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President's Message
The spread of Coronavirus disease (COVID-19) from China has posed a serious threat to the global economy also. China is at the heart of the global manufacturing value chains. The disruption in Chinese manufacturing supply chains are threatening to spill over. Indian manufacturers and exporters are also assessing the impact of Coronavirus. If the problem persists almost all manufacturing will have a hit in varied degree. In the near term, the immediate impact is seen on Pharmaceutical sector as a lot of Active Pharmaceutical Ingredients (APIs) are sourced from China. Then Electronics and mobile manufacturers are almost entirely dependent upon Chinese parts, components and chips. Similarly apparel industry consumes a lot of accessories imported from China. A large number of Indian MSMEs procure moulds, jigs and fixtures used in plastics and engineering industries. Further, China has increasingly become a major source of plants and machinery. In sum, the impact even in short term is substantial and will disrupt our exports and push prices domestically of these goods. The silver line is that many GVCs would like to develop alternate sources than China and India could position itself in a few sectors such as Textiles and apparels.
"
To review and propose changes in the MSME Development Act 2006, Federation of Indian Micro and Small and Medium Enterprises (FISME) organized an interactive session with industry associations in New Delhi.
The meeting was chaired by Surendra Nath Tripathi, Chairman of the Working Group- former Secretary (Parliamentary Affairs) and now heading Indian Institute of Public Administration (IIPA), constituted by Ministry of MSME to propose changes in the MSMED Act. The meeting was convened by Anil Bhardwaj, Secretary General, FISME and a member of the Working Group.
Speaking on the occasion Tripathi sought suggestions of the industry representatives on five issues.
Unless you've been living under a rock, you know that climate change is the biggest challenge we as individuals and as a species have ever had to face. The earth is in grave danger, and we all need to dig deep, step up to the plate and do all we can to turn a corner for a better future. Thankfully, more and more businesses are realizing that the only innovation that truly matters in the modern marketplace is sustainability. But sustainable business practices aren't just right for the planet; they can also work miracles for the reputation of your brand and your bottom line. Here's how you can join the sustainability revolution and innovate to create a brighter dawn.
Responding to a nominal decline in January exports by 1.66% at USD 25.97 billion during the month, FIEO President, Sharad Kumar Saraf said that global and domestic factors have again pull-down the monthly exports.
As the Corona Virus hits China, global and domestic factors again pull down monthly exports. Protectionism & liquidity concerns coupled with spread of the Coronavirus in the world’s second-largest economy. Sharad Kumar m said that situation in China has further worsened the global sentiment and exporters are delaying their shipments.
The government has prohibited export of all Personal Protection Equipment including N-95 and other personal protection equipment accompanying masks and gloves except a certain type.
Recently, the Directorate General of Foreign Trade (DGFT) allowed free export of Surgical Masks/ Disposable masks (2/3 Ply) and all Gloves except NBR gloves. In the latest notification, DGFT said, “export of all other Personal Protection Equipment including N-95 and other Personal Protection Equipment accompanying Masks and Gloves not specified in the exceptions above shall remain prohibited.”
The micro, small and medium enterprises (MSME) sector in India is often referred to as the ‘engine of growth’. This increasingly growing sector contributes 31 per cent to the country’s GDP and 45 per cent to exports. To a greater extent, the MSME sector generates approximately 1.3 million jobs per annum which employs over 124 million people. The ground breaking growth and development they aide are not just restricted to urban India, but almost 59 per cent of them are centered in rural areas.
The Union Finance Minister Nirmala Sitharam has allocated Rs 7,572.20 crore for the Ministry of Micro, Small and Medium Enterprises (MSMEs) this year- an increase of 8% from the FY 2019-20 figures of Rs 7011.29 crore.
In order to reduce the compliance burden on small retailers, traders, shop keepers who comprise the MSME sector, the Union Budget proposed to raise by five times the turnover threshold for audit from the existing Rs 1 crore to Rs 5 crore.
As per the Micro Small and Medium Enterprises (MSME) Samadhaan, out of Rs 3,774.36 crore of 11,619 claims filed by MSMEs so far, only 14 per cent of the amount has been settled, which is Rs 531.69 crore in 2,547 cases.
''Of these, about 14 per cent has been settled, while the rest are under various stages of hearing. Acceleration on resolving issues would be important,” said a January 2020 report by Assocham and Crisil named Fastening MSME Fortunes.
The Indian Overseas Bank (IOB) will increase its lending to the Micro, Small and Medium sector from the present Rs 31,000 crore to Rs 50,000 crore in the coming years.
