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President's Message
It is commendable the way Finance Minister provided for massive outlays towards capital expenditure in sectors such as Roads, Railways, Airports, Ports, Mass Transport, Waterways and Logistics Infrastructure besides access to housing and potable water but still managed the fiscal deficit. FISME has welcomed the budget proposals of withdrawal of Antidumping duty/ CVD on Stainless Steel & coated steel flat products, bars of alloy steel and high-speed steel. FISME thanks the Finance Minister for extension of Emergency Credit Linked Guarantee Scheme (ECLGS) up to March 2023. The rolling out of Raising and Accelerating MSME Performance (RAMP) programme with outlay of Rs 6000 Crore will help address many of the burning MSME issues like delays in payments and access to credit. The ‘One Station One Product’ concept is laudable as a souvenir shop will help generate business and also spread awareness about local art and craft. The proposal to initiate a completely paperless, end-to-end online e-Bill System in all central ministries will greatly MSME suppliers as it is to reduce delays in payments and make the process transparent. I would like to put on record our special thanks to FM for her acceding to our long standing demand for allowing replacement of Bank Guarantees by the Surety Bonds issued by Insurance companies. It would bring huge relief to MSMEs supplying to Government. While the Budget 2022-23 proposes several initiatives for ‘Ease of Doing Business’, but it has found bit disappointing that there is no mention of judicial reforms or even improvement in processes through digital intervention in the Budget. It also has been the sore point in EODB surveys. The issue of high customs duties and non-tariff barriers on basic raw material other than steel such as Copper, Aluminum and polymers remains largely unaddressed.
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Entrepreneurs are an optimistic breed who take the kind of risks that others don’t have an appetite for. But nine out of ten new businesses in this world fail because of just one trait of the entrepreneur: impatience. Digital Nod co-founders Nik Mulani and Mohit Mirchandani emphasize that growing too fast can be just as perilous to a business as not growing at all.
Contrary to the thick populist air blowing across the country amidst state elections, the Union Budget 2022-23 bets high on infrastructure spending with capital expenditure exceeding Rs 7 lac crore without abandoning fiscal prudence.
“It is a well-meaning Budget with unprecedented digital push”, says Dr. Animesh Saxena, President Federation of Indian Micro and Small & Medium Enterprises (FISME). It is commendable the way Finance Minister provided for
As per the Economic Survey 2021-22, the export sector is expected to grow at a faster pace leading the economic revival regardless of the multiple downside risks.
The annual report pointed out the boost in India’s merchandise exports and imports over a short period of time, which had not been expected by officials earlier. In view of the average global trade growth, hike in shipping rates and container shortages, the growth looks optimistic for India.
Union Finance Minister Nirmala Sitharaman has presented the fourth budget of the Modi government today. Lets have look at highlights of Budget for the micro, small and medium enterprises (MSME) sector, Start-ups and Taxes.
Key Announcements for MSMEs & Start-ups:
• Extension of ECLGS till March 2023
• Rs 6,000 crore programme to rate MSMEs to be rolled out over 5 years
• MSMEs such as Udyam, e-shram, NCS & Aseem portals will be inter-linked, their scope will be widened
• They will now perform as portals with live organic databases providing G-C, B-C & B-B services such as credit facilitation, enhancing entrepreneurial opportunities
India’s electronic goods exports grew 49% in April-December 2021 at USD 11 billion over USD 7.4 billion during the same period last year with the US and the UAE being the top two destinations, as per the statement by Commerce and Industry Ministry.
India’s export of electronic goods registered a growth of more than 33 % touching export remittance from electronic goods to USD 1.67 Billion in December, the Ministry added. The overall exports of electronics goods in FY21 were USD 11.11 billion.
“With USD 11 billion exports achieved in the first three-quarters of FY22, the sector is set to break all-time record highs, far exceeding the previous high of USD 11.7 billion recorded in FY20,” the ministry said in a statement.
