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  The FISME Factor  

 

President's Message
Mr. Dinesh Chandra TripathiOne of the issues resonated in the CEC meeting this month has been of the status of MSME dues during restructuring/ liquidation process under the Insolvency and Bankruptcy Code (IBC). The legislature has long been sympathetic to the concerns of delayed payments experienced by MSMEs. Therefore the Parliament enacted legislation ensuring timely payment of MSME dues and directing even payment of interest on delay. But under the IBC process their dues are all but written off as MSME dues are clubbed under ‘operational creditors’ and not under ‘financial creditors’ which are secured. Because large number of corporate are reeling under pressure of stressed assets and undergoing process of IBC, dues of thousands of their MSME suppliers have stuck. It is unfortunate that resolution of NPAs of large corporate sector is snowballing into NPAs among MSMEs. FISME has strongly raised the issue before the RBI Governor and has also represented to the Government. FISME is likely to file a writ to seek relief for MSMEs under IBC with change of categorization of their dues from operational to financial creditors. "
Mr. Dinesh Chandra Tripathi, President, FISME
Vol VII, Issue 171: Jan 15, 2019
Activities
FISME CEC meets in New Delhi
Business Banter: Lessons from Entrepreneurs
Experience, experiment, explore: Three-step business owner's guide
Macro Metre
India’s WPI index eases to 8-month low at 3.8% in December 2018
Credit Guarantee Fund for encouraging start-ups
Extension of interest subsidy scheme to merchant exporters will help them promote outbound shipments
Domestic Digest
DGFT removes pre-import condition to avail IGST exemption on imports under Advance Authorization Knowledge and News Network (KNN)
DC-MSME invites MSMEs to use available testing facilities in their Testing Centres and Testing Stations
Exemption limits for MSME rises to Rs. 40 lakhs
State Scan
Kochi inaugurates India's biggest startup incubator Knowledge and News Network (KNN)
Defence Industrial Corridor to be launched in Tamil Nadu on Jan 20
Gujarat govt plans to setup 16 new GIDC to boost MSME sector
World Watch
US Chamber launches innovation initiative in India
India to fully operationalise Chabahar port soon; Iranian bank branch to open in Mumbai
Knowledge Store
How this Bengaluru-based startup is brewing health using tea, coffee and more
...And A Lot More
Activities

FISME CEC meets in New Delhi

The meeting of the FISME’s Central Executive Committee was held in New Delhi on 11th Jan 2019. The CEC was chaired by President Shri Dinesh Tripathi. As CEC was held after crucial meeting with RBI Governor on 7th Jan 2019, members were informed of highlights of the meeting. Besides review of activities and programmes, the CEC discussed about FISME’s memorandum for the interim budget. CEC also cleared the proposal to file a writ petition asking to categorize MSME dues under list of financial creditors during restructuring/ liquidation of Insolvency and Bankruptcy Code. Shri Sudhkar Shetty, President of Federation of Karnataka Chamber of Commerce and Industries made a special presentation during CEC about forthcoming ASEAN summit in Bangalore.
Business Banter: Lessons from Entrepreneurs

Experience, experiment, explore: Three-step business owner's guide

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.
Writing on the Wall

RBI Governor’s meeting with MSMEs: Will things change?

With change of guard at the helm in RBI, the incoming Governor lost no time in reaching out to the sector and the much awaited parleys with MSME representatives were held on 7th January 2019 in New Delhi. What happened in the meeting and what MSMEs think after the meeting.. see full details in KNN

Media Monitor

Macro Metre

India’s WPI index eases to 8-month low at 3.8% in December 2018

India’s annual Wholesale Price Inflation (WPI) index has eased to an eight-month low at 3.8% in December 2018 as compared to 4.64% in the preceding month. The official WPI for ‘All Commodities’ (Base: 2011-12=100) for the month of December, 2018 declined by 1.4% to 120.1 (provisional) from 121.8 (provisional) for the previous month. The annual rate of inflation, based on monthly WPI, stood at 3.80% (provisional) for the month of December, 2018 (over December, 2017) as compared to 4.64% (provisional) for the previous month and 3.58% during the corresponding month of the previous year. Build up inflation rate in the financial year so far was 3.27% compared to a build-up rate of 2.21% in the corresponding period of the previous year.

