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President's Message
Following Prime Minister’s announcement of the Rs. 20 lac crore relief package to address challenges of Covid-19, Finance Minister delivered the much awaited package for MSMEs. It has three major components: Rs. 3 lac crore loan facility, a Rs. 20,000 crore fund for stressed MSMEs and a Rs. 10000 crore fund of funds (with total corpus of Rs. 50,000 crore) for start-ups. The collateral free loan amount admissible will be 20% of outstanding loan below Rs. 25 crore (and annual turnover below Rs. 100 crore) for standard accounts. Govt will create Credit Guarantee for the purpose. Many experts claim that actual fiscal expenditure by Govt (from Budget) may be just Rs. 4000 cr. The package, nevertheless, is silent on any direct assistance to MSMEs towards payment of the salaries of their workers and or meeting fixed expenses like repayment liability of existing loans. Obviously, MSME community is somewhat disappointed. Most associations are of view that Govt should not have aroused the expectations to a crescendo throwing mega numbers of relief package and then delivering little on ground. There may have been genuine financial constraints before the Government. Rather, they could have held a frank dialogue with industries and we together would have found more plausible solution. We intend to convey our anguish to Government and at the same time push for a candid discussion to find a more credible response of the Government to address the Covid-19 challenge.
"
Till as early as February, most companies were busy planning their long-term business strategies, setting ambitious growth targets, and launching new products. However, an unforeseen force majeure event has brought all those ambitious plans and targets to naught. The sudden turn of events unleashed by a global disease outbreak has forced organizations to hit a pause and reset button. While uncertainty prevails over what the future would entail, what is clear is that it would be starkly different from the world we have known. Until a vaccine is made available to counter the virus, the requirements of social distancing and the need for restricted movement will have to remain in place, even if blanket lockdowns are removed.
Prime Minister Narendra Modi’s promise of a Rs 20 lakh crore stimulus, to nurse India’s stricken economy back out of the ICU, certainly grabbed headlines. But those looking for a ‘big bang’ fiscal package that would significantly boost demand in the economy are still looking, as are those hoping for a 1991-like reforms moment triggered by the magnitude of the lockdown induced crisis. With the second leg of measures following Modi’s announcement unveiled by finance minister Nirmala Sitharaman yesterday, what’s apparent...
The Commerce Ministry has amended the import policy condition for Silver making norms a bit easier for import of certain kinds of silver.
The imports are however restricted and allowed only through nominated agencies as notified by Reserve Bank of India and the Directorate General of Foreign Trade (DGFT). The DGFT has meanwhile exempted import of silver under Advance Authorisation and supply of silver directly by foreign buyers to exporters against export orders.
Advance authorisation is issued to allow duty free import of inputs, which is physically incorporated in export product.
Finance Minister Nirmala Sitharaman on Wednesday announced Rs 3 lakh crore collateral free loan for Micro Small and Medium Enterprises (MSMEs).
''The collateral free loans are for those with upto Rs 25 crore outstanding loan or Rs 100 crore turnover. The tenure of the loan will be 4-year and moratorium of 12 months,'' said FM at a press conference. The Finance Minister also announced 100% credit guarantee cover to banks and Non-Banking Financial Corporation (NBFCs) on principal and interest which will benefit 45 lakh units.
Sitharaman further said that the government will create a Fund of Fund to infuse Rs 50,000 crore as equity for MSMEs which are viable businesses and need hand holding.
Carpet Export Promotion Council (CEPC) has said that they are in the process of finalising the Virtual Fairs as an alternative to the physical fairs for ensuring business continuity during COVID-19 lockdown.
During an interactive meeting through video conferencing with prominent members of the industry along with the COA Members, Siddh Nath Singh, Chairman, CEPC said, ''The present scenario of COVID-19, the biggest challenge is that overseas buyer will not be able to visit their suppliers and likewise we may not be in position to visit abroad to meet the buyers, therefore it is important to look for alternatives to the physical fairs and exhibitions which were being held till now.''
The Confederation of All India Traders (CAIT) has proposed that a ‘Covid cess’ be levied on Chinese imports that have substitutes in India.
