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President's Message
It is said that internationally almost two third of goods move through Global Value Chains- a tight knit network of buyers, suppliers and range of service providers. Unfortunately India has been more or less remained outside GVCs. One of the chief reasons of this exclusion is that there is a strong perception among foreign buyers that India is not a dependable supplier. There are too many uncertainties along the way in India. This perception though devastating, has not been without basis. A recent case highlights what ails Indian systems. Exporters are refunded the GST consumed in the inputs. It is alleged by GST officials that some exporters claimed refund far in excess what was due by misdeclaration. Therefore, instructions were issued shipments earmarked- following a criteria, would be inspected 100%. Which means opening stuffed containers/ LCL shipments, checking them and then re-stuffing them. As the decision to inspect was sudden and there was no commensurate availability of staff for this additional duty at ports, hundreds of containers got stuck awaiting inspections. The delay, once a shipment was marked for inspection ranged between 2-4 days. Exporters missed shipping deadlines, attracted penalties and many faced consequences of not meeting L/C date. More importantly, India lost face before GVCs. Inspection to thwart evasion of Tax is organized globally. But instead of creating chaos and disruption, it could have been done in a more planned and orderly manner. That is the lesson we must draw from the episode as we move forward to attract GVCs to come to the shores of India.
"
In two consecutive high level meetings chaired by Commerce and industry Minister Mr. Piyush Goyal on RCEP negotiations and e-commerce, FISME brought MSME perspective into the discourse.
On RCEP – an FTA being negotiations between ASEAN countries plus six namely Australia, Japan, South Korea, New Zealand, China and India, FISME highlighted the need to protect Indian industry. However, it warned against inverted tariff as powerful lobbies of basic raw material manufacturers such as Steel, Copper, Aluminium and Polymers were asking for almost absolute protection. If these building blocks of economy become expensive due to a highly restrictive import policy, the entire down-stream MSME segment will lose competitiveness. FISME also stressed not to solely rely on industry feedback but also conduct research to analyse comparative advantage and relative competitiveness.
Many employees going through the day-to-day grind of their unsatisfying work, dream of being entrepreneurs. But the question is how? The road to entrepreneurship is often a treacherous one filled with unexpected detours, roadblocks and dead ends. But, if you have faith in yourself, the journey will be a little easier.
Here are 5 tips for young and aspiring entrepreneurs to help get you started.
It is now widely accepted that the number of permissions a potential entrepreneur has to obtain prior to starting up a business influences both the desire to get started and the incidence of corruption among regulators. Through its emphasis on improving India’s ranking in World Bank’s Ease of Doing Business exercise, the Narendra Modi government has implicitly recognised this. Now, there are plans to move further ...
The Directorate General of Foreign Trade (DGFT) has invited the suggestions from all the stakeholders for framing the proposed new Foreign Trade Policy.
In a notification, it said “It has been decided to revise the current Foreign Trade Policy (2015-2020).Therefore suggestions/inputs are hereby invited from all the stakeholders for framing the proposed new Foreign Trade Policy.” In a notification, it said “It has been decided to revise the current Foreign Trade Policy (2015-2020).Therefore suggestions/inputs are hereby invited from all the stakeholders for framing the proposed new Foreign Trade Policy.”
The Commerce Ministry has formed 18-member Working Group under the chairmanship of Dr. Ramesh Chand, member of Niti Ayog for the revision of the current series of Wholesale Price Index (WPI).
The base year for the current series is 2011-12 and since then significant structural changes have taken place in the economy, therefore, it has become necessary to examine the coverage of commodities, weighting diagram and related issues pertaining to the existing series of index numbers of WPI, an official statement said.
The government has asked all the public sector banks (PSBs) to resolve the problems which are being faced by the micro, small and medium enterprises (MSMEs) and submit weekly reports regarding it to give further boost to MSME businesses.
