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President's Message
Mr Animesh SaxenaThere is a flurry of activities in the Government about addressing GST related concerns of businesses. Every other day there is a meeting or discussion in respective Ministries in this regard. But Government seems to have been caught into a dilemma. On one hand they want to reduce compliance burden and on the other hand the falling GST collection is making them nervous. So the announcements are also reflecting the conflict. In the meantime, problems keep piling. A very large number of cases relates to pending refunds of pre-GST period. Delay in refunds of IGST to Exporters continues a pain. Genuine businesses also suffer because of either the buyer or the supplier not depositing their GST part. Refund of GST accumulated due to inverted GST rates is yet another pain point. Recently, there was a report in HT that Government has proposed 20% cash payment by all assessees even if input credit is available in its GST account. This would completely squeeze liquidity out MSMEs. Similarly, a new profile of ‘risky exporters’ was created based on certain assumptions (not in public domain), their shipments were earmarked for 100% examinations because of fear of claims of unjustified IGST refunds and their refunds were withheld. For months exporters are suffering and their operations have come to a standstill. It’s time Government set up an empowered mechanism to resolve these pending issues or the cost of indecision will drag economy further. "
Animesh Saxena, President, FISME
Vol VII, Issue 187: Sep 15, 2019
Business Banter: Lessons from Entrepreneurs
Here are 7 Tips for Early Entrepreneurs to Give a Push to Their Venture
Macro Metre
India’s exports exhibit negative growth of 6.05% in Aug 2019
No licence would be required for manufacture of goods except for few items like tobacco, hazardous chemicals; move to benefit MSMEs
Domestic Digest
Finance Minister Nirmala Sitharaman announces interest equalization for MSMEs Knowledge and News Network (KNN)
Banks-NBFCs to jointly lend money to MSMEs
MSME sector demands action at state-level to clear pending refunds
State Scan
No CLU or EDC would be levied on any part of the private industrial park: Punjab Industries Min Knowledge and News Network (KNN)
Innovative model for start-ups adopted by Telangana can be replicated in other states as well, recommends UK Sinha Committee
By raising power tariff, UP govt forcing industrial consumers, others to pay for their inefficiencies
World Watch
India, US talk restoration of GSP, withdrawal of tariffs
India-China spat delays deal covering a third of global trade
Knowledge Store
Financial Planning for First-time Entrepreneurs
...And A Lot More
Business Banter: Lessons from Entrepreneurs

Here are 7 Tips for Early Entrepreneurs to Give a Push to Their Venture

Every entrepreneur’s journey is exciting and unique. It is your passion and conviction in your idea that keeps you going. The fact that being an entrepreneur allows your decisions to have real world impact and face real time consequences for your actions – whether positive or negative – is what challenged and motivated me. Another upside is tremendous room for self-growth during the course of your journey, from time management and interpersonal communication skills, self-confidence and most importantly – fulfillment.
Writing on the Wall

Reviving the economy

This refers to ‘Getting the economy to turn around’(September 10). The causes of the slowing down of economy are manifold, and to arrest the deceleration the government must move fast on the reform path. An enhancement of cash inflows to households to propel consumption of goods and services and to nudge the propensity to save are critical to energise the market, besides pushing private investment Supply of credit by the banking sector at a lesser rate of interest is imperative to boost manufacturing as well as trigger demand for housing and consumer durables....

Media Monitor

Macro Metre

India’s exports exhibit negative growth of 6.05% in Aug 2019

India's exports dropped by 6.05 per cent to $26.13 billion in August 2019 exhibiting a negative growth in the various sectors such as petroleum products, engineering goods, leather and leather products, readymade garments, and gems and jewellery. Shipments of gems and jewellery, engineering goods, and petroleum products contracted by 3.5 per cent, 9.35 per cent and 10.73 per cent, respectively, according to data released by Ministry of Commerce.

No licence would be required for manufacture of goods except for few items like tobacco, hazardous chemicals; move to benefit MSMEs

Taking a step towards improving ease of doing business, the government relaxed license rules for some sections of manufacturing. The government has clarified that no licence would be required for the manufacture of goods except tobacco items, defence equipment, hazardous chemicals and industrial explosives. The move is likely to help the micro, small and medium enterprises (MSMEs) in a big way by saving them from going through the process of obtaining licenses for manufacturing small items.

All pending GST refunds due to MSMEs will be paid within 30 days, says Piyush Goyal

All pending GST refunds due to MSMEs will be paid within 30 days and improved One Time Settlement policy will benefit MSMEs and retail borrowers in settling their overdue, said Piyush Goyal, Union Minister for Commerce and Industry. Addressing the Board of Trade meeting, Goyal said that each district of India has the potential equal to that of a country with its own distinct handicraft and unique specialties like saris, perfumes, sweets and utensils which has the potential for exports.

