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  The FISME Factor  

 

President's Message
Mr Animesh SaxenaAfter successive lockdowns, MSMEs are slowly limping back on path of recovery. FISME’s estimates is that 30~40% of MSMEs have resumed operations in varying degrees. Many are in a position to produce near normalcy but don’t gave orders. More than half of MSMEs have very localized operations: they buy and sell within 100 Km periphery with their sales outlets being small merchant/ kirana shops. The shops have experienced huge demand slump as buyers are missing due to covid related restrictions on movement and fears associated with it. The spending is also at all time low. While exports are recovering and Govt procurement has resumed, MSMEs in these two segments will be first to resume. But path to recovery is going to be slow for others. Second quarter (July~Aug) is likely to witness but modest recovery. Most economic actors pin their hopes of smart recovery during third quarter. Let’s pray their hopes to be true. "
Animesh Saxena, President, FISME
Vol VIII, Issue 205: June 15, 2020
Business Banter: Lessons from Entrepreneurs
Tips to the Startup Community for Surviving in This Covid-19 Situation
Macro Metre
DGFT cautions exporters, importers against fake websites & platforms
GST Council eases compliance burden for businesses; reduces late fee & interest for tax payers with tax liabilities
MSME urges govt to exclude exports from turnover by amending notification
Domestic Digest
Promise to MSMEs of Govt tenders below Rs. 200 Cr belied by MNCs Knowledge and News Network (KNN)
Covid Emergency Credit Facility covers all firms not just MSMEs: Fin Min
PSBs disburse loans to MSMEs worth Rs 14,690 under ECLGS
State Scan
UP govt sets up 'Invest UP' to boost investment in the state Knowledge and News Network (KNN)
Haryana asks govt to lower GST on textiles, fertilizers, footwear
AP govt to introduce power monitoring devices for MSMEs equipped with IoT technology
Knowledge Store
Impact Of COVID-19 On Startup Funding: How To Raise Capital During a Crisis?
...And A Lot More

Business Banter: Lessons from Entrepreneurs

Tips to the Startup Community for Surviving in This Covid-19 Situation

The Covid-19 Pandemic has hit the overall Global economy. It is said that the global recession in 2020 might be worse than what we experienced in 2008. As per the United Nations Conference on Trade and Development - “The world economy will go into recession this year with a predicted loss of global income in trillions of dollars.” The Asian Development Bank (ADB) projects India's gross domestic product (GDP) will slow to 4 per cent in the fiscal year 2020 ending on March 31, 2021, due to a weak global environment and continued efforts to contain the novel coronavirus (COVID-19) outbreak in the country.
Writing on the Wall

Framing trade, industrial policy amidst Covid presents new challenges

Self-reliance in key sectors must be accompanied by a long-term view on their development. This entails an ecosystem that promotes technology upgradation As part of its Atmanirbhar Bharat initiative, the Centre has announced production linked incentive schemes as well as localisation requirements for public procurement in the areas of medical devices, pharmaceuticals and electronics. The intent here seems consistent with the political slogan (a tad hyperbolic) to break free from China’s imports. ...

Media Monitor

Macro Metre

DGFT cautions exporters, importers against fake websites & platforms

The Directorate General of Foreign Trade (DGFT) has cautioned exporters and importers against "fake" websites and platforms which are allegedly charging fees and collecting their confidential data. ''It has been brought to the notice of the directorate that certain vested interests/persons are using multiple websites and e-mail IDs mimicking and resembling official website and e-mail of the DGFT for misleading and duping exporters and importers,'' DGFT said in a trade notice dated June 11.

GST Council eases compliance burden for businesses; reduces late fee & interest for tax payers with tax liabilities

The Goods and Services Tax Council has decided to ease compliance burden of businesses by reducing late fee and interest for those with tax liabilities and waived off late fee completely for those with no tax liabilities. Finance minister Nirmala Sitharaman said that GST collections had fallen to about 45%, aggravating the problem of compensation to states, even as states demanded they be funded through market borrowing. The Council will meet again in July to specifically discuss this issue. "For all those who have no tax liabilities but have not filed their returns between July 2017 and January 2020 there will be zero late fees," FM Nirmala Sitharaman said.

DGFT continues export curbs only on specific diagnostic kits, instruments

The Commerce Ministry has decided to continue the export curbs only on specific diagnostic kits, reagents, and instruments such as swabs sterile synthetic fibre, silicon columns and magnetic stand, amid the coronavirus outbreak. In a notification, the Directorate General of Foreign Trade (DGFT) said all other diagnostic kits/reagents/ instruments/ apparatus are freely exportable subject to submission of an undertaking by the exporter to the customs authorities at the time of export. DGFT had earlier put restrictions on exports of all diagnostic kits and reagents in order to meet the need within the country.

