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  The FISME Factor  

 

President's Message
Mr Animesh SaxenaThe horror spell of Covid-2 wave continues unabated in India. As supply chains and logistics are also affected because of lockdowns, no business is spared of its wrath. National lockdown looms which would further aggravate the economic situation. Of course life has priority over everything else. Industry is with Government in taking any step that saves lives. Finance Minister herself called me, along with other select industry leaders, to explain the situation and sought our suggestions. I have written to the Finance Minister that more than additional funds, MSMEs need flexibility in NPA norms so that disruption caused by the pandemic does not result into their accounts being assigned as NPAs. This would be a manmade catastrophe. I have also reiterated the need to have a mechanism to reign in the raw material producers who are engaged in profiteering during pandemic. Thirdly, I emphasized the need to extend a moratorium through an ordinance so that businesses are protected against prosecution in case of non-compliances during pandemic. Let’s hope like the first wave, India comes out of Covid-2 with least pain. "
Animesh Saxena, President, FISME
Vol VIV, Issue 226: May 1, 2021
Business Banter: Lessons from Entrepreneurs
3 Reasons Your Business Hasn't Grown During the Pandemic
Macro Metre
Exports of organic food products rise by more than 50% in 2020-21
Govt extends deadlines under Vivad se Vishwas scheme to June 30th
Domestic Digest
SIDBI introduces AROG and SHWAS to fight COVID-19 Knowledge and News Network (KNN)
DPIIT sets-up control room to monitor internal trade, manufacturing & delivery of essential commodities
Vedanta launches ‘Saathi’ programme for MSME
State Scan
Karnataka MSMEs demand corporation buses for their workers amid curfew Knowledge and News Network (KNN)
FOIJ requests J&K Governor to release 3rd instalment of 5 per cent interest subvention to industrial units
Bank of Maharashtra mulls to resolve 20-25 stressed MSME loans under pre-packaged resolution process
World Watch
Govt approves agreement between India and UK on cooperation & assistance in custom matters
Knowledge Store
This Bengaluru-based agritech startup aims to make India ‘atmanirbhar’ in silk production
...And A Lot More
Business Banter: Lessons from Entrepreneurs

3 Reasons Your Business Hasn't Grown During the Pandemic

We're living through an interesting time. Even before the pandemic, entrepreneurs had the opportunity to reach more potential customers and grow their business through the Internet and social media's power and reach. Today, people consume content, buy products and services, and learn about businesses through their phones. The barrier to becoming an entrepreneur and growing a company has been removed if you create offers that appeal to a customer segment you're targeting. While entrepreneurs were pushing busy forward in the building of their businesses, a global pandemic changed how we live, work, and exist. Millions of people lost their jobs, small businesses shut down, and entrepreneurs saw revenue drop quickly.
Writing on the Wall

MSMEs seek easing of NPA, compliance rules

Small Indian businesses have sought relaxation in compliances and norms governing classification of non-performance assets (NPAs). The Federation of Indian Small and Medium Enterprises (FISME) also pitched for creation of a “war-room” to monitor prices of key raw materials used by the sector, claiming that suppliers are increasing prices in the wake of the pandemic and rationalisation of import duties. “The Special Mention Account (SMA) framework has been devised for normal times,” FISME president Animesh Saxena said in a letter to finance minister Nirmala Sitharaman....

Media Monitor

Macro Metre

Exports of organic food products rise by more than 50% in 2020-21

Despite of COVID-19 challenges, India’s Organic food products exports rose by more than 50 percent in terms of value in 2020-21. India’s export of organic food products rose by 51% in terms of value (USD Million), to USD 1040 million (Rs 7078 crores) during financial year 2020-21 compared to the previous fiscal (2019-20), according to an official statement. In terms of quantity, the exports of organic food products grew by 39% to 888,179 metric tonne (MT) during FY 2020-21 compared to 638,998 MT shipped in 2019-20. The growth in organic products has been achieved despite logistical and operational challenges posed by the COVID19 pandemic.

Govt extends deadlines under Vivad se Vishwas scheme to June 30th

In wake of the raging pandemic, the central government has decided that time for payment of amount payable under the Direct Tax Vivad se Vishwas Act, 2020, without an additional amount, shall be further extended to 30th June, 2021. ''In view of the severe COVID-19 pandemic raging unabated across the country affecting the lives of our people, and in view of requests received from taxpayers, tax consultants & other stakeholders that various time barring dates, which were earlier extended to 30th April, 2021 by various notifications, as well as under the Direct Tax Vivad se Vishwas Act, 2020, may be further extended, the Government has extended certain timelines today,'' an official statement said on Saturday.

