If you are unable to view this mailer, click here.
President Message
Come November and the Ministry of Finance, Government of India gets busy with the process of consultation on Union Budget with key stakeholders. As President FISME, I have had the occasion to present MSME views before the Finance Minister and her entire team twice within a span of 15 days: first as industry representative and secondly as an employer federation. FISME advocated for reforms and highlighted that select reforms and a few precise policy interventions could have the same impact as large Tax cuts in bolstering the economy up. We proposed four specific interventions. In Banking and Finance, I highlighted the vexatious issue of BLR rating and requested to set-up a joint committee of RBI, Banks and stakeholders (DFS & MSME associations) to develop a sui generis ratting model for MSMEs which focuses on solvency. Secondly, I informed FM how a few Private sector Banks levy pre-payment penalties on hapless MSEs who try to change the bank in direct defiance of the Code for MSE customers of which they are signatory. She was requested to establish a task force to study the extent of spread of the malice and suggest remedial measures in a time bound manner. Thirdly, I reminded her that in her last year’s Budget speech she announced gibing option of replacement of Bank Guarantee by Surety Bonds which still stands unimplemented. Fourthly, I narrated the plight of existing industrial areas and a need to announce a comprehensive scheme for Financing Industrial Area Development for both brown and green field projects on the lines of Industrial Infrastructure Up-gradation Scheme (IIUS). As employer Federation, I reiterated FISME’s demand for capping social security contribution for MSME employers to 10%. I hope the Union Budget will take into account some of these suggestions.
Federation of Indian Micro and Small & Medium Enterprises (FISME) and Gujarat Chamber of Commerce and Industries (GCCI) signed a MoU in Ahmedabad last week to jointly undertake MSME development projects.
The pact was signed by Shailesh Patwari, President of GCCI and Prashant Patel, President FISME. FISME being a central body would help GCCI tap bilateral and multilateral development funds for MSMEs in Gujarat and GCCI would share the best practices being followed for attracting investment and also success stories of Gujarati industries.
The MSME apex body organized the meeting of its Central Executive Committee in hybrid mode at the sprawling complex of Entrepreneurship Development Institute of India (EDII), Ahmedabad.
The Central Executive Committee of FISME met at EDII, Ahmedabad in hybrid mode. The Meeting was chaired by President Shri Prashant Patel. After reviewing the activities and progress of various projects, the Committee deliberated on the issues to be flagged before the Finance Minister during pre-budget consultations. Later the delegates also visited Naroda industrial Areas and their collective initiatives like CETP amd TSDF facility.
Between the current inflationary environment and the looming economic recession, launching a business may seem riskier than ever. In fact, 89% of small business owners have increased the prices of their products or services since the global health crisis, and 60% are concerned about the financial health of their businesses due to inflation.
Even so, brands are still launching every day, but not without some necessary pivots. For brands to thrive, they must make hard decisions concerning ingredients, packaging and distribution. Knowledge of risk factors and the ability to implement risk-management strategies is crucial before launching your brand.
Credit and finance for MSMEs: Federation of Indian Micro and Small & Medium Enterprises (FISME), a representative organisation for the MSME sector, has suggested scrapping the bank loan rating (BLR) requirement by banks to lend to MSMEs and instead developing a unique rating model focusing on solvency alone of the borrower.
In the second quarter of the current fiscal, the Indian economy grew by 6.3 per cent and the manufacturing sector saw a negative growth due to low growth for the SME sector as per index of industrial production (IIP) numbers.
According to the data released by the National Statistical Office (NSO), the gross domestic product (GDP) had expanded by 8.4 per cent in the July-September quarter of 2021-22. Recorded in the April-June quarter this fiscal, analysts had projected the Indian economy would expand at half of the growth rate of 13.5 per cent.
Beating Japan and Germany, India is likely to become world’s third largest economy as its real GDP is projected to grow at a pace of 6.3% annually between FY2021-30 which is more than the global average growth rate, said S&P Global.
Outpacing the two countries in nominal dollar terms, India will achieve this on the back of rising per capita income, boosting domestic manufacturing and deepening trade ties with global economies, said the report by S&P.
In the third quarter (Q3) of 2022, the Indian solar sector saw investments of USD 2 billion which is a 30% decrease compared to USD 2.9 billion in Q2 2022.
