If you are unable to view this mailer, click here.
President's Message
India posted a positive trade balance during first quarter of the year (April-June 2020). While this brings cheers as imports experienced steep contraction while exports continued recovery. However, the news brought a new headache for exporters, especially the MSME exporters. As imports have slowed down, there is reduced inward movement of containers. Due to this exporters are finding it difficult to get enough containers. The MSMEs face greater difficulties as most of the their shipments are ‘less than container loads’ (LCL) and need to be consolidated with others to make one full container load. In the times of shortage of containers, Shipping lines give preference to large clients with whom they have long term contracts and what is left is offered to ones who require at least full container load. But MSME exporters have also commitments to meet and ship goods against deadlines. FISME has asked the Government to engage Shipping lines in a dialogue and find a solution to the problem.
"
When you choose to hack your own path through the workplace jungle, you’re taking on a lot of risk and uncertainty. No matter your industry, you’ll face financial risk. Even freelancers struggle to find clients from time to time. You’ll also have to adapt to the varying demands of your business—you’ll have to be good at both forward-facing client communication, and head-to-the-books labor. And just because you’re in charge doesn’t mean you don’t still conceptually have a boss. There will always be commitments to customers and business associates. There will always be deadlines.
India’s outbound shipments rose for the first time in seven months with merchandise exports registering a 6% growth in September—higher than 5.3% suggested by provisional data released earlier--driven mostly by an increase in demand for engineering goods, petroleum products, pharmaceuticals and readymade garments. Exports rose to $27.6 billion, while imports contracted 19.6% to $30.3 billion, resulting in a trade deficit of $2.7 billion, according to data released by the commerce ministry.
Nirmala Sitharaman, Union Minister for Finance & Corporate Affairs participated in the G20 Finance Ministers and Central Bank Governors (FMCBG) meeting under the Saudi Arabian Presidency here today through video conferencing.
Ministers and Governors of G20 countries discussed the current global economic outlook and G20’s response to the COVID-19 pandemic, along with other G20 Finance Track priorities for the year 2020. In the first session, the Finance Minister spoke on updates to the G20 Action Plan in response to COVID-19 which was endorsed by the G20 Finance Ministers and Central Bank Governors on April 15th 2020. The union minister emphasised that the updated commitments in the G20 Action Plan have to be kept relevant in the current policy context for the action points to remain effective as a policy response to COVID-19.
While the steep fall in merchandise imports in June quarter brought cheers to many, Indian exporters have to brace for an unforeseen development: shortage of containers for shipping goods.
While announcing the monetary policy, the Reserve bank of India released data about India's current account surplus. The positive balance of trade rose to $ 3.9 percent of GDP (gross domestic product) in the first quarter of 2020.
The export of essential agri commodities for the cumulative period of April-September, 2020 has increased by 43.4% to Rs 53626.6 crore as compared to Rs 37397.3 crore in the same period last year.
Major commodity groups which have recorded positive export growth during April-Sept, 2020-21 vis-à-vis April-Sept, 2019-20 are Groundnut (35%), Refined Sugar (104%), wheat (206%), Basmati Rice (13%) and Non-Basmati Rice (105%) etc.
Reserve bank of India (RBI) announced monetary policy decisions on Friday. The central bank has kept repo rates unchanged at 4 percent and reverse repo rate at 3.35 percent. The RBI Governor also announced a host of new measures to be undertaken by the central bank.
RBI Governor Shaktikanta Das said on that the country's economy is likely to contract 9.5 per cent in the current financial year, "with risks tilted to the downside". While maintaining a status quo on policy rates citing high inflation. The GDP may break out of the coronavirus-induced contraction and turn positive by the fourth quarter of 2020, Governor Das said.
To help business partners for money transfers anytime in their bank account on the same day of receiving payment, without waiting for the next day Paytm, India's leading payment gateway service provider has today announced the launch of same-day settlement facility for all kinds of fund transfers on its payment gateway.
This new settlement features of Paytm will help businesses that depend upon immediate availability of funds to pay down-stream partners. This includes e-commerce companies, government institutions, and all businesses involving inventories, especially those involved in day to day trading who depend heavily on cash procurements.
The Tribal Cooperative Marketing Development Federation of India (TRIFED) has launched ‘Tech For Tribals’ a training programme for tribal MSMEs using Self Help Grups and Van Dhan Vikas Kendras (VDVKs).