MEIS has not been discontinued, says DGFT

The Commerce Ministry has clarified that export incentive scheme Merchandise Exports from India Scheme (MEIS) has not been discontinued from August 1 this year and an inter-ministerial consideration is going on for continuation of 2 percent increase for labour intensive sectors. "There has been confusion about MEIS/RoSCTL (Rebate of State and Central Taxes and Levies). It is clarified that MEIS has not been discontinued with effect from August 1, 2019, said DGFT in a tweet.

Domestic Digest

Finance Minister Nirmala Sitharaman announces interest equalization for MSMEs

Union Finance Minister Nirmala Sitharaman on Saturday announced the interest equalisation for Micro, Small and Medium Enterprises (MSMEs) to 5 per cent from 3 per cent. Apart from this, she said for small procedural defaults, small tax payers would not be prosecuted and all communications with assesses will be through technology or complete faceless dealings.

Banks-NBFCs to jointly lend money to MSMEs

As banks have decided to lend money jointly to increase their credit growth, Praveen Kumar Gupta, Managing Director, State Bank of India (SBI) has said that in the beginning they will sanction loan to Micro, Small and Medium Enterprises (MSME) and later on they will extend it to others. "We are looking at co-origination in a big way. We have a tie-up with ECL Finance and we will have other partners. We have to merge the platforms of the two entities after it will take off,’’ said Gupta.

Revised guidelines for implementation of Lean Manufacturing Competitiveness Scheme under CLCS-TUS

For the Implementation of Lean Manufacturing Competitiveness Scheme under Credit Linked Capital Subsidy and Technology Up-gradation Scheme (CLCS-TUS), the Ministry of MSME has come out with the revised guidelines which would help the MSMEs in enhancing their productivity and hence being competitive in the world markets. The Development Commissioner, Ministry of Micro, Small & Medium Enterprises (DCMSME), Govt. of India, will implement up-scaled (2019) ‘Lean Manufacturing Competitiveness Scheme (LMCS)’, a component of CLCS-TUS for the benefit of MSMEs till the financial year ending 2019-20.

MSME sector demands action at state-level to clear pending refunds

The micro, small and medium enterprises (MSME) sector demanded more action at state-level to clear pending refunds and reduce paper work which continues to be a painful exercise. "Most small firms are under state’s jurisdiction where both refunds for CGST and SGST are done. On its part, the Centre has expedited the process but we have not seen the same speed at state level," said Animesh Saxena, President of Federation of Indian Micro Small & Medium Enterprises (FISME).
State Scan

Punjab    

No CLU or EDC would be levied on any part of the private industrial park: Punjab Industries Min

In a bid to boost the development of private industrial parks in Punjab, the State Government would soon provide exemption in the CLU (change in land use) and EDC (external development charges), said Sunder Sham Arora, Industries and Commerce Minister, Punjab. He announced "No CLU or EDC would be levied on any part of the private industrial park." He said that an area of at least 25 acres has been fixed for the setting up of private industrial parks with permission to be given for construction of residential and commercial establishments in 50 percent area.

Telangana    

Innovative model for start-ups adopted by Telangana can be replicated in other states as well, recommends UK Sinha Committee

The UK Sinha Expert Committee on Micro, Small and Medium Enterprises, constituted by the Reserve Bank of India (RBI) has hailed Telangana for the innovative model it has adopted for the start-ups and said the same can be replicated in other states as well. The MSME Minister Nitin Gadkari reportedly said recently that the recommendations of the panel will be implemented in the next 15 days. The expert committee headed by UK Sinha, the former chairman of SEBI, submitted its report in June this year. In its recommendations, the committee said, “The major reason for the migration of startups to other countries is because of the better enabling environment such as tax concessions, well-developed infrastructure, ease of doing business, exit policy, etc.”

Uttar Pradesh    

By raising power tariff, UP govt forcing industrial consumers, others to pay for their inefficiencies

The Uttar Pradesh Electricity Regulatory Commission (UPERC) has approved up to 12 per cent hike in power tariff for urban domestic, commercial and rural consumers. The UPERC in a statement said that the rates have been revised keeping in view the increase in the expenditure cost and decrease in revenue, which had widened the gap and financial efficiency of the state discoms.
World Watch

United Sates of America    

India, US talk restoration of GSP, withdrawal of tariffs

India is in talks with the US for restoration of Generalised System of Preferences (GSP), mutual withdrawal of their disputes at the World Trade Organization and removal of higher tariffs on steel and aluminium by Washington, as the two sides work to resolve their bilateral trade differences. “We have been discussing various issues with the US such as GSP restoration, and withdrawal of their Section 232 tariffs and our retaliatory duties,” said an official. The two sides have been engaged in talks to iron out the differences, which began last year when the US levied global additional tariffs of 25% and 10% on the import of steel and aluminium products, respectively. India responded by levying retaliatory tariffs on 28 products originating or exported from the US with effect from June 16, for which Washington dragged it to dispute at WTO. Talks collapsed after the US withdrew incentives to $6.3 billion of Indian exports under the GSP programme effective June 5. Prime Minister Narendra Modi is travelling to the US later this month to attend the UN General Assembly.
Read More    Back to Top

