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  The FISME Factor  

 

President's Message
Mr Animesh SaxenaThe recent clamp down by Banks on businesses having multiple current accounts has got them in a tizzy. Although while giving working capital Banks used to insist on maintaining a single current account with them to keep track of receipts, in many cases the permission was given without much ado. The RBI circular of Aug 2020 prohibiting banks to open accounts for customers who availed CC/OD limits and all transactions to be routed through the account only. While the possibility of misuse of having multiple current accounts is understandable, the flip side of the decision is it has closed window for genuine needs for opening multiple current account. Beside the need to have a separate account for e-commerce/e-payment to avoid the cyber frauds in main account, many government payments require a specific bank or a PSU banks for depositing amount ( e.g. Customs duty) or receiving amount (e.g. Duty Drawback). After industry associations made a cue and cry, a temporary is granted and the last date for compliance is extended. In our opinion the RBI should use AI for tracking the misuse rather than getting into the mindset of banning multiple accounts . "
Animesh Saxena, President, FISME
Vol VIV, Issue 233: Aug 1, 2021
Business Banter: Lessons from Entrepreneurs
5 strategies that every startup should implement to sustain its business
Macro Metre
Agri exports increase of 17.37 per cent in FY 2020-21
Govt clears MSME dues worth Rs 55,863.3 cr
Domestic Digest
Govt amends IBBI regulations, 2016 Knowledge and News Network (KNN)
Rajya Sabha clears Factoring Regulation (Amendment) Bill to boost MSME cash flow
13 lakh MSME loan accounts restructured by public sector banks: Narayan Rane
State Scan
4.41 lakh stressed MSME units in UP availed assistance under ECLGS: State Minister Knowledge and News Network (KNN)
TN govt constitutes committee for reviving MSMEs
Retailers in Andhra Pradesh cheers introduction of Retail Parks Policy 2021-26
World Watch
First consignment of vegetables from Uttarakhand leaves for Dubai
India tops in UNESCAP survey on Trade facilitation among Asian peers
Knowledge Store
This Friendship Day, read how these close friends launched and built businesses together
...And A Lot More
Business Banter: Lessons from Entrepreneurs

5 strategies that every startup should implement to sustain its business

Being the founder of a startup is a complex and challenging task in itself; You have to face challenges such as having the monetary capacity and the knowledge to get a business off the ground, you have the need to face fierce competition, a volatile economy and a changing market. In addition to all this, 2020 accentuated the challenges you face as an entrepreneur. According to different estimates, the Mexican economy fell by around 9%. Many entrepreneurs stopped their activities, others changed their category, many had to face the crisis making important decisions to pivot their businesses.
Writing on the Wall

Small business suffer as banks shut current accounts after RBI circular

The Reserve Bank of India's (RBI) circular to banks for the ‘need for discipline’ led to closure of a large number of current accounts when the deadline for compliance ended July 31. Micro, small and medium enterprises (MSME) are the worst hit due to the account freeze, bankers and industry officials said about the circular issued on August 6 last year. Interestingly, the move has created a rift between the public and private sector banks: the first lot welcomed the move and the second said they would lose customers.The circular said that a bank cannot open a current account if their exposure is less ...

Media Monitor

Macro Metre

Agri exports increase of 17.37 per cent in FY 2020-21

India’s agriculture exports during 2020-21 have registered an increase of 17.37 per cent as compared to exports during 2019-20, said Commerce and Industry minister Piyush Goyal. To promote agricultural exports, the Government has introduced a comprehensive Agriculture Export Policy (AEP) to harness export potential of Indian agriculture and raise farmers’ income. ''The Department of Commerce has taken several steps to implement AEP at the State/ District level. State Level Monitoring Committees (SLMCs), Nodal Agencies for agricultural exports and Cluster Level Committees have been formed in a number of States and State-specific

Govt clears MSME dues worth Rs 55,863.3 cr

Union Minister of Micro, Small and Medium Enterprises (MSME) Narayan Rane has informed the parliament that dues of Rs 55,863.3 crore have been paid to the MSME since May 2020. ''Dues of Rs 55,863.3 crore have been paid to the MSME vendors by government ministries, Departments and CPSUs from 14th May 2020 till 26th July, 2021,'' he said in a written reply to the Lok Sabha on Thursday In a separate reply, Rane said that around 1.09 crore MSME borrowers have been provided with guarantee support of Rs 1.65 lakh crore under Emergency Credit Line Guarantee Scheme (ECLGS).