Speaking to media persons here on Friday, IOB managing director and CEO Karnam Sekar said that the bank has already converted 250 branches, including 100 in Tamil Nadu, into MSME-centric branches and given training to 700 employees for the purpose.
In a relief to the cash starved micro, small and medium enterprises (MSMEs), Finance Minister Nirmala Sitharaman said that the MSMEs can make a complaint if banks deny them loans without any reasons.
Sitharaman said this in Chennai where she went to explain the Budget proposals to traders, industrialists, economists and the media. Addressing the traders and industrialists, Sitharaman said micro, small and medium enterprises (MSMEs) can complain if banks deny them loans without reason.
Union Minister of Micro Small and Medium Enterprises (MSMEs) Nitin Gadkari has said that the government has developed MSME Global Mart portal that offers a range of services.
''The MSME Global Mart portal developed by National Small Industries Corporation, a PSU under the Ministry of MSME, offers a range of services,'' Gadkari informed Parliament on Monday. Services offered through MSME Global Mart Portal include online registration, web store management, multiple payment options, and customer support through Call Centre and enhanced security features, Ministry said in a statement.
The Reserve Bank of India (RBI) on Thursday in the sixth bimonthly policy review of the ongoing financial year decided to keep its short-term lending rate -- repo rate rate -- unchanged at 5.15 per cent.
The six-member monetary policy committee (MPC) voted in favour of the status quo. In the December policy review also, all members had voted in favour of keeping rates steady. ''These decisions are in consonance with the objective of achieving the medium-term target for consumer price index (CPI) inflation of 4 percent within a band of +/- 2 percent, while supporting growth," the apex bank said in a statement.
The Micro Small and Medium Enterprises (MSME) Department of Odisha on Wednesday signed a Memorandum of Understanding (MoU) with the HDFC Bank Limited to provide smart banking solutions to Startups in the state.
The MoU was signed in the presence of Chief Minister Naveen Patnaik at Kharavela Bhawan here. Speaking on the occasion the Chief Minister said, "Young entrepreneurs are engines of growth for new Odisha. I am sure this MoU between Start-up Odisha and HDFC Bank will open up new possibilities for startups.''
China's coronavirus has paralysed Indian pharmaceutical manufacturing companies as they depend heavily upon imports from China.
There are many items that have suffered due to the deadly epidemic that has hit China but pharmaceutical manufacturing companies are one of the most affected ones especially in Himachal Pradesh as they are facing acute shortage of raw materials from China following the coronavirus outbreak. The domestic pharmaceutical industry imports more than 65 per cent active pharmaceutical ingredients (APIs) from China but due to coronavirus outbreak there, the imports have been halted since mid-January.
West Bengal Finance Minister Amit Mitra has announced several new schemes for Micro Small and Medium Enterprises (MSMEs) units unorganised workers, unemployed youths, senior citizens, backward sections.
Mitra on Monday tabled an Rs 2.56-lakh crore budget for 2020-21 in the state assembly. This is the last full budget before the crucial 2021 state assembly elections. Under the scheme called ‘Banglashree’ MSME units, which started operations from April 1, 2019, and later will get incentives, while under ‘Chaa Sundari’ the state will provide funds for construction of homes to permanent tea garden workers in the 370 tea gardens, who don’t have homes.
Kerala Finance Minister TM Thomas Isaac has asserted that the state is reeling under severe economic crisis.
''The state is reeling under severe economic crisis. The various financial policies implemented by the Centre including demonetisation and GST, and floods were the key reasons for the state’s economic slowdown,'' the Minister informed the Assembly on Tuesday. Apart from demonetisation, GST and the floods affected the state in 2018 and 2019 which had a negative impact on the financial sector, the centre had too cut down the state’s share of approved loan which worsened the situation, he said.
India and Portugal on Friday signed seven agreements to boost cooperation in a range of areas after Prime Minister Narendra Modi and Portuguese President Marcelo Rebelo de Sousa held extensive talks.
The pacts provide for cooperation in areas of investment, transport, ports, culture and industrial and intellectual property rights. Portugal is an important country for India in Southern Europe, and bilateral ties have witnessed a steady progress in the last 15 years.
Negotiations between India and the US for a large trade deal are “progressing well”, but Washington faces some political constraints in offering concessions to New Delhi due to the upcoming presidential election, government officials here told ET.
President Donald Trump is scheduled to visit India on February 24-25. However, the US has yet to announce the dates for the visit of United States Trade Representative (USTR) Robert Lighthizer, who was expected to travel to India to finalise the trade deal. “An announcement will only be for a complete deal; there is no limitedscope deal. The negotiations are on and progressing well,” said an official aware of the details.
