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President's Message
“A happy new financial year! At the outset let me take this opportunity to thank my colleagues in the CEC for electing me and entrusting me with the Presidentship of FISME for the year 2019-20. My tenure begins with general elections for the XVII Lok Sabha. Elections are the most important milestones in the life of entities run on the principles of democracies whether countries or institutions. At FISME this brings an opportunity for the new team to look at the old issues that MSMEs confront with fresh pair of eyes and attempt their resolution with innovative ideas. While the competition that MSME sector faces is getting fiercer, they continue to face enormous challenges on the front of finance, market access, technology, public procurement and more importantly ease of doing business. We shall soon get down to work on developing an action plan for a more effective advocacy strategy to help develop a business environment which is more conducive to growth of MSMEs. I seek your support and cooperation in this endeavour.
"
In the ‘One Nation One Platform’ a conclave of industries and economic intelligentsia of the capital and organized by SKOCH group, FISME stressed the review of NPA norms to be the top issue. Speaking at the platform Mr. Anil Bhardwaj, Secretary General FISME highlighted how the prevailing impractical NPA norms are affecting the functioning of MSMEs. The Banking sector seems to have been paralyzed after Feb 12, 2018 circular of RBI. FISME also demanded urgent reforms in the Banking sector to induce competition so that underserved customers such as MSMEs could be served.
Too busy to go to the market for groceries? Big Basket has you covered. Learning algebra is getting tougher in grade 9? Watch Byju’s for easy tricks to solve. Short on cash? Paytm is at your rescue. These new age businesses are the brainchild of 21st-century entrepreneurs who have managed to change the world.
Rapid evolution in high-speed internet connectivity and penetration of smartphones among the dynamic and young population has created a fertile ground for new businesses. And for young India, this ecosystem is rife with opportunities for entrepreneurs.
The Sensex recorded a new life-time high 39,115 and the Nifty moved close to its previous peak on Monday, but the volatility that followed in the last hour shows that market participants are far from complacent. While both the market benchmarks ended financial year 2018-19 on an upbeat note, with around 16 and 14 per cent return respectively, the year was marked by unprecedented volatility. Large-cap stocks that form the Sensex and the Nifty managed a better performance, thanks to the support of large institutional investors
A top Republican lawmaker has urged the US trade agency to put on hold its decision to terminate preferential trade status granted to India till the general elections in the country are over.
US President Donald Trump this month informed the US Congress about his intent to terminate the designation of India as a beneficiary developing country under Generalized System of Preferences(GSP) programme that facilitates duty free import of certain products from underdeveloped countries to he ..
NEW DELHI: The government on Friday extended the deadline to impose higher customs duties on 29 products, including almond, walnut and pulses, originating in the US.
The department of commerce had recommend the finance ministry to extend the deadline for levying higher tariffs worth $235 million, once again as it is considering sending a delegation to the US to resolve bilateral trade issues.
With the new tariffs, the import duty on walnut would be hiked to 120% from 30% while ..
Giving relief to exporters, the government has extended IGST (Integrated Goods and Service Tax) and compensation cess exemptions for goods procurement under certain export promotion schemes till March 2020.
These exemptions have been extended for exporters buying inputs domestically or importing for export purposes under export oriented unit (EOU) scheme, Export Promotion Capital Goods (EPCG) scheme and advance authorisation.
EPCG is an export promotion scheme under which an exporter can import certain amount of capital goods at zero duty for upgrading technology related with exports.
On the other hand, advance authorisation is issued to allow duty free import of inputs, which is physically incorporated in export product.
The country's largest public sector lender State Bank of India (SBI) has signed a pact with the Bank of China to boost business opportunities.
SBI has signed a memorandum of understanding (MoU) with Bank of China (BoC), third-largest bank in the world by capital size and one of the major players in the Chinese banking sector, to enhance business synergies between both the banks, State Bank of India (SBI) said in a release.
"MoU between the two major banks of the two largest and fastest-growing economies of the world is a welcome step. This MoU will facilitate the clients of both the banks to access banking products and services of each other, which will lead to a mutually beneficial relationship," said Rajnish Kumar, chairman, SBI.
The Department for Promotion of Industry and Internal Trade (DPIIT) has recently awarded Geographical Indication (GI) to five varieties of Indian coffee.
The recognition and protection that comes with GI certification will allow the coffee producers of India to invest in maintaining the specific qualities of the coffee grown in that particular region.