Govt to come out with new industrial policy: Prabhu

The government is coming out with a new industrial policy that will link the country with the global supply-chain that will be mutually beneficial, said Suresh Prabhu, Commerce and Industry Minister. He added that businesses can only grow when there are partnerships among several other geographies. "Manufacturing cannot happen end-to-end only in one geography; it has to be part of a global value- chain, global supply-chain. And that is why we are discussing and finalized from my ministry side, a new industrial policy that's awaiting Cabinet approval, which focuses developing mutually beneficial value chain and supply-chain," Prabhu said while addressing a gathering at an event organized by industry lobby CII.

Credit Guarantee Fund for encouraging start-ups

The Government is planning to set up a Credit Guarantee Fund (CGF) for encouraging start-up companies with a view to providing funding facilities in the country, according to a release by Ministry of Commerce & Industry. The scheme is yet to be made operational. Incentives being provided to startups under Startup India initiative are-self-certification under 6 Labour Laws and 3 Environmental Laws, relaxations in Public Procurement Norms, faster exit under the Bankruptcy Code, rebates on patent and trademark filing fees, support from facilitators and expedited examination of patent application.

Extension of interest subsidy scheme to merchant exporters will help them promote outbound shipments

Extension of 3% interest subsidy scheme to merchant exporters will help them promote outbound shipments, Commerce Minister Suresh Prabhu said. The government decided to provide 3% interest subsidy to merchant exporters, entailing an expenditure of Rs.600 crore, to enhance liquidity with a view to boosting outbound shipments. Sectors that will be benefited from the decision include agriculture, textiles, leather, handicraft and machinery. Prabhu tweeted, “Inclusion of merchant exporters in the scheme is expected to make them more competitive, encouraging them to export more products manufactured by Micro, Small and Medium Enterprises (MSMEs) adding to country’s exports.”

Domestic Digest

DGFT removes pre-import condition to avail IGST exemption on imports under Advance Authorization

The Directorate General of Foreign Trade (DGFT) has removed the pre-import condition to avail exemption from the payment of IGST on imports under Advance Authorization. This exemption which will be available till March 31, 2019 has also been extended to deemed supplies, said DGFT in a notification. It said “Para 4.14 of Foreign Trade Policy (FTP) is amended to remove pre-import condition to avail exemption from Integrated Tax and Compensation Cess and exemption from Integrated Tax and Compensation Cess is also extended to deemed supplies.”

DC-MSME invites MSMEs to use available testing facilities in their Testing Centres and Testing Stations

Office of the Development Commissioner, Ministry of Micro Small and Medium Enterprises (MSME) has invited MSMEs, industry associations, public sector enterprises and the government departments to use the available testing facilities in MSME Testing Centres and Testing Stations. The Ministry is having a network of 4 MSME Testing Centres (New Delhi, Mumbai, Kolkata & Chennai), accredited by NABL and recognized from BIS under Lab Recognition Scheme 2018 (LRS-2018) for different engineering/household products and 7 MSME Testing Stations (Jaipur, Hyderabad, Kolhapur, Pondicherry, Bhopal, Bangalore, Chenganacherry).

Exemption limits for MSME rises to Rs. 40 lakhs

The exemption limit for Micro, Small and Medium Enterprises (MSMEs) has been raised to Rs 40 lakhs of annual turnover, said Arun Jaitley, Finance Minister. This was decided in the 32nd Goods and Services Tax (GST) Council meeting that concluded earlier today. However, for small states the Council set the threshold limit to Rs.20lakhs only. A list of decisions have also been made that would impact medium and small-scale industries. From April 1, composition scheme limit will be increased from Rs.1crore to Rs 1.5 crore. Those who come under the composition scheme will pay tax quarterly, but the return will be filed only once a year.

RBI constitutes expert committee on MSMEs to propose long tern solutions for sustainability of MSMEs

RBI has formed an expert committee on Micro, Small and Medium Enterprises (MSMEs) to identify causes and propose long term solutions, for the economic and financial sustainability of the MSME sector. The committee has been formed under the chairmanship of U K Sinha, Former Chairman, Securities and Exchange Board of India (SEBI). The eight member committee will review the current institutional framework in place to support the MSME sector and study the impact of the recent economic reforms on the sector and identify the structural problems affecting its growth. It will also study the global best practices with respect to MSMEs and recommend its adoption in India
State Scan

Kerala    

Kochi inaugurates India's biggest startup incubator

India's biggest startup incubator which is housed inside a 1.8-lakh square-feet facility at the Technology Innovation Zone (TIZ) was inaugurated by Kerala Chief Minister Pinarayi Vijayan at Kochi. The startup incubator, which has been setup under the watchful guidance of the Kerala Startup Mission (KSUM), houses a number of modern facilities such as the Maker Village that promotes hardware startups, the Bionest that promotes medical technologies, BRINC which is India's first international accelerator for hardware startups, BRIC which aids developing solutions for cancer diagnosis and care, and a Centre of Excellence, that has been backed by some of the prominent tech companies that operate in India.

