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President's Message
Close on the heels of IMF’s forecast about Indian GDP growth for this fiscal pegging at 9.5%, the NITI Aayog has bettered it and predicted that India would grow at 10.5%! This is a remarkable turnaround indeed. The buoyancy is cross cutting and almost all sectors are recording an upswing. With Western markets becoming wary of China, many of them are turning to India. Therefore, exporters are also having a good order book. But like inactivity, over activity also exposes the limitations of a system. When Global Value Chains turn to India do we have capacities? My own experience of Garment industry has important lessons. India is one of the largest producers of cotton and houses the entire value chain up to apparel for export. But due to structural bottlenecks of the supply chain, we could seldom exploit the surge in demand. The sub-optimal size of dyeing & processing units and their limited capacities mean they can’t work on long term contacts and are prone to hike prices with even slight change in raw material costs. Secondly, the current size of processing industry can’t handle sudden surge in orders and export opportunities like the one coming to India’s way due to shift in GVCs, are likely to be missed. I have heard of similar limitations in other sectors too. Government needs to help bolster investment in the supply chain to augment productive capacities in the country. It is then only we would be able to successfully dock with GVCs to create more opportunities for growth and jobs.
"
The year 2020 was a washout — and we’d all like to forget it. But despite the chaos and uncertainty, despite the misery, fear and tension, businesses flourished; 2020 may have been a bad year for health and wellbeing, but it was a great year for startups.
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The United States saw a 24% increase in new business launches, and that trend has continued well into 2021. Consumer habits are driving those trends as more customers shop online and use retail therapy as a way of escaping lockdown fatigue.
The IMF has projected that India will grow at 9.5% and 8.5% this fiscal year and next after a contraction of 7.3% last year. It has projected global growth at 5.9% this year and 4.9% in 2022 in its latest World Economic Outlook, unveiled at the start of the World Bank IMF Annual Meetings.
While the numbers for India remain unchanged from the IMF’s July forecast — which had already incorporated a sizeable downgrade of 3 percentage points from the preceding April forecast — there has been a marginal downward revision for world output growth in 2021 from the July forecast (6%).
During a conversation at Harvad Kennedy School, Union Finance Minister Nirmala Sitharaman said that, the Indian economy is expected to have a double-digit growth rate (will likely grow by 7.5-8.5%) for 10 years.
Finance Minister Sitharman gave this statement in view of the growth projection of India shared by rating agencies and the likes of IMF and World Bank. Earlier this week, the International Monetary Fund (IMF) retained India’s gross domestic product (GDP) growth forecasts at 9.5% in FY22 and 8.5% for FY23. The Reserve Bank of India has also maintained its GDP growth target for FY22 at 9.5%. Global rating agency Moody’s expects India’s real GDP growth rate to be 9.3% in FY22.
India’s GDP grew 20.1% in the June quarter from a year before, giving the illusion of a sharp economic recovery, but it was largely driven by a deeply-contracted (-24.4%) base.
Piyush Goyal, Minister for Commerce & Industry and Minister for Consumer Affairs, Food and Public Distribution while addressing the United States – India Business Council’s (USIBC) 46th Annual General Meeting and India Ideas Summit, said that in view of National Infrastructure Pipeline in the making, India was working to boost investment, streamline its tax regime, liberalize its FDI policy and strive to encourage invention, innovation, research and development. He expressed his views on the close partnership between India and the United States and its importance to a free, open, inclusive and prosperous Indo-Pacific region. It was themed ‘From Recovery to Resurgence: reflecting the growing importance of global economic recovery amidst emerging healthcare issues and technological trends’.
Although the Ministry of Coal gave reassurance on coal availability being ample in the country to meet the demand of power plants, in a press release on Sunday, the news of potential power crisis has gathered the attention of leaders, businesses and the consumers of power.
In view of this, KNN reached out to small business and trade associations across India to gauge its probable impact on MSMEs. While interacting with KNN, B. A Nazeer, President, Canara Plastic Manufacturer Association based in Mangalore said “MSMEs will be drastically hit by the looming energy crisis, as machines need to be heated continuously for one hour, hence power is vital in manufacturing.