“It is therefore, requested that a CGM/GM (chief general manager/general manager) level officer may be specifically designated to do an in-depth analysis of the progress made and issues in availability of credit, still being faced by the MSMEs," the finance ministry said in a statement. It is therefore, requested that a CGM/GM (chief general manager/general manager) level officer may be specifically designated to do an in-depth analysis of the progress made and issues in availability of credit, still being faced by the MSMEs," the finance ministry said in a statement.
A large number of export consignments have piled up pending ‘100% inspection’ after a new directive to field formation by revenue department to verify the IGST payments for goods exported out of India.
The circular issued by Director (Customs), Department of Revenue of Union Ministry of Finance on 17th June 2019 asks officials to verify the IGST payments. Ports witness havoc as export goods waiting to be shipped are held-up awaiting clearance from custom officials.
Exporters fear of collateral damage by not meeting shipping deadlines and demurrages for not loading goods on vessels docked at ports.
The Ministry of Micro, Small and Medium Enterprises (MSMEs), through Khadi and Village Industries Commission (KVIC), has taken various initiatives to make Khadi an international brand, said Nitin Gadkari, Union Minister for MSME.
In a written reply to Lok Sabha, he said “KVIC has already obtained registration under Trade Mark “KHADI” in 5 countries of the world viz. Germany, UK, Australia, Russia and China.” Some countries such as Germany are using Khadi as a brand and selling their products. In Germany, the Best Natural Products (BNP) has obtained registration of Trade Mark “Khadi” under classes-3,21,31 from the European Union Intellectual Property Office (EUIPO) and selling the products like soap, perfumeries, hair oils etc, he added.
More than 50, 706 proposals have got in-principle approvals and 27, 893 proposals have been sanctioned as on March 31, 2019, said Nitin Gadkari, Union Minister for Micro, Small and Medium Enterprises (MSME).
In a written reply to Lok Sabha, Gadkari said “The Solar Charkha Scheme for MSME Sector was launched in 2018 with an outlay of Rs.550 crore to set up 50 Solar Charkhas across the country. As many as 19 proposals have been received under the Scheme so far.”
The ‘Solar Charkha’ scheme was launched by President, Ram Nath Kovind. The schemes main objective was to generate 5 Crore Jobs.
The National Small Industries Corporation (NSIC) signed MoU with Common Service Centres (CSC), e-Governance Services India here, for enhancing new offerings for the MSME sector by synergizing each other’s competence.
The MoU was signed by Ram Mohan Mishra, Additional Secretary S&DC (MSME) and CMD, NSIC and Dr Dinesh Kumar Tyagi, CEO, CSC e-Governance Services India Limited. Speaking on the occasion, Mishra stated that this MoU will have special focus on providing services to village level entrepreneurs (VLEs) and would to lead to exponential growth of Village Entrepreneurs in the country.
Hit by rising costs of raw materials and Good & Services Tax (GST), the industry is seeing a downturn, says Om Prakash Pathak, President of Kannauj’s Attar and Perfumers’ Association.
Manufacturers of Kannauj’s attar industries in the past few years have suffered from losses in their business due to an increase in the costs of raw material, lack in their market connectivity and their losses because of the Goods and Services Tax (GST).
Emphasizing on Government of Maharashtra's policy initiatives for enhancing trade and MSME growth, Minister for Food and Drugs Administration, Tourism and Protocol, Jaykumar Rawal said that Maharashtra government will soon set up a Venture Capital Fund for Export-oriented Units.
Speaking on the occasion of the 18th World Trade Centers’ Association Day organized by MVIRDC World Trade Center Mumbai, he stated “Under its ‘New Industrial Policy, 2019, the state government is in the process of setting up Export Promotion Council, Export-cum-Convention centers in different regions and it will soon introduce a venture capital fund for export-oriented units.”
Making several announcements for the Micro, Small and Medium Enterprises (MSME) units in Haryana, the State Chief Minister Manohar Lal KHattar announced regularization of MSME units developed in more than 70 per cent geographical area of non-conforming area.