According to the Q3 2022 India Solar Market Update in Mercom India Research's latest report the investments were down by 45% year-over-year (Yor) from USD 3.7 billion. In Q3 2022, solar installations fell by 32.5% QoQ, with several large projects postponed to future quarters, directly resulting in lower investments.
In addition, lower manufacturing investments in the quarter also affected the overall totals.
The commissioning delays of ongoing solar projects and the uncertainty over the Great Indian Bustard issue in Rajasthan led to a significant drop in investments in the quarter.
Minister of State for MSME, Bhanu Pratap Singh Verma on Tuesday invited suggestions from the MSME sector on items to be reserved for purchase.
The Minister in a tweet said, “MSMEs are the backbone of the Indian Economy! Let’s help their growth. Give your suggestions on the list of items that can be reserved for exclusive purchase from MSMEs under the Public Procurement Policy.” Earlier in October a revised draft list of goods to be exclusively procured from MSMEs was released.
It introduced services and now the MSME ministry is looking into enhancing public procurement of goods and services from MSMEs.
Federation of Indian Micro and Small & Medium Enterprises (FISME) has suggested Niramala Sitharaman, Union Finance Minister during the pre-budget meeting on Monday that the social security cost should not be more than 10%.
The top employer’s federations of the country informed FM Sitharaman that high social security cost of employing workers is coming in the way of creating more jobs in formal sector. It was the turn of federations of employers both large and small on Monday during the series of pre-budget meetings with the FM.
Bank of Baroda (Bank) has partnered with Aerem Solutions Pvt Ltd (ASPL) and its subsidiary, Aerem Finance Pvt Ltd (AFPL) for the financing of Solar Rooftop projects for captive use by MSMEs.
Under the agreement the public sector bank will provide collateral-free loans at affordable rates to MSMEs for installation of captive solar rooftop projects. This collaboration which was announced on Monday will encourage MSMEs to adopt solar energy, significantly reducing power bills and increasing profitability of the business as well as supporting the development and growth of the renewable energy market in India.
Representing the MSME community of India, Federation of Indian Micro and Small & Medium Enterprises (FISME) raised issues concerning government procurement and finance in context of MSMEs with the Finance Minister Nirmala Sitharaman in course of pre-budget meeting.
Presenting its submission for Union Budget 2023-24, the apex MSME body has urged for FM’s immediate intervention in setting-up a joint committee of RBI, Banks and stakeholders (DFS & MSME associations) to develop a sui generis rating model for MSMEs which focuses on solvency alone.
The Odisha cabinet chaired by chief minister Naveen Patnaik on Tuesday approved the Industrial Policy Resolution (IPR) 2022 to attract investments to the state.
The new IPR will be applicable for five years, said an official statement issued by the government on Wednesday. “The major objectives of the policy is to make Odisha the industrial hub of Eastern India, to promote industries in the identified thrust and priority sectors, to develop bestin-class industrial infrastructure, to create an enabling environment for start-ups and MSMEs, and to promote innovation, research & development in new areas of technology,” the release said.
Chief Minister Yogi Adityanath-led Uttar Pradesh government is planning to develop its Western and Central region into hub for auto and electric vehicle industries with a vision to make the state a USD 1 trillion economy.
To boost the MSME sector the state government has chosen Agra, Shahjahanpur, Aligarh, Prayagraj, Saharanpur, and Etawah. For setting up of big enterprises to encourage the auto industry Gautam Budh Nagar, Ghaziabad, Lucknow, Hapur, Kanpur Nagar, and Meerut have been chosen.
The Tamil Nadu Chief Minister M.K. Stalin on Friday announced that the state government will be setting up a textile park at the Virudhunagar district.
As per report, SIPCOT has already acquired the land for the park that will be spread over 1,500 acres. The state government will also set up a 'Textile City' in Chennai.
Addressing an international conference on technical textiles, organised by CII in association with textile departments of state and Union governments, Stalin said the state's competition in the textiles sector should not only be within the country, but at global level, as well.
Goa Chief Minister Pramod Sawant on Thursday said that the state has achieved 100 per cent compliance with the public finance management system (PFMS) for schemes sponsored by the Central government and is the first state in the country to do so.
The chief minister chaired a meeting with officers of the state finance department. The state government has received fund to the tune of Rs 200 crore from Rs 306 crore allocated for projects under Central schemes and the remaining Rs 106 crore will be received by next month, he said.
