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  The FISME Factor  

 

President's Message
Mr Animesh SaxenaWith the Corona Virus infections in human beings declared epidemic at global scale, MSMEs are facing a complete shut-down of marketing channels, both domestic and export. With the Government directives of minimum travel and visits to market, footfalls in the market places has drastically reduced and even neighbourhood shops and stores are facing severe shortfall in sales. People are refraining from purchase of non - essential items like garments, footwear, utensils etc. which are essentially made in the MSME sector. The demand crisis is not limited to items of daily use. The organised sector also facing similar demand restrictions in white goods, passenger cars and all such consumer items and as MSMEs are major players in the supply chain, the vendors to these large manufacturers are also in serious problem of compiling inventories. The scenario is similar, if not more grievous, for the MSME exporters. The above situation clearly indicates an imminent closure of large number of MSMEs .FISME proposed a slew of measures to the Government ranging from seeking financial package to deferment of payment of loans, doing away with penalties, setting-up of a Standing Committee to respond to economic distress arising off COVID-19, easing credit especially easing margin requirements and making receivables period 6 months or more. FISME has also sought relaxation in compliances related Tax, labour laws and other regulatory requirements. While facing many of these challenges let’s not forget our responsibility towards those dependent upon us especially our employees. I pray the test is over sooner than later. "
Animesh Saxena, President, FISME
Vol VII, Issue 199: March 15, 2020
Business Banter: Lessons from Entrepreneurs
For Savvy Entrepreneurs, an Economic Downturn Creates Opportunity
Macro Metre
Modest growth observed in export amidst pandemic
Banks to lend Rs 1.85 lakh cr in next 6 months to specified sectors including MSMEs
Domestic Digest
RBI Governor recalls MSME challenges; expects to improve its competitiveness Knowledge and News Network (KNN)
Defence Dept on top in terms of maximum number of delayed payment applications on MSME Samadhaan Portal
Parliament panel seeks MSME dues clearance during resolution process
State Scan
Jammu MSMEs conduct awareness meeting on Coronavirus, takes precautionary measures Knowledge and News Network (KNN)
MSMEs in Howrah to get investment of Rs 12,000 cr: Bengal FM
MSMEs in Pune attract Rs 62,575 cr investment
World Watch
Malaysia wants to resolve palm oil spat with India within a month
Exports of 1,945 products to US grow by 5 per cent in June-December sans GSP incentives
Knowledge Store
This Gurugram-based dairy startup has new ways to fight adulteration
...And A Lot More

Business Banter: Lessons from Entrepreneurs

Moving from the startup phase to a growth phase

As COVID-19 wreaks havoc on a global scale, market-watchers are worrying about signs of another recession. Already, major conferences like South By Southwest and Facebook F8 have been cancelled. Airlines are grounding flights. Studios and startups are postponing film and product launches. Global stock markets have plummeted, evaporating $9 trillion and counting. Entrepreneurs are asking themselves a looming question: How can I protect my business during these uncertain times? It’s complicated, but I believe there is reason for optimism.
Writing on the Wall

Coronavirus outbreak: Time to work together, not at cross purpose

The Coronavirus outbreak is a moment to suspend political grievances and pursue global, regional and local collaboration. India’s call for greater cooperation by SAARC countries is a step in the right direction. The example of Iran in SAARC’s neighborhood should serve as a cautionary tale for all of South Asia, which is underdeveloped and has several inadequacies in its public health systems. It is not just that India has negated Pakistan’s attempt to raise the Kashmir issue. India’s cooperation initiative is the right thing to do at the moment. Similarly, US must suspend sanctions against...

Media Monitor

Macro Metre

Modest growth observed in export amidst pandemic

Amidst the pandemic of Coronavirus, nominal growth in exports has been observed by 2.91 percent at USD 27.65 billion during the month of February 2020. FIEO President Sharad Kumar Saraf said that in the wake of Novel Coronavirus, which not only pulled down the global sentiments but also affected the supply chain both internationally and domestically, such modest growth is encouraging. However the impact of pandemic Coronavirus will be more visible in the exports figure of March onwards. FIEO Chief said, “With major global players including China, US, economies of Europe, Japan, South Korea, Australia, Russia, Gulf countries are also facing the brunt as oil and commodity prices have also shown a drastic decline in recent days”.

Parliament passes Insolvency and Bankruptcy Code (Amendment) bill 2020

The parliament on Thursday passed amendments to the Insolvency and Bankruptcy Code (IBC) through voice vote in Rajya Sabha. The bill was already passed by the Lok Sabha on March 6. Replying to a discussion, Finance Minister Nirmala Sitharaman said, ''the amendments are periodic but brought thoughtfully and in sync with requirements of time. It is in letter and spirit with the Supreme Court's judgment.' ''The need for amendment in the IBC arose because of “changing requirement” and “requirement of fine tuning” the law as several MPs wanted to know why the government was bringing in so many amendments to a new law,” she asserted.