Do you think that the union budget 2020-21 will accelerate the growth of Indian MSMEs?
According to FISME factor 50% MSMEs think that the union budget 2020-21 will accelerate the growth of Indian MSMEs, 25% think that it will not while 25% think otherwise.
Employee Benefits: Are they valued and appreciated?
Many employers feel that their employees do not really understand the benefits that are offered to them. It is hard to believe, but the truth is that people don’t really give much thought to the benefits unless and until they themselves land in a situation where these benefits become crucial. For instance, till a spouse meets with an accident and is being wheeled into the operation theatre, the employee may not really have read through the medical benefits or insurance cover she / he is eligible for.
Public Credit Registry to catalyse MSMEs’ financial inclusion: Enkash
With measures such as the Public Credit Registry (PCR) or recent norms on the proposed Account Aggregator (AA) ecosystem, the ultimate aim of the Government is to make sure that everybody has a digital footprint, believes industry officials.
According to Yadvendra Tyagi, EnKash's cofounder, a holistic view of the borrowers helps a lender in making a decision, and that’s where measures such as PCR can help immensely.
How to Plan an Initial Sales Strategy That Hits the Ground Running
Starting a business or launching a new product is both exciting and daunting, and many entrepreneurs feel a lack of clarity as to how to first create a sales strategy to hit the ground running with sales. After all, they never have opened it to a market before and seldom have all of the insights to know how it will perform.
FIEO seeks govt's intervention to resolve deadlock over exports benefits for Garment and Made-ups
The Federation of Indian Export Organisations (FIEO) has sought government's intervention to resolve the deadlock over export benefits for the garment and made-ups exporters.
Meet the social impact startup that has funded over 15k women micro-entrepreneurs in rural India
The risks and aspirations of micro-entrepreneurs run the rural economy, the politics of the land, and the stuff that success stories are made of. But the crucial ingredient of credit is missing, hindering their growth greatly. Micro- entrepreneurs don't get to access credit on time and are often ignored by the banking network, simply because they have not been able to reach this market. And a majority of these entrepreneurs are women.
Some people buy flowers for Valentine's Day, this entrepreneur built a Rs 360Cr flower brand instead: FernsNPetals story
This incident led him to study the flower market in Delhi, and, to his surprise, he couldn’t find a single place that sold a diverse range of flowers. While local florists provided a limited option of flowers, there were no standalone shops or delivery options dedicated to flowers. The bouquet design often lacked imagination, and with no better alternative, people had accepted this standard of gifting.
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 December 2019 stands at 133.5.
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
You are receiving this Newsletter because you are included in our mailing list of recipients who are involved or interested in FISME or Indian MSMEs. You are welcome to partly or fully reproduce and disseminate the contents of this publication provided that you acknowledge the source.
This Newsletter is edited by the FISME Secretariat. We welcome contributions as well as comments and suggestions. Please write to newsletter@fisme.org.in
The spread of Coronavirus disease (COVID-19) from China has posed a serious threat to the global economy also. China is at the heart of the global manufacturing value chains. The disruption in Chinese manufacturing supply chains are threatening to spill over. Indian manufacturers and exporters are also assessing the impact of Coronavirus. If the problem persists almost all manufacturing will have a hit in varied degree. In the near term, the immediate impact is seen on Pharmaceutical sector as a lot of Active Pharmaceutical Ingredients (APIs) are sourced from China. Then Electronics and mobile manufacturers are almost entirely dependent upon Chinese parts, components and chips. Similarly apparel industry consumes a lot of accessories imported from China. A large number of Indian MSMEs procure moulds, jigs and fixtures used in plastics and engineering industries. Further, China has increasingly become a major source of plants and machinery. In sum, the impact even in short term is substantial and will disrupt our exports and push prices domestically of these goods. The silver line is that many GVCs would like to develop alternate sources than China and India could position itself in a few sectors such as Textiles and apparels.
"
To review and propose changes in the MSME Development Act 2006, Federation of Indian Micro and Small and Medium Enterprises (FISME) organized an interactive session with industry associations in New Delhi.
The meeting was chaired by Surendra Nath Tripathi, Chairman of the Working Group- former Secretary (Parliamentary Affairs) and now heading Indian Institute of Public Administration (IIPA), constituted by Ministry of MSME to propose changes in the MSMED Act. The meeting was convened by Anil Bhardwaj, Secretary General, FISME and a member of the Working Group.
Speaking on the occasion Tripathi sought suggestions of the industry representatives on five issues.
