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President's Message
After a prolonged campaign and extended election process, finally the incumbent Government is back in power with even a greater mandate than last time. Shri Narendra Modi has emerged the undisputed power center for the next many years. On behalf of MSME family and as President of FISME, I extend our heartiest congratulations. The new Council of Ministers also has a nice blend of new and old. The most welcoming development, however, is appointment of Nitin Gadkari as Cabinet Minister in charge of MSMEs. After Vasundhra Raje in NDA-I, he is the first heavyweight Minister who would lead MSME Ministry. MSMEs have long raised the issue that their concerns get ignored before powerful Ministries. While the challenges of job creation are galore before the nation, the redemption through MSMEs only. Let’s hope with new empowered team at the helm, it is time to make our dreams come true.
"
The second Intra Commonwealth Summit held in Nairobi, a first in Africa, proved a big draw attracting over 200 Micro Small and Medium Enterprises (MSMEs) from 22 countries. Hosted by Ministry of Industry, Trade and Cooperatives, Government of Kenya and supported by the Commonwealth (London), the SME Summit was organized by Intra-Commonwealth SME Association (ICSA) from 28 to 29 May 2019 in capital city Nairobi, Kenya. Federation of Indian Micro Small and Medium Enterprises (FISME) sent a 12 member delegation led by Mr. Mohan Suresh past President of FISME and Hon. Counsellor of Rwanda in Bangalore.
At the request of Competition Commission of India, FISME organized a consultation on a study conducted by E&Y with members - especially from sectors viz Lifestyle products (clothing, shoes, home décor, furniture, etc), Mobile, Electrical or electronic appliance and Grocery (food manufacturer selling to grocery platforms) on 24.05.2019 at FISME office.
Delegation from KITA (Korea) through Korean Embassy visit FISME on 22.05.2019. The India head of Korea International Trade Association (KITA) is a powerful trade body of South Korea. In response to the letter written by FISME president to select Ambassadors, KITA expressed interest to collaborate with FISME to help Korean SME find Indian partners and also vice versa (Mr. Animesh Saxena, AB, MK)
It is often believed that if one can find a problem among the masses and is lucky enough to devise a solution for the same, nothing and no one can beat one from gaining success. Although it remains true for most of the entrepreneurs, it is also true that it is often easier said than done. What worked for visionaries in the past may/may not work for one today and vice versa. Hence, it is very important to understand the highs and lows of an entrepreneurial journey.
It’s now or never. Prime Minister Narendra Modi’s second term, where he came back with a massive majority, should be one where he seals his legacy and place in the history books by putting the Indian economy in a different orbit, away from the ‘Third World’ space it currently occupies. Modi’s first term was spent on political consolidation, which has been achieved by now. Going for blockbuster...
Exports of cut and polished diamonds from India dropped by 17.64% year-on-year during the month of April 2019, while gold jewellery (plain and studded) exports rose by 11.41% y-o-y during the same month, according to provisional data released by Gem & Jewellery Export Promotion Council (GJEPC).
According to the GJEPC release, the exports of cut and polished diamonds stood at US$ 1.64 billion, a decline of 17.64% as compared to the US$ 1.99 bn exported in April 2018.
Goods and Service Tax Network (GSTN) has announced that they have partnered with eight billing and accounting software vendors for providing software to the micro, small and medium enterprises (MSMEs), which are having annual turnover of less than Rs 1.5 crore.
This free accounting and billing software to MSMEs would benefit about 80 lakh small businesses and software would help businesses create invoices and account statements, manage inventory and prepare GST returns.
In a relief to pockets of all those people buying perfumes, chocolates and other items from duty-free stores, the Allahabad High Court ruled that GST will not be levied on purchases made at arrival or departure terminals.
The court has held that the Goods and Services Tax (GST) will not be levied as the goods never cross the customs border. Moreover, passengers carry these items as their personal effect. This order came in response to public interest litigation (PIL) that the exchequer is losing revenue, according to a ToI report.
The trade deficit for the April month has inched to 5-month high as exports surged only marginally by 0.64% to $26 billion. Meanwhile, imports during the month increased by 4.5% to $41.4 billion in comparison to the same month a year ago.