Banks to lend Rs 1.85 lakh cr in next 6 months to specified sectors including MSMEs

In the next six months, banks will lend Rs 1.85 lakh crore to specified sectors including micro, small and medium enterprises (MSMEs), said an expert. This can save around Rs 7,400 crore if credit growth happens at 9 per cent for housing and 5 per cent for vehicle and MSME loans, Soumya Kanti Ghosh, Group Chief Economic Adviser, State Bank of India has said. "As per our estimation the banking industry in the next 6 months (till July 31,2020) will be lending Rs 1.85 lakh crore in specified sectors and can save around Rs 7,400 crore (assuming credit growth of 9 per cent for housing and 5 per cent for vehicle and MSME loans) as CRR benefits," the SBI said in a paper.

Domestic Digest

RBI Governor recalls MSME challenges; expects to improve its competitiveness

Reserve Bank of India (RBI) Governor Shaktikanta Das has cited several challenges which the Micro, Small and Medium Enterprise (MSMEs) sector are facing at present like infrastructure, technology adoption and capacity building. However, Das felt that MSME sector has a lot of scope for improving its competitiveness While speaking at the recently held 15th Annual Banking Summit at Hotel Taj Mahal Palace, Colaba, Mumbai, Shaktikanta said, “The challenges in the MSME sector is confined to infrastructure bottlenecks, absence of formalisation, some inertia to technology adoption, capacity building, backward and forward leakages, lack of access to credit and risk capital and perennial problem of delayed payments by large corporates, which naturally effects the business cycle of the MSMEs.”

Defence Dept on top in terms of maximum number of delayed payment applications on MSME Samadhaan Portal

The Departments from Railways, Defence, Telecommunications and Health and Family Welfare have received maxium number of delayed payments applications which have been filed by micro and small enterprises (MSE) on MSME Samadhaan portal. As per the data available on the portal, 33 central ministries and 38 central departments, against which 535 and 894 cases of delayed payments have been filed so far. The number of applications filed by the MSE against the said department shows that Department of Defence/Ministry of Defence topping with 303 applications where as the Department of Telecommunications/Ministry of Communications has received 119 and Department of Health and Family Welfare/Ministry of Health and Family Welfare standing below them with 110 applications.

Parliament panel seeks MSME dues clearance during resolution process

Parliament's Standing Committee on Finance has said that Micro Small and Medium Enterprises (MSMEs) should be cleared on a priority basis during the course of the resolution process. The committee in its report tabled in the Parliament on Wednesday said that on the Insolvency and Bankruptcy (Second Amendment) Bill, 2019, said certain amendments in the bill may lead to over-regulation of suppliers particularly MSMEs and hence, it must be avoided. The committee further added delegated legislation through rules set-up by Insolvency and Bankruptcy Board of India (IBBI) should be adhered to address the needs and concerns of stakeholders.

T-Hub with Wadhwani Foundation to empower 30 incubators in India

Hyderabad-based startup incubator, T-Hub has said that it has won the Startup India and Department for Promotion of Industry and Internal Trade’s (DPIIT) bid to lead a capacity-building programme for 30 incubators in India. The objective is to enable and empower incubators to design a world-class entrepreneur support programme that covers all aspects of incubation.T-Hub, along with Wadhwani Foundation, will lead a programme to provide continued support and mentorship, it said in a statement on Tuesday.
State Scan

Jammu    

Jammu MSMEs conduct awareness meeting on Coronavirus, takes precautionary measures

In the wake of Coronavirus scare, Micro Small and Medium Enterprises (MSMEs) in Jammu have urged all unit holders to provide sanitizers, face masks etc and also hold awareness programmes amongst the industrial workers. In a meeting held on Friday, to discuss the necessary measures for the protection from COVID -19, Bari Brahmana Industries Association (BBIA) also informed that to provide necessary healthcare to any suspected industrial worker in future, an isolation ward has been setup in ESI Hospital Bari Brahmana. BBIA also appeals to government to ensure the availability of protective masks and sanitizers in the market to avoid any black marketing of these products.

West Bengal    

MSMEs in Howrah to get investment of Rs 12,000 cr: Bengal FM

The Micro Small and Medium Enterprises (MSMEs) sector in Howrah district is estimated to get an investment of Rs 12,000 crore in the coming days, said Bengal Finance and Industries Minister Amit Mitra. While addressing a gathering, at a seminar for the Micro Small and Medium Enterprises (MSME) and Textiles sector, he also announced a list of projects which include a Rs 5,000 crore hosiery park at Jagdishpur covering 120 acres and space for 170 units. The project is expected to provide 1 lakh employment. “The state government is offering critical infrastructure such as access road and power supply. Around 15 acres of land is being transferred by WBSIDCL to a special purpose vehicle (SPV) for the project,” Mitra said. As per the Mitra, the list of projects also include a logistics park being developed by the Indian arm of Hong Kong-based real estate developer ESR at Uluberia.