''The revenue from this cess should be utilised for the upliftment and growth of Indian traders who are in a distressed situation and need strong handholding of both Centre and respective State Governments,'' said CAIT in a statement on Monday. There is a strong need to curb unnecessary imports of low-cost and low-quality products from China which are flooding Indian domestic markets, the release said. Indian traders are forced to import from China because the consumers want low price products, it added.
The Clothing Manufacturers Association of India (CMAI) has welcomed the measures announced by Finance Minister Nirmala Sitharaman.
''The enhancing of the upper limits of the sector, the merging of the Manufacturing and Service Sectors, and the addition of a Turnover based criteria, will all go a long way in enabling many more enterprises, especially in the garment industry, to take advantage of the various schemes under the MSME umbrella,'' said CMAI.
The central government on Wednesday changed the definition of Micro Small and Medium Enterprises (MSMEs) and introduced a revised the criteria to define a MSME.
''The revision was a long pending demand of MSMEs,’’ said Finance Minister Nirmala Sitharaman at a press conference sharing details of the 20-lakh crore economic packages. As per the revised MSME classification, any firms in both manufacturing and service sector will be defined as “Micro” if they have an investment up to Rs 1 crore and turnover up to Rs 5 crore.
Earlier firms could only be defined as Micro if they had an investment up to Rs 25 lakh and Rs 10 lakh in manufacturing and service sector respectively.
Union Ministry of Micro Small and Medium Enterprises (MSME) has launched CHAMPIONS portal, a technology-driven Control Room-Cum-Management Information System, for addressing the grievances of smaller units in the country.
''The system utilising modern ICT tools is aimed at assisting Indian MSMEs march into big league as National and Global CHAMPIONS,'' the MSME Ministry has said. he Champions stand here for Creation and Harmonious Application of Modern Processes for Increasing the output and national strength.
Finance Minister Nirmala Sitharaman on Wednesday said that for next three months Employee Provident Fund (EPF) contribution will be 10% each for employees and employers as compared to the statutory obligation of 12%.
''The Central Public Sector Enterprises (CPSEs) and State PSUs will, however, continue to contribute 12% as employer contributions. This scheme will be applicable for workers who are not eligible for 14% EPF support under PM Garib Kalyan Package,'' said FM. This will provide relief to about 6.5 lakh establishments covered under EPFO and about 4.3 cr such employees will provide liquidity of Rs 6750 cr to employers and employees over 3 months.
In a series of steps to help boost morale of the micro, small and medium enterprises (MSME) sector, the Uttar Pradesh Government has now decided to accord industry status to warehousing and logistics units.
The step is likely to woo the potential investors to set up warehouses on industrial land as the move would bring about a drastic reduction (approximately one third) in the cost of setting up warehousing and logistic parks.
In a bid to ease out labour related problems for the Micro Small and Medium Enterprises (MSMEs) in the state, Yogi Adityanath-led Uttar Pradesh (UP) government has suspended almost all Labour Laws for the next three years.
On Thursday, in a meeting chaired by Chief Minister Yogi Adityanath, UP cabinet gave the green signal to the 'Uttar Pradesh Temporary Exemption from Certain Labour Laws Ordinance, 2020' which relaxes all labour laws in the state, except three, which are related to abolishment of bonded labour, ex gratia to workers in case of work-related diseases and disabilities, and timely wage payments.
In a bid to continue significant role of Micro Small and Medium Enterprises (MSMEs) in economic development, Haryana Chief Minister Manohar Lal Khattar has made several announcements to bring these units back on track.
During an interaction with representatives of MSMEs along with the members of all districts through videoconference here on Saturday, discussions were held on such as opening of an industry, labour issues and ease of doing business.
Maharashtra Government has issued a Standard Operating Procedure (SOP) for export of sanitizers, masks, paracetamol, hydroxychloroquine etc which were earlier allowed for export by Director General of Foreign Trade (DGFT) on the request of Ministry of External Affairs (MEA).
As per the SOP, the JNCH is directed to maintain a separate register of Exemption Certificates issued by the DGFT to the exporters of prohibited goods. Exporters allowed to export against such Exemption Certificates shall make a request for issuance of NOC from SIIB (X), JNCH at sibx@jnchagov.in using their entity-based email addresses. The exporter shall provide CFS details and attach scanned copies of Check List/Shipping Bill,” the circular said.