According to data released from the Ministry of Commerce, the trade deficit, a gap between exports and imports, expanded to $15.33 billion in April 2019 as compared to $13.72 billion in April 2018 and $10.89 billion in last month.
The Reserve Bank of India (RBI) has constituted a task force on development of secondary market for corporate loans, a field which is currently restricted to sale to asset reconstruction companies and ad hoc sale to other lenders including banks, and no formalized mechanism has been developed to deepen it.
The six-member task force will have T. N. Manoharan, Chairman of Canara Bank, as its Chairperson and will submit its report by the end of August 2019.
The Central Board of Direct Taxes (CBDT) recently revised the rules applicable in the filing of Form 15 H. The new rule will take into account the provision of section 87A and allows even those taxpayers who are eligible for tax rebate under Section 87A of the Income Tax Act.
As per the CBDT notification, the Form 15H declaration will now cover the Section 87A rebate. The new income tax rule states that the declaration in Form 15H can be accepted from an individual whose income is higher than the basic exemption limit (Rs 3 lakh) but is eligible for Section 87A rebate where tax liability will be nil after taking Section 87A in account.
The Foods Safety & Standard Authority of India (FSSAI) has decided to discontinue as many as 14 State Food Testing Laboratories which do not have NABL accreditation.
The National Accreditation Board for Testing and Calibration Laboratories (NABL) is a Constituent Board of Quality Council of India. Laboratory accreditation is a procedure by which an authoritative body gives formal recognition of technical competence for specific tests/ measurements, based on third party assessment and following international standards.
Eyeing to enhance services to facilitate Micro Small and Medium Enterprises (MSMEs), the National Small Industries Corporation Limited (NSIC) signed a Memorandum of Understanding (MOU) with Ministry of MSME for the year 2019-20.
The MoU was signed in the presence of National Small Industries Corporation (NSIC) Chairman-cum-Managing Director (CMD); Additional Secretary of MSME, Ram Mohan Mishra and MSME Secretary Arun Kumar Panda.
To raise funds to rebuild Kerala which was struck by devastating floods in August 2018, the state government will impose a cess of up to 1% on goods and services with GST slab above 5% from June 1.
The flood cess will be imposed for two years starting from June 1. However, there will be no cess on goods drawing 2.5 per cent state GST, which includes essential items such as branded wheat, edible oil etc, according to a notification issued by the Kerala government.
In a bid to encourage industries including Micro Small and Medium Enterprises (MSMEs) in Marathwada and Vidarbha, the Maharashtra government has extended the electricity bill waiver scheme for industries in Vidarbha-Marathwada by five more years.
“The reason for this scheme is to encourage more businesses come to Vidarbha and Marathwada and for the region’s industrial development,” said Chandrashekhar Bawankule, State Power Minister.
Since cost of installing solar power systems is the biggest challenge for traders and Micro Small and Medium Enterprises (MSMEs), Chandigarh Beopar Mandal (CBM) wants 30% subsidy for the commercial use of solar energy as it has been given for residential use.
Speaking with KNN India, Chairman of CBM, Charanjiv Singh said “At the recently held Green energy conclave to promote solar energy’ Chandigarh Renewal Energy Science and Technology Promotion Society (CREST) has urged the traders and businesses to install solar power systems on rooftop.”
Telangana Industrial Health Clinic Limited (TIHCL) has launched I-Health, a digital platform to expedite and scale the revival of sick micro and small enterprises (MSEs) in the manufacturing sector.
With this, the Government of Telangana becomes the first State to partner with Microsoft to build a digital platform for MSEs. This online platform will allow sick MSEs to register themselves for support from TIHCL in case their financial condition is not doing well and bank linkages not happening.
The Commercial Attaché at the Embassy of Iraq has invited Indian companies or industries to participate in the defence exhibition to be organized in Baghdad next year.
The exhibition will be held at Baghdad International Fairground in Baghdad, Iraq. from March 7 to 10, 2020. This is 8th session of the International Defense Exhibition in Iraq (IQDEX).
IQDEX is one of the leading defense exhibitions in the Middle East and North Africa (MENA) region demonstrating the latest technology across land, sea and air sectors of defense.