Kerala    

Kerala govt to provide land for MSMEs

In a bid to make available industrial plots for Micro Small and Medium Enterprises (MSME) industries here, the Kerala government will soon come out with a public-private partnership model. ''Addressing the issue of land scarcity faced by small and medium scale industries, the state government is taking steps to make available multi-purpose industrial plots. The first such endeavour is getting ready in Vadakkanchery in Thrissur, based on a public-private partnership model,'' Industries Minister E P Jayarajan informed the Assembly on Wednesday.

Maharashtra    

MSMEs in Pune attract Rs 62,575 cr investment

The Micro, Small and Medium Enterprises (MSME) in Pune have attracted Rs 62,575 crore capital investment, according to the Economic Survey of Maharashtra (2019-20). The said investment is 29.3 per cent of the total Rs 2, 13,400 crore investment the sector has attracted in Maharashtra during the period, reveals the survey, which was presented in the state Legislature on March 5. The survey, which was presented in the state Legislature on March 5, covered all the seven regions of the state — Mumbai, Konkan, Pune, Aurangabad, Nashik, Amravati and Nagpur —and has found that Pune has seen the most activity in terms of investment and employment generation.
World Watch

Malaysia    

Malaysia wants to resolve palm oil spat with India within a month

Malaysia aims to resolve its palm oil spat with India within a month, the southeast Asian nation's new minister of plantation industries and commodities said on Wednesday. Mohd Khairuddin Aman Razali added that he wanted to send a delegation to India as soon as possible in an effort to improve ties between the two countries. India, the world's biggest consumer of edible oil, this year set curbs on palm oilNSE 4.90 % purchases from Malaysia in retaliation for comments by then prime minister, Mahathir Mohamad, criticising New Delhi's policy on the Himalayan region of Kashmir.
Read More    Back to Top

United States of America    

Exports of 1,945 products to US grow by 5 per cent in June-December sans GSP incentives

Exports of 1,945 Indian products, which were availing duty incentives under the GSP scheme of the US, has recorded a growth of 5 per cent to USD 5.47 billion during June-December 2019 period, Parliament was informed on Friday. Benefits under Generalised System of Preferences (GSP) were rolled back by the US in June last year. Under the GSP programme, 1,945 products including auto components and textile materials used to get duty-concessions in the American markets.
Read More    Back to Top
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

Are Indian MSMEs ready to handle Coronavirus (COVID-19) epidemic?

According to FISME factor 33.3% MSMEs think that they are ready to handle Coronavirus (COVID-19) epidemic, 44.4% think they are not not while 22.2% think otherwise?
Knowledge Store

HR Heuristics

Young inquisitive employees require continual learning

With four generation of employees at the workplace, the game has changed drastically for organisations today. There is a greater need for the leaders to retain their workforce and keep them engaged by providing learning opportunities for each of these generations.

Finance Fundamentals

Coronavirus and a Looming Recession: How to Raise Capital in Uncertain Times

For the past decade, we have been in the midst of the biggest economic expansion in American history with unemployment at a historic low of 3.6%. Naturally, during periods of economic expansion, raising capital for a startup or new business is easier.

Marketing Mantras

4 Strategies to Make Your Sales Funnels Convert in 2020

As an entrepreneur trying to stay relevant and thrive in the competitive digital age, there’s one marketing strategy you’ve likely heard holds the secret to growing your business online: sales funnels. You’ve seen the ads, read the blogs, watched the tutorials and tried your hand at implementing sales funnels in your own business.

Policy Polemic

Starting with Rs 35 lakh investment, this Vadodara startup is digitising India’s healthtech sector

When it comes to any health diagnosis, it is extremely important to provide the entire patient history to the doctor, as one missed allergy or injury may result in a faulty diagnosis. A patient’s clinical data can not just help improve care for the patient in question, but also future patients.

SME Special

This Gurugram-based dairy startup has new ways to fight adulteration

A national-level survey carried out by the Food Safety and Standards Authority of India (FSSAI) last year found that most of the milk consumed in India is adulterated. Unorganised suppliers are not aware of the hygiene and quality standards that need to be maintained. They are in a rush to market impure, unprocessed milk as farm fresh and pure. This risks the health of a large number of Indians and even exposes them to poisoning at times.

Success Story

Starting with Rs 35 lakh investment, this Vadodara startup is digitising India’s healthtech sector

When it comes to any health diagnosis, it is extremely important to provide the entire patient history to the doctor, as one missed allergy or injury may result in a faulty diagnosis.

Stockpile

The National Statistical Office (NSO), Ministry of Statistics and Programme Implementation is releasing CPI (Rural, Urban, Combined) on Base 2012=100 for the month of February 2020

Quotable Quotes

“ In business, First of all you need commitment, dedication & passion for what you are doing ”
– - Lakshmi Mittal - Chairman and CEO of ArcelorMittal
 
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 members of FISME during the period from 1st March 2020 to 15th March 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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