Exports of engineering goods jumped to USD 81.8 billion during the April-December period of 2021 as compared to USD 52.9 billion during the same period in 2020, registering a growth of 54%, the commerce ministry said on Monday quoting provisional figures. The engineering goods sector constituted the largest, more than 27%, share of India’s total exports basket during the period. As compared to April-December 2019 (USD 59.8 Billion), exports of engineering goods registered a growth of 37%.
In the month of December 2021, exports of engineering goods touched USD 9.79 billion, registering a growth of 38.41% over USD 7.07 billion logged-in December 2020, the ministry said in a statement.
To encourage micro, small and medium enterprises (MSMEs) to apply as supply chain vendors with the Indian Railways, one of country’s biggest employer has reduced its vendor application fee from Rs 2.5 lakh to Rs 15,000 for identified safety items.
This drop in fee is marked at 93 per cent, while for businesses apart from MSMEs the fee is slashed from Rs 2.5 lakh to Rs 15,000 marking the drop at 94 per cent. Railways’ Research Designs & Standards Organisation (RDSO) is the department which looks after the approval of vendors.
Delivering the union budget speech, Finance Minister Nirmala Sitharaman has announced the extension of Emergency Credit Line Guarantee Scheme (ECLGS) until March 2023.
The guarantee cover has been increased from Rs 50,000 crore to Rs 5 lakh crore. For the hospitality segment of MSME sector an extended guarantee cover is marked in the union budget FY23, said Sitharaman. Extension of EGLS was highly anticipated by the MSME sector.
In a bid to provide relief to the micro, small and medium enterprises (MSME) amid the Covid scenario, the government has extended the validity of the existing registered enterprises under MSME till March 31, 2022. Considering the hardships faced by MSMEs during the prevailing Covid-19 situation exercise of the powers conferred by sub-sections (1) and (9) of section 7 read with sub-sections (2) and (3) of section 8 of the Micro, Small and Medium Enterprises Development Act, 2006 (27 of 2006), the Central Government has hereby made the amendments in the notification of Government of India, Ministry of Micro, Small and Medium Enterprises number S.O. 2119 (E), dated the 26th June, 2020
Due to limitation in land availability in Kerala, the State government is planning to develop the Private Industrial Estate policy for private players to start industrial parks and is also working towards establishing MSME clinics to help MSMEs free of cost, said Harikishore, Director, Industries & Commerce Kerala during a panel discussion at a MSME Growth Summit.
The Kerala chapter of MSME Growth Summit was organised by Elets Technomedia and Meta to showcase the key role of MSMEs in the economic development of the state.
The Kanara Chamber of Commerce and Industry has raised the issue of increase in power tariff for MSME sector by Electricity Supply Companies (ESCOMs) in Karnataka.
They have reached out to Chief Minister Basavaraj Bommai urging the government to not increase the electricity pricing for MSME sector. Only six months ago the tariffs were increased, pointed out B.A. Nazeer, Director of KCCI in a conversation with KNN.
The Odisha Assembly of Small and Medium Enterprises (OASME) has reached out to the state government for help as the ongoing coal crisis have hit the local industries drastically.
Naveen Patnaik, Chief Minister of Odisha has received letters from the Utkal Chamber of Commerce and Industry (UCCI) Ltd and OASME urging the government to take steps to avert the looming crisis.
The MSME sector is a significant segment for the Eastern state providing lakhs of employment, hence this shortage challenges the viability of industries.
During the first round of talks on India-UK Free Trade Agreement (FTA) technical experts from both the countries discussed 26 policy which covered Trade in Goods, Fintech, SMEs, Telecommunications, Investment, Intellectual Property.
They also talked through areas such as Customs and Trade Facilitation, Technical Barriers to Trade, Competition, Sustainability, Trade and Development, Geographical Indicators and Digital etc. It was held virtually for two weeks in 32 separate sessions which led to productive negotiations, said the official release.
Both the countries are determined to conclude negotiations before this year ends with the second round of negotiations scheduled to take place on 7th to 18th March 2022.
The main negotiators eye on the benefits of Interim Agreement for both the economies, hence efforts are high from both ends to secure a comprehensive agreement.