Addressing the entrepreneurs present in Haryana Maha Udyog Sangam-2019 organized by Haryana Chapter with the coordination of All India Manufacturers’ Organisation in Faridabad, Minister announced for getting the Haryana Industrial Survey – 2019 conducted.
As Tamil Nadu has been clutched by the worst water crisis, the state government said recycling systems in industries and large multi-storied buildings was key for plan approval.
Other than Chennai, there are several parts of the state which are facing an acute water crisis, said to be one of the worst.
Chief Minister K Palaniswami said, “While only sufficient rain can lead to good storage in lakes, besides rejuvenating groundwater; the focus was also on recycling of used water. For recycling of used water in large industries, the government is more focused”.
While interacting with the startups, the State Minister for MSME, Energy and Home Captain Dibya Shankar Mishra reiterated that development of the startup ecosystem in Odisha remains the top priority of the government and that the next phase of the program shall be expanded to districts by the establishment of Start-up development cells.
Moreover, he added that the all possible support required and necessary will be given to start-ups to scale up their ventures.
Union Commerce Minister Piyush Goyal told the Lok Sabha that the government was negotiating with US the issue of withdrawing the Generalized System of Preferences (GSP) status to Indian business houses.
India said the withdrawal of exports incentives by the US is in way recognition of the country's growing economic strength, but it is a unilateral move not in line with norms laid down by World Trade Organization (WTO).
“I would like to state that US has taken a unilateral position. We believe that it is not exactly as per the norms of WTO and General Agreement on Tariffs and Trade (GATT), which have been mutually agreed and are multilateral trade agreements,” he said.
With a view to promote bilateral trade between India and Africa, International Indo Africa Multi-Sector (IIAMSTX 2019) B2B trade expo is being organized from August 19 to August 21, 2019 at KICC Nairobi, Kenya.
This Exhibition would be supported by majority of government and private sectors, industry associations, investment bodies from India and east and central African countries.
IIAMSTX 2019 is an opportunity and an invitation to all established businesses and start-ups in India who wish to export their products in Africa and expand their market reach, according to the organizers.
Reserve Bank of India slashes repo rate by 2.5 to 5.75%. Do you think that the cost of borrowing finally come down for MSMEs?
According to FISME factor 100% of the MSMEs think that the cost of borrowing finally comes down as the Reserve Bank of India slashes repo rate by 2.5 to 5.75.
Continuous learning is the key to future success for organisations
The business scenario these days is so dynamic that it is keeping companies on their toes. It’s not just hard to predict where and how and which way the trends would shape up, but a static mindset can be a death knell for businesses. What one has mastered today can turn out to be totally irrelevant tomorrow. Think Kodak, Nokia or the BlackBerry phones!
The only way to stay in the race in this dynamic environment is through continuous learning.
Financial management is one of the most important aspects of running a business successfully. However, in a bid to be a jack of all trades, MSME entrepreneurs often ignore their financial strategy and pass the burden on the accounting departments.
How to Make Positive Changes to Your Marketing Process
If you’re in marketing, you’ll likely agree with me that your field is the toughest job in the world, and that being a good marketer is becoming harder than ever.
Withdrawal of benefits under GSP affects gems and jewellery exporters
The Withdrawal of benefits under the Generalized System of Preferences (GSP) will affect exporters of gems & jewellery the most, according to CRISIL report.
India’s goods and services trade with the US totalled $142.1 billion of which, exports were $83.2 billion. Within exports, that under GSP is estimated to be 7.5-7.8%, which translates into $260 million of levies saved, that amount to a 4% duty benefit in 2018.
A startup by IIT-Bombay alumni is fuelling a cheaper and greener way to propel satellites into space
India is now witnessing a space revolution. It has showcased its prowess in the last few years with successful space missions and innovations, and startups too want a slice of the space pie. Most of them cater to private sectors across the globe to either put their satellites in orbit or manufacture one for them.