Unless you've been living under a rock, you know that climate change is the biggest challenge we as individuals and as a species have ever had to face. The earth is in grave danger, and we all need to dig deep, step up to the plate and do all we can to turn a corner for a better future. Thankfully, more and more businesses are realizing that the only innovation that truly matters in the modern marketplace is sustainability. But sustainable business practices aren't just right for the planet; they can also work miracles for the reputation of your brand and your bottom line. Here's how you can join the sustainability revolution and innovate to create a brighter dawn.
The government has prohibited export of all Personal Protection Equipment including N-95 and other personal protection equipment accompanying masks and gloves except a certain type.
Recently, the Directorate General of Foreign Trade (DGFT) allowed free export of Surgical Masks/ Disposable masks (2/3 Ply) and all Gloves except NBR gloves. In the latest notification, DGFT said, “export of all other Personal Protection Equipment including N-95 and other Personal Protection Equipment accompanying Masks and Gloves not specified in the exceptions above shall remain prohibited.”
The micro, small and medium enterprises (MSME) sector in India is often referred to as the ‘engine of growth’. This increasingly growing sector contributes 31 per cent to the country’s GDP and 45 per cent to exports. To a greater extent, the MSME sector generates approximately 1.3 million jobs per annum which employs over 124 million people. The ground breaking growth and development they aide are not just restricted to urban India, but almost 59 per cent of them are centered in rural areas.
The Union Finance Minister Nirmala Sitharam has allocated Rs 7,572.20 crore for the Ministry of Micro, Small and Medium Enterprises (MSMEs) this year- an increase of 8% from the FY 2019-20 figures of Rs 7011.29 crore.
In order to reduce the compliance burden on small retailers, traders, shop keepers who comprise the MSME sector, the Union Budget proposed to raise by five times the turnover threshold for audit from the existing Rs 1 crore to Rs 5 crore.
As per the Micro Small and Medium Enterprises (MSME) Samadhaan, out of Rs 3,774.36 crore of 11,619 claims filed by MSMEs so far, only 14 per cent of the amount has been settled, which is Rs 531.69 crore in 2,547 cases.
''Of these, about 14 per cent has been settled, while the rest are under various stages of hearing. Acceleration on resolving issues would be important,” said a January 2020 report by Assocham and Crisil named Fastening MSME Fortunes.
The Indian Overseas Bank (IOB) will increase its lending to the Micro, Small and Medium sector from the present Rs 31,000 crore to Rs 50,000 crore in the coming years.
Speaking to media persons here on Friday, IOB managing director and CEO Karnam Sekar said that the bank has already converted 250 branches, including 100 in Tamil Nadu, into MSME-centric branches and given training to 700 employees for the purpose.
In a relief to the cash starved micro, small and medium enterprises (MSMEs), Finance Minister Nirmala Sitharaman said that the MSMEs can make a complaint if banks deny them loans without any reasons.
Sitharaman said this in Chennai where she went to explain the Budget proposals to traders, industrialists, economists and the media. Addressing the traders and industrialists, Sitharaman said micro, small and medium enterprises (MSMEs) can complain if banks deny them loans without reason.
Union Minister of Micro Small and Medium Enterprises (MSMEs) Nitin Gadkari has said that the government has developed MSME Global Mart portal that offers a range of services.
''The MSME Global Mart portal developed by National Small Industries Corporation, a PSU under the Ministry of MSME, offers a range of services,'' Gadkari informed Parliament on Monday. Services offered through MSME Global Mart Portal include online registration, web store management, multiple payment options, and customer support through Call Centre and enhanced security features, Ministry said in a statement.
The Reserve Bank of India (RBI) on Thursday in the sixth bimonthly policy review of the ongoing financial year decided to keep its short-term lending rate -- repo rate rate -- unchanged at 5.15 per cent.
The six-member monetary policy committee (MPC) voted in favour of the status quo. In the December policy review also, all members had voted in favour of keeping rates steady. ''These decisions are in consonance with the objective of achieving the medium-term target for consumer price index (CPI) inflation of 4 percent within a band of +/- 2 percent, while supporting growth," the apex bank said in a statement.
The Micro Small and Medium Enterprises (MSME) Department of Odisha on Wednesday signed a Memorandum of Understanding (MoU) with the HDFC Bank Limited to provide smart banking solutions to Startups in the state.
The MoU was signed in the presence of Chief Minister Naveen Patnaik at Kharavela Bhawan here. Speaking on the occasion the Chief Minister said, "Young entrepreneurs are engines of growth for new Odisha. I am sure this MoU between Start-up Odisha and HDFC Bank will open up new possibilities for startups.''