Five medical devices including pulse oximeter & nebuliser witness price reduction

The Union government which capped the trade margins of five medical devices such as oximeter and digital thermometer on July 13, has witnessed price reduction in the same, said Ministry of Chemicals and Fertilizers on Saturday. In total, the government had put a cap on the trade margin of five medical devices — oximeter, glucometer, BP monitor, nebulizer and digital thermometer. ''The margin was capped up to 70 per cent on Price to Distributor (PTD) level. Pursuant there to, a total of 684 products/brands of these medical devices have been reported as on July 23rd, 2021 and 620 products/brands (91 per cent) have reported downward revision of MRP,'' an official statement said.

Domestic Digest

Govt amends IBBI regulations, 2016

To enhance the discipline, transparency and accountability in corporate insolvency proceedings, Insolvency and Bankruptcy Board of India (IBBI) amends the Insolvency and Bankruptcy Board of India (Insolvency Resolution Process for Corporate Persons) Regulations, 2016. The Insolvency and Bankruptcy Board of India (IBBI) notified the Insolvency and Bankruptcy Board of India (Insolvency Resolution Process for Corporate Persons) (Second Amendment) Regulations, 2016 on 14th July 2021, according to an official statement.

Rajya Sabha clears Factoring Regulation (Amendment) Bill to boost MSME cash flow

Parliament has passed the Factoring Regulation (Amendment) Bill, 2021, to provide relief to the MSME sector and help them in ensuring a smoother capital cycle and healthier cash flow. The bill which would enable as many as 9,000 non-banking financial companies (NBFCs) to participate in the factoring market, instead of just 7 now, boosting cash flow to small businesses was passed by the Rajya Sabha on Thursday.

13 lakh MSME loan accounts restructured by public sector banks: Narayan Rane

Union Minister for Micro, Small and Medium Enterprises (MSMEs) Narayan Rane on Thursday informed the parliament that as many as 13.06 lakh MSME loan accounts with an aggregate amount of Rs 55,333 crore have been restructured by public sector banks till June 25. ''Till June 25 this year, 13.06 lakh MSME loan accounts with an aggregate amount of Rs 55,333 crore have been restructured by public sector banks," he said in a written reply to the Lok Sabha.
State Scan

Uttar Pradesh    

4.41 lakh stressed MSME units in UP availed assistance under ECLGS: State Minister

The Uttar Pradesh government has helped 4.41 lakh stressed MSME units by providing them credit under Central government's Emergency Credit Line Guarantee Scheme (ECLGS), said state Minister of Micro Small and Medium Enterprises (MSME) Sidharth Nath Singh. He said this during a virtual conference on Friday, which was also attended by Navneet Sehgal, Additional Chief Secretary, Information, MSME, Export Promotion, Khadi and Village Industry, Government of Uttar Pradesh.

Tamil Nadu    

TN govt constitutes committee for reviving MSMEs

The Tamil Nadu government has constituted a committee for revival of Micro, Small and Medium Enterprises (MSMEs) which would be led by retired IAS officer N Sunderadevan. This comes after Governor Banwarilal Purohit made an announcement in the House that, “... An expert committee consisting of industrialists, banking and financial experts, and government officials will be constituted to formulate schemes for revival of MSMEs”.

Andhra Pradesh    

Retailers in Andhra Pradesh cheers introduction of Retail Parks Policy 2021-26

The Retailers Association of India (RAI) has welcomed the Retail Parks Policy 2021-26 in Andhra Pradesh which came into force under the able leadership of Chief Minister YS Jagan Mohan Reddy. ''It's good news for retailers and related businesses operating in the state of Andhra Pradesh as the Retail Parks Policy 2021-26 comes into force under the able leadership of Chief Minister YS Jagan Mohan Reddy. RAI has been working with the policy makers for the same. Currently, Andhra Pradesh holds the No. 1 position in the Department for Promotion of Industry and Internal Trade’s (DPIIT) ranking on ‘Ease of Doing Business’ (EODB) among States in India,'' RAI said in a statement on Friday.
World Watch