This biotech graduate is scoring big with his Ahmedabad-based gaming design startup
You know gaming is here to stay when a biotechnology graduate researching stem cells at Harvard Medical School sets up a gaming startup. In 2017, Aayush Agarwal, from New York University, reluctantly entered the world of gaming. His brother couldn’t attend a leading game conference in Hyderabad and Aayush filled in. He was enthralled by this new world, and ended up starting game design and development studio Zhakaas Games out of Ahmedabad in August 2018.
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
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:
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It is said that internationally almost two third of goods move through Global Value Chains- a tight knit network of buyers, suppliers and range of service providers. Unfortunately India has been more or less remained outside GVCs. One of the chief reasons of this exclusion is that there is a strong perception among foreign buyers that India is not a dependable supplier. There are too many uncertainties along the way in India. This perception though devastating, has not been without basis. A recent case highlights what ails Indian systems. Exporters are refunded the GST consumed in the inputs. It is alleged by GST officials that some exporters claimed refund far in excess what was due by misdeclaration. Therefore, instructions were issued shipments earmarked- following a criteria, would be inspected 100%. Which means opening stuffed containers/ LCL shipments, checking them and then re-stuffing them. As the decision to inspect was sudden and there was no commensurate availability of staff for this additional duty at ports, hundreds of containers got stuck awaiting inspections. The delay, once a shipment was marked for inspection ranged between 2-4 days. Exporters missed shipping deadlines, attracted penalties and many faced consequences of not meeting L/C date. More importantly, India lost face before GVCs. Inspection to thwart evasion of Tax is organized globally. But instead of creating chaos and disruption, it could have been done in a more planned and orderly manner. That is the lesson we must draw from the episode as we move forward to attract GVCs to come to the shores of India.
"
In two consecutive high level meetings chaired by Commerce and industry Minister Mr. Piyush Goyal on RCEP negotiations and e-commerce, FISME brought MSME perspective into the discourse.
On RCEP – an FTA being negotiations between ASEAN countries plus six namely Australia, Japan, South Korea, New Zealand, China and India, FISME highlighted the need to protect Indian industry. However, it warned against inverted tariff as powerful lobbies of basic raw material manufacturers such as Steel, Copper, Aluminium and Polymers were asking for almost absolute protection. If these building blocks of economy become expensive due to a highly restrictive import policy, the entire down-stream MSME segment will lose competitiveness. FISME also stressed not to solely rely on industry feedback but also conduct research to analyse comparative advantage and relative competitiveness.
Many employees going through the day-to-day grind of their unsatisfying work, dream of being entrepreneurs. But the question is how? The road to entrepreneurship is often a treacherous one filled with unexpected detours, roadblocks and dead ends. But, if you have faith in yourself, the journey will be a little easier.
Here are 5 tips for young and aspiring entrepreneurs to help get you started.
The Directorate General of Foreign Trade (DGFT) has invited the suggestions from all the stakeholders for framing the proposed new Foreign Trade Policy.
In a notification, it said “It has been decided to revise the current Foreign Trade Policy (2015-2020).Therefore suggestions/inputs are hereby invited from all the stakeholders for framing the proposed new Foreign Trade Policy.” In a notification, it said “It has been decided to revise the current Foreign Trade Policy (2015-2020).Therefore suggestions/inputs are hereby invited from all the stakeholders for framing the proposed new Foreign Trade Policy.”
The Commerce Ministry has formed 18-member Working Group under the chairmanship of Dr. Ramesh Chand, member of Niti Ayog for the revision of the current series of Wholesale Price Index (WPI).
The base year for the current series is 2011-12 and since then significant structural changes have taken place in the economy, therefore, it has become necessary to examine the coverage of commodities, weighting diagram and related issues pertaining to the existing series of index numbers of WPI, an official statement said.
The government has asked all the public sector banks (PSBs) to resolve the problems which are being faced by the micro, small and medium enterprises (MSMEs) and submit weekly reports regarding it to give further boost to MSME businesses.