U GRO Capital, a small business lending MSME focused fintech platform, and Kinara Capital, today announced a strategic co-origination partnership to offer collateral-free business loans to small business entrepreneurs in India.
Together, both companies plan to disburse INR 100 crore by the end of FY2022 to MSMEs in Manufacturing, Trading and Services sectors. The co-origination arrangement will leverage U GRO’s analytical data driven decisioning and integration through APIs with the smart technology platform of Kinara Capital. With years of AI/ML based decisioning and underwriting experience, Kinara Capital can take an MSME entrepreneur from loan application to loan disbursement within 24-hours. MSMEs across 300+ pin codes in Tier 1-3 cities will benefit from this partnership where Kinara is presently operating in the urban, semi-urban and peri-urban areas of Andhra Pradesh, Gujarat, Karnataka, Maharashtra, Tamil Nadu, Telangana and UT Puducherry.
Ministry of MSME is supporting the 40th India International Trade Fair (IITF) which will take place from 14th to 27th November, 2021 at ITPO, Pragati Maidan, New Delhi.
The Ministry is offering subsidized 06 sqm stalls to MSE units through Procurement & Marketing Support (PMS) Scheme of M/o MSME in the separate MSME pavilion at IITF-2021. After availing subsidy, the MSE units of the General category need to submit the original Demand Draft from Nationalized Bank of INR 22,621/- (Indian Rupees Twenty Two Thousand Six Hundred Twenty-One Only) in favor of PAO, MSME, New Delhi to MSME-DI, Ludhiana. MSE units of SC/ST/Women/NER/PH/Aspirational Districts are exempted from payment of the space Rent charges.
Following the announcement on 29th Sept 2021 by the Central Government about extension of Emergency Credit Line Guarantee Scheme (ECLGS) till 31st March 2021, the National Credit Guarantee Trustee Company Ltd (NCGTC) has issued the detailed guidelines on the subject.
Existing borrowers under ECLGS 1.0 & 2.0 would be eligible for additional credit support of upto 10% of total credit outstanding as on 29.02.2020 or 31.03.2021, whichever is higher. Businesses who have not availed assistance under ECLGS (ECLGS 1.0 or 2.0), can avail credit support of upto 30% of their credit outstanding as on 31.03.2021.
Ecom Express, a technology enabled end-to-end logistics solutions provider to e-commerce industry, today announced that the company has expanded its total Hub and Processing area to over 2.8 Million sq. ft. across all major centres in India to enable total processing capacity of over 3 Million parcels per day.
The expanded facilities include large format Hubs, Processing Centres, Fulfilment Centres and Delivery Centres. The company has been investing ahead of the curve and in scaling its capabilities to power the blockbuster festive online sale season and to commensurate with the growth of the industry.
The overall sale of Khadi products stood at INR 3.25 crore across all 311 Khadi India outlets in Gujarat, the birth state of Mahatma Gandhi on his birth anniversary this year.
There was INR 33.12 lakh increase in sale as compared to the year 2020, when the gross sale of Khadi in the state on 2nd October stood at INR 2.92 crore. The sales figure this year is significantly high given the pandemic situation after the second wave of Covid-19, which had severely affected Gujarat just a few months ago. In order to give special boost to Khadi sales, Khadi and Village Industries Commission (KVIC) set up exhibition cum sales outlets at Ahmedabad, Vadodara, Surat and Rajkot railway stations as part of the “Azadi ka Amrit Mahotsav” in which Khadi’s sale worth INR 5.14 lakh was recorded.
Union Minister of State for Petroleum & Natural Gas and Labour & Employment, Rameswar Teli distributed the course completion certificate and appointment letter to successful candidates of Skill Development Institute, Guwahati (SDIG), in a ceremony organised at Pipeline Headquarters of Oil India Limited (OIL) at Guwahati.
