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President's Message
The clarion call by PM about need for ‘Atmanirbhar Bhaart’- a self-reliant India, is both relevant and timely. This can help us develop a strategy for industrial development in post WTO post Covid world. What should be the salient features of such a strategy? FISME flags five issues: Firstly, at no cost should the prices of raw material / industrial inputs should be allowed to be jacked up through anti-dumping/ min. floor prices as competitiveness of downstream Industries, largely MSMEs, ride on it. Secondly, the Import data should be analyzed and products classified into low, medium and high-tech and product specific strategies developed. Thirdly, we realize importance of Non-tariff measures in developing domestic capabilities by capacitating BIS, shifting it to under MoC&I and nation’s Testing Lab infrastructure reviewed and upgraded. Fourthly, we leverage Public procurement to building capabilities in critical areas. Finally, we need to create culture of QUALITY in the entire country. A big impact could be created through a movement around QUALITY by valuing it in monetary terms. Public procurement could be a good starting point. FISME intend to work closely with GoI on Atmanirbhar Bharat.
"
The COVID-19 global crisis has forced thousands of companies to switch to a digital first working model — almost overnight. This dramatic rate of change, while painful, is by no means serendipitous. Most companies have had, over the past decade, provided most of their employees with the pre-requisite tools to work from home (like smartphones, laptops, cloud powered shared drives, collaboration apps and chat channels), but neither employees nor leaders in these companies found the will to make
It is common knowledge that life in the post-COVID era will not be the same. The effects of the pandemic are expected to have a lasting impact on every sphere of activity, even as various nations are trying to revive their economies and protect livelihoods.
As pandemic-induced lockdowns battered economies, disrupted global supply chains and affected livelihoods across different sectors, Prime Minister Narendra Modi gave a clarion call to make India self-reliant. He announced the Atmanirbhar Bharat Abhiyan ...
Reserve Bank of India (RBI) Governor Shaktikanta Das on Saturday asserted that the Indian economy has started showing signs of normalcy with ease in lockdown restrictions across the country.
While addressing the 7th SBI Banking and Economics Conclave, Das said, ''Indian economy has started showing signs of going back to normalcy after easing of restrictions." ''Post containment of COVID-19, a very careful trajectory has to be followed in orderly unwinding of counter-cyclical regulatory measures,'' he added.
He further said that the financial sector should return to normal functioning without relying on regulatory relaxation as the new norm.
The Director General of Foreign Trade (DGFT) has said that import of cut flowers are now allowed only through Chennai airport.
"Import policy of cut flowers... continues to remain free. However, import will be through Chennai airport only," DGFT said in a notification dated July 9, 2020. Earlier there were no such restrictions on the import of these flowers which include Roses, Carnations, Orchids, Chrysanthemums and Lilies.
The Directorate General of foreign Trade (DGFT) is the agency of the Ministry of Commerce and Industry of the Government of India,
Banks have sanctioned Rs 1,20,099 crore loans to COVID hit Micro, Small and Medium Enterprises (MSMEs) under the Rs 3-lakh crore Emergency Credit Line Guarantee Scheme (ECLGS).
However, disbursements against this stood at Rs 61,987.90 crore till Thursday (July 9) under the 100 per cent ECLGS for MSMEs."As of 9 July 2020, the total amount sanctioned under the 100 per cent Emergency Credit Line Guarantee Scheme by #PSBs and private banks stands at Rs 1,20,099.37 crore, of which Rs 61,987.90 crore has already been disbursed," said the Finance Minister Nirmala Sitharaman in a tweet.
The Central Board of Direct Taxes (CBDT) on Friday announced that the income tax department has issued refunds of Rs 62,361 crore to more than 20 lakh taxpayers during the last 3 months.
''The Income Tax Department has issued tax refunds at a speed of 76 cases per minute from April 8 to June 30th. During this period of just 56 weekdays, CBDT has issued refunds in more than 20.44 lakh cases amounting to more than Rs. 62,361 crores,'' an official statement from CBDT said.