“It is therefore, requested that a CGM/GM (chief general manager/general manager) level officer may be specifically designated to do an in-depth analysis of the progress made and issues in availability of credit, still being faced by the MSMEs," the finance ministry said in a statement. It is therefore, requested that a CGM/GM (chief general manager/general manager) level officer may be specifically designated to do an in-depth analysis of the progress made and issues in availability of credit, still being faced by the MSMEs," the finance ministry said in a statement.
A large number of export consignments have piled up pending ‘100% inspection’ after a new directive to field formation by revenue department to verify the IGST payments for goods exported out of India.
The circular issued by Director (Customs), Department of Revenue of Union Ministry of Finance on 17th June 2019 asks officials to verify the IGST payments. Ports witness havoc as export goods waiting to be shipped are held-up awaiting clearance from custom officials.
Exporters fear of collateral damage by not meeting shipping deadlines and demurrages for not loading goods on vessels docked at ports.
The Ministry of Micro, Small and Medium Enterprises (MSMEs), through Khadi and Village Industries Commission (KVIC), has taken various initiatives to make Khadi an international brand, said Nitin Gadkari, Union Minister for MSME.
In a written reply to Lok Sabha, he said “KVIC has already obtained registration under Trade Mark “KHADI” in 5 countries of the world viz. Germany, UK, Australia, Russia and China.” Some countries such as Germany are using Khadi as a brand and selling their products. In Germany, the Best Natural Products (BNP) has obtained registration of Trade Mark “Khadi” under classes-3,21,31 from the European Union Intellectual Property Office (EUIPO) and selling the products like soap, perfumeries, hair oils etc, he added.
More than 50, 706 proposals have got in-principle approvals and 27, 893 proposals have been sanctioned as on March 31, 2019, said Nitin Gadkari, Union Minister for Micro, Small and Medium Enterprises (MSME).
In a written reply to Lok Sabha, Gadkari said “The Solar Charkha Scheme for MSME Sector was launched in 2018 with an outlay of Rs.550 crore to set up 50 Solar Charkhas across the country. As many as 19 proposals have been received under the Scheme so far.”
The ‘Solar Charkha’ scheme was launched by President, Ram Nath Kovind. The schemes main objective was to generate 5 Crore Jobs.
The National Small Industries Corporation (NSIC) signed MoU with Common Service Centres (CSC), e-Governance Services India here, for enhancing new offerings for the MSME sector by synergizing each other’s competence.
The MoU was signed by Ram Mohan Mishra, Additional Secretary S&DC (MSME) and CMD, NSIC and Dr Dinesh Kumar Tyagi, CEO, CSC e-Governance Services India Limited. Speaking on the occasion, Mishra stated that this MoU will have special focus on providing services to village level entrepreneurs (VLEs) and would to lead to exponential growth of Village Entrepreneurs in the country.
Hit by rising costs of raw materials and Good & Services Tax (GST), the industry is seeing a downturn, says Om Prakash Pathak, President of Kannauj’s Attar and Perfumers’ Association.
Manufacturers of Kannauj’s attar industries in the past few years have suffered from losses in their business due to an increase in the costs of raw material, lack in their market connectivity and their losses because of the Goods and Services Tax (GST).
Emphasizing on Government of Maharashtra's policy initiatives for enhancing trade and MSME growth, Minister for Food and Drugs Administration, Tourism and Protocol, Jaykumar Rawal said that Maharashtra government will soon set up a Venture Capital Fund for Export-oriented Units.
Speaking on the occasion of the 18th World Trade Centers’ Association Day organized by MVIRDC World Trade Center Mumbai, he stated “Under its ‘New Industrial Policy, 2019, the state government is in the process of setting up Export Promotion Council, Export-cum-Convention centers in different regions and it will soon introduce a venture capital fund for export-oriented units.”
Making several announcements for the Micro, Small and Medium Enterprises (MSME) units in Haryana, the State Chief Minister Manohar Lal KHattar announced regularization of MSME units developed in more than 70 per cent geographical area of non-conforming area.