Aimed at the holistic development of tribal with a focus on entrepreneurship development, soft skills, IT, and business development the TRIFED is offering the training in collaboration with Ministry of Small and Medium Enterprises (MSME) under the Entrepreneurship Skill Development Programme.
With enhancement of retail exposure limit from Rs. 5 crore to 7.5 crore, the Reserve bank of India has given greater flexibility to banks to extend loans to retail borrowers and MSMEs.
The move has been announced during release of monetary policy report (Oct 2020).
Now for the loan exposure up to Rs. 7.5 crore (both fund and non-fund based), the banks would not require a Bank Loan Rating (BLR) from third party Credit Rating Agencies (CRAs).
In order to provide loan interest relief to MSMEs for ease of doing business, government has extended the validity of the Interest Subvention Scheme for MSMEs till March 31, 2021
The Reserve Bank of India stated on Wednesday that the two per cent interest subvention scheme for micro, small and medium enterprises (MSMEs) on loans offered by co-operative banks has been extended till 31st of March next year.
Ministry of finance granted permission to the Tamil Nadu to raise an additional amount of Rs.9,627 crore through open market borrowings.
The Department of Expenditure, Ministry of Finance, on Wednesday granted permission to Tamil Nadu become to borrow an additional amount of Rs.9,627 crore through open market. The permission was issued after the State formally communicated its acceptance for Option-1 to meet the shortfall arising out of GST implementation. 21 States and 2 Union Territories, Delhi and Jammu & Kashmir, have so far requested Option-1.
If the pandemic and political turmoil were not bad enough, the industrial sector of Jammu & Kashmir have had to brace for another blow- restriction on movement of workers to and from neighboring states.
“The Industrial Sector of Jammu & Kashmir is suffering very badly due to shortage of Industrial Workers. As government has imposed restrictions on the movement of workers coming from outside the State, they have to wait for days at Lakhanpur and are forced to return back”, complained Lalit Mahajan of Bari Brahmana Industries Association (BBIA).
To finance inclusive and sustainable water supply and sanitation infrastructure and services in 14 secondary towns of the state of Rajasthan, the Government of India and the Asian Development Bank (ADB) on Monday signed a $300 million loan.
The loan agreement of ‘Rajasthan Secondary Towns Development Sector Project’ was signed by Sameer Kumar Khare, Additional Secretary (Fund Bank and ADB), Department of Economic Affairs in the Ministry of Finance and Takeo Konishi, Country Director of ADB’s India Resident Mission.
Aiming to strengthen business relations between India and Mexico, business to business MoUs were signed in the fifth meeting of the India-Mexico Bilateral High Level Group on Trade, Investment and Cooperation (BHLG). The meeting was held on 9 October 2020 through video conference.
The Electronics & Computer Software Export Promotion Council (ESC) of India signed Memorandum of Understanding (MoU) with and the Mexican Chamber of Electronics, Telecommunications and Information Technologies (CANIETI).
Aiming to use natural gas as an environment friendly motor fuel for mutual benefit, the first ever India-Russia webinar on the use of natural gas as motor fuel was organized under the aegis of Ministry of Petroleum and Natural Gas, Government of India and the Ministry of Energy of the Russian Federation.
On the occasion, Tarun Kapoor, Secretary, Ministry of Petroleum & Natural Gas, Government of India informed that the Memorandum of Understanding between Ministry of Petroleum and Natural Gas, India and Ministry of Energy of the Russian Federation for cooperation on the use of Natural Gas for Transportation was signed in presence of Hon’ble Prime Minister of India, Narendra Modi and Hon’ble President of Russian Federation Mr. Vladimir Putin.
Five ways leaders can accelerate innovation in their organisation
Leaders are at the forefront of this change and tasked with giving direction to their organisations, to successfully emerge from this crisis unscathed. It starts with changing mindsets and building resilience. Organisationally, achieving or improving resilience includes building a more agile operating model; ensuring that the workforce has the right capability set; nurturing organisational relationships; sharing data in real time; displaying and promoting leadership that engenders trust, supports creativity and innovation.
Trade finance: What's holding back the Indian MSMEs?