A high level delegation led by Development Commissioner (Handicrafts), Shantmanu along with prominent exporters from Moradabad, Agra, Khurja, Delhi and North Eastern Region are on a visit to Cambodia for understanding techniques of production of handicrafts.
The delegation will study various techniques of the innovative product development, infrastructure developed for the mass production and affiliation with the different design institutions, trade bodies for enhancement of mass production in the country.
Do you think that the change in parameter to define MSMEs from investment to turnover is the correct move by government?
According to FISME factor 42.9% MSMEs think that the change in parameter to define MSMEs from investment to turnover is the correct move by government, 28.6% think it is not a correct move while 28.6% can’t say.
How does a company classify its top talent? What specific measures do companies take to retain it? Top talent most likely comprises the people who are high performers, are self-motivated and goal-achievers.
A primer for availing MSME business loans: Here's everything you need to know
Globally, the Micro, Small and Medium Enterprises (MSMEs) segment plays a crucial role in employment generation, driving innovation, GDP growth, and augmenting overall economic activity.
How native campaigns can help you achieve your campaign KPIs
The end goal of any advertising or marketing exercise is to gain a purchase from the consumer. Even if it is not a desired outcome, all campaigns are aligned to one goal - the growth of a business.
FTA misuse hitting domestic industry and derailing Make in India
The Process Plant and Machinery Association of India (PPMAI) has expressed concerns at surge of imports especially of metals and capital goods from countries including Korea, Indonesia, Malaysia and Japan with whom India has signed Free Trade Agreements (FTAs).
Twins turn their passion for building apps into a startup with over 40 free apps to ensure users' safety
Twins Srihari and Shrinidhi Karanth, both computer engineers, have a passion for website and app development. Even as they worked in different companies, the brothers dabbled in app development in their downtime. The twins were particularly curious about how one's smartphone can be used to ensure the user's safety. This idea gave birth to their startup, TrackMyPhones.
One-year-old agri-tech startup FreshVnF raises $2 million in maiden round
One-year-old agri-tech startup FreshVnF raises $2 million in maiden round
FreshVnF, a Mumbai-based agri-tech startup founded in 2018, has raised $2 million in a funding round led by Equanimity Ventures. Ahmedabad-based GVFL (Gujarat Venture Finance Limited) and non- executive Vice Chairman of Asian Paints Limited Manish Choksi, through his family office, also participated in the round.
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:
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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After a prolonged campaign and extended election process, finally the incumbent Government is back in power with even a greater mandate than last time. Shri Narendra Modi has emerged the undisputed power center for the next many years. On behalf of MSME family and as President of FISME, I extend our heartiest congratulations. The new Council of Ministers also has a nice blend of new and old. The most welcoming development, however, is appointment of Nitin Gadkari as Cabinet Minister in charge of MSMEs. After Vasundhra Raje in NDA-I, he is the first heavyweight Minister who would lead MSME Ministry. MSMEs have long raised the issue that their concerns get ignored before powerful Ministries. While the challenges of job creation are galore before the nation, the redemption through MSMEs only. Let’s hope with new empowered team at the helm, it is time to make our dreams come true.
"
The second Intra Commonwealth Summit held in Nairobi, a first in Africa, proved a big draw attracting over 200 Micro Small and Medium Enterprises (MSMEs) from 22 countries. Hosted by Ministry of Industry, Trade and Cooperatives, Government of Kenya and supported by the Commonwealth (London), the SME Summit was organized by Intra-Commonwealth SME Association (ICSA) from 28 to 29 May 2019 in capital city Nairobi, Kenya. Federation of Indian Micro Small and Medium Enterprises (FISME) sent a 12 member delegation led by Mr. Mohan Suresh past President of FISME and Hon. Counsellor of Rwanda in Bangalore.
At the request of Competition Commission of India, FISME organized a consultation on a study conducted by E&Y with members - especially from sectors viz Lifestyle products (clothing, shoes, home décor, furniture, etc), Mobile, Electrical or electronic appliance and Grocery (food manufacturer selling to grocery platforms) on 24.05.2019 at FISME office.