Addressing the entrepreneurs present in Haryana Maha Udyog Sangam-2019 organized by Haryana Chapter with the coordination of All India Manufacturers’ Organisation in Faridabad, Minister announced for getting the Haryana Industrial Survey – 2019 conducted.
As Tamil Nadu has been clutched by the worst water crisis, the state government said recycling systems in industries and large multi-storied buildings was key for plan approval.
Other than Chennai, there are several parts of the state which are facing an acute water crisis, said to be one of the worst.
Chief Minister K Palaniswami said, “While only sufficient rain can lead to good storage in lakes, besides rejuvenating groundwater; the focus was also on recycling of used water. For recycling of used water in large industries, the government is more focused”.
While interacting with the startups, the State Minister for MSME, Energy and Home Captain Dibya Shankar Mishra reiterated that development of the startup ecosystem in Odisha remains the top priority of the government and that the next phase of the program shall be expanded to districts by the establishment of Start-up development cells.
Moreover, he added that the all possible support required and necessary will be given to start-ups to scale up their ventures.
Union Commerce Minister Piyush Goyal told the Lok Sabha that the government was negotiating with US the issue of withdrawing the Generalized System of Preferences (GSP) status to Indian business houses.
India said the withdrawal of exports incentives by the US is in way recognition of the country's growing economic strength, but it is a unilateral move not in line with norms laid down by World Trade Organization (WTO).
“I would like to state that US has taken a unilateral position. We believe that it is not exactly as per the norms of WTO and General Agreement on Tariffs and Trade (GATT), which have been mutually agreed and are multilateral trade agreements,” he said.
With a view to promote bilateral trade between India and Africa, International Indo Africa Multi-Sector (IIAMSTX 2019) B2B trade expo is being organized from August 19 to August 21, 2019 at KICC Nairobi, Kenya.
This Exhibition would be supported by majority of government and private sectors, industry associations, investment bodies from India and east and central African countries.
IIAMSTX 2019 is an opportunity and an invitation to all established businesses and start-ups in India who wish to export their products in Africa and expand their market reach, according to the organizers.
According to FISME factor 100% of the MSMEs think that the cost of borrowing finally comes down as the Reserve Bank of India slashes repo rate by 2.5 to 5.75. 
The business scenario these days is so dynamic that it is keeping companies on their toes. It’s not just hard to predict where and how and which way the trends would shape up, but a static mindset can be a death knell for businesses. What one has mastered today can turn out to be totally irrelevant tomorrow. Think Kodak, Nokia or the BlackBerry phones!
The only way to stay in the race in this dynamic environment is through continuous learning.
Financial management is one of the most important aspects of running a business successfully. However, in a bid to be a jack of all trades, MSME entrepreneurs often ignore their financial strategy and pass the burden on the accounting departments.
If you’re in marketing, you’ll likely agree with me that your field is the toughest job in the world, and that being a good marketer is becoming harder than ever.
The Withdrawal of benefits under the Generalized System of Preferences (GSP) will affect exporters of gems & jewellery the most, according to CRISIL report.
India’s goods and services trade with the US totalled $142.1 billion of which, exports were $83.2 billion. Within exports, that under GSP is estimated to be 7.5-7.8%, which translates into $260 million of levies saved, that amount to a 4% duty benefit in 2018.
India is now witnessing a space revolution. It has showcased its prowess in the last few years with successful space missions and innovations, and startups too want a slice of the space pie. Most of them cater to private sectors across the globe to either put their satellites in orbit or manufacture one for them.
You know gaming is here to stay when a biotechnology graduate researching stem cells at Harvard Medical School sets up a gaming startup. In 2017, Aayush Agarwal, from New York University, reluctantly entered the world of gaming. His brother couldn’t attend a leading game conference in Hyderabad and Aayush filled in. He was enthralled by this new world, and ended up starting game design and development studio Zhakaas Games out of Ahmedabad in August 2018.
“
Risk more than others think is safe. Dream more than others think is practical.
”