China's coronavirus has paralysed Indian pharmaceutical manufacturing companies as they depend heavily upon imports from China.
There are many items that have suffered due to the deadly epidemic that has hit China but pharmaceutical manufacturing companies are one of the most affected ones especially in Himachal Pradesh as they are facing acute shortage of raw materials from China following the coronavirus outbreak. The domestic pharmaceutical industry imports more than 65 per cent active pharmaceutical ingredients (APIs) from China but due to coronavirus outbreak there, the imports have been halted since mid-January.
West Bengal Finance Minister Amit Mitra has announced several new schemes for Micro Small and Medium Enterprises (MSMEs) units unorganised workers, unemployed youths, senior citizens, backward sections.
Mitra on Monday tabled an Rs 2.56-lakh crore budget for 2020-21 in the state assembly. This is the last full budget before the crucial 2021 state assembly elections. Under the scheme called ‘Banglashree’ MSME units, which started operations from April 1, 2019, and later will get incentives, while under ‘Chaa Sundari’ the state will provide funds for construction of homes to permanent tea garden workers in the 370 tea gardens, who don’t have homes.
Kerala Finance Minister TM Thomas Isaac has asserted that the state is reeling under severe economic crisis.
''The state is reeling under severe economic crisis. The various financial policies implemented by the Centre including demonetisation and GST, and floods were the key reasons for the state’s economic slowdown,'' the Minister informed the Assembly on Tuesday. Apart from demonetisation, GST and the floods affected the state in 2018 and 2019 which had a negative impact on the financial sector, the centre had too cut down the state’s share of approved loan which worsened the situation, he said.
India and Portugal on Friday signed seven agreements to boost cooperation in a range of areas after Prime Minister Narendra Modi and Portuguese President Marcelo Rebelo de Sousa held extensive talks.
The pacts provide for cooperation in areas of investment, transport, ports, culture and industrial and intellectual property rights. Portugal is an important country for India in Southern Europe, and bilateral ties have witnessed a steady progress in the last 15 years.
Negotiations between India and the US for a large trade deal are “progressing well”, but Washington faces some political constraints in offering concessions to New Delhi due to the upcoming presidential election, government officials here told ET.
President Donald Trump is scheduled to visit India on February 24-25. However, the US has yet to announce the dates for the visit of United States Trade Representative (USTR) Robert Lighthizer, who was expected to travel to India to finalise the trade deal. “An announcement will only be for a complete deal; there is no limitedscope deal. The negotiations are on and progressing well,” said an official aware of the details.
According to FISME factor 50% MSMEs think that the union budget 2020-21 will accelerate the growth of Indian MSMEs, 25% think that it will not while 25% think otherwise. 
Many employers feel that their employees do not really understand the benefits that are offered to them. It is hard to believe, but the truth is that people don’t really give much thought to the benefits unless and until they themselves land in a situation where these benefits become crucial. For instance, till a spouse meets with an accident and is being wheeled into the operation theatre, the employee may not really have read through the medical benefits or insurance cover she / he is eligible for.
With measures such as the Public Credit Registry (PCR) or recent norms on the proposed Account Aggregator (AA) ecosystem, the ultimate aim of the Government is to make sure that everybody has a digital footprint, believes industry officials.
According to Yadvendra Tyagi, EnKash's cofounder, a holistic view of the borrowers helps a lender in making a decision, and that’s where measures such as PCR can help immensely.
Starting a business or launching a new product is both exciting and daunting, and many entrepreneurs feel a lack of clarity as to how to first create a sales strategy to hit the ground running with sales. After all, they never have opened it to a market before and seldom have all of the insights to know how it will perform.
The Federation of Indian Export Organisations (FIEO) has sought government's intervention to resolve the deadlock over export benefits for the garment and made-ups exporters.
The risks and aspirations of micro-entrepreneurs run the rural economy, the politics of the land, and the stuff that success stories are made of. But the crucial ingredient of credit is missing, hindering their growth greatly. Micro- entrepreneurs don't get to access credit on time and are often ignored by the banking network, simply because they have not been able to reach this market. And a majority of these entrepreneurs are women.
This incident led him to study the flower market in Delhi, and, to his surprise, he couldn’t find a single place that sold a diverse range of flowers. While local florists provided a limited option of flowers, there were no standalone shops or delivery options dedicated to flowers. The bouquet design often lacked imagination, and with no better alternative, people had accepted this standard of gifting.
“
You should learn from your competitor, but never copy. Copy and you die.
”