The Wadhwani Foundation (WF) on Wednesday announced the 'Sahayata Initiative' to help distressed Small and Medium Enterprises (SMEs) affected by the economic crisis and public health workers improve COVID-19 knowledge and skills.
Wadhwani Foundation has committed Rs 200 crore and is building an ecosystem of partners, including government ministries and agencies, banks, and consulting firms, to help operationalize this large and complex initiative.
Laghu Udyog Bharti's (LUB)—Pharma Committee have alleged that Department of Goods and Services classifying alcohol-based hand sanitizers as 'disinfectants' to extract 18 per cent Goods and Services Tax (GST) from the present 12 per cent.
Alcohol based hand sanitizers have always been classified as "Medicinal Preparation" being manufactured under drug license obtained under the Drug and Cosmetics Act 1940.
Union Consumer Affairs Minister Ram Vilas Paswan has said that companies and e-commerce firms need to display the country of origin of products, in compliance with Packaged Commodities Rules, 2011, failing which they will face penal action.
While addressing media persons on Thursday, Paswan assertghed that ''the consumer affairs ministry has instructed the manufacturers to declare details such as the country of origin of the product, manufacturing details along with expiry of the products.''
E-commerce marketplace Flipkart on Friday signed an MoU with Karnataka Micro, Small and Medium Enterprises (MSME) and Mines department to promote the state's arts, crafts and handloom sectors by bringing them on to e-commerce and providing market access.
The e-tailer will now sell products from state’s local artisans and provide market access. “The partnership under the Flipkart Samarth programme will enable local artisans, weavers and craftsmen of Karnataka to showcase their hallmark products to a pan-India customer base,'' the Sachin Bansal co-founded company said in a statement.
Punjab Finance Minister Manpreet Singh Badal has met Union Minister of Chemicals and Fertilizers DV Sadananda Gowda and demanded to build a national pharmaceutical park in Bathinda.
The Finance Minister on Monday informed the Union Minister that Bathinda is the best-positioned destination to set up a pharmaceutical park, and a tranche of 1,350 acres of land is readily available for the venture. Earlier, the land was occupied by the erstwhile Bathinda Thermal plant. While urging Gowda to depute a team to visit the site, Badal said, ''the proposed park in Bathinda could cater to the entire area north of Delhi, reaching out to Punjab, Haryana, Himachal Pradesh, neighbouring Rajasthan, and even Jammu and Kashmir and Ladakh.”
In a bid to promote startups in the state, the Yogi Adityanath cabinet has cleared the new 'Uttar Pradesh Startup policy 2020' which will be applicable for the next five years.
The Cabinet meeting was held through video conferencing on Wednesday.
There was no comprehensive startup policy in the state and for encouraging a startup culture and building a strong startup ecosystem, an independent and comprehensive policy was required, the release said. The policy aims at bringing the state among the top three in startups, setting up 100 incubators in the state and at least one in every district, developing an ecosystem for setting up at least 10,000 startups and setting up the biggest incubator of the country in Lucknow.
Following public protests across the state against an ordinance to facilitate Micro, Small and Medium Enterprises (MSME) approved by the Assam Cabinet on June 29, 2020, the government said that it will modify the rules and no exemption would be given for setting up industries on agricultural land.
Addressing a press conference here,on Thursday, Assam Industries and Commerce Minister Chandra Mohan Patowary said Chief Minister Sarbananda Sonowal held a special meeting on the backdrop of protests against the ordinance and decided to modify it.
The world bank and the government have signed a USD 750 million (about Rs 5,600 crore) agreement for the Micro, Small and Medium Enterprises (MSME) Emergency Response Programme.
The agreement was signed by Sameer Kumar Khare, Additional Secretary at the Department of Economic Affairs, on behalf of the government and Junaid Ahmad, Country Director (India) on behalf of the World Bank on Monday. It aims at supporting increased flow of finance into the hands of MSMEs which are severely impacted by the COVID-19 crisis.