Sushil Chandra Mishra, Chairman & Managing Director, OIL, senior officials of OIL, faculty and trainees of SDIG were also present at the event. The programme also commemorated ‘Azadi Ka Amrit Mahotsav’, 75 glorious years since India attained independence.
The Union Minister for Ports, Shipping and Waterways Sarbananda Sonowal and Union Minister of State for Ports, Shipping and Waterways, Shantanu Thakur virtually flagged off MV SCI Chennai from Kandla Port for EXIM trades with the middle-eastern countries. The vessel will sail from Kandla, proceed to Kochi and Tuticorin for loading export cargo and sail towards the Middle East.
Being the biggest transporter of the sea, the Shipping Corporation of India has contributed significantly to fulfilling Prime Minister's vision of Transformation through Transportation. This was stated by the Union Minister Sonowal, addressing the diamond jubilee celebration of the corporation, in Mumbai.
International Expo Group, LLC, an exhibition company is planning to hold XIII international medical exhibition “UzMedExpo-2021” which will take place from 19 to 21 October in Anhor Lokomotiv Garden, Tashkent.
The official support of the exhibition is provided by:
--- Ministry Of Health Of The Republic Of Uzbekistan;
--- Agency for the development of the pharmaceutical industry under the Ministry of health of the republic of Uzbekistan;
Exports, GST collection and economic growth remain strong compared to last year. According to the FISME factor, MSMEs can’t say this growth will sustain in the future.
Exports, GST collection and economic growth remain strong compared to last year. According to the FISME factor, MSMEs can’t say this growth will sustain in the future.
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MSME vendors in Auto supply chain worried on disruption in production due to Chips
The festive season in India is the prime time for customers making their big annual purchase, resulting into high car sales. However, this year the production rate is lesser than 50 per cent which has not only widened the gap between demand and supply but has impacted the vendors and workers.
How The Living Greens is bringing organic farming to urban spaces
With a degree in agri-engineering, Prateek Tiwari recognised the potential of organic produce much before its massive popularity today. To simplify the farm-to-fork supply chain, Prateek started an organic farming company in 2003, but it soon shut down in 2006.
Starting from their kitchens, how these mompreneurs built D2C brand Rooting Back
Aditi Singh and Karishma Jasra were always worried about their children’s health. They would discuss different products -- from detergents to soaps -- that could harm their children.
Karishma says, “I’ve experienced hormonal imbalance throughout my life, which had to be tackled not just by working on the outer appearance, but also what goes into the body.
The National Statistical Office (NSO), Ministry of Statistics and Programme Implementation
(MoSPI) has released quick estimates of index of industrial production and use‐based index for the month of august, 2021 (base 2011‐12=100).
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.
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Close on the heels of IMF’s forecast about Indian GDP growth for this fiscal pegging at 9.5%, the NITI Aayog has bettered it and predicted that India would grow at 10.5%! This is a remarkable turnaround indeed. The buoyancy is cross cutting and almost all sectors are recording an upswing. With Western markets becoming wary of China, many of them are turning to India. Therefore, exporters are also having a good order book. But like inactivity, over activity also exposes the limitations of a system. When Global Value Chains turn to India do we have capacities? My own experience of Garment industry has important lessons. India is one of the largest producers of cotton and houses the entire value chain up to apparel for export. But due to structural bottlenecks of the supply chain, we could seldom exploit the surge in demand. The sub-optimal size of dyeing & processing units and their limited capacities mean they can’t work on long term contacts and are prone to hike prices with even slight change in raw material costs. Secondly, the current size of processing industry can’t handle sudden surge in orders and export opportunities like the one coming to India’s way due to shift in GVCs, are likely to be missed. I have heard of similar limitations in other sectors too. Government needs to help bolster investment in the supply chain to augment productive capacities in the country. It is then only we would be able to successfully dock with GVCs to create more opportunities for growth and jobs.
"
During a conversation at Harvad Kennedy School, Union Finance Minister Nirmala Sitharaman said that, the Indian economy is expected to have a double-digit growth rate (will likely grow by 7.5-8.5%) for 10 years.