The move aims to enhance the visibility of Indian coffee in the world and allow growers to get maximum price for their premium coffee.
The 5 Indian varieties of coffee that has been awarded GI certification are Coorg Arabica coffee, Wayanaad Robusta coffee, Chikmagalur Arabica coffee, Araku Valley Arabica coffee and Bababudangiris Arabica coffee.
The government has revised the format of Shipping Bill and Bill of Exports forms, which are required to acquire a clearance for export from the Customs.
The notification which amends the format of Shipping Bill and Bill of Exports (Forms) Regulations, 2017 was issued by Central Board of Indirect Taxes and Customs (CBIC).
It said “These regulations may be called the Shipping Bill and Bill of Export (Forms) Amendment Regulations, 2019.”
In the formats of Shipping Bill for Export of Goods (SB I & SB III), certain changes were made by the authorities after making some amendments in the format of Shipping Bill and Bill of Exports (Forms) Regulations, 2017.
After the amendments, the authorities concerned has inserted two more rows in SB I form and asked for item level details at invoice level and cargo details for each invoice separately in the respective rows.
To ensure sale of quality teas both in domestic and foreign markets, the tea industry is now equipped with laboratories accredited and recognized by the Food Safety and Standards Authority of India (FSSAI).
FSSAI has set the quality criterion for different Indian tea (black, green and Kangra) with regard to fitness for human consumption.
Various quality parameters, including checking of pesticide residues, presence of heavy metals, natural toxic substances and iron fillings, are being currently monitored under FSSAI.
Privately owned power generating companies which are reeling under escalating dues have asked Ministry of Power to provide Trade Receivables Discount System (TReDS) facility to them the way it has been provided to MSMEs.
Power generating companies have asked for TReDS as they are reeling under escalating dues because of pending payment from states and litigation.
Ministry of MSME issued an instruction in November 2018 to companies with a turnover of more than Rs 500 Crores and all CPSEs to register on the TReDS platform.
TReDS platform was formed under the guidelines of the RBI. Once registered on the platform, bank accounts of the companies are linked with platform and agreements are signed for providing access for interbank transactions.
Highlighting that many Small and Medium Enterprises (SMEs) of Kochi are facing severe issues with managing their working capital because of a lack of adequate financing options, Drip Capital has come out with collateral-free post-shipment finance to Indian exporters, said Drip Capital.
Regional Sales Manager, Drip Capital, Nath Kakani said this at a seminar organized by Drip Capital, in association with the Federation of Indian Export Organisations (FIEO) on the topic ‘Interactive sessions on Export Factoring: Easy access to unsecured finance for SME Exporters’.
Government of Telangana is launching Small and Medium Enterprises (SME) portal today to support the local SMEs of the state.
The portal is being launched jointly with Industries and Commerce (I&C) Department, and Information Technology, Electronics and Communications (ITE&C) Department here.
This portal, co-developed with Digivation Digital Solutions P. Ltd, will offer a host of benefits to the local SMEs free of cost.
There will be an overview session of how the portal will support the local SMEs and will also address various pain points currently being faced by them.
Japan-based Daiki Aluminium Industry Co. Ltd., is expected to generate direct employment for about 600 people with 80% of them being women through its Indian subsidiary that will be setting up an aluminium alloy plant at Sri City in Andhra Pradesh.
This new plant will be built on a 20-acre plot in the domestic tariff zone, which is expected to go on stream by February 2020.
The company would make an initial investment of ₹250 crore to set up this plant in Andhra Pradesh and will produce aluminium alloy ingots. It will have an annual capacity of 84,000 tonnes. The products will be exported to automobile companies in ASEAN and Japan.
The Union Cabinet gave its ex-post facto approval on the Memorandum of Understanding (MoU) between India and Republic of Korea on startup cooperation.
The MoU would facilitate and promote bilateral cooperation between the startups of both countries, subject to their national laws and regulations and any applicable international treaties, conventions and agreements to which the two countries are party, said an official statement.
The MoU was signed in February, 2019.
An ex post facto law is a law that retroactively changes the legal consequences (or status) of actions that were committed, or relationships that existed, before the enactment of the law.
Indian businesses can use Thailand’s Eastern Economic Corridor (EEC) as gateway to Asian market, said the official from the Thailand Board of Investment.
Executive Director of International Affair Bureau, Board of Investment, Thailand, Bussarakum Sriratana made the above remarks at a roundtable discussion on ‘Thailand 4.0 and Business Opportunities for Indian Partners’.