The programme will address immediate liquidity and credit needs of nearly 15 lakh viable MSMEs to help them withstand the impact of the current shock and protect millions of jobs. This is the first step among a broader set of reforms that are needed to propel the MSME sector over time.
Do you think curbs on Chinese apps will throw opportunities for Indian entrepreneurs
According to FISME factor 83.3 percent MSMEs think that curbs on Chinese apps will throw opportunities for Indian entrepreneurs while 16.7 percent think it will not.
How HR Can Support Businesses Amid Coronavirus Uncertainty?
One will never always be able to avoid difficult situations but one can modify the extent to which they can suffer by merely choosing to respond correctly. India has been under a nationwide lockdown since March 25 to curb the spread of the novel coronavirus. As a result of the pandemic, businesses have asked employees to work from home where possible.
Business owners frequently panic as a downturn hits, and the responses tend to be scattershot. Panic pushes action. Executives reach for levers such as layoffs or price cuts, which may prove to be short-term fixes with lasting consequences.
How to Boost Sales When Consumers are Spending Less
A business must do whatever it takes to serve customers well
Buyers are weary. They’ve been locked down, and many have to fight for jobs before unemployment benefits run out. Not to mention 27 million have recently lost employer-based health insurance, according to Kaiser Family Foundation. Post-pandemic consumers, therefore, are thrifty and budget-conscious.
In order to support local bodies in the state and ensure uninterrupted delivery of essential services to the citizens amid COVID-19 pandemic, the Andhra Pradesh Finance Minister Buggana Rajendranath Reddy urged the Union Finance Minister Nirmala Sitharaman to release Goods and Services Tax (GST) compensation.
How this Delhi-based agritech startup continues to empower Indian farmers in times of COVID-19
In March 2020, the startup raised $6 million in pre-Series B funding led by Omnivore and LGT Lightstone Aspada. It made the startup better equipped to help individual farmers and Farmer Producer Organisations (FPOs) — one of the major entities that Arya serves — at a time when businesses and livelihoods of many farmers are threatened.
From Rs 40 lakh to Rs 6 crore, this startup is modernising the way we buy fruits and vegetables
"The age-old street vending format of selling fruits and vegetables, while still cornering a major share in the customers’ purchase pie, has not undergone any change in its delivery mechanism or upgraded to a more refined model of vending. This is in stark contrast to the huge transformations that all other sectors touching customers’ lives have undergone, like mobile and banking to just name a few," says Rajiv.
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 June 2020
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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The clarion call by PM about need for ‘Atmanirbhar Bhaart’- a self-reliant India, is both relevant and timely. This can help us develop a strategy for industrial development in post WTO post Covid world. What should be the salient features of such a strategy? FISME flags five issues: Firstly, at no cost should the prices of raw material / industrial inputs should be allowed to be jacked up through anti-dumping/ min. floor prices as competitiveness of downstream Industries, largely MSMEs, ride on it. Secondly, the Import data should be analyzed and products classified into low, medium and high-tech and product specific strategies developed. Thirdly, we realize importance of Non-tariff measures in developing domestic capabilities by capacitating BIS, shifting it to under MoC&I and nation’s Testing Lab infrastructure reviewed and upgraded. Fourthly, we leverage Public procurement to building capabilities in critical areas. Finally, we need to create culture of QUALITY in the entire country. A big impact could be created through a movement around QUALITY by valuing it in monetary terms. Public procurement could be a good starting point. FISME intend to work closely with GoI on Atmanirbhar Bharat.
"
The COVID-19 global crisis has forced thousands of companies to switch to a digital first working model — almost overnight. This dramatic rate of change, while painful, is by no means serendipitous. Most companies have had, over the past decade, provided most of their employees with the pre-requisite tools to work from home (like smartphones, laptops, cloud powered shared drives, collaboration apps and chat channels), but neither employees nor leaders in these companies found the will to make
Reserve Bank of India (RBI) Governor Shaktikanta Das on Saturday asserted that the Indian economy has started showing signs of normalcy with ease in lockdown restrictions across the country.