United Arab Emirates    

First consignment of vegetables from Uttarakhand leaves for Dubai

First consignment of vegetables including curry leaf, okra, pear and bitter gourd sourced from the farmers of Haridwar, was exported to Dubai, United Arab Emirates on Monday. The exports of vegetables come after a consignment of millets grown in Uttarakhand was exported to Denmark in May, 2021. APEDA, in collaboration with Uttarakhand Agriculture Produce Marketing Board (UKAPMB) & Just Organik, an exporter, sourced & processed ragi (finger millet), and jhingora (barnyard millet) from farmers in Uttarakhand for exports, which meets the organic certification standards of the European Union.
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United Nations    

India tops in UNESCAP survey on Trade facilitation among Asian peers

India has scored 90.32% in United Nation’s Economic and Social Commission for Asia Pacific's (UNESCAP) latest Global Survey on Digital and Sustainable Trade Facilitation. The Survey hails this as a remarkable jump from 78.49% in 2019. After evaluation of 143 economies, the 2021 Survey has highlighted India's significant improvement in the scores on all 5 key indicators, with Transparency:100% in 2021 (from 93.33% in 2019), Formalities: 95.83% in 2021 (from 87.5% in 2019), Institutional Arrangement and Cooperation: 88.89% in 2021 (from 66.67% in 2019), Paperless Trade: 96.3% in 2021 (from 81.48% in 2019) and Cross-Border Paperless Trade: 66.67% in 2021 (from 55.56% in 2019).
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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 recent Cabinet reshuffle will help economic revival?

According to the FISME factor, 25% of MSMEs think that the recent Cabinet reshuffle will help economic revival, 25% think it will not while 50% can’t say
Knowledge Store

HR Heuristics

10 Tips For Hiring The Best Candidates For Your Company

Every business needs productive employees, and every business owner wants to make sure they are hiring the top talent in their field. This is no simple task — there are millions of candidates out there and you are bound to find some who simply don’t fit the bill.

Finance Fundamentals

Five Essential Finance And Accounting Strategies For Small Businesses

Irrespective of your business profile, you can manage your company’s finances using some simple accounting strategies. One of the areas of work that you need to master from the very beginning of your business is finances and accounts. The right time to manage all your business finances is from the start of this journey.

Marketing Mantras

Influencer Marketing 101: A Blueprint for Running a Successful Campaign

Influencer marketing is a type of social media marketing that allows you to leverage the power of influencers. Through influencer marketing, small businesses can reach an audience they might not have been able to find otherwise and have their message shared with people who are more likely to buy their product or service. This is what influencer marketing entails, how to hire legit influencers for your campaigns and smarter ways to create successful campaigns.

Policy Polemic

Karnataka Poultry industry hit by feed shortage, urges Govt to import

The Karnataka Poultry Farmers & Breeders Association (KPFBA) has urged the Government of India to immediately step in and allow for import of soya bean meal, one of the main ingredients for the poultry sector, to help the poultry sector to overcome the current crisis of shortage of feed, consequently resulting in retail price of chicken going beyond Rs 260 per kg.

SME Special

This Friendship Day, read how these close friends launched and built businesses together

Friends Sunil Srinivasan Chari and Edward Walter Menezes worked together in textile processing, dyestuff, and speciality chemicals industries for many years, and so it was natural for them to start their own business in the same sector.

Success Story

How FarmERP’s digital farming solutions manage 600,000 acres of farmland in 25 countries

Pune-based computer engineers Sanjay Borkar and Santosh Shinde started FarmERP as Farm Management Software in 2001. While several internet businesses made a noise during the dotcom boom, technology in agriculture was unheard of. However, Sanjay and Santosh, both hailing from agricultural families, were convinced that technology could be used to make farming predictable and profitable like many other businesses.

Stockpile

The National Statistical Office (NSO), Ministry of Statistics and Programme Implementation (MoSPI) has been bringing out the employment related statistics in the formal sector covering the period September 2017 onwards.

Quotable Quotes

“ The energy of the mind is the essence of life. ”
– - Aristotle- Greek philosopher & polymath
 
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 16th July 2021 to 31st July 2021
Reader Reactions

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Editorial Team:
Hon. Editor: Anil Bhardwaj
Asstt. Editor: Kalpana Sharma
Types setting & websdesigning: Sanjay Sachan  

 

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