With the aim to enhance investments in Andhra Pradesh by companies from Japan and East-Asian countries, the Andhra Pradesh Economic Development Board (APEDB) on Tuesday inked an agreement with Mitsubishi UFJ Financial Group Bank (MUFG Bank). As per a release, the MoU was signed by APEDB Chief Executive Officer and Department of Industries Commissioner G. Srijana and MUFG India Head Kenichiro Kawase in the presence of Kazuyoshi Shibatani, Managing Director and India Head of Planning & Strategy (Japanese Corporate).
One of the most widespread employee complaints is that of bosses excessively scrutinising and supervising their work. This universally-condemned managerial style – also known as micromanagement – usually sees the bosses closely observing and controlling every aspect of an assigned task, providing unsolicited inputs and demanding continuous updates, occasionally from start to finish. Why is this considered such a harmful practice? And what do HR leaders suggest doing about it?
Follow These Five Tips and Get a Low-Interest Business Loan
Easy access to business financing can benefit your company in several ways. You can seize every great opportunity, streamline your manufacturing process, engage in aggressive marketing, and hire more skilled workers. However, with quick access to funds, you must obtain them at reasonable rates.
How Leveraging digital marketing strategies can help during Inflation
The next potential economic downturn is here- with rising inflation and mass layoffs, it's time for businesses to use digital marketing as a growth and revenue-earning opportunity.
Modern businesses are prioritising cutting all ineffective marketing efforts that prove to be a waste of their ad spend budget.
Solvent Extractors demand raise in import duty on palm oil
The Solvent Extractors’ Association (SEA) of India has urged the Government to raise the import duty on refined palm oil to 20 per cent from the current 12.5 per cent in order to protect domestic refiners. In a memorandum to union sent to the commerce minister Piyush Goyal,
Why this ex-sportswoman and dancer started a sports management company for women athletes
In August 2021, Megha H Desai and Deepika Das Peirera realised the representation and investment in women sportspersons in India were not strong enough compared to other countries. They started Mumbai-based ENGN the same year to support Indian women athletes and give them the required support to make a global impact.
A 20 Years Old Tries To Disrupt The $500 Billion FMCG Market In India
In a country that still hasn't gotten rid of the conservative mindset of having a government job, Soptle is the name of a revolutionary breakthrough made by a nineteen year-old boy, Pravas Chandragiri. Probably because the business in his blood cannot be avoided, at the age of 12, the boy learned his baby steps in business while managing his uncle's kirana store at Balasore (Odisha).
The National Statistical Office (NSO), Ministry of Statistics and Programme Implementation (MoSPI) has released the estimates of Gross Domestic Product (GDP) for the second quarter (July-September) of 2022-23 (Q2 2022-23), both at Constant (2011-12) and Current Prices.
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.
Come November and the Ministry of Finance, Government of India gets busy with the process of consultation on Union Budget with key stakeholders. As President FISME, I have had the occasion to present MSME views before the Finance Minister and her entire team twice within a span of 15 days: first as industry representative and secondly as an employer federation. FISME advocated for reforms and highlighted that select reforms and a few precise policy interventions could have the same impact as large Tax cuts in bolstering the economy up. We proposed four specific interventions. In Banking and Finance, I highlighted the vexatious issue of BLR rating and requested to set-up a joint committee of RBI, Banks and stakeholders (DFS & MSME associations) to develop a sui generis ratting model for MSMEs which focuses on solvency. Secondly, I informed FM how a few Private sector Banks levy pre-payment penalties on hapless MSEs who try to change the bank in direct defiance of the Code for MSE customers of which they are signatory. She was requested to establish a task force to study the extent of spread of the malice and suggest remedial measures in a time bound manner. Thirdly, I reminded her that in her last year’s Budget speech she announced gibing option of replacement of Bank Guarantee by Surety Bonds which still stands unimplemented. Fourthly, I narrated the plight of existing industrial areas and a need to announce a comprehensive scheme for Financing Industrial Area Development for both brown and green field projects on the lines of Industrial Infrastructure Up-gradation Scheme (IIUS). As employer Federation, I reiterated FISME’s demand for capping social security contribution for MSME employers to 10%. I hope the Union Budget will take into account some of these suggestions.