Tamil Nadu    

Defence Industrial Corridor to be launched in Tamil Nadu on Jan 20

In a bid to promote domestic defence industry in Tamil Nadu, ‘Defence Industrial Corridor’ will be launched in the state to ensure connectivity among various defence industrial units. The corridor will be launched on January 20, 2019 during which major investments in the sector are expected to be announced, said Ajay Kumar, Secretary of Defence Production. The event will be attended by Defence Minister Nirmala Sitharaman and Senior Defence Ministry and armed forces officials. Besides launching defence innovation hub in Coimbatore, defence products are expected to be unveiled at the event.

Gujarat    

Gujarat govt plans to setup 16 new GIDC to boost MSME sector

Gujarat government has planned to establish 16 new Gujarat Industrial Development Corporation (GIDC) estates spread across 2,420 hectares of land in a bid to give a boost to Micro, Small and Medium Enterprises (MSMEs) sector. While four GIDCs have become operational, the rest are in different stages of development like infrastructure development and land procurement. According to the media reports, the Vice-Chairman and Managing Director of GIDC, D Thara said that the new GIDCs are aimed at creating facilities for around 8,000 new MSME units in various parts of the state. Thara said more GIDC estates are likely to be announced in coming months.

Gujarat    

Gujarat govt to provide interest and power tariff subsidy to boost textile value chain, 6% subsidy for MSME units

To boost the textile value chain in Gujarat, the state government has announced a scheme to provide interest and power tariff subsidy along with other incentives for specific sectors in the textile industry. For Micro, Small and Medium Enterprises (MSME) units, the subsidy would be 6%. Whereas for large units, it would range from 4 to 6% depending upon the number of people employed. The scheme provides interest subsidy of up to Rs.20 crore per year for a period of five years. The scheme for assistance to strengthen specific sectors in the Textile Value Chain would apply to new as well as the expansion of existing units, a government resolution said.
World Watch

United States of America    

US Chamber launches innovation initiative in India

The United States Chamber of Commerce’s Global Innovation Policy Centre (GIPC) launched an innovation initiative in India to examine economic underpinnings to enable breakthrough innovation. The initiative titled "Fair Value for Innovation" was launched at the Raisina Dialogue 2019 in New Delhi, which will explore how policymakers can harness innovation capital in India and around the globe, the industry chamber said in a statement. Senior Vice President of GIPC said “The promise of India's innovation ecosystem is real, and the US industry has a stake in it.” "We believe India is ideally positioned as a thought-leader and regional economic power to help bring the benefits of innovation in AI (artificial intelligence)," said Amitabh Kant, NITI Aayog Chief Executive . The Raisina Dialogue is an annual conference on geopolitics and geo-economics, organised jointly by the Observer Research Foundation and the External Affairs Ministry.
Read More    Back to Top

India to fully operationalise Chabahar port soon; Iranian bank branch to open in Mumbai

India is hopeful to fully operationalise the strategic Chabahar port in the Sistan-Balochistan province of Iran; and the government has allowed an Iranian bank to open a branch in Mumbai for related transactions, Union Minister Nitin Gadkari said Tuesday. Gadkari, after Iran's Minister of Foreign Affairs Mohammad Javad Zarif called on him, said that the meeting was "fruitful" and both the sides could resolve several issues. "Chabahar port is very important for us. We are working very hard on it... Some problems were there, but the Iranian government and their minister... are also in the process to resolve all the issues as early as possible. I am confident that we will be in a position to start full function of Chabahar Port at the earliest," Gadkari said. The Chabahar port in the Sistan-Balochistan province in the energy-rich nation's southern coast is easily accessible from India's western coast and is increasingly seen as a counter to Pakistan's Gwadar port located at distance of around 80 km from Chabahar.
Read More    Back to Top
Upcoming Events

TIMTOS 2019 – 27th Edition
(Taipei International Machine Tool Show)