While addressing the 7th SBI Banking and Economics Conclave, Das said, ''Indian economy has started showing signs of going back to normalcy after easing of restrictions." ''Post containment of COVID-19, a very careful trajectory has to be followed in orderly unwinding of counter-cyclical regulatory measures,'' he added.
He further said that the financial sector should return to normal functioning without relying on regulatory relaxation as the new norm.
The Director General of Foreign Trade (DGFT) has said that import of cut flowers are now allowed only through Chennai airport.
"Import policy of cut flowers... continues to remain free. However, import will be through Chennai airport only," DGFT said in a notification dated July 9, 2020. Earlier there were no such restrictions on the import of these flowers which include Roses, Carnations, Orchids, Chrysanthemums and Lilies.
The Directorate General of foreign Trade (DGFT) is the agency of the Ministry of Commerce and Industry of the Government of India,
Banks have sanctioned Rs 1,20,099 crore loans to COVID hit Micro, Small and Medium Enterprises (MSMEs) under the Rs 3-lakh crore Emergency Credit Line Guarantee Scheme (ECLGS).
However, disbursements against this stood at Rs 61,987.90 crore till Thursday (July 9) under the 100 per cent ECLGS for MSMEs."As of 9 July 2020, the total amount sanctioned under the 100 per cent Emergency Credit Line Guarantee Scheme by #PSBs and private banks stands at Rs 1,20,099.37 crore, of which Rs 61,987.90 crore has already been disbursed," said the Finance Minister Nirmala Sitharaman in a tweet.
The Central Board of Direct Taxes (CBDT) on Friday announced that the income tax department has issued refunds of Rs 62,361 crore to more than 20 lakh taxpayers during the last 3 months.
''The Income Tax Department has issued tax refunds at a speed of 76 cases per minute from April 8 to June 30th. During this period of just 56 weekdays, CBDT has issued refunds in more than 20.44 lakh cases amounting to more than Rs. 62,361 crores,'' an official statement from CBDT said.
The Wadhwani Foundation (WF) on Wednesday announced the 'Sahayata Initiative' to help distressed Small and Medium Enterprises (SMEs) affected by the economic crisis and public health workers improve COVID-19 knowledge and skills.
Wadhwani Foundation has committed Rs 200 crore and is building an ecosystem of partners, including government ministries and agencies, banks, and consulting firms, to help operationalize this large and complex initiative.
Laghu Udyog Bharti's (LUB)—Pharma Committee have alleged that Department of Goods and Services classifying alcohol-based hand sanitizers as 'disinfectants' to extract 18 per cent Goods and Services Tax (GST) from the present 12 per cent.
Alcohol based hand sanitizers have always been classified as "Medicinal Preparation" being manufactured under drug license obtained under the Drug and Cosmetics Act 1940.
Union Consumer Affairs Minister Ram Vilas Paswan has said that companies and e-commerce firms need to display the country of origin of products, in compliance with Packaged Commodities Rules, 2011, failing which they will face penal action.
While addressing media persons on Thursday, Paswan assertghed that ''the consumer affairs ministry has instructed the manufacturers to declare details such as the country of origin of the product, manufacturing details along with expiry of the products.''
E-commerce marketplace Flipkart on Friday signed an MoU with Karnataka Micro, Small and Medium Enterprises (MSME) and Mines department to promote the state's arts, crafts and handloom sectors by bringing them on to e-commerce and providing market access.
The e-tailer will now sell products from state’s local artisans and provide market access. “The partnership under the Flipkart Samarth programme will enable local artisans, weavers and craftsmen of Karnataka to showcase their hallmark products to a pan-India customer base,'' the Sachin Bansal co-founded company said in a statement.
Punjab Finance Minister Manpreet Singh Badal has met Union Minister of Chemicals and Fertilizers DV Sadananda Gowda and demanded to build a national pharmaceutical park in Bathinda.
