Enterprises (SMEs) has successfully raised funding of USD 5 million from leading investors.
The company was part of the ‘Fund of Fund’ scheme of the Kerala Startup Mission (KSUM). Open, the neo-banking platform for SMEs, will use the funds to scale up the team and launch new products, including a credit card named DUO for start-ups, scheduled to be introduced in March.
Open bagged the funding of USD 5 million from a consortium led by Beenext, Speedinvest, and 3one4 Capital. Existing investors Unicorn India Ventures and Angellist Syndicate also participated in this round.
The Government has decided to develop defence industrial corridor in Uttar Pradesh to facilitate growth of Micro, Small and Medium Enterprises (MSMEs) and startups in state, the Parliament was informed.
Replying to a question in Lok Sabha, Minister of State for Defence, Dr Subhash Bhamre said “It has earmarked six nodal points for setting up of defence industrial corridor in Uttar Pradesh. These are Kanpur, Lucknow, Aligarh, Agra, Jhansi and Chitrakoot.”
To promote cleaner and competitive image of the Micro, Small and Medium Enterprises (MSME) sector in Surat district in Gujarat and its surrounding talukas, about 450 textile dyeing and printing mills in the city will be implemented with energy efficiency measures.
Surat will be first in the country to implement energy efficiency measures in dyeing and printing mills. Ministry of MSME and South Gujarat Textile Processors’ Association (SGTPA) signed a memorandum of understanding (MOU) for providing dedicated world-class technology support to implement energy efficient and eco-friendly technology and modernization of the textile mills in Surat cluster.
For the growth and development of Haryana, the state government has approved new policies for MSME and pharmaceutical sectors in the state.
The state cabinet approved the Micro, Small and Medium Enterprises (MSME) Policy 2019, which aims to create globally-competitive MSMEs in the state, an official release said. Besides attracting investment in state, the policy aims to promote balanced regional development through geographical dispersal of industry, increase the competitiveness of the MSMEs through cluster development and adoption of quality manufacturing practices, facilitate MSMEs in accessing domestic and export markets, provide a conducive eco-system for promotion and growth of MSMEs in the thrust sectors of Haryana.
Following the terrorist attack on CRPF convoy in Jammu and Kashmir's Pulwama district which killed over 42 CRPF personnel, India has withdrawn the Most Favoured Nation (MFN) status given to Pakistan.
The bilateral trade between India and Pakistan which stood close Rs. 17000 crore (2016) is set to shrink further following MFN withdrawal by India. While all signatories are required to extend MFN status to each other, Pakistan never extended the MFN status to India, while India did. The MFN clause is one of the most important principles under WTO which implies that if a country extends favourable duty concession to one country, it will have to extend to all other member countries under WTO.
A recent World Bank report has predicted that bilateral trade potential between India and Pakistan is close to $37 billion if both countries remove trade barriers. However, the bilateral trade has always remained below potential due to strained political relations between eth neighbours.
International Labour Organisation (ILO) and Korea International Cooperation Agency (KOICA) have expressed their keen interest in setting up a mechanism for improving skills of MSMEs and startups in Odisha to improve their business sustainability and enhance competitiveness.
A delegation of KOICA led by its director Sang Hoon Jung and Senior Sustainable Enterprise Development Specialist of ILO Kelvin Sergeant met Chief Secretary Aditya Prasad Padhi here. With regard to this, ILO officials proposed capacity building of Startup Odisha and District Industries Centres (DICs) for upscaling innovation, startups and new generation entrepreneurship.
Whereas, KOICA team evinced their interest in assisting the skilled Odisha initiative, especially in areas of beauty and wellness, mechatronics and engineering.
The National Sample Survey Office's unemployment report (leaked not officially released) reveals that unemployment levels in 2017-18 have been at a 45-year high of 6.1% Office. Accoding to FISME factor 100 per cent of MSMEs think that the India faces a job crisis. 
The three major milestones to a company’s success are a business plan, a strategic plan and an HR plan, the critical step here is to ensure that all three are integrated. An HR plan is the one that helps to train your employees to execute the business and the strategic plan.
Money is the most critical element in starting and running a business and an entrepreneur has to find ways to get funding for his small business. There are different options that an entrepreneur can look at to fund his small business and each come with its own pros and cons. We take a look at some of the options and the things that an entrepreneur has to keep in mind.
What is common with brands like Campa Cola (soft drinks), HMT (watches), Ambassador (cars), Rajdoot (motorcycle), LML (scooters)? Once they all were iconic brands and people still remember them, but a recognisable brand does not always equal relevance. Like humans, brands also show signs of ageing.
India’s cotton yarn and fabric exports are struggling because of the duty disadvantage faced by the Indian exporters in major markets, said Confederation of Indian Textile Industry (CITI).
India is already on the brink of a water crisis, with 21 cities looking at running out of groundwater by 2020, according to a report by the NITI Aayog. This situation is likely to further worsen in the next few decades, as the country’s population increases to 1.6 billion by 2050.
In 2014, in an effort to reduce its burgeoning electricity costs by cutting down energy consumption, a leading private bank installed an unconventional Internet-of-Things (IoT)-led application in all its offices and branches.
“
If you are working on something that you really care about, you don’t have to be pushed. The vision pulls you.
”
