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  The FISME Factor  

 

President's Message
Mr Animesh SaxenaGovernment’s relentless push for indigenization of Defence procurement is critically needed. On an average India is importing almost three fourth of its capital equipment requirements. This is simply not sustainable. It could also put India’s preparedness in jeopardy in a war like situation. Indian Defence Procurement Policies for almost a decade have been trying to give entry to potential Indian companies in Defence production. The results so far have been mixed. There are various reasons but one major reason is reluctance of foreign OEMs to set up manufacturing here. With changing geo-political situation, the Government has taken a drastic step and now reserved over 100 items to be procured domestically. The aim is to force potential companies to set up JVs or their wholly owned manufacturing in India. Though only future will tell the fate of this initiative, it certainly demonstrates the commitment of the Government of the day in giving domestic defence manufacturing the strongest push. If the policy succeeds more items could be on the way for Indian companies to try their hand on. Indian MSMEs have vested interest in its success: they stand to gain through offsets and as vendors to these OEMs. "
Animesh Saxena, President, FISME
Vol VIII, Issue 209: Aug 15, 2020
Business Banter: Lessons from Entrepreneurs
Customer-Centricity: The Immunity Boost For Startups
Macro Metre
WPI inflation contracts 0.58 per cent in July
PM Modi launches 'Transparent Taxation' platform to reward honest taxpayers
Domestic Digest
Govt to set up social microfinance institution to support micro & small industries Knowledge and News Network (KNN)
Banks sanctioned Rs 1.43 lakh crore loans under credit guarantee scheme
Bhartiya Skill Development University & Kamtech ink pact for MSME Tech upgrade
State Scan
Gujarat's new industrial policy bets big on Tech upgradation to make MSMEs globally competitive Knowledge and News Network (KNN)
Haryana govt, SIDBI join hands to develop MSME ecosystem in the state
Telangana govt exempts MSMEs, street vendors from paying stamp duty
Knowledge Store
Gearing up for the new normal: How SMEs can manage their finances better in the post-COVID economy
...And A Lot More

Business Banter: Lessons from Entrepreneurs

Customer-Centricity: The Immunity Boost For Startups

During the ongoing pandemic startups—early or growth-stage, bootstrapped or funded—are trying hard to survive as they look for the light at the end of the tunnel. Most are scrambling with issues of cash flow, salaries, sales, and collections, as they try to find islands of opportunities in this mayhem. Not surprisingly, startups built on solid foundations of sane unit economics, proximity to customers, frugal operations, and sensible growth seem to be faring better. Now, more than ever, organizations with a deeply entrenched DNA of customer-centricity will be better prepared to weather the storm as customer needs change, existing customer segments vanish and new segments appear.
Writing on the Wall

Ban on 101 defence items is a step towards achieving self-reliance

The Centre’s announcement last week of a “negative list” of 101 weapons and military equipment and platforms whose imports will be progressively curtailed over the next five years marks the first concrete step forward in actualising India’s stated ambitions of becoming not only a major arms manufacturer but a significant exporter as well. While the ‘Make in India’ thrust in defence is not new — India had called for achieving 70 per cent self-reliance in defence requirements as far back as 1990 —we have made little headway in actually achieving that goal....

Media Monitor

Macro Metre

WPI inflation contracts 0.58 per cent in July

The Wholesale Price Index (WPI)-based inflation stood at 0.58 per cent for the month of July. WPI inflation in June was at (-) 1.81 per cent, while for the month of May and April it was (-) 3.37 per cent and (-) 1.57 per cent respectively. "The annual rate of inflation, based on monthly WPI (Wholesale Price Index), stood at (- 0.58 per cent) (provisional) for the month of July 2020 as compared to 1.17 per cent during the corresponding month of the previous year," the commerce and industry ministry said in a statement.

PM Modi launches 'Transparent Taxation' platform to reward honest taxpayers

In a bid to ease the compliance burden for assessees and reward the "honest taxpayer, Prime Minister Narendra Modi on Thursday launched the platform for 'Transparent Taxation – Honouring the Honest' and said that it will be a new milestone in the structural reforms initiated by the government. "The country's honest taxpayer plays a big role in nation-building... A faceless tax system will give the taxpayer confidence on fairness and fearlessness," the Prime Minister said in a video address after rolling out the ''Transparent Taxation - Honouring the Honest'' platform in a big push for tax reforms.