The Centre has decided to resume trade of essential items with Bangladesh via the rail route after the West Bengal government refused to allow goods vehicles through the India-Bangladesh land borders amid the Covid-19 pandemic.
ET has learnt that the first consignment of over 2,000 tonnes of onions is on its way to Bangladesh, which will help bring down onion prices in that country during the ongoing Muslim holy month of Ramadan.
Do you think that extension of 14 days lockdown by 3rd May is right step to deal with COVID-19 crisis?
According to FISME factor 50% MSMEs think that extension of 14 days lockdown by 3rd May is right step to deal with COVID-19 crisis while 50% think it is not.
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The COVID-19 pandemic has brought many new challenges to our professional and personal lives. Employees around the world are in a crisis, as businesses are suddenly distant.
Since the majority of the global workforce is not used to working from home, this sudden change has led to many problems.
6 Smart Money Moves to Make Right Now as a Business Owner
It’s a troublesome time for everyone in the business world right now, particularly for those of us who own our own businesses. My business, Student Loan Planner, launched in 2016 and grown steadily over the past four years. However, as a CFA and former bond trader, I always knew the day would come when we’d need to weather a storm.
What Marketers Need To Look At Post The Covid-19 Era
To say that the world’s current situation is grim would be an understatement. Across the globe, and in India, the COVID-19 pandemic is gaining scale—and fast. Being named the black swan event of 2020, this speculative state of affairs has baffled individuals and industries alike. While numerous businesses across sectors have ground to a grudging halt, others are focusing on taking on essential services to stay afloat during the nationwide lockdown that has been in place since March 2020.
Hailing announcements by FM, clothing manufacturers say support pkg should be available to entire value chain and banks should respond pro-actively
The Clothing Manufacturers Association of India (CMAI) has welcomed the measures announced by Finance Minister Nirmala Sitharaman.
''The enhancing of the upper limits of the sector, the merging of the Manufacturing and Service Sectors, and the addition of a Turnover based criteria, will all go a long way in enabling many more enterprises, especially in the garment industry, to take advantage of the various schemes under the MSME umbrella,'' said CMAI.
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Experts around the world agree that social distancing is a vital part of avoiding the deadly coronavirus. It is, perhaps, one of the very few tools we have today to fight the highly contagious COVID-19 virus. The disease is spread through airborne particles, and by touching contaminated surfaces. As of May 4, the total number of COVID-19 cases in India was 42,533, with 1,373 deaths reported.
Indore-based cleantech startup aims to solve India’s electricity crisis
A switch to renewable sources of energy is the need of the hour to stop India’s non-renewable sources from getting exhausted. Indore-based AP Solar Works is among the startups working to make this a reality. The renewable energy and cleantech startup provides cost-effective solar solutions to make people self-dependent for their power usage. It allows people to generate their own electricity through the installation of its solar panels.
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 April 2020 (Provisional) and CPI (Final) for the month of March 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:
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Following Prime Minister’s announcement of the Rs. 20 lac crore relief package to address challenges of Covid-19, Finance Minister delivered the much awaited package for MSMEs. It has three major components: Rs. 3 lac crore loan facility, a Rs. 20,000 crore fund for stressed MSMEs and a Rs. 10000 crore fund of funds (with total corpus of Rs. 50,000 crore) for start-ups. The collateral free loan amount admissible will be 20% of outstanding loan below Rs. 25 crore (and annual turnover below Rs. 100 crore) for standard accounts. Govt will create Credit Guarantee for the purpose. Many experts claim that actual fiscal expenditure by Govt (from Budget) may be just Rs. 4000 cr. The package, nevertheless, is silent on any direct assistance to MSMEs towards payment of the salaries of their workers and or meeting fixed expenses like repayment liability of existing loans. Obviously, MSME community is somewhat disappointed. Most associations are of view that Govt should not have aroused the expectations to a crescendo throwing mega numbers of relief package and then delivering little on ground. There may have been genuine financial constraints before the Government. Rather, they could have held a frank dialogue with industries and we together would have found more plausible solution. We intend to convey our anguish to Government and at the same time push for a candid discussion to find a more credible response of the Government to address the Covid-19 challenge.
