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  The FISME Factor  

 

President's Message
Mr Animesh SaxenaThe MSMEs stand redefined ! After oscillating back and forth, the cabinet finally put a stamp on the twin criteria of investment and turnover to define MSMEs. The Micro units are defined with investment up to Rs. 1 crore and turnover up to Rs. 4 crore; small Rs. 10 crore and Rs.50 crore and medium Rs. 50 and Rs. 250 crore respectively. What is important is that for a unit to be in a micro, small or medium category both criteria should be met simultaneously. There has been an uproar in some quarters that including units with turnover of Rs. 250 crore in MSME is unfair as they would corner the resources earmarked for MSMEs. Even FISME led social media groups- where MSME associations are present, people expressed concerns that it is this type of large segment within MSMEs that would corner bulk of funds announced under Rs. 3 lac crore loan scheme. FISME feels these concerns are unfounded. Rs. 3 lac crore package has inbuilt mechanism to ward off large players: the eligibility criteria include a max. turnover of Rs. 100 crore and loan not more than Rs. 25 crore. We believe the definition announced should pave way for the real Mittlestands to emerge from MSME sector: businesses having right economy of scales and globally competitive. "
Animesh Saxena, President, FISME
Vol VIII, Issue 204: June 1, 2020
Business Banter: Lessons from Entrepreneurs
21 Success Tips for Young and Aspiring Entrepreneurs
Macro Metre
RBI cuts repo rate by 40 bps, extends loan moratorium by another 3 months
Maximum permissible period of pre & pro shipment export credit sanctioned by banks increased from 1 yr to 15 months
Domestic Digest
BSE SME relaxes norms for SMEs to get listed on platform Knowledge and News Network (KNN)
Govt planning to agro MSMEs to push rural entrepreneurship
Eligible MSMEs to get offer of pre-approved loan under Rs 3 lakh cr scheme
State Scan
Kochi-based development institute to extend advisory services to MSMEs Knowledge and News Network (KNN)
UP CM directs officials to complete skill-mapping of migrant labourers in 15 days, conduct survey to employ them in MSMEs
AP govt releases MSME dues pending for last five years
World Watch
India extends anti-dumping duty on Sodium Citrate from China for 5 years Knowledge and News Network (KNN)
Knowledge Store
How eldercare startup EMOHA is empowering senior citizens to manage and cope with COVID-19 crisis
...And A Lot More

Business Banter: Lessons from Entrepreneurs

21 Success Tips for Young and Aspiring Entrepreneurs

Being successful often means learning from those who have already achieved their goals. Having a mentor is an amazing blessing to an entrepreneur, but not everyone can find one in person. If you haven’t yet found your personal business guru, here are 21 tips for young or aspiring entrepreneur to help get you started. 1. Challenge yourself. Richard Branson says his biggest motivation is to keep challenging himself. He treats life like one long university education, where he can learn more every day. You can too!
Writing on the Wall

A new phase: Unlock 1 is a welcome shift. But some features will continue to hamstring economic activity

The ‘Unlock 1’ guidelines which kick in today seem to signal a way out of the lockdown ones that went into effect on March 25. They indicate that we are moving back to normalcy incrementally, with the current month long phase geared towards expanding economic activities. This is a welcome development as the lockdown has already extracted an enormous socioeconomic cost. On the other hand, last month has illustrated the limitations of piecemeal restart...

Media Monitor

Macro Metre

Traders are eligible to get credit benefit under Aatmanirbhar package: Piyush Goyal

Traders are also eligible to get the credit benefit announced under the Aatmanirbhar package for the Micro, Small and Medium Enterprises (MSMEs) said Union Minister Piyush Goyal. ''Aatmanirbhar package announced by the Union Finance Minister to fight Covid-19 provided for Rs 3 lakh crore credit guarantee for MSME, and it also covers traders,'' Goyal said during a meet with the representatives of trader’s associations, via video conferencing, on friday. He also said that the changes made in the definition of the MSME sector will also help them. Goyal further said that that the Finance Minister has also indicated that she has an open mind on finding solutions for the problems that may have remained unresolved.

CoO applications for exports to Thailand & Vietnam to be submitted manually by exporters: DGFT

The Directorate General of Foreign Trade (DGFT) has said that the e-platform (coo.dgft.gov.in) will not accept Certificate of Origin (CoO) applications submitted for exports destined to Thailand and Vietnam. DGFT said that various representations have been received from exporters expressing difficulties in obtaining preferential access in Thailand and Vietnam based on the digitally signed electronic Certificates of Origin. In view of the movement restrictions in place due to COVID-19 pandemic in India wherein, the designated agencies were enabled to issue digitally signed electronic Certificates of Origin.