Micro, Small and Medium Enterprises (MSMEs) play a key role in the industrialisation of the hinterlands as well as in generating employment in these regions. They drive the economy from below by establishing their own enterprises, enabling higher exports, and helping foster innovation. However, these enterprises also face a multitude of hurdles on their path to progress.
In 2015, Google went through restructuring and a new corporate brand, Alphabet Inc. was created. Many divisions that operate in businesses other than Internet services became subsidiaries of Alphabet. In 2007, Apple Computer, Inc. dropped ‘Computer’ from its name and became Apple Inc., because the company had shifted its emphasis from computers to consumer electronics with brands like iPod, Apple TV and iPhone.
Unavailability of containers & rise in freight charges hampering export growth
Amidst progress in Indian export, exporters have stated that non-availability of containers and rise in sea freights are posing as huge problem for the nation’s outbound shipments.
Non-Availability of Containers for the Export Sector is posing a serious concern for meeting delivery commitments of foreign buyers, Sharad Kumar Saraf, President, FIEO stated on Wednesday.
Using electric planes and UAVs, this startup wants to redefine urban mobility in India
Increasing population, encroachments, traffic problems, and infrastructure problems are major concerns for Indian roadways. In a bid to solve issues related to inadequate road infrastructure, Chennai-based The ePlane Company is looking to take the aerial route. Ubifly Technologies Private Limited, better known as The ePlane Company (TEC), was founded in 2016 by Pranjal Mehta and Satyanarayanan Chakravarthy to provide aerial delivery services. The startup ideated out from the National Centre for Combustion Research & Development Lab (NCCRD).
Guwahati-based Aromica Tea promotes wellness through organic and herbal tea blends
Launched in 2018, Guwahati-based tea startup Aromica Tea offers 30 tea blends that incorporate the health benefits of natural herbs and ingredients.
Indian chai lovers seem to live by this adage. No wonder India, the second largest producer of tea in the world, is also the world’s largest consumer of the beverage. According to a report by Eon Market Research (EMR), India consumed around 1.10 million tons of tea in 2019. The tea market is expected to grow at a CAGR of 4.2 percent and 1.40 million tons of tea is expected to be consumed by 2025.
The National Statistical Office (NSO), Ministry of Statistics and Programme Implementation has released All India Consumer Price Index (CPI) on Base 2012=100 and corresponding Consumer Food Price Index (CFPI) for Rural(R), Urban(U)and Combined (C) for the month of September2020 (Provisional)
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.
send mail to: newsletter@fisme.org.in
You are receiving this Newsletter because you are included in our mailing list of recipients who are involved or interested in FISME or Indian MSMEs. You are welcome to partly or fully reproduce and disseminate the contents of this publication provided that you acknowledge the source.
This Newsletter is edited by the FISME Secretariat. We welcome contributions as well as comments and suggestions. Please write to newsletter@fisme.org.in
India posted a positive trade balance during first quarter of the year (April-June 2020). While this brings cheers as imports experienced steep contraction while exports continued recovery. However, the news brought a new headache for exporters, especially the MSME exporters. As imports have slowed down, there is reduced inward movement of containers. Due to this exporters are finding it difficult to get enough containers. The MSMEs face greater difficulties as most of the their shipments are ‘less than container loads’ (LCL) and need to be consolidated with others to make one full container load. In the times of shortage of containers, Shipping lines give preference to large clients with whom they have long term contracts and what is left is offered to ones who require at least full container load. But MSME exporters have also commitments to meet and ship goods against deadlines. FISME has asked the Government to engage Shipping lines in a dialogue and find a solution to the problem.
"
When you choose to hack your own path through the workplace jungle, you’re taking on a lot of risk and uncertainty. No matter your industry, you’ll face financial risk. Even freelancers struggle to find clients from time to time. You’ll also have to adapt to the varying demands of your business—you’ll have to be good at both forward-facing client communication, and head-to-the-books labor. And just because you’re in charge doesn’t mean you don’t still conceptually have a boss. There will always be commitments to customers and business associates. There will always be deadlines.
Nirmala Sitharaman, Union Minister for Finance & Corporate Affairs participated in the G20 Finance Ministers and Central Bank Governors (FMCBG) meeting under the Saudi Arabian Presidency here today through video conferencing.