China    

India-China spat delays deal covering a third of global trade

A spat between the world’s most populous countries is holding up a pan-Asian trade agreement encompassing nearly a third of all global trade. Trade ministers from 16 Asia-Pacific countries this week hailed a “critical milestone” after seven years of talks and vowed to wind them up before a regional summit in November. But officials involved in the process say major sticking points remain around market access and the ability of workers to find employment in other countries. The main source of tension is between India and China over the amount of goods with preferential tariffs, according to a person familiar with the negotiations who asked not to be identified. The person said India was also unhappy with the position of Southeast Asian countries on the free movement of professionals, particularly in the IT sector, and is weighing whether to be part of the deal at all. Covering nearly half of the globe’s population, the Regional Comprehensive Economic Partnership was proclaimed “the world’s biggest regional free trade deal” when talks started in 2012. Shortly after President Donald Trump took office in 2016 and pulled the U.S. out of an Asia-Pacific trade deal, President Xi Jinping sought to accelerate talks on the Asia-wide pact to cement bolster China’s influence.
Read More    Back to Top
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

Renewable Energy India Expo

Date: 18-20 Sep 2019
Venue: India Exposition Mart, Greater Noida
See Details

Food & Hotel India

Date: 18-20 Sep 2019
Venue: Bombay Exhibition Centre (BEC), Mumbai
See Details

Analytica Anacon India and India Lab Expo

Date: 19-21 Sep 2019
Venue: Hitex Exhibition Center, Hyderabad
See Details

WATEREXPO-HYDERABAD

Date: 19-21 Sep 2019
Venue: Subham Convention Centre, Hyderabad
See Details

PHARMA Pro&Pack Expo

Date: 19-21 Sep 2019
Venue: Hitex Exhibition Center, Hyderabad
See Details

Global Industrial Expo

Date: 20-22 Sep 2019
Venue: Auto Cluster Exhibition Center, Pune
See Details

International Machine Tools Expo

Date: 20-22 Sep 2019
Venue: Bombay Exhibition Centre (BEC), Mumbai
See Details
Your Views

The Reserve Bank of India approved a record Rs 1.76 lakh crore payout to the government. Do you think that this fund will help the government in

As the Reserve Bank of India approved a record Rs 1.76 lakh crore payout to the government, according to FISME factor 80% of MSME think that this fund will help the government in reducing financial stress on the economy while 20% can’t say anything.
Knowledge Store

HR Heuristics

Compassionate leadership and employee engagement

We all know that leaders have the ability to make or break an organisation. We also know that leaders need to possess certain qualities to succeed in their role other than simply being go-getters.

Finance Fundamentals

Financial Planning for First-time Entrepreneurs

If you are a first-time entrepreneur who has just started his or her business or someone looking to launch your startup, financial planning becomes even more important for you. Your 100% focus should be on building the company.

Marketing Mantras

5 Sustainable Pillars for Building a Brand in the Indian Market

The emergence of India as the fastest growing economy in the world has fuelled the Indian market place to become an even more vibrant and noisy space.

Policy Polemic

Jammu MSMEs urge Governor to get their payments due with Govt Depts cleared; give relief measure to them due to loss of biz in last 2 months

The micro, small and medium enterprises (MSMEs) of Jammu region have appealed the Jammu & Kashmir Governor Satya Pal Malik to get the pending payments of industrial units cleared by all the government departments.

SME Special

This Bengaluru startup has launched a first-of-its-kind teletherapy platform for patients with speech disorders

Pratiksha Gupta, a certified speech therapist and audiologist, started 1SpecialPlace almost out of an obligation. After a brief stint in London, where she served at the UK’s National Health Service programme, Pratiksha returned to India in 2009.

Success Story

How a housewife built a Rs 10 Cr business from an investment of Rs 50,000

The year was 2010. Jyoti Wadhwa, a Delhi housewife and a mother of a two-year-old girl, found herself in a “confused state” when her husband Anshul Bansal, the only earning member of the family, came back home one day and said he wanted to quit his job as an investment banker and do something on his own.

Stockpile

The National Statistical Office (NSO), 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 July 2019

Quotable Quotes

“ In business, First of all you need Commitment, Dedication, & Passion for what are you doing. ”
– Lakshmi Mittal - CEO of ArcelorMittal, the world’s largest steelmaking company
 
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

1 New Member Join FISME

1 new MSME became member of FISME during the period from 1st September 2019 to 15th September 2019
Reader Reactions

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Editorial Team:
Hon. Editor: Anil Bhardwaj
Asstt. Editor: Kalpana Sharma
Types setting & websdesigning: Sanjay Sachan  
Video & Photography:  Subhan Khan

 

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