"
Till as early as February, most companies were busy planning their long-term business strategies, setting ambitious growth targets, and launching new products. However, an unforeseen force majeure event has brought all those ambitious plans and targets to naught. The sudden turn of events unleashed by a global disease outbreak has forced organizations to hit a pause and reset button. While uncertainty prevails over what the future would entail, what is clear is that it would be starkly different from the world we have known. Until a vaccine is made available to counter the virus, the requirements of social distancing and the need for restricted movement will have to remain in place, even if blanket lockdowns are removed.
The Commerce Ministry has amended the import policy condition for Silver making norms a bit easier for import of certain kinds of silver.
The imports are however restricted and allowed only through nominated agencies as notified by Reserve Bank of India and the Directorate General of Foreign Trade (DGFT). The DGFT has meanwhile exempted import of silver under Advance Authorisation and supply of silver directly by foreign buyers to exporters against export orders.
Advance authorisation is issued to allow duty free import of inputs, which is physically incorporated in export product.
Finance Minister Nirmala Sitharaman on Wednesday announced Rs 3 lakh crore collateral free loan for Micro Small and Medium Enterprises (MSMEs).
''The collateral free loans are for those with upto Rs 25 crore outstanding loan or Rs 100 crore turnover. The tenure of the loan will be 4-year and moratorium of 12 months,'' said FM at a press conference. The Finance Minister also announced 100% credit guarantee cover to banks and Non-Banking Financial Corporation (NBFCs) on principal and interest which will benefit 45 lakh units.
Sitharaman further said that the government will create a Fund of Fund to infuse Rs 50,000 crore as equity for MSMEs which are viable businesses and need hand holding.
Carpet Export Promotion Council (CEPC) has said that they are in the process of finalising the Virtual Fairs as an alternative to the physical fairs for ensuring business continuity during COVID-19 lockdown.
During an interactive meeting through video conferencing with prominent members of the industry along with the COA Members, Siddh Nath Singh, Chairman, CEPC said, ''The present scenario of COVID-19, the biggest challenge is that overseas buyer will not be able to visit their suppliers and likewise we may not be in position to visit abroad to meet the buyers, therefore it is important to look for alternatives to the physical fairs and exhibitions which were being held till now.''
The Confederation of All India Traders (CAIT) has proposed that a ‘Covid cess’ be levied on Chinese imports that have substitutes in India.
''The revenue from this cess should be utilised for the upliftment and growth of Indian traders who are in a distressed situation and need strong handholding of both Centre and respective State Governments,'' said CAIT in a statement on Monday. There is a strong need to curb unnecessary imports of low-cost and low-quality products from China which are flooding Indian domestic markets, the release said. Indian traders are forced to import from China because the consumers want low price products, it added.
The Clothing Manufacturers Association of India (CMAI) has welcomed the measures announced by Finance Minister Nirmala Sitharaman.
''The enhancing of the upper limits of the sector, the merging of the Manufacturing and Service Sectors, and the addition of a Turnover based criteria, will all go a long way in enabling many more enterprises, especially in the garment industry, to take advantage of the various schemes under the MSME umbrella,'' said CMAI.
The central government on Wednesday changed the definition of Micro Small and Medium Enterprises (MSMEs) and introduced a revised the criteria to define a MSME.
''The revision was a long pending demand of MSMEs,’’ said Finance Minister Nirmala Sitharaman at a press conference sharing details of the 20-lakh crore economic packages. As per the revised MSME classification, any firms in both manufacturing and service sector will be defined as “Micro” if they have an investment up to Rs 1 crore and turnover up to Rs 5 crore.
Earlier firms could only be defined as Micro if they had an investment up to Rs 25 lakh and Rs 10 lakh in manufacturing and service sector respectively.
Union Ministry of Micro Small and Medium Enterprises (MSME) has launched CHAMPIONS portal, a technology-driven Control Room-Cum-Management Information System, for addressing the grievances of smaller units in the country.
''The system utilising modern ICT tools is aimed at assisting Indian MSMEs march into big league as National and Global CHAMPIONS,'' the MSME Ministry has said. he Champions stand here for Creation and Harmonious Application of Modern Processes for Increasing the output and national strength.
Finance Minister Nirmala Sitharaman on Wednesday said that for next three months Employee Provident Fund (EPF) contribution will be 10% each for employees and employers as compared to the statutory obligation of 12%.