RBI cuts repo rate by 40 bps, extends loan moratorium by another 3 months

The Reserve Bank of India (RBI) on Friday, cut the repo rate by 40 basis points (bps) to 4 per cent, while the reverse repo rate was simultaneously adjusted at 3.35 per cent. In his address to the media via video conference the RBI Governor Shaktikanta Das said that an off-cycle meeting of the monetary policy committee (MPC) was done for the past three days. ''The MPC voted 5:1 in favour of a rate cut,'' he said. The apex banking body also extended the moratorium on loan repayments by three more months. The facility, thus, stands extended till August 31. ''In view of the extension of the lockdown and continuing disruption on account of COVID-19, these measures are being further extended by another 3 months from June 1 to August 31,'' said Das.

Maximum permissible period of pre & pro shipment export credit sanctioned by banks increased from 1 yr to 15 months

The Reserve Bank of India (RBI) has decided to increase the maximum permissible period of pre-shipment and post-shipment export credit sanctioned by banks from one year to 15 months. This will be for the disbursements made upto July 31, 2020. In a note to all Scheduled Commercial Banks (excluding RRBs), Primary Urban Co-operative Banks and Small Finance Banks, RBI said in view of the outbreak of Covid-19 pandemic, the exporters have been facing genuine difficulties such as delay / postponement of orders, delay in realisation of bills, etc.

Domestic Digest

BSE SME relaxes norms for SMEs to get listed on platform

Keeping view of the challenges faced by the small companies due to pandemic, the SME platform of BSE has relaxed the criteria for the companies to list their equity shares on the bourse. “BSE has amended the eligibility criteria from time to time to strengthen the SME Platform through various circulars. Today MSMEs are facing challenging situations due to the pandemic caused by Covid-19,” BSE SME said in a notification. The company’s Net Tangible Assets was earlier mandated to be Rs. 3 crores which has now been revised to Rs 1.5 crores.

Govt planning to agro MSMEs to push rural entrepreneurship

The government is working on creating an agro Micro, Small and Medium Enterprises (MSME) category to push entrepreneurship in rural and tribal areas and help manufacturing via local and raw produce. "MSME industries will be planned at Gram Panchayat level and such industries will contribute towards the development of the respective village," said Nitin Gadkari, on Friday, while addressing a conference by trade body CAIT. He also said the plans to build smart village, smart city, industrial clusters and other facilities at both sides of highways are also on cards, adding ''The move will help in lowering the cost of power and labour at low level and will also enable MSMEs to produce goods at competitive prices.''

Eligible MSMEs to get offer of pre-approved loan under Rs 3 lakh cr scheme

Eligible Micro, Small and Medium Enterprises (MSMEs) borrowers will get an offer from their lending institutions for a pre-approved loan under the Rs 3 lakh crore scheme announced for MSMEs, revealed National Credit Guarantee Trustee Company (NCGTC) in its FAQs. The Frequently Asked Questions (FAQs) also said that scheme is a specific response to the unprecedented situation COVID-19. It seeks to provide much needed relief to the MSME sector by incentivizing MLIs to provide additional credit of up to Rs. 3 lakh crore at low cost, thereby enabling MSMEs to meet their operational liabilities and restart their businesses.

Cabinet approves scheme to boost fisheries sector

In a big boost to fisheries sector, the Cabinet, chaired by the Prime Minister Narendra Modi, has given its approval for implementation of Rs 20,050 crore Pradhan Mantri Matsya Sampada Yojana (PMMSY). The scheme aims at doubling of fishers, fish farmers and fish workers incomes by 2024. It will be implemented during a period of 5 years from fiscal 2020-21 to fiscal 2024-25. The scheme will help improve infrastructure and boost investment in fisheries sector.
State Scan

Kerala    

Kochi-based development institute to extend advisory services to MSMEs

In bid to suggests better measures to the COVID-19 hit Micro Small and Medium Enterprises (MSMEs) in the state, the Institute of Small Enterprises and Development (ISED) has come out with a unique platform called 'business clinic' for extending advisory services. The state-based ISED's experts will offer free guidance to entrepreneurs to make a self-evaluation for improving their performance. The institute will guide MSMEs and entrepreneurial aspirants on issues like returning migrants, start-ups, educated unemployed, and women entrepreneurs. While speaking about the pandemic, ISED director, P M Mathew asserted that COVID-19 pandemic has affected the capital and operations of most SMEs, globally.

Uttar Pradesh    

UP CM directs officials to complete skill-mapping of migrant labourers in 15 days, conduct survey to employ them in MSMEs

The Uttar Pradesh government is in the process of registering all the migrant workers who have returned to the state with their skills being mapped by the administration. The UP Government has said that any state or entity interested in hiring them will need to take care of their social, legal and monetary rights. UP Chief Minister Yogi Adityanath on Tuesday directed officials to complete the skill-mapping of migrant labourers in 15 days and get a survey conducted to employ them in micro, small and medium enterprises (MSMEs) and industrial units, officials said.