The Finance Minister on Monday informed the Union Minister that Bathinda is the best-positioned destination to set up a pharmaceutical park, and a tranche of 1,350 acres of land is readily available for the venture. Earlier, the land was occupied by the erstwhile Bathinda Thermal plant. While urging Gowda to depute a team to visit the site, Badal said, ''the proposed park in Bathinda could cater to the entire area north of Delhi, reaching out to Punjab, Haryana, Himachal Pradesh, neighbouring Rajasthan, and even Jammu and Kashmir and Ladakh.”
In a bid to promote startups in the state, the Yogi Adityanath cabinet has cleared the new 'Uttar Pradesh Startup policy 2020' which will be applicable for the next five years.
The Cabinet meeting was held through video conferencing on Wednesday.
There was no comprehensive startup policy in the state and for encouraging a startup culture and building a strong startup ecosystem, an independent and comprehensive policy was required, the release said. The policy aims at bringing the state among the top three in startups, setting up 100 incubators in the state and at least one in every district, developing an ecosystem for setting up at least 10,000 startups and setting up the biggest incubator of the country in Lucknow.
Following public protests across the state against an ordinance to facilitate Micro, Small and Medium Enterprises (MSME) approved by the Assam Cabinet on June 29, 2020, the government said that it will modify the rules and no exemption would be given for setting up industries on agricultural land.
Addressing a press conference here,on Thursday, Assam Industries and Commerce Minister Chandra Mohan Patowary said Chief Minister Sarbananda Sonowal held a special meeting on the backdrop of protests against the ordinance and decided to modify it.
The world bank and the government have signed a USD 750 million (about Rs 5,600 crore) agreement for the Micro, Small and Medium Enterprises (MSME) Emergency Response Programme.
The agreement was signed by Sameer Kumar Khare, Additional Secretary at the Department of Economic Affairs, on behalf of the government and Junaid Ahmad, Country Director (India) on behalf of the World Bank on Monday. It aims at supporting increased flow of finance into the hands of MSMEs which are severely impacted by the COVID-19 crisis.
The programme will address immediate liquidity and credit needs of nearly 15 lakh viable MSMEs to help them withstand the impact of the current shock and protect millions of jobs. This is the first step among a broader set of reforms that are needed to propel the MSME sector over time.
According to FISME factor 83.3 percent MSMEs think that curbs on Chinese apps will throw opportunities for Indian entrepreneurs while 16.7 percent think it will not. 
One will never always be able to avoid difficult situations but one can modify the extent to which they can suffer by merely choosing to respond correctly. India has been under a nationwide lockdown since March 25 to curb the spread of the novel coronavirus. As a result of the pandemic, businesses have asked employees to work from home where possible.
Business owners frequently panic as a downturn hits, and the responses tend to be scattershot. Panic pushes action. Executives reach for levers such as layoffs or price cuts, which may prove to be short-term fixes with lasting consequences.
A business must do whatever it takes to serve customers well
Buyers are weary. They’ve been locked down, and many have to fight for jobs before unemployment benefits run out. Not to mention 27 million have recently lost employer-based health insurance, according to Kaiser Family Foundation. Post-pandemic consumers, therefore, are thrifty and budget-conscious.
In order to support local bodies in the state and ensure uninterrupted delivery of essential services to the citizens amid COVID-19 pandemic, the Andhra Pradesh Finance Minister Buggana Rajendranath Reddy urged the Union Finance Minister Nirmala Sitharaman to release Goods and Services Tax (GST) compensation.
In March 2020, the startup raised $6 million in pre-Series B funding led by Omnivore and LGT Lightstone Aspada. It made the startup better equipped to help individual farmers and Farmer Producer Organisations (FPOs) — one of the major entities that Arya serves — at a time when businesses and livelihoods of many farmers are threatened.
"The age-old street vending format of selling fruits and vegetables, while still cornering a major share in the customers’ purchase pie, has not undergone any change in its delivery mechanism or upgraded to a more refined model of vending. This is in stark contrast to the huge transformations that all other sectors touching customers’ lives have undergone, like mobile and banking to just name a few," says Rajiv.
“ As a leader, It is important to not just see your own success, but focus on the success of others.
”