Ministers and Governors of G20 countries discussed the current global economic outlook and G20’s response to the COVID-19 pandemic, along with other G20 Finance Track priorities for the year 2020. In the first session, the Finance Minister spoke on updates to the G20 Action Plan in response to COVID-19 which was endorsed by the G20 Finance Ministers and Central Bank Governors on April 15th 2020. The union minister emphasised that the updated commitments in the G20 Action Plan have to be kept relevant in the current policy context for the action points to remain effective as a policy response to COVID-19.
While the steep fall in merchandise imports in June quarter brought cheers to many, Indian exporters have to brace for an unforeseen development: shortage of containers for shipping goods.
While announcing the monetary policy, the Reserve bank of India released data about India's current account surplus. The positive balance of trade rose to $ 3.9 percent of GDP (gross domestic product) in the first quarter of 2020.
The export of essential agri commodities for the cumulative period of April-September, 2020 has increased by 43.4% to Rs 53626.6 crore as compared to Rs 37397.3 crore in the same period last year.
Major commodity groups which have recorded positive export growth during April-Sept, 2020-21 vis-à-vis April-Sept, 2019-20 are Groundnut (35%), Refined Sugar (104%), wheat (206%), Basmati Rice (13%) and Non-Basmati Rice (105%) etc.
Reserve bank of India (RBI) announced monetary policy decisions on Friday. The central bank has kept repo rates unchanged at 4 percent and reverse repo rate at 3.35 percent. The RBI Governor also announced a host of new measures to be undertaken by the central bank.
RBI Governor Shaktikanta Das said on that the country's economy is likely to contract 9.5 per cent in the current financial year, "with risks tilted to the downside". While maintaining a status quo on policy rates citing high inflation. The GDP may break out of the coronavirus-induced contraction and turn positive by the fourth quarter of 2020, Governor Das said.
To help business partners for money transfers anytime in their bank account on the same day of receiving payment, without waiting for the next day Paytm, India's leading payment gateway service provider has today announced the launch of same-day settlement facility for all kinds of fund transfers on its payment gateway.
This new settlement features of Paytm will help businesses that depend upon immediate availability of funds to pay down-stream partners. This includes e-commerce companies, government institutions, and all businesses involving inventories, especially those involved in day to day trading who depend heavily on cash procurements.
The Tribal Cooperative Marketing Development Federation of India (TRIFED) has launched ‘Tech For Tribals’ a training programme for tribal MSMEs using Self Help Grups and Van Dhan Vikas Kendras (VDVKs).
Aimed at the holistic development of tribal with a focus on entrepreneurship development, soft skills, IT, and business development the TRIFED is offering the training in collaboration with Ministry of Small and Medium Enterprises (MSME) under the Entrepreneurship Skill Development Programme.
With enhancement of retail exposure limit from Rs. 5 crore to 7.5 crore, the Reserve bank of India has given greater flexibility to banks to extend loans to retail borrowers and MSMEs.
The move has been announced during release of monetary policy report (Oct 2020).
Now for the loan exposure up to Rs. 7.5 crore (both fund and non-fund based), the banks would not require a Bank Loan Rating (BLR) from third party Credit Rating Agencies (CRAs).
In order to provide loan interest relief to MSMEs for ease of doing business, government has extended the validity of the Interest Subvention Scheme for MSMEs till March 31, 2021
The Reserve Bank of India stated on Wednesday that the two per cent interest subvention scheme for micro, small and medium enterprises (MSMEs) on loans offered by co-operative banks has been extended till 31st of March next year.
Ministry of finance granted permission to the Tamil Nadu to raise an additional amount of Rs.9,627 crore through open market borrowings.
The Department of Expenditure, Ministry of Finance, on Wednesday granted permission to Tamil Nadu become to borrow an additional amount of Rs.9,627 crore through open market. The permission was issued after the State formally communicated its acceptance for Option-1 to meet the shortfall arising out of GST implementation. 21 States and 2 Union Territories, Delhi and Jammu & Kashmir, have so far requested Option-1.
If the pandemic and political turmoil were not bad enough, the industrial sector of Jammu & Kashmir have had to brace for another blow- restriction on movement of workers to and from neighboring states.
“The Industrial Sector of Jammu & Kashmir is suffering very badly due to shortage of Industrial Workers. As government has imposed restrictions on the movement of workers coming from outside the State, they have to wait for days at Lakhanpur and are forced to return back”, complained Lalit Mahajan of Bari Brahmana Industries Association (BBIA).