''The Central Public Sector Enterprises (CPSEs) and State PSUs will, however, continue to contribute 12% as employer contributions. This scheme will be applicable for workers who are not eligible for 14% EPF support under PM Garib Kalyan Package,'' said FM. This will provide relief to about 6.5 lakh establishments covered under EPFO and about 4.3 cr such employees will provide liquidity of Rs 6750 cr to employers and employees over 3 months.
In a series of steps to help boost morale of the micro, small and medium enterprises (MSME) sector, the Uttar Pradesh Government has now decided to accord industry status to warehousing and logistics units.
The step is likely to woo the potential investors to set up warehouses on industrial land as the move would bring about a drastic reduction (approximately one third) in the cost of setting up warehousing and logistic parks.
In a bid to ease out labour related problems for the Micro Small and Medium Enterprises (MSMEs) in the state, Yogi Adityanath-led Uttar Pradesh (UP) government has suspended almost all Labour Laws for the next three years.
On Thursday, in a meeting chaired by Chief Minister Yogi Adityanath, UP cabinet gave the green signal to the 'Uttar Pradesh Temporary Exemption from Certain Labour Laws Ordinance, 2020' which relaxes all labour laws in the state, except three, which are related to abolishment of bonded labour, ex gratia to workers in case of work-related diseases and disabilities, and timely wage payments.
In a bid to continue significant role of Micro Small and Medium Enterprises (MSMEs) in economic development, Haryana Chief Minister Manohar Lal Khattar has made several announcements to bring these units back on track.
During an interaction with representatives of MSMEs along with the members of all districts through videoconference here on Saturday, discussions were held on such as opening of an industry, labour issues and ease of doing business.
Maharashtra Government has issued a Standard Operating Procedure (SOP) for export of sanitizers, masks, paracetamol, hydroxychloroquine etc which were earlier allowed for export by Director General of Foreign Trade (DGFT) on the request of Ministry of External Affairs (MEA).
As per the SOP, the JNCH is directed to maintain a separate register of Exemption Certificates issued by the DGFT to the exporters of prohibited goods. Exporters allowed to export against such Exemption Certificates shall make a request for issuance of NOC from SIIB (X), JNCH at sibx@jnchagov.in using their entity-based email addresses. The exporter shall provide CFS details and attach scanned copies of Check List/Shipping Bill,” the circular said.
The Centre has decided to resume trade of essential items with Bangladesh via the rail route after the West Bengal government refused to allow goods vehicles through the India-Bangladesh land borders amid the Covid-19 pandemic.
ET has learnt that the first consignment of over 2,000 tonnes of onions is on its way to Bangladesh, which will help bring down onion prices in that country during the ongoing Muslim holy month of Ramadan.
According to FISME factor 50% MSMEs think that extension of 14 days lockdown by 3rd May is right step to deal with COVID-19 crisis while 50% think it is not. 
The COVID-19 pandemic has brought many new challenges to our professional and personal lives. Employees around the world are in a crisis, as businesses are suddenly distant.
Since the majority of the global workforce is not used to working from home, this sudden change has led to many problems.
It’s a troublesome time for everyone in the business world right now, particularly for those of us who own our own businesses. My business, Student Loan Planner, launched in 2016 and grown steadily over the past four years. However, as a CFA and former bond trader, I always knew the day would come when we’d need to weather a storm.
To say that the world’s current situation is grim would be an understatement. Across the globe, and in India, the COVID-19 pandemic is gaining scale—and fast. Being named the black swan event of 2020, this speculative state of affairs has baffled individuals and industries alike. While numerous businesses across sectors have ground to a grudging halt, others are focusing on taking on essential services to stay afloat during the nationwide lockdown that has been in place since March 2020.
Experts around the world agree that social distancing is a vital part of avoiding the deadly coronavirus. It is, perhaps, one of the very few tools we have today to fight the highly contagious COVID-19 virus. The disease is spread through airborne particles, and by touching contaminated surfaces. As of May 4, the total number of COVID-19 cases in India was 42,533, with 1,373 deaths reported.
A switch to renewable sources of energy is the need of the hour to stop India’s non-renewable sources from getting exhausted. Indore-based AP Solar Works is among the startups working to make this a reality. The renewable energy and cleantech startup provides cost-effective solar solutions to make people self-dependent for their power usage. It allows people to generate their own electricity through the installation of its solar panels.