Cabinet approves Amendments to the Finance Bill, 2021

The Union Cabinet, chaired by the Prime Minister Narendra Modi has approved the amendments to the Finance Bill, 2021 (enacted on 28th March, 2021 as the Finance Act, 2021). ''The amendments were essential to clarify and rationalise the proposals further and address stakeholder's concerns arising out of amendments proposed in the Finance Bill,'' a statement said on Tuesday. The Government amendments to the Finance Bill, 2021 shall provide equity and inclusiveness to all the taxpayers by addressing stakeholder's concerns arising out of amendments proposed in the Bill, it added.

Domestic Digest

SIDBI introduces AROG and SHWAS to fight COVID-19

In a bid to fight the second wave of COVID-19, Small Industries Development Bank of India (SDIBI) has introduced two new schemes namely AROG and SHWAS. The two new schemes extend financial assistance to MSMEs engaged in manufacturing and services of various items which are essential for fighting COVID. The scheme envisages financial assistance to MSMEs at interest rate of 4.5 per cent to 6 per cent without any processing fee. The objective of AROG will be to provide financial support to all MSMEs which are manufacturing products or providing services which are directly related to fighting coronavirus, such as Pulse Oximeters, Permitted drugs (Remdesivir, Fabiflu, Dexamethasone, Azithromycin, Zincovit, Limcee, Ivermectin, Paracip, Azax, Betadine, etc), Ventilators, PPEs, inhalation Masks, IV Fluid – DNS / Dextrose, IV Sets, IV Cannula, ICU Beds, Cardiac monitors, Syringe pumps, Portable X ray machines, Endotracheal tube, Suction tube, etc.

DPIIT sets-up control room to monitor internal trade, manufacturing & delivery of essential commodities

The Department for Promotion of Industry and Internal Trade (DPIIT), under the Ministry of Commerce and Industry has set up a control room to monitor the issues of internal trade, manufacturing, delivery and logistics of essential commodities during COVID-19 pandemic. ''DPIIT is setting up a Control room to monitor the issues of internal trade, manufacturing, delivery and logistics of essential commodities during Covid pandemic. In the event of any manufacturing, transportation, distribution, wholesale or e-commerce companies facing difficulties in transportation and distribution of goods or mobilization of resources, information can be given at the following telephone number/email: Telephone: (011) 23062383, 23062975, E-mail: dpiit-controlroom@gov.in, an official statement said on Friday.

Vedanta launches ‘Saathi’ programme for MSME

Vedanta Limited, India’s leading producer of metals and oil & gas has launched the ‘Vedanta Saathi’ programme for Micro, Small and Medium Enterprises (MSMEs). Vedanta’s key offerings for MSMEs under the Saathi programme include channel financing in partnership with a host of leading banks, NBFCs and FinTech firms; soon to be launched e-commerce solutions; avenues for technical upskilling; opportunities for MSMEs to set up downstream/ancillary manufacturing units near Vedanta’s plants; and single window for MSMEs to interact with Vedanta’s Quality, Product Application, Engineering and Innovation teams through a dedicated web portal.

Govt launches Startup India Seed Fund Scheme

Union Commerce and Industry Minister Piyush Goyal has formally launched the Startup India Seed Fund Scheme (SISFS) to financially support early-stage startups across 300 incubation centres. According to the commerce ministry, the fund is expected to benefit around 3,600 startups and boost the startup ecosystem, particularly in tier-2 and 3 cities. The fund aims to provide financial assistance to startups for proof of concept, prototype development, product trials and market entry. A sum of Rs 945 crore has been allocated for the fund.
State Scan

Karnataka    

Karnataka MSMEs demand corporation buses for their workers amid curfew

As the Karnataka government on Monday announced curfew across the state in the wake of COVID-19, Micro, Small and Medium Enterprises (MSME) urged the latter to allow the buses to and from industrial hubs. Citing that a large percentage of factory workers rely on public transport to commute, Karnataka Small Scale Industries Association (KASSIA) president KB Arasappa, on Tuesday, appealed to the government to allow BMTC buses to ply at least to and from industrial hubs in the state.