MSME urges govt to exclude exports from turnover by amending notification

Micro, Small and Medium Enterprises (MSME) in the state has urged the government to exclude exports from turnover by amending the notification and notifying the same at the earliest. On Wednesday, the Federation of Industrial and Commercial Organisation (FICO) organised a meeting to discuss the issues related to the industry, where it was discussed that the government has not excluded exports from turnover. The businessmen express their dissatisfaction over the inclusion of exports in the turnover limit set for defining the category of industry under the MSME Act.

Domestic Digest

Promise to MSMEs of Govt tenders below Rs. 200 Cr belied by MNCs

The Micro Small and Medium Enterprises (MSMEs) who had cheered the announcement made by Finance Minister Nirmala Sitharaman as part of the ‘Atmanirbhar Bharat’ package for MSMEs barring global firms from partaking in tenders below Rs. 200 crore, are in for a crude shock. The MNCs in India are crowding out MSMEs from tenders which were supposed to be accessible to them. After the announcement the office of Finance Minister had tweeted "Govt has notified the amendments to the General Financial Rules 2017 to ensure that henceforth global tenders will be disallowed in government procurement up to Rs 200 crore”.

Covid Emergency Credit Facility covers all firms not just MSMEs: Fin Min

Union Finance Minister Nirmala Sitharaman has clarified that the Covid Emergency Credit Facility announced as part of the Aatma Nirbhar Bharat Package covers all companies and not just Micro, Small and Medium Enterprises (MSMEs). She said this while addressing the FICCI National Executive Committee members, on Monday, Sitharaman and also assured the industry of all possible government support with the intent of supporting Indian business and reviving the economy. “We are committed to support/intervene if any of your members have a problem,” she said.

PSBs disburse loans to MSMEs worth Rs 14,690 under ECLGS

Public Sector Banks (PSBs) have disbursed Rs 14,690.84 crore till June 11, under the Rs 3-lakh crore Emergency Credit Line Guarantee Scheme (ECLGS) for the MSME sector, hit hard by the coronavirus-induced lockdown, said Finance Ministry. Taking to micro-blogging site twitter, the Finance Minister's office, on Friday, said that PSBs have sanctioned loans worth Rs 29,490.81 crore under the 100 per cent ECLGS for the Micro, Small & Medium Enterprises (MSME) sector starting June 1. ''As of 11 June 2020, #PSBs have sanctioned loans worth Rs 29,490.81 crore under the 100% Emergency Credit Line Guarantee Scheme, out of which Rs 14,690.84 crore has already been disbursed,'' Finance Minister office tweeted.

Lockdown relaxations in May ineffective for retail business: Survey

The relaxations provided by the government in May 2020 were ineffective as retailers across the board continued to witness degrowth in their businesses, said a survey by Retailers Association of India (RAI). The Retailers Association of India (RAI) in a recent survey said that more than 150 retailers, big and small, for assessment of three months (March, April and May 2020) shows a severe degrowth in businesses across sectors and regions. The relaxations provided by the government in May 2020 were ineffective as retailers across the board continued to lose," RAI said in a statement.
State Scan

Punjab    

SAD beopar wing demands financial package for MSMEs

The industry and beopar wing of the Shirmoni Akali Dal (SAD) has asked Congress government to come out with a financial package for Micro, Small and Medium Enterprises (MSME) by paying their salary, bills and allowing the industrial and trade sectors to retain the state share of GST for a six-month period. The wing also urged the government to honour its promise to waive fixed power charges for the industrial sector, power and property tax for shopkeepers and bring down state share in GST on petrol.

Uttar Pradesh    

UP govt sets up 'Invest UP' to boost investment in the state

In a bid to streamline the state’s investment approval and attract investment, the Uttar Pradesh (UP) government has set up a nodal agency named 'Invest UP.' Reportedly, the agency will be headed by the chief minister while the cabinet minister for MSME, Investment & Export and cabinet minister for Industrial Development will be deputies. It will have an executive board that will be headed by the chief of the Department of Infrastructure and Industrial Development. ''This is the first time in Uttar Pradesh that a special ministry has been set up for investment,'' said said Sidharth Nath Singh, cabinet minister for MSME, Investment & Export.