The event was jointly organized by MVIRDC World Trade Center Mumbai and All India Association of Industries (AIAI).
India and the US Wednesday signed an Inter-Governmental Agreement for exchange of Country-by-Country (CbC) reports of multinational companies regarding income allocation and taxes paid to help check cross-border tax evasion.
This agreement for exchange of CbC reports, along with the Bilateral Competent Authority Arrangement, will enable both the countries to automatically exchange CbC reports filed by the ultimate parent entities of multinational enterprises (MNEs) in the respective jurisdictions, pertaining to the years commencing on or after January 1, 2016, a Finance Ministry statement said.
How do you assess impact of recent US decision to withdraw GSP facility from India? Will it be:
According to FISME factor 100 percent of MSMEs think that it will be a significant impact of the recent US decision to withdraw GSP facility from India.
The workforce is changing rapidly. Baby boomers are retiring, millennials are climbing the corporate ladder and Gen Z is entering the workplace. Organisations are facing disruption not only in technology but also in people management. Today, more than ever, businesses need visionary leaders who remain at the helm, not only to steer them through disruption but turn these disruptions into opportunities.
Small Businesses in India Need Credit Support: Here's the Knowledge and Technology to Solve This
No one can challenge the fact that lending to small and micro business is an untapped opportunity for lending institutions in India. The credit gap for SME / MSME in India has now ballooned to $300 billion and is growing at a CAGR of 7per cent.
The fine print: Impactful versus misleading advertising
While these two terms, 'impactful' and 'misleading', may seem to have diametrically opposite effects on the consumer, it may surprise many that these words have a much closer relationship.
Continuous increase in cotton prices reducing international competitiveness of the Indian textile industry
The continuous increase in cotton price is reducing international competitiveness of the Indian textile value added industry and also affect exporters negatively said Confederation of Indian Textile Industry (CITI).
Making Bharat swachh and pretty: Jaipur-based Ecowrap is upcycling waste, generating employment
When Prime Minister Narendra Modi launched the Swachh Bharat Abhiyan in 2014, his aim was simple – to rope in every citizen to make the country clean and garbage free. His idea resonated with many, and several individuals and organisations came up with ideas and initiatives to eliminate waste.
Sunny days for solar marketplace Glowship as it sees strong growth, plans expansion
No matter what US President Donald Trump says, climate change is for real. Each one can, and we say should, do their bit to help the environment. And lending a hand is Glowship.
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.
“
In looking for people to hire, you look for three qualities: integrity, intelligence, and energy. And, if they don't have the first, the other two will kill you.
”
– Warren Edward Buffett-Chairman and CEO of Berkshire Hathaway.
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.
send mail to: newsletter@fisme.org.in
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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
“A happy new financial year! At the outset let me take this opportunity to thank my colleagues in the CEC for electing me and entrusting me with the Presidentship of FISME for the year 2019-20. My tenure begins with general elections for the XVII Lok Sabha. Elections are the most important milestones in the life of entities run on the principles of democracies whether countries or institutions. At FISME this brings an opportunity for the new team to look at the old issues that MSMEs confront with fresh pair of eyes and attempt their resolution with innovative ideas. While the competition that MSME sector faces is getting fiercer, they continue to face enormous challenges on the front of finance, market access, technology, public procurement and more importantly ease of doing business. We shall soon get down to work on developing an action plan for a more effective advocacy strategy to help develop a business environment which is more conducive to growth of MSMEs. I seek your support and cooperation in this endeavour.
"
In the ‘One Nation One Platform’ a conclave of industries and economic intelligentsia of the capital and organized by SKOCH group, FISME stressed the review of NPA norms to be the top issue. Speaking at the platform Mr. Anil Bhardwaj, Secretary General FISME highlighted how the prevailing impractical NPA norms are affecting the functioning of MSMEs. The Banking sector seems to have been paralyzed after Feb 12, 2018 circular of RBI. FISME also demanded urgent reforms in the Banking sector to induce competition so that underserved customers such as MSMEs could be served.
Too busy to go to the market for groceries? Big Basket has you covered. Learning algebra is getting tougher in grade 9? Watch Byju’s for easy tricks to solve. Short on cash? Paytm is at your rescue. These new age businesses are the brainchild of 21st-century entrepreneurs who have managed to change the world.