Federation of Indian Micro and Small & Medium Enterprises (FISME) and Gujarat Chamber of Commerce and Industries (GCCI) signed a MoU in Ahmedabad last week to jointly undertake MSME development projects.
The pact was signed by Shailesh Patwari, President of GCCI and Prashant Patel, President FISME. FISME being a central body would help GCCI tap bilateral and multilateral development funds for MSMEs in Gujarat and GCCI would share the best practices being followed for attracting investment and also success stories of Gujarati industries.
The MSME apex body organized the meeting of its Central Executive Committee in hybrid mode at the sprawling complex of Entrepreneurship Development Institute of India (EDII), Ahmedabad.
The Central Executive Committee of FISME met at EDII, Ahmedabad in hybrid mode. The Meeting was chaired by President Shri Prashant Patel. After reviewing the activities and progress of various projects, the Committee deliberated on the issues to be flagged before the Finance Minister during pre-budget consultations. Later the delegates also visited Naroda industrial Areas and their collective initiatives like CETP amd TSDF facility.
In the second quarter of the current fiscal, the Indian economy grew by 6.3 per cent and the manufacturing sector saw a negative growth due to low growth for the SME sector as per index of industrial production (IIP) numbers.
According to the data released by the National Statistical Office (NSO), the gross domestic product (GDP) had expanded by 8.4 per cent in the July-September quarter of 2021-22. Recorded in the April-June quarter this fiscal, analysts had projected the Indian economy would expand at half of the growth rate of 13.5 per cent.
Beating Japan and Germany, India is likely to become world’s third largest economy as its real GDP is projected to grow at a pace of 6.3% annually between FY2021-30 which is more than the global average growth rate, said S&P Global.
Outpacing the two countries in nominal dollar terms, India will achieve this on the back of rising per capita income, boosting domestic manufacturing and deepening trade ties with global economies, said the report by S&P.
In the third quarter (Q3) of 2022, the Indian solar sector saw investments of USD 2 billion which is a 30% decrease compared to USD 2.9 billion in Q2 2022.
According to the Q3 2022 India Solar Market Update in Mercom India Research's latest report the investments were down by 45% year-over-year (Yor) from USD 3.7 billion. In Q3 2022, solar installations fell by 32.5% QoQ, with several large projects postponed to future quarters, directly resulting in lower investments.
In addition, lower manufacturing investments in the quarter also affected the overall totals.
The commissioning delays of ongoing solar projects and the uncertainty over the Great Indian Bustard issue in Rajasthan led to a significant drop in investments in the quarter.
Minister of State for MSME, Bhanu Pratap Singh Verma on Tuesday invited suggestions from the MSME sector on items to be reserved for purchase.
The Minister in a tweet said, “MSMEs are the backbone of the Indian Economy! Let’s help their growth. Give your suggestions on the list of items that can be reserved for exclusive purchase from MSMEs under the Public Procurement Policy.” Earlier in October a revised draft list of goods to be exclusively procured from MSMEs was released.
It introduced services and now the MSME ministry is looking into enhancing public procurement of goods and services from MSMEs.
Federation of Indian Micro and Small & Medium Enterprises (FISME) has suggested Niramala Sitharaman, Union Finance Minister during the pre-budget meeting on Monday that the social security cost should not be more than 10%.
The top employer’s federations of the country informed FM Sitharaman that high social security cost of employing workers is coming in the way of creating more jobs in formal sector. It was the turn of federations of employers both large and small on Monday during the series of pre-budget meetings with the FM.
Bank of Baroda (Bank) has partnered with Aerem Solutions Pvt Ltd (ASPL) and its subsidiary, Aerem Finance Pvt Ltd (AFPL) for the financing of Solar Rooftop projects for captive use by MSMEs.
Under the agreement the public sector bank will provide collateral-free loans at affordable rates to MSMEs for installation of captive solar rooftop projects. This collaboration which was announced on Monday will encourage MSMEs to adopt solar energy, significantly reducing power bills and increasing profitability of the business as well as supporting the development and growth of the renewable energy market in India.
Representing the MSME community of India, Federation of Indian Micro and Small & Medium Enterprises (FISME) raised issues concerning government procurement and finance in context of MSMEs with the Finance Minister Nirmala Sitharaman in course of pre-budget meeting.
Presenting its submission for Union Budget 2023-24, the apex MSME body has urged for FM’s immediate intervention in setting-up a joint committee of RBI, Banks and stakeholders (DFS & MSME associations) to develop a sui generis rating model for MSMEs which focuses on solvency alone.