Have the new GST provisions effective from 1st Jan 2022 increased or decreased compliance costs:
According to the FISME factor, 50% of MSMEs think that the new GST provisions effective from 1st Jan 2022 have increased the compliance costs while 50% think provisions decreased the compliance costs.
5 Human Resource Challenges Facing Small Businesses Today
Unfortunately, there are no shortcuts when it comes to effective HR management. So, if you are an entrepreneur who plans to hire employees, do yourself a favor. Consider these five HR challenges in making sure you are compliant in all aspects of your business.
Your business is crucial, of course, but it probably shouldn't be your only source of income. The wealthiest people know they need to find ways to create wealth over time to both supplement their businesses and help them to achieve their long-term financial goals.
A Branding Expert Offers Five Major Marketing Tips for 2022
The year 2021 has been a remarkable year for business. Brands have seen massive growth throughout this year, and it’s all thanks to the key marketing strategies they have employed in the ever-growing digital world. Dillon Kivo is no stranger to the ins and outs of the digital marketing industry.
UP MSMEs unsatisfied with current govt; expect future regime to push cluster development & departmental support
The new government of Uttar Pradesh must remove the barriers impeding the growth of micro, small and medium enterprises (MSMEs) which includes simplifying complex policies and setting up clusters, boost technology upgradation to push One District One Product (ODOP) initiative
For a green future: How this startup’s energy storage solution is accelerating renewable energy adoption
With climate change becoming a looming existential threat, the world is now moving away from thermal sources of energy and switching to renewables. Prime Minister Narendra Modi also pledged at the COP26 Climate Conference that India would achieve net-zero carbon emissions by 2070.
How Praan is envisioning a cleaner future with its innovative air purifiers
Founded in 2017, Praan provides low-cost, filter-less and artificial intelligence-based outdoor air purification systems. On January 12, it secured $1.56 million in funding.
The National Statistical Office (NSO), Ministry of Statistics and Programme Implementation (MoSPI) has released the first revised estimates of National Income, Consumption Expenditure, Saving and Capital formation for the financial year 2020-21.
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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This Newsletter is edited by the FISME Secretariat. We welcome contributions as well as comments and suggestions. Please write to newsletter@fisme.org.in
It is commendable the way Finance Minister provided for massive outlays towards capital expenditure in sectors such as Roads, Railways, Airports, Ports, Mass Transport, Waterways and Logistics Infrastructure besides access to housing and potable water but still managed the fiscal deficit. FISME has welcomed the budget proposals of withdrawal of Antidumping duty/ CVD on Stainless Steel & coated steel flat products, bars of alloy steel and high-speed steel. FISME thanks the Finance Minister for extension of Emergency Credit Linked Guarantee Scheme (ECLGS) up to March 2023. The rolling out of Raising and Accelerating MSME Performance (RAMP) programme with outlay of Rs 6000 Crore will help address many of the burning MSME issues like delays in payments and access to credit. The ‘One Station One Product’ concept is laudable as a souvenir shop will help generate business and also spread awareness about local art and craft. The proposal to initiate a completely paperless, end-to-end online e-Bill System in all central ministries will greatly MSME suppliers as it is to reduce delays in payments and make the process transparent. I would like to put on record our special thanks to FM for her acceding to our long standing demand for allowing replacement of Bank Guarantees by the Surety Bonds issued by Insurance companies. It would bring huge relief to MSMEs supplying to Government. While the Budget 2022-23 proposes several initiatives for ‘Ease of Doing Business’, but it has found bit disappointing that there is no mention of judicial reforms or even improvement in processes through digital intervention in the Budget. It also has been the sore point in EODB surveys. The issue of high customs duties and non-tariff barriers on basic raw material other than steel such as Copper, Aluminum and polymers remains largely unaddressed.
"
Entrepreneurs are an optimistic breed who take the kind of risks that others don’t have an appetite for. But nine out of ten new businesses in this world fail because of just one trait of the entrepreneur: impatience. Digital Nod co-founders Nik Mulani and Mohit Mirchandani emphasize that growing too fast can be just as perilous to a business as not growing at all.