Rapid evolution in high-speed internet connectivity and penetration of smartphones among the dynamic and young population has created a fertile ground for new businesses. And for young India, this ecosystem is rife with opportunities for entrepreneurs.
A top Republican lawmaker has urged the US trade agency to put on hold its decision to terminate preferential trade status granted to India till the general elections in the country are over.
US President Donald Trump this month informed the US Congress about his intent to terminate the designation of India as a beneficiary developing country under Generalized System of Preferences(GSP) programme that facilitates duty free import of certain products from underdeveloped countries to he ..
NEW DELHI: The government on Friday extended the deadline to impose higher customs duties on 29 products, including almond, walnut and pulses, originating in the US.
The department of commerce had recommend the finance ministry to extend the deadline for levying higher tariffs worth $235 million, once again as it is considering sending a delegation to the US to resolve bilateral trade issues.
With the new tariffs, the import duty on walnut would be hiked to 120% from 30% while ..
Giving relief to exporters, the government has extended IGST (Integrated Goods and Service Tax) and compensation cess exemptions for goods procurement under certain export promotion schemes till March 2020.
These exemptions have been extended for exporters buying inputs domestically or importing for export purposes under export oriented unit (EOU) scheme, Export Promotion Capital Goods (EPCG) scheme and advance authorisation.
EPCG is an export promotion scheme under which an exporter can import certain amount of capital goods at zero duty for upgrading technology related with exports.
On the other hand, advance authorisation is issued to allow duty free import of inputs, which is physically incorporated in export product.
The country's largest public sector lender State Bank of India (SBI) has signed a pact with the Bank of China to boost business opportunities.
SBI has signed a memorandum of understanding (MoU) with Bank of China (BoC), third-largest bank in the world by capital size and one of the major players in the Chinese banking sector, to enhance business synergies between both the banks, State Bank of India (SBI) said in a release.
"MoU between the two major banks of the two largest and fastest-growing economies of the world is a welcome step. This MoU will facilitate the clients of both the banks to access banking products and services of each other, which will lead to a mutually beneficial relationship," said Rajnish Kumar, chairman, SBI.
The Department for Promotion of Industry and Internal Trade (DPIIT) has recently awarded Geographical Indication (GI) to five varieties of Indian coffee.
The recognition and protection that comes with GI certification will allow the coffee producers of India to invest in maintaining the specific qualities of the coffee grown in that particular region.
The move aims to enhance the visibility of Indian coffee in the world and allow growers to get maximum price for their premium coffee.
The 5 Indian varieties of coffee that has been awarded GI certification are Coorg Arabica coffee, Wayanaad Robusta coffee, Chikmagalur Arabica coffee, Araku Valley Arabica coffee and Bababudangiris Arabica coffee.
The government has revised the format of Shipping Bill and Bill of Exports forms, which are required to acquire a clearance for export from the Customs.
The notification which amends the format of Shipping Bill and Bill of Exports (Forms) Regulations, 2017 was issued by Central Board of Indirect Taxes and Customs (CBIC).
It said “These regulations may be called the Shipping Bill and Bill of Export (Forms) Amendment Regulations, 2019.”
In the formats of Shipping Bill for Export of Goods (SB I & SB III), certain changes were made by the authorities after making some amendments in the format of Shipping Bill and Bill of Exports (Forms) Regulations, 2017.
After the amendments, the authorities concerned has inserted two more rows in SB I form and asked for item level details at invoice level and cargo details for each invoice separately in the respective rows.
To ensure sale of quality teas both in domestic and foreign markets, the tea industry is now equipped with laboratories accredited and recognized by the Food Safety and Standards Authority of India (FSSAI).
FSSAI has set the quality criterion for different Indian tea (black, green and Kangra) with regard to fitness for human consumption.
Various quality parameters, including checking of pesticide residues, presence of heavy metals, natural toxic substances and iron fillings, are being currently monitored under FSSAI.
Privately owned power generating companies which are reeling under escalating dues have asked Ministry of Power to provide Trade Receivables Discount System (TReDS) facility to them the way it has been provided to MSMEs.
Power generating companies have asked for TReDS as they are reeling under escalating dues because of pending payment from states and litigation.
Ministry of MSME issued an instruction in November 2018 to companies with a turnover of more than Rs 500 Crores and all CPSEs to register on the TReDS platform.
TReDS platform was formed under the guidelines of the RBI. Once registered on the platform, bank accounts of the companies are linked with platform and agreements are signed for providing access for interbank transactions.