The Odisha cabinet chaired by chief minister Naveen Patnaik on Tuesday approved the Industrial Policy Resolution (IPR) 2022 to attract investments to the state.
The new IPR will be applicable for five years, said an official statement issued by the government on Wednesday. “The major objectives of the policy is to make Odisha the industrial hub of Eastern India, to promote industries in the identified thrust and priority sectors, to develop bestin-class industrial infrastructure, to create an enabling environment for start-ups and MSMEs, and to promote innovation, research & development in new areas of technology,” the release said.
Chief Minister Yogi Adityanath-led Uttar Pradesh government is planning to develop its Western and Central region into hub for auto and electric vehicle industries with a vision to make the state a USD 1 trillion economy.
To boost the MSME sector the state government has chosen Agra, Shahjahanpur, Aligarh, Prayagraj, Saharanpur, and Etawah. For setting up of big enterprises to encourage the auto industry Gautam Budh Nagar, Ghaziabad, Lucknow, Hapur, Kanpur Nagar, and Meerut have been chosen.
The Tamil Nadu Chief Minister M.K. Stalin on Friday announced that the state government will be setting up a textile park at the Virudhunagar district.
As per report, SIPCOT has already acquired the land for the park that will be spread over 1,500 acres. The state government will also set up a 'Textile City' in Chennai.
Addressing an international conference on technical textiles, organised by CII in association with textile departments of state and Union governments, Stalin said the state's competition in the textiles sector should not only be within the country, but at global level, as well.
Goa Chief Minister Pramod Sawant on Thursday said that the state has achieved 100 per cent compliance with the public finance management system (PFMS) for schemes sponsored by the Central government and is the first state in the country to do so.
The chief minister chaired a meeting with officers of the state finance department. The state government has received fund to the tune of Rs 200 crore from Rs 306 crore allocated for projects under Central schemes and the remaining Rs 106 crore will be received by next month, he said.
With the aim to enhance investments in Andhra Pradesh by companies from Japan and East-Asian countries, the Andhra Pradesh Economic Development Board (APEDB) on Tuesday inked an agreement with Mitsubishi UFJ Financial Group Bank (MUFG Bank). As per a release, the MoU was signed by APEDB Chief Executive Officer and Department of Industries Commissioner G. Srijana and MUFG India Head Kenichiro Kawase in the presence of Kazuyoshi Shibatani, Managing Director and India Head of Planning & Strategy (Japanese Corporate).
According to the FISME factor, 100% of MSMEs think that India-UK FTA could boost exports. 
One of the most widespread employee complaints is that of bosses excessively scrutinising and supervising their work. This universally-condemned managerial style – also known as micromanagement – usually sees the bosses closely observing and controlling every aspect of an assigned task, providing unsolicited inputs and demanding continuous updates, occasionally from start to finish. Why is this considered such a harmful practice? And what do HR leaders suggest doing about it?
Easy access to business financing can benefit your company in several ways. You can seize every great opportunity, streamline your manufacturing process, engage in aggressive marketing, and hire more skilled workers. However, with quick access to funds, you must obtain them at reasonable rates.
The next potential economic downturn is here- with rising inflation and mass layoffs, it's time for businesses to use digital marketing as a growth and revenue-earning opportunity.
Modern businesses are prioritising cutting all ineffective marketing efforts that prove to be a waste of their ad spend budget.
The Solvent Extractors’ Association (SEA) of India has urged the Government to raise the import duty on refined palm oil to 20 per cent from the current 12.5 per cent in order to protect domestic refiners. In a memorandum to union sent to the commerce minister Piyush Goyal,
In August 2021, Megha H Desai and Deepika Das Peirera realised the representation and investment in women sportspersons in India were not strong enough compared to other countries. They started Mumbai-based ENGN the same year to support Indian women athletes and give them the required support to make a global impact.
In a country that still hasn't gotten rid of the conservative mindset of having a government job, Soptle is the name of a revolutionary breakthrough made by a nineteen year-old boy, Pravas Chandragiri. Probably because the business in his blood cannot be avoided, at the age of 12, the boy learned his baby steps in business while managing his uncle's kirana store at Balasore (Odisha).
“ The energy of the mind is the essence of life. ”