As per the Economic Survey 2021-22, the export sector is expected to grow at a faster pace leading the economic revival regardless of the multiple downside risks.
The annual report pointed out the boost in India’s merchandise exports and imports over a short period of time, which had not been expected by officials earlier. In view of the average global trade growth, hike in shipping rates and container shortages, the growth looks optimistic for India.
Union Finance Minister Nirmala Sitharaman has presented the fourth budget of the Modi government today. Lets have look at highlights of Budget for the micro, small and medium enterprises (MSME) sector, Start-ups and Taxes.
Key Announcements for MSMEs & Start-ups:
• Extension of ECLGS till March 2023
• Rs 6,000 crore programme to rate MSMEs to be rolled out over 5 years
• MSMEs such as Udyam, e-shram, NCS & Aseem portals will be inter-linked, their scope will be widened
• They will now perform as portals with live organic databases providing G-C, B-C & B-B services such as credit facilitation, enhancing entrepreneurial opportunities
India’s electronic goods exports grew 49% in April-December 2021 at USD 11 billion over USD 7.4 billion during the same period last year with the US and the UAE being the top two destinations, as per the statement by Commerce and Industry Ministry.
India’s export of electronic goods registered a growth of more than 33 % touching export remittance from electronic goods to USD 1.67 Billion in December, the Ministry added. The overall exports of electronics goods in FY21 were USD 11.11 billion.
“With USD 11 billion exports achieved in the first three-quarters of FY22, the sector is set to break all-time record highs, far exceeding the previous high of USD 11.7 billion recorded in FY20,” the ministry said in a statement.
Exports of engineering goods jumped to USD 81.8 billion during the April-December period of 2021 as compared to USD 52.9 billion during the same period in 2020, registering a growth of 54%, the commerce ministry said on Monday quoting provisional figures. The engineering goods sector constituted the largest, more than 27%, share of India’s total exports basket during the period. As compared to April-December 2019 (USD 59.8 Billion), exports of engineering goods registered a growth of 37%.
In the month of December 2021, exports of engineering goods touched USD 9.79 billion, registering a growth of 38.41% over USD 7.07 billion logged-in December 2020, the ministry said in a statement.
To encourage micro, small and medium enterprises (MSMEs) to apply as supply chain vendors with the Indian Railways, one of country’s biggest employer has reduced its vendor application fee from Rs 2.5 lakh to Rs 15,000 for identified safety items.
This drop in fee is marked at 93 per cent, while for businesses apart from MSMEs the fee is slashed from Rs 2.5 lakh to Rs 15,000 marking the drop at 94 per cent. Railways’ Research Designs & Standards Organisation (RDSO) is the department which looks after the approval of vendors.
Delivering the union budget speech, Finance Minister Nirmala Sitharaman has announced the extension of Emergency Credit Line Guarantee Scheme (ECLGS) until March 2023.
The guarantee cover has been increased from Rs 50,000 crore to Rs 5 lakh crore. For the hospitality segment of MSME sector an extended guarantee cover is marked in the union budget FY23, said Sitharaman. Extension of EGLS was highly anticipated by the MSME sector.
In a bid to provide relief to the micro, small and medium enterprises (MSME) amid the Covid scenario, the government has extended the validity of the existing registered enterprises under MSME till March 31, 2022. Considering the hardships faced by MSMEs during the prevailing Covid-19 situation exercise of the powers conferred by sub-sections (1) and (9) of section 7 read with sub-sections (2) and (3) of section 8 of the Micro, Small and Medium Enterprises Development Act, 2006 (27 of 2006), the Central Government has hereby made the amendments in the notification of Government of India, Ministry of Micro, Small and Medium Enterprises number S.O. 2119 (E), dated the 26th June, 2020
Due to limitation in land availability in Kerala, the State government is planning to develop the Private Industrial Estate policy for private players to start industrial parks and is also working towards establishing MSME clinics to help MSMEs free of cost, said