Date: 3 – 7 March 2019
Venue: Taipei, TAIWAN

See Details
FISME’s official Twitter handle
@fisme
Knowledge and News Network (KNN)
KNN India’s official Twitter handle
@knnindia
Anil Bhardwaj, Secretary General
@abhardwaj_fisme
Other Events

India International Garment Fair

Date: 16-18 Jan 2019
Venue: India Exposition Mart, Greater Noida
See Details

India Digital Summit

Date: 17-18 Jan 2019
Venue: The Lalit New Delhi, New Delhi
See Details

Aerodef India

Date: 17-19 Jan 2019
Venue: Hitex Exhibition Center, Hyderabad
See Details

Plexpo India

Date: 17-20 Jan 2019
Venue: Mumbai Exhibition Centre, Mumbai
See Details

Global Textile Technology & Engineering Show

Date: 18-20 Jan 2019
Venue: Mumbai Exhibition Centre, Mumbai
See Details

Vibrant Gujarat Global Summit

Date: 18-20 Jan 2019
Venue: Mahatma Mandir, Gandhinagar
See Details

India Steel

Date: 22-24 Jan 2019
Venue: Mumbai Exhibition Centre, Mumbai
See Details

Foodtech Kerala

Date: 23-25 Jan 2019
Venue: Bolgatty Event Centre, Ernakulam
See Details

Elektrotec

Date: 24-27 Jan 2019
Venue: CODISSiA, Coimbatore
See Details

IMTEX

Date: 24-30 Jan 2019
Venue: BIEC Bengaluru International Exhibition Centre, Bengaluru
See Details

Surat International Auto Expo

Date: 25-28 Jan 2019
Venue: Surat International Exhibition and Convention Centre, Surat
See Details

Krushi Mahotsav

Date: 25-29 Jan 2019
Venue: Dongre Vasti Gruh Maidan, Nashik
See Details

National Garment Fair

Date: 30-31 Jan 2019
Venue: Mumbai Exhibition Centre, Mumbai
See Details
Your Views

Do you think that the reduction in GST rates on 23 goods and service is a good step to boost MSME growth?

According to FISME Factor 100 % of MSMEs think that the reduction in GST rates on 23 goods and services is a good step to boost MSME growth.
Knowledge Store

HR Heuristics

Continuous performance management: Keep employees engaged

Other than pay-checks and benefits, employees derive satisfaction from the knowledge that their talent is influencing business growth and that their strengths impact the greater mission of the organisation.

Finance Fundamentals

Bank loan: How to write your business plan

A business plan is one of the most important documents that you need for your loan application process with any bank. Consider this as a set of documents that you can use to sell yourself or your business in the eyes of the lender.

Marketing Mantras

10 Social Media Trends to Watch in 2019

As social media platforms have evolved into full-blown communication channels, more brands are relying on these platforms to reach their target audiences. Consumer attention is scattered across various social platforms, not to mention apps and other online diversions.

Policy Polemic

Textile exporters urge govt to cover cotton yarn under Interest Equalisation Scheme

The textile exporters have urged the government to cover cotton yarn under Interest Equalisation Scheme to encourage the exports of this product which in turn will benefit the cotton farmers.

SME Special

How this Bengaluru-based startup is brewing health using tea, coffee and more

TeaSugar, an online aggregator for tea, coffees, natural sweeteners, health drinks, and nutritious snacks, aims to tap the preventive health segment.

Success Story

Delhi-based agritech firm Crofarm raises bridge round of $500K

Tech-based agri supply chain startup Crofarm raises $5,00,000 bridge round as it gears towards closing its Series A. Delhi-based agri-supply chain startup Crofarm has raised $5,00,000 bridge round from Vinay Mittal, Chief Strategy at HT Media; Ramit Sethi from Strongbox Ventures and other HNIs.

Stockpile

The Central Statistics Office (CSO), Ministry of Statistics and Programme Implementation has been bringing out the employment related statistics in the formal sector covering the period September 2017 onwards

Quotable Quotes

“ Life is a privilege and to waste it would be wrong. In living this privileged “Life”, you must accept responsibility for yourself, always use your talents to the best of your ability and contribute somehow to the common good. ”
– Verghese Kurien – Social Entrepreneur and Father of the White Revolution 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

2 New Members Join FISME

2 new MSME became members of FISME during the period from 1st Jan 2019 to 15th Jan 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:  Vipul Kumar Chettry

 

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