Andhra Pradesh    

AP govt releases MSME dues pending for last five years

In a bid to strengthen the Micro, Small and Medium Enterprises (MSME), the Andhra Pradesh (AP) government has released MSME backlog dues pending for the last five years, said BC Welfare Minister M Sankara Narayana. Speaking at a review meeting here on Friday, he said, ''the government has released Rs 905 crore for the entire state and the district industries received its share of Rs 82 crore for the MSME.'' Similarly, the government released Rs 4,600 crore fee reimbursement dues to the educational institutions, released Rs 10,000 for the Auto driver’s welfare and Rs 24,000 to the weaver’s families, he added.
World Watch

China    

India extends anti-dumping duty on Sodium Citrate from China for 5 years

To safeguard the domestic industry from excessive dumping, the Finance Ministry has extended anti-dumping duty on sodium citrate -- a key pharmaceutical ingredient – imported from China. The government has extended duty protection on sodium citrate -- a key pharmaceutical ingredient – imported from China for another five years after an investigation found that there has been continued dumping of the Chinese product in India hampering the domestic industry, said Finance Ministry. "There is continued dumping of the subject goods from subject country and the imports are likely to enter the Indian market at dumped prices in the event of expiry of duty," an order issued by the ministry has said.
Read More    Back to Top
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Knowledge and News Network (KNN)
KNN India’s official Twitter handle
@knnindia
Anil Bhardwaj, Secretary General
@abhardwaj_fisme
Your Views

Do you think that Rs. 3 lack crore colletral free loan announced by government will help to boost production in MSMEs?

According to FISME factor 20% MSMEs think that Rs. 3 lack crore colletral free loan announced by government will help to boost production in MSMEs, 60% think it will not help while 20% think otherwise.
Knowledge Store

HR Heuristics

10 Tips for Building a Happy Workforce

The key to a successful business not only means focusing on the customers' needs but making sure that your employees are well engaged too. People are the most critical asset of an organization. It doesn't matter if you have the best scheme or product in the world and secured funding – without the right people who are satisfied, happy and aligned, your organization will never achieve long term success.

Finance Fundamentals

How Can Small Businesses Reduce the Impact Of Coronavirus On Their Cash Flow

Small businesses have been severely hit and are struggling to get through the difficulties posed by the coronavirus outbreak. Although the government has taken various measures to provide relief for small businesses facing economic disruption, many are already witnessing a rough impact on their operations and decline in cash flows. Due to the panic among consumers to stock up on essential supplies, many businesses find themselves hurrying to restock. The smaller businesses are, the greater their problems relating to cash flow.

Marketing Mantras

Marketing Management In the Times Of COVID-19

The United Nations had stated that the Indian economy could shrink by 1 per cent in 2020 due to the global pandemic with national borders being closed and supply chains being compromised. The imposition of social distancing has led to restricted manpower. In such a crisis, it has become difficult for businesses all over the world to function smoothly.

Policy Polemic

44% MSMEs feel financial package failed to meet expectations

The COVID-19 pandemic has caused great economy distress affecting all the sectors from large corporates to Micro Small and Medium Enterprises (MSMEs). As per the conducted by Skoch Consultancy Services in association with Federation of Indian Micro and Small & Medium Enterprises (FISME), Bhartiya Vitta Salahkar Samiti and Tax Law Educare Society, the non-availability of fund has forced MSME to cut down employee salaries and nearly two-third are resorting to layoffs.

SME Special

How eldercare startup EMOHA is empowering senior citizens to manage and cope with COVID-19 crisis

According to the World Health Organisation (WHO), the two groups of people who are at a higher risk of contracting COVID-19 include the elderly (above 60 years old); and those with underlying medical conditions. With the elderly being a high-risk group for COVID-19, EMOHA, a startup that is reimaging eldercare in India with its virtual community offering, began to closely evaluate how they could step in to help them cope and prevent the spread of the disease. The Gurugram-based startup was founded in 2019.

Success Story

Kullu-based HimalayanKraft's aim: taking Himachali handlooms to the world

If you have visited Kullu, Manali, or any key tourist destinations in Himachal Pradesh, it’s most likely that you picked up hand-woven light woollen shawls with geometric and colourful motifs or a Himachali cap or topi as a souvenir. But what if these are not authentic handloom products despite being told by the shopkeepers otherwise, and you paid a hefty price for it?

Stockpile

The National Statistical Office (NSO), Ministry of Statistics and Programme Implementation has released the Provisional Estimates of National Income for the financial year 2019-20, both at Constant (2011-12) and Current Prices. These are presented in Statements 1 to 4.

Quotable Quotes

“ Business is not just doing deals; business is having great products, doing great engineering and providing tremendous service to customers. Finally, business is a cobweb of human relationship. ”
– - Henry Ross Perot - American Business Magnate & Founder of Perot Systems
 
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:
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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