Haryana    

Haryana asks govt to lower GST on textiles, fertilizers, footwear

Haryana Deputy Chief Minister Dushyant Chautala has asked the GST Council to lower the rates on textiles, fertilizers and footwear. He also sought extension of deadline for filing of tax for those paying GST of less than Rs 5 crore in the wake of the unprecedented situation arising because of COVID-19 pandemic. "Haryana has demanded from the Union government not to increase the tax on textiles, fertilizers and footwear. Same demand was also endorsed by Gujarat and Bihar," Chautala told reporters, on Friday, after taking part in the 40th meeting of the GST Council in New Delhi.

Andhra Pradesh    

AP govt to introduce power monitoring devices for MSMEs equipped with IoT technology

In order to improve the performance of Micro Small and Medium Enterprises (MSMEs) post lockdown, the Andhra Pradesh government is planning to introduce power monitoring devices equipped with Internet of Things (IoT) technology for the units. The government is contemplating the introduction of the Internet of Things (IoT) to enable power factor control devices in MSME units here. During a webinar on Sunday, Energy Secretary N Srikant discussed the modalities of the project with the officials of State Energy Conservation Mission (SECM), National Productivity Council (NPC) and Indian Institute of Technology - Hyderabad (IIT-H).
FISME’s official Twitter handle
@fisme
Knowledge and News Network (KNN)
KNN India’s official Twitter handle
@knnindia
Anil Bhardwaj, Secretary General
@abhardwaj_fisme
Your Views

Do you think that the recent stimulus package announced by government will help MSME to revive? *

According to FISME factor 66.7% think that the recent stimulus package announced by government will help MSME to revive, 16.7% think it will not help while 16.7% think otherwise.
Knowledge Store

HR Heuristics

HR’s Compelling New Role In Response To The Coronavirus

The coronavirus pandemic has caused tremendous disruption in lives and in business, and human resources (HR) is key to supporting companies and catalyzing changes in the workplace. Organizations must rethink, reimagine and reconsider how they foster talent, deliver services and strengthen their organizations through a forward-thinking HR strategy—how they deliver the most compelling work experience.

Finance Fundamentals

Impact Of COVID-19 On Startup Funding: How To Raise Capital During a Crisis?

The COVID-19 pandemic will have a far-reaching and long-lasting impact on the global economy. Even though lockdown restricts have now been eased in several countries, financial markets are likely to take a long time to recover from the coronavirus-triggered crisis. As reported by the International Monetary Fund, this is the worst economic downturn since the Great Depression, projecting a humongous loss worth $9 trillion in global gross domestic product over the next two years.

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

35% MSMEs shutting shop

Around 35% of Micro Small and Medium Enterprises (MSME’s) have shutting down their operations despite the financial packages announced by the Government of India, said a survey by All India Manufacturers Organisation (AIMO). The study reveals that the financial stimulus announced by the centre doesn't qualify start-ups, which account for over 11 per cent of the MSMEs in the country.

SME Special

How Dell Startup Challenge finalist, CargoFL, is digitizing India’s trucking community and empowering logistics SMBs

The road transport sector of India is among the most critical sectors in the country, as it contributes eight percent of the country’s GDP. The sector is also one of the highest employment generators as it supports up to 20 crore people in India. It is also, quite unfortunately, highly unorganised, fragmented and underserved with just five to six percent of truckers having adopted technology solutions.

Success Story

How 3 Microsoft ex-employees built a Rs 300 Cr revenue sales enablement company

In 1999, three mid-management level employees at Microsoft decided to quit their corporate jobs and start their own sales enablement company. Snehashish Bhattacharjee, R Narayan, and Debabrata Majumdar had no experience in entrepreneurship and did not come from any family business background. However, their burning desire to venture into sales enablement drove them to invest Rs 17 lakh from their personal savings and start Denave in Noida.

Stockpile

The National Statistical Office (NSO), Ministry of Statistics and Programme Implementation is releasing Price Movement of selected Sub-Groups/Groups of Consumer Price Index (CPI) on Base 2012=100 for Rural, Urban, Combined for the month of May 2020 (Provisional) and for the month of April 2020 (Final).

Quotable Quotes

“ Arise, Awake and Stop not until the goal is reached. ”
– - Swami Vivekananda - Hindu monk who was a prolific thinker, great orator and passionate patriot
 
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:
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Editorial Team:
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Asstt. Editor: Kalpana Sharma
Types setting & websdesigning: Sanjay Sachan  
Video & Photography:  Subhan Khan

 

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