IBBI amends liquidation process regulations

The Insolvency and Bankruptcy Board of India (IBBI) has amended regulations for the liquidation process, providing more clarity on fee payable to liquidators. The Ministry of Corporate affairs (MCA) on Thursday in a statement said that there have been instances where a liquidator realises the amount while another liquidator distributes the same to stakeholders. ''The amendment made to the Regulations today clarifies that where a liquidator realises any amount, but does not distribute the same, he shall be entitled to a fee corresponding to the amount realised by him,'' an official statement read.

Domestic Digest

Govt to set up social microfinance institution to support micro & small industries

In a bid to support micro and small industries, the government is working on a policy to set up a social microfinance institution said Union Micro Small and Medium Enterprises (MSMEs) minister Nitin Gadkari on Friday. "We are framing policy for making a social microfinance institution, where finance can be available in three days up to Rs 10 lakh for small people. This is the way we can create employment potential and that can be a great contribution for our growth," Gadkari said at a virtual conference organized by FICCI.

Banks sanctioned Rs 1.43 lakh crore loans under credit guarantee scheme

Banks have sanctioned loans to Micro, Small and Medium Enterprises (MSMEs) worth Rs 1,43,318.09 crore under Emergency Credit Line Guarantee Scheme (ECLGS), said Finance Minister Nirmala Sitharaman on Friday. "As of 12 Aug 2020, the total amount sanctioned under the 100 per cent Emergency Credit Line Guarantee Scheme by #PSBs and private banks stand at Rs 1,43,318.09 crore, of which Rs 98,665.93 crore has already been disbursed," she tweeted.

Bhartiya Skill Development University & Kamtech ink pact for MSME Tech upgrade

In a bid to support Micro, Small and Medium Enterprises (MSMEs) for technology upgradation, Bhartiya Skill Development University (BSDU), Jaipur and Kamtech Associates Pvt. Ltd, Jaipur on Monday signed a Memorandum of Understanding (MoU). As per the (MoU), both BSDU and Kamtech will also work jointly on research programs on Industry 4.0, international Consultancy, skills profiling for future sectors, entrepreneurship development, products development, and IDF projects.

PNB launches cash credit for weavers

On the eve of ''National Handloom Day'', Punjab National Bank (PNB) has launched a scheme to facilitate cash credit or loans to weavers against their credit requirements. Under the PNB Weaver Mudra Scheme (PNBWMS), the bank has launched a credit card plan under which loans up to Rs 2 lakh to weavers will be granted as per the scheme of the Ministry of Textiles. ''The scheme aims to provide adequate and timely assistance to weavers – for a maximum of upto Rs 5 lakh per borrower, by way of Cash Credit or loan - for their credit requirements such as investments and working capital flexibly and cost-effectively, in both rural and urban areas,'' the bank said in a statement.
State Scan

Karnataka    

Karnataka MSMEs praise new industrial policy of the state

Karnataka's new industry policy has managed to earn praises from the Micro, Small and Medium Enterprises (MSMEs) in the state as the MSME units there termed the policy as bold and innovative. While welcoming the policy, Karnataka Small Scale Industries Association (KASSIA) hopes that these policy measures coming on top of the recently affected reforms should help the state to achieve higher industrial performance ranking. ''It is indeed very noteworthy and commendable that the new policy reflects carefully thought out responses based on the various issues and pain points that were regularly being presented to the authorities by Industries,'' said KASSIA in a statement on Friday.

Gujarat    

Gujarat's new industrial policy bets big on Tech upgradation to make MSMEs globally competitive

Gujarat Chief Minister Vijay Rupani has announced the state's Industrial Policy 2020 with a focus on promoting Micro, Small and Medium Enterprises (MSMEs). The policy focuses on promoting MSMEs with an aim to make domestic MSMEs globally competitive. Government will support MSMEs in upgradation of technologies, adopting globally accepted certifications and in marketing their products internationally. ''The New Gujarat Industrial Policy 2020 will offer interest subsidy upto 7 per cent upto INR 35 lakhs per annum for a period upto 7 years to these service sector MSMEs in the state including those engaged in Financial Services, Healthcare Services, Audio Visual services, Construction related engineering services, Environmental services etc,'' Rupani said.