To finance inclusive and sustainable water supply and sanitation infrastructure and services in 14 secondary towns of the state of Rajasthan, the Government of India and the Asian Development Bank (ADB) on Monday signed a $300 million loan.
The loan agreement of ‘Rajasthan Secondary Towns Development Sector Project’ was signed by Sameer Kumar Khare, Additional Secretary (Fund Bank and ADB), Department of Economic Affairs in the Ministry of Finance and Takeo Konishi, Country Director of ADB’s India Resident Mission.
Aiming to strengthen business relations between India and Mexico, business to business MoUs were signed in the fifth meeting of the India-Mexico Bilateral High Level Group on Trade, Investment and Cooperation (BHLG). The meeting was held on 9 October 2020 through video conference.
The Electronics & Computer Software Export Promotion Council (ESC) of India signed Memorandum of Understanding (MoU) with and the Mexican Chamber of Electronics, Telecommunications and Information Technologies (CANIETI).
Aiming to use natural gas as an environment friendly motor fuel for mutual benefit, the first ever India-Russia webinar on the use of natural gas as motor fuel was organized under the aegis of Ministry of Petroleum and Natural Gas, Government of India and the Ministry of Energy of the Russian Federation.
On the occasion, Tarun Kapoor, Secretary, Ministry of Petroleum & Natural Gas, Government of India informed that the Memorandum of Understanding between Ministry of Petroleum and Natural Gas, India and Ministry of Energy of the Russian Federation for cooperation on the use of Natural Gas for Transportation was signed in presence of Hon’ble Prime Minister of India, Narendra Modi and Hon’ble President of Russian Federation Mr. Vladimir Putin.
According to FISME factor, 100% MSMEs think that the Indian economy is returning to normalcy after the 5.27% export growth in September. 
Leaders are at the forefront of this change and tasked with giving direction to their organisations, to successfully emerge from this crisis unscathed. It starts with changing mindsets and building resilience. Organisationally, achieving or improving resilience includes building a more agile operating model; ensuring that the workforce has the right capability set; nurturing organisational relationships; sharing data in real time; displaying and promoting leadership that engenders trust, supports creativity and innovation.
Micro, Small and Medium Enterprises (MSMEs) play a key role in the industrialisation of the hinterlands as well as in generating employment in these regions. They drive the economy from below by establishing their own enterprises, enabling higher exports, and helping foster innovation. However, these enterprises also face a multitude of hurdles on their path to progress.
In 2015, Google went through restructuring and a new corporate brand, Alphabet Inc. was created. Many divisions that operate in businesses other than Internet services became subsidiaries of Alphabet. In 2007, Apple Computer, Inc. dropped ‘Computer’ from its name and became Apple Inc., because the company had shifted its emphasis from computers to consumer electronics with brands like iPod, Apple TV and iPhone.
Amidst progress in Indian export, exporters have stated that non-availability of containers and rise in sea freights are posing as huge problem for the nation’s outbound shipments.
Non-Availability of Containers for the Export Sector is posing a serious concern for meeting delivery commitments of foreign buyers, Sharad Kumar Saraf, President, FIEO stated on Wednesday.
Increasing population, encroachments, traffic problems, and infrastructure problems are major concerns for Indian roadways. In a bid to solve issues related to inadequate road infrastructure, Chennai-based The ePlane Company is looking to take the aerial route. Ubifly Technologies Private Limited, better known as The ePlane Company (TEC), was founded in 2016 by Pranjal Mehta and Satyanarayanan Chakravarthy to provide aerial delivery services. The startup ideated out from the National Centre for Combustion Research & Development Lab (NCCRD).
Launched in 2018, Guwahati-based tea startup Aromica Tea offers 30 tea blends that incorporate the health benefits of natural herbs and ingredients.
Indian chai lovers seem to live by this adage. No wonder India, the second largest producer of tea in the world, is also the world’s largest consumer of the beverage. According to a report by Eon Market Research (EMR), India consumed around 1.10 million tons of tea in 2019. The tea market is expected to grow at a CAGR of 4.2 percent and 1.40 million tons of tea is expected to be consumed by 2025.
“ The journey of a thousand miles begins with a single step
”