Finance Minister Sitharman gave this statement in view of the growth projection of India shared by rating agencies and the likes of IMF and World Bank. Earlier this week, the International Monetary Fund (IMF) retained India’s gross domestic product (GDP) growth forecasts at 9.5% in FY22 and 8.5% for FY23. The Reserve Bank of India has also maintained its GDP growth target for FY22 at 9.5%. Global rating agency Moody’s expects India’s real GDP growth rate to be 9.3% in FY22.
India’s GDP grew 20.1% in the June quarter from a year before, giving the illusion of a sharp economic recovery, but it was largely driven by a deeply-contracted (-24.4%) base.
Piyush Goyal, Minister for Commerce & Industry and Minister for Consumer Affairs, Food and Public Distribution while addressing the United States – India Business Council’s (USIBC) 46th Annual General Meeting and India Ideas Summit, said that in view of National Infrastructure Pipeline in the making, India was working to boost investment, streamline its tax regime, liberalize its FDI policy and strive to encourage invention, innovation, research and development. He expressed his views on the close partnership between India and the United States and its importance to a free, open, inclusive and prosperous Indo-Pacific region. It was themed ‘From Recovery to Resurgence: reflecting the growing importance of global economic recovery amidst emerging healthcare issues and technological trends’.
Although the Ministry of Coal gave reassurance on coal availability being ample in the country to meet the demand of power plants, in a press release on Sunday, the news of potential power crisis has gathered the attention of leaders, businesses and the consumers of power.
In view of this, KNN reached out to small business and trade associations across India to gauge its probable impact on MSMEs. While interacting with KNN, B. A Nazeer, President, Canara Plastic Manufacturer Association based in Mangalore said “MSMEs will be drastically hit by the looming energy crisis, as machines need to be heated continuously for one hour, hence power is vital in manufacturing.
U GRO Capital, a small business lending MSME focused fintech platform, and Kinara Capital, today announced a strategic co-origination partnership to offer collateral-free business loans to small business entrepreneurs in India.
Together, both companies plan to disburse INR 100 crore by the end of FY2022 to MSMEs in Manufacturing, Trading and Services sectors. The co-origination arrangement will leverage U GRO’s analytical data driven decisioning and integration through APIs with the smart technology platform of Kinara Capital. With years of AI/ML based decisioning and underwriting experience, Kinara Capital can take an MSME entrepreneur from loan application to loan disbursement within 24-hours. MSMEs across 300+ pin codes in Tier 1-3 cities will benefit from this partnership where Kinara is presently operating in the urban, semi-urban and peri-urban areas of Andhra Pradesh, Gujarat, Karnataka, Maharashtra, Tamil Nadu, Telangana and UT Puducherry.
Ministry of MSME is supporting the 40th India International Trade Fair (IITF) which will take place from 14th to 27th November, 2021 at ITPO, Pragati Maidan, New Delhi.
The Ministry is offering subsidized 06 sqm stalls to MSE units through Procurement & Marketing Support (PMS) Scheme of M/o MSME in the separate MSME pavilion at IITF-2021. After availing subsidy, the MSE units of the General category need to submit the original Demand Draft from Nationalized Bank of INR 22,621/- (Indian Rupees Twenty Two Thousand Six Hundred Twenty-One Only) in favor of PAO, MSME, New Delhi to MSME-DI, Ludhiana. MSE units of SC/ST/Women/NER/PH/Aspirational Districts are exempted from payment of the space Rent charges.
Following the announcement on 29th Sept 2021 by the Central Government about extension of Emergency Credit Line Guarantee Scheme (ECLGS) till 31st March 2021, the National Credit Guarantee Trustee Company Ltd (NCGTC) has issued the detailed guidelines on the subject.
Existing borrowers under ECLGS 1.0 & 2.0 would be eligible for additional credit support of upto 10% of total credit outstanding as on 29.02.2020 or 31.03.2021, whichever is higher. Businesses who have not availed assistance under ECLGS (ECLGS 1.0 or 2.0), can avail credit support of upto 30% of their credit outstanding as on 31.03.2021.