Highlighting that many Small and Medium Enterprises (SMEs) of Kochi are facing severe issues with managing their working capital because of a lack of adequate financing options, Drip Capital has come out with collateral-free post-shipment finance to Indian exporters, said Drip Capital.
Regional Sales Manager, Drip Capital, Nath Kakani said this at a seminar organized by Drip Capital, in association with the Federation of Indian Export Organisations (FIEO) on the topic ‘Interactive sessions on Export Factoring: Easy access to unsecured finance for SME Exporters’.
Government of Telangana is launching Small and Medium Enterprises (SME) portal today to support the local SMEs of the state.
The portal is being launched jointly with Industries and Commerce (I&C) Department, and Information Technology, Electronics and Communications (ITE&C) Department here.
This portal, co-developed with Digivation Digital Solutions P. Ltd, will offer a host of benefits to the local SMEs free of cost.
There will be an overview session of how the portal will support the local SMEs and will also address various pain points currently being faced by them.
Japan-based Daiki Aluminium Industry Co. Ltd., is expected to generate direct employment for about 600 people with 80% of them being women through its Indian subsidiary that will be setting up an aluminium alloy plant at Sri City in Andhra Pradesh.
This new plant will be built on a 20-acre plot in the domestic tariff zone, which is expected to go on stream by February 2020.
The company would make an initial investment of ₹250 crore to set up this plant in Andhra Pradesh and will produce aluminium alloy ingots. It will have an annual capacity of 84,000 tonnes. The products will be exported to automobile companies in ASEAN and Japan.
The Union Cabinet gave its ex-post facto approval on the Memorandum of Understanding (MoU) between India and Republic of Korea on startup cooperation.
The MoU would facilitate and promote bilateral cooperation between the startups of both countries, subject to their national laws and regulations and any applicable international treaties, conventions and agreements to which the two countries are party, said an official statement.
The MoU was signed in February, 2019.
An ex post facto law is a law that retroactively changes the legal consequences (or status) of actions that were committed, or relationships that existed, before the enactment of the law.
Indian businesses can use Thailand’s Eastern Economic Corridor (EEC) as gateway to Asian market, said the official from the Thailand Board of Investment.
Executive Director of International Affair Bureau, Board of Investment, Thailand, Bussarakum Sriratana made the above remarks at a roundtable discussion on ‘Thailand 4.0 and Business Opportunities for Indian Partners’.
The event was jointly organized by MVIRDC World Trade Center Mumbai and All India Association of Industries (AIAI).
India and the US Wednesday signed an Inter-Governmental Agreement for exchange of Country-by-Country (CbC) reports of multinational companies regarding income allocation and taxes paid to help check cross-border tax evasion.
This agreement for exchange of CbC reports, along with the Bilateral Competent Authority Arrangement, will enable both the countries to automatically exchange CbC reports filed by the ultimate parent entities of multinational enterprises (MNEs) in the respective jurisdictions, pertaining to the years commencing on or after January 1, 2016, a Finance Ministry statement said.
According to FISME factor 100 percent of MSMEs think that it will be a significant impact of the recent US decision to withdraw GSP facility from India. 
The workforce is changing rapidly. Baby boomers are retiring, millennials are climbing the corporate ladder and Gen Z is entering the workplace. Organisations are facing disruption not only in technology but also in people management. Today, more than ever, businesses need visionary leaders who remain at the helm, not only to steer them through disruption but turn these disruptions into opportunities.
No one can challenge the fact that lending to small and micro business is an untapped opportunity for lending institutions in India. The credit gap for SME / MSME in India has now ballooned to $300 billion and is growing at a CAGR of 7per cent.
While these two terms, 'impactful' and 'misleading', may seem to have diametrically opposite effects on the consumer, it may surprise many that these words have a much closer relationship.
The continuous increase in cotton price is reducing international competitiveness of the Indian textile value added industry and also affect exporters negatively said Confederation of Indian Textile Industry (CITI).
When Prime Minister Narendra Modi launched the Swachh Bharat Abhiyan in 2014, his aim was simple – to rope in every citizen to make the country clean and garbage free. His idea resonated with many, and several individuals and organisations came up with ideas and initiatives to eliminate waste.
No matter what US President Donald Trump says, climate change is for real. Each one can, and we say should, do their bit to help the environment. And lending a hand is Glowship.
“
In looking for people to hire, you look for three qualities: integrity, intelligence, and energy. And, if they don't have the first, the other two will kill you.
”