Haryana    

Haryana govt, SIDBI join hands to develop MSME ecosystem in the state

Haryana government and Small Industries Development Bank of India (SIDBI) has entered a Memorandum of Understanding (MoU) with an objective of development of the Micro, Small and Medium Enterprises (MSME) ecosystem in the state. The MoU was executed by Vikas Gupta, IAS, Director General, MSME, Directorate of MSME, Haryana government and General Manager, SIDBI, Chandigarh on Friday. In line with the expectation of the UK Sinha Committee, SIDBI has laid emphasis on more focused engagement with state governments. SIDBI has spearheaded a few initiatives towards strengthening the enterprise ecosystem.

Telangana    

Telangana govt exempts MSMEs, street vendors from paying stamp duty

In a bid to unburden and give some relief to Micro, Small and Medium Enterprises (MSMEs) and street vendors in COVID-19 crisis, the Telangana government has decided to remit the stamp duty in full, payable for loans availed by them under Guaranteed Emergency Credit Line Scheme (GESL), Credit Guarantee Scheme for Subordinate Debt (CGSSD) and PM Street Vendor’s Atmanirbhar Nidhi. Reportedly, the decision comes in the wake of directions issued by Chief Minister K Chandrashekhar Rao to Chief Secretary Somesh Kumar to issue notification exempting MSMEs and street vendors from paying stamp duty.
FISME’s official Twitter handle
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Knowledge and News Network (KNN)
KNN India’s official Twitter handle
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Anil Bhardwaj, Secretary General
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Your Views

Do you think that the Government's proposition to restrict import of certain items with a view to encourage domestic manufacturing yield results?

According to FISME factor 100 percent MSMEs think that the Government's proposition to restrict import of certain items with a view to encourage domestic manufacturing yield results.
Knowledge Store

HR Heuristics

How to lead an agile team to success in uncertain times

There is a popular quip doing the rounds on social-media platforms about this whole resetting thing and chances are you may have come across it, too. It asks the reader whether anyone knows how to turn off the year 2020 and turn it on again.

Finance Fundamentals

Gearing up for the new normal: How SMEs can manage their finances better in the post-COVID economy

Small businesses find themselves in a precarious situation today. Yes, the economy is in a bad shape now, but it was so even before the outbreak of COVID-19, and small businesses were undergoing a prolonged period of lacklustre demand.

Marketing Mantras

Sales Tactics to Survive the Extended Effects of the Pandemic

The default setting for growth for most ambitious companies is to try to win new logos. Find new customers, sign new deals, and build the company on the back of this steady stream of new business. On one hand, this makes sense.

Policy Polemic

MSMEs face difficulties to resume production because of supply chain disruptions

Despite financial relief from the government to cope with challenges arise by the COVID-19 pandemic, Micro, Small and Medium Enterprises (MSME) still facing difficulties in executing their operations and their revival is almost at the stake. “Supply chain disruptions have made it difficult for industries to renew the production process and or reduce inventory,” said. KB Arasappa, President, Karnataka Small Scale Industries Association (KASSIA) who spoke to Finance Minister Nirmala Sitharaman to discuss issues that are of serious concern to the MSMEs.

SME Special

This Pune startup is disrupting food industry with its cloud-based solution

Digitisation and technology has, over the years, changed the way businesses operate. Now, even traditional enterprises are moving on from analog practices and embracing new-age technologies. Pune-based TechMainstay Software Pvt. Ltd is helping all types of food businesses leverage technology through its cloud-based end-to-end technology solution for managing restaurants.

Success Story

How retail tech startup SnapBizz scaled its business and clocked Rs 7 Cr revenue amidst COVID-19 pandemic

In the six years since Prem Kumar started his retail tech startup SnapBizz, he interacted with many neighbourhood kiranas. During one such interaction, a store boy walked up to him and thanked him as he had got Rs 1,000 increment in his salary from the owner.

Stockpile

The National Statistical Office (NSO), Ministry of Statistics and Programme Implementation is releasing Consumer Price Index (CPI) on Base 2012=100 for Rural, Urban and Combined for the month of July 2020 (Provisional) in this press note.

Quotable Quotes

“ All of us, in a sense, struggle continuously all the time, because we never get what we want. The important thing which I’ve really learned is how to not give up, because you never succeed in the first attempt. ”
– - Mukesh Dhirubhai Ambani - Indian Business Magnate & Chairman of Reliance Industries Ltd.
 
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 August 2020 to 15th August 2020
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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