Jammu    

FOIJ requests J&K Governor to release 3rd instalment of 5 per cent interest subvention to industrial units

Federation of Industries Jammu (FOIJ) has requested Lt. Governor Manoj Sinha to release the 3rd Instalment of 5 per cent interest subvention relief to the industrial units of Jammu & Kashmir (J&K). Lalit Mahajan, Chairman FOIJ, while conveying heartiest thanks to Lt. Governor, Manoj Sinha, Arun Kumar Mehta(IAS) Financial commissioner, Finance Department and R K Chhibber, Chairman, J&K Bank for the timely release of 1st and 2nd Instalment of 5 per cent interest subversion previously, apprised the Governor that industrial units working in our state facing acute financial crunch due to current situation of COVID-19 across the country and it is the need of hour to release the 3rd instalment interest subvention as early as possible.

Maharashtra    

Bank of Maharashtra mulls to resolve 20-25 stressed MSME loans under pre-packaged resolution process

Bank of Maharashtra is mulling to resolve 20-25 stressed Micro, Small and Medium Enterprise (MSME) accounts under the newly introduced pre-packaged insolvency resolution process in the coming months, said a senior bank official. While speaking at a webinar organised by MVIRDC World Trade Center, Mumbai and All India Association of Industries, on Friday, Bank of Maharashtra's general manager (credit - large and mid-corporate, MSME) Sanjay Rudra said, "With the outbreak of the CoronaVirus, the stress on sectors like hospitality, luxury retail, tour operators, lodging and restaurant operators has increased considerably.''
World Watch

United Kingdom    

Govt approves agreement between India and UK on cooperation & assistance in custom matters

The Union Cabinet chaired by Prime Minister Narendra Modi on Wednesday gave its approval for the signing and ratification of an agreement between the Government of India and the Government of the United Kingdom on Customs Cooperation and Mutual Administrative Assistance in Customs Matters. According to an official statement, the Agreement will be further signed on behalf of the Indian Government and UK Government after it is approved by the respective governments.
Read More    Back to Top
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Knowledge and News Network (KNN)
KNN India’s official Twitter handle
@knnindia
Anil Bhardwaj, Secretary General
@abhardwaj_fisme
Your Views

Which strategy is better to deal with spread of Covid?

According to the FISME factor, 40% of MSMEs think that lockdown in micro contentment zone on areas having number of cases is a better strategy to deal with the spread of Covid while 60% can’t say.
Knowledge Store

HR Heuristics

Don’t judge employee activities by participation

What do we really want at the end of every employee activity? Well, it depends on what the programme is all about and what we actually desire to achieve through it. Today, the nature of HR has become rather strategic. Every HR activity has a business outcome.

Finance Fundamentals

5 Finance Tips for First-Time Entrepreneurs

Being an entrepreneur is difficult enough as it is — innovating with new ideas, turning concepts into products, managing teams of talented people — even without the questions of finance management. Poor financial literacy has been an Achilles’ Heel for an abundance of entrepreneurs, meaning that modern business leaders simply cannot afford to take any risks when it comes to managing their money.

Marketing Mantras

7 Guerrilla Marketing Tactics That Will Grow Your Business When Money Gets Tight

Tough economic times are requiring more and more business owners to find creative ways to get ahead. Lots of people think that during hard times, businesses should scale back — but this is a huge mistake. If you start to scale back on your marketing, your competitors will grab that market share and slowly — or quickly — put you out of business.

Policy Polemic

MSMEs urge FM to reign in profiteering during pandemic by producers of ferrous, non-ferrous metals & polymers

When the Union Finance Minister Nirmala Sitharaman reached out to the industry including MSMEs to seek their inputs on the on-going COVID crisis the last two weeks so, she would have expected a clamour for more funds like ECLGGS scheme. The demand emerging fr0m the MSME sector has surprised many.

SME Special

Gurugram-based startup innovates air purifier to neutralise coronavirus

Gurugram-based startup O2 Cure has joined the fight against COVID-19 with an air purification device named Plug & Play, which neutralises the active SARS-CoV-2 virus by 99 percent from air and surfaces.

Success Story

This Bengaluru-based agritech startup aims to make India ‘atmanirbhar’ in silk production

India is the second-largest producer of silk in the world after China and the market is estimated to have been worth Rs 266 billion in 2019. The Central Silk Board — a part of the Ministry of Textiles — estimates that the sericulture industry is one of the largest employers in the country, with activities spread across 52,360 villages, employing 9.1 million Indians in FY19.

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

“ If you are working on something that you really care about, you don’t have to be pushed. The vision pulls you. ”
– - Steven Paul Jobs - American business magnate & co-founder of Apple Inc.
 
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 April 2021 to 15th April 2021
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Asstt. Editor: Kalpana Sharma
Types setting & websdesigning: Sanjay Sachan  
Video & Photography:  Subhan Khan

 

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