Delegation from KITA (Korea) through Korean Embassy visit FISME on 22.05.2019. The India head of Korea International Trade Association (KITA) is a powerful trade body of South Korea. In response to the letter written by FISME president to select Ambassadors, KITA expressed interest to collaborate with FISME to help Korean SME find Indian partners and also vice versa (Mr. Animesh Saxena, AB, MK)
It is often believed that if one can find a problem among the masses and is lucky enough to devise a solution for the same, nothing and no one can beat one from gaining success. Although it remains true for most of the entrepreneurs, it is also true that it is often easier said than done. What worked for visionaries in the past may/may not work for one today and vice versa. Hence, it is very important to understand the highs and lows of an entrepreneurial journey.
Exports of cut and polished diamonds from India dropped by 17.64% year-on-year during the month of April 2019, while gold jewellery (plain and studded) exports rose by 11.41% y-o-y during the same month, according to provisional data released by Gem & Jewellery Export Promotion Council (GJEPC).
According to the GJEPC release, the exports of cut and polished diamonds stood at US$ 1.64 billion, a decline of 17.64% as compared to the US$ 1.99 bn exported in April 2018.
Goods and Service Tax Network (GSTN) has announced that they have partnered with eight billing and accounting software vendors for providing software to the micro, small and medium enterprises (MSMEs), which are having annual turnover of less than Rs 1.5 crore.
This free accounting and billing software to MSMEs would benefit about 80 lakh small businesses and software would help businesses create invoices and account statements, manage inventory and prepare GST returns.
In a relief to pockets of all those people buying perfumes, chocolates and other items from duty-free stores, the Allahabad High Court ruled that GST will not be levied on purchases made at arrival or departure terminals.
The court has held that the Goods and Services Tax (GST) will not be levied as the goods never cross the customs border. Moreover, passengers carry these items as their personal effect. This order came in response to public interest litigation (PIL) that the exchequer is losing revenue, according to a ToI report.
The trade deficit for the April month has inched to 5-month high as exports surged only marginally by 0.64% to $26 billion. Meanwhile, imports during the month increased by 4.5% to $41.4 billion in comparison to the same month a year ago.
According to data released from the Ministry of Commerce, the trade deficit, a gap between exports and imports, expanded to $15.33 billion in April 2019 as compared to $13.72 billion in April 2018 and $10.89 billion in last month.
The Reserve Bank of India (RBI) has constituted a task force on development of secondary market for corporate loans, a field which is currently restricted to sale to asset reconstruction companies and ad hoc sale to other lenders including banks, and no formalized mechanism has been developed to deepen it.
The six-member task force will have T. N. Manoharan, Chairman of Canara Bank, as its Chairperson and will submit its report by the end of August 2019.
The Central Board of Direct Taxes (CBDT) recently revised the rules applicable in the filing of Form 15 H. The new rule will take into account the provision of section 87A and allows even those taxpayers who are eligible for tax rebate under Section 87A of the Income Tax Act.
As per the CBDT notification, the Form 15H declaration will now cover the Section 87A rebate. The new income tax rule states that the declaration in Form 15H can be accepted from an individual whose income is higher than the basic exemption limit (Rs 3 lakh) but is eligible for Section 87A rebate where tax liability will be nil after taking Section 87A in account.
The Foods Safety & Standard Authority of India (FSSAI) has decided to discontinue as many as 14 State Food Testing Laboratories which do not have NABL accreditation.
The National Accreditation Board for Testing and Calibration Laboratories (NABL) is a Constituent Board of Quality Council of India. Laboratory accreditation is a procedure by which an authoritative body gives formal recognition of technical competence for specific tests/ measurements, based on third party assessment and following international standards.
Eyeing to enhance services to facilitate Micro Small and Medium Enterprises (MSMEs), the National Small Industries Corporation Limited (NSIC) signed a Memorandum of Understanding (MOU) with Ministry of MSME for the year 2019-20.
The MoU was signed in the presence of National Small Industries Corporation (NSIC) Chairman-cum-Managing Director (CMD); Additional Secretary of MSME, Ram Mohan Mishra and MSME Secretary Arun Kumar Panda.
To raise funds to rebuild Kerala which was struck by devastating floods in August 2018, the state government will impose a cess of up to 1% on goods and services with GST slab above 5% from June 1.
The flood cess will be imposed for two years starting from June 1. However, there will be no cess on goods drawing 2.5 per cent state GST, which includes essential items such as branded wheat, edible oil etc, according to a notification issued by the Kerala government.
In a bid to encourage industries including Micro Small and Medium Enterprises (MSMEs) in Marathwada and Vidarbha, the Maharashtra government has extended the electricity bill waiver scheme for industries in Vidarbha-Marathwada by five more years.
“The reason for this scheme is to encourage more businesses come to Vidarbha and Marathwada and for the region’s industrial development,” said Chandrashekhar Bawankule, State Power Minister.
Since cost of installing solar power systems is the biggest challenge for traders and Micro Small and Medium Enterprises (MSMEs), Chandigarh Beopar Mandal (CBM) wants 30% subsidy for the commercial use of solar energy as it has been given for residential use.
Speaking with KNN India, Chairman of CBM, Charanjiv Singh said “At the recently held Green energy conclave to promote solar energy’ Chandigarh Renewal Energy Science and Technology Promotion Society (CREST) has urged the traders and businesses to install solar power systems on rooftop.”
Telangana Industrial Health Clinic Limited (TIHCL) has launched I-Health, a digital platform to expedite and scale the revival of sick micro and small enterprises (MSEs) in the manufacturing sector.
With this, the Government of Telangana becomes the first State to partner with Microsoft to build a digital platform for MSEs. This online platform will allow sick MSEs to register themselves for support from TIHCL in case their financial condition is not doing well and bank linkages not happening.
The Commercial Attaché at the Embassy of Iraq has invited Indian companies or industries to participate in the defence exhibition to be organized in Baghdad next year.
The exhibition will be held at Baghdad International Fairground in Baghdad, Iraq. from March 7 to 10, 2020. This is 8th session of the International Defense Exhibition in Iraq (IQDEX).
IQDEX is one of the leading defense exhibitions in the Middle East and North Africa (MENA) region demonstrating the latest technology across land, sea and air sectors of defense.
A high level delegation led by Development Commissioner (Handicrafts), Shantmanu along with prominent exporters from Moradabad, Agra, Khurja, Delhi and North Eastern Region are on a visit to Cambodia for understanding techniques of production of handicrafts.
The delegation will study various techniques of the innovative product development, infrastructure developed for the mass production and affiliation with the different design institutions, trade bodies for enhancement of mass production in the country.
According to FISME factor 42.9% MSMEs think that the change in parameter to define MSMEs from investment to turnover is the correct move by government, 28.6% think it is not a correct move while 28.6% can’t say. 
How does a company classify its top talent? What specific measures do companies take to retain it? Top talent most likely comprises the people who are high performers, are self-motivated and goal-achievers.
Globally, the Micro, Small and Medium Enterprises (MSMEs) segment plays a crucial role in employment generation, driving innovation, GDP growth, and augmenting overall economic activity.
The end goal of any advertising or marketing exercise is to gain a purchase from the consumer. Even if it is not a desired outcome, all campaigns are aligned to one goal - the growth of a business.
The Process Plant and Machinery Association of India (PPMAI) has expressed concerns at surge of imports especially of metals and capital goods from countries including Korea, Indonesia, Malaysia and Japan with whom India has signed Free Trade Agreements (FTAs).
Twins Srihari and Shrinidhi Karanth, both computer engineers, have a passion for website and app development. Even as they worked in different companies, the brothers dabbled in app development in their downtime. The twins were particularly curious about how one's smartphone can be used to ensure the user's safety. This idea gave birth to their startup, TrackMyPhones.
One-year-old agri-tech startup FreshVnF raises $2 million in maiden round
FreshVnF, a Mumbai-based agri-tech startup founded in 2018, has raised $2 million in a funding round led by Equanimity Ventures. Ahmedabad-based GVFL (Gujarat Venture Finance Limited) and non- executive Vice Chairman of Asian Paints Limited Manish Choksi, through his family office, also participated in the round.
“
Success seems to be connected with action. Successful people keep moving. They make mistakes, but they don't quit.
”