Ecom Express, a technology enabled end-to-end logistics solutions provider to e-commerce industry, today announced that the company has expanded its total Hub and Processing area to over 2.8 Million sq. ft. across all major centres in India to enable total processing capacity of over 3 Million parcels per day.
The expanded facilities include large format Hubs, Processing Centres, Fulfilment Centres and Delivery Centres. The company has been investing ahead of the curve and in scaling its capabilities to power the blockbuster festive online sale season and to commensurate with the growth of the industry.
The overall sale of Khadi products stood at INR 3.25 crore across all 311 Khadi India outlets in Gujarat, the birth state of Mahatma Gandhi on his birth anniversary this year.
There was INR 33.12 lakh increase in sale as compared to the year 2020, when the gross sale of Khadi in the state on 2nd October stood at INR 2.92 crore. The sales figure this year is significantly high given the pandemic situation after the second wave of Covid-19, which had severely affected Gujarat just a few months ago. In order to give special boost to Khadi sales, Khadi and Village Industries Commission (KVIC) set up exhibition cum sales outlets at Ahmedabad, Vadodara, Surat and Rajkot railway stations as part of the “Azadi ka Amrit Mahotsav” in which Khadi’s sale worth INR 5.14 lakh was recorded.
Union Minister of State for Petroleum & Natural Gas and Labour & Employment, Rameswar Teli distributed the course completion certificate and appointment letter to successful candidates of Skill Development Institute, Guwahati (SDIG), in a ceremony organised at Pipeline Headquarters of Oil India Limited (OIL) at Guwahati.
Sushil Chandra Mishra, Chairman & Managing Director, OIL, senior officials of OIL, faculty and trainees of SDIG were also present at the event. The programme also commemorated ‘Azadi Ka Amrit Mahotsav’, 75 glorious years since India attained independence.
The Union Minister for Ports, Shipping and Waterways Sarbananda Sonowal and Union Minister of State for Ports, Shipping and Waterways, Shantanu Thakur virtually flagged off MV SCI Chennai from Kandla Port for EXIM trades with the middle-eastern countries. The vessel will sail from Kandla, proceed to Kochi and Tuticorin for loading export cargo and sail towards the Middle East.
Being the biggest transporter of the sea, the Shipping Corporation of India has contributed significantly to fulfilling Prime Minister's vision of Transformation through Transportation. This was stated by the Union Minister Sonowal, addressing the diamond jubilee celebration of the corporation, in Mumbai.
International Expo Group, LLC, an exhibition company is planning to hold XIII international medical exhibition “UzMedExpo-2021” which will take place from 19 to 21 October in Anhor Lokomotiv Garden, Tashkent.
The official support of the exhibition is provided by:
--- Ministry Of Health Of The Republic Of Uzbekistan;
--- Agency for the development of the pharmaceutical industry under the Ministry of health of the republic of Uzbekistan;
Exports, GST collection and economic growth remain strong compared to last year. According to the FISME factor, MSMEs can’t say this growth will sustain in the future. 
As a business owner approaches retirement, they have many difficult decisions to make about their own and their company’s future. While some want to sell their business to fund their golden years, others want to simply take a step back from day-to-day operations.
The festive season in India is the prime time for customers making their big annual purchase, resulting into high car sales. However, this year the production rate is lesser than 50 per cent which has not only widened the gap between demand and supply but has impacted the vendors and workers.
With a degree in agri-engineering, Prateek Tiwari recognised the potential of organic produce much before its massive popularity today. To simplify the farm-to-fork supply chain, Prateek started an organic farming company in 2003, but it soon shut down in 2006.
Aditi Singh and Karishma Jasra were always worried about their children’s health. They would discuss different products -- from detergents to soaps -- that could harm their children.
Karishma says, “I’ve experienced hormonal imbalance throughout my life, which had to be tackled not just by working on the outer appearance, but also what goes into the body.
“ Do not figure out big plans at first, but, begin slowly, feel your ground and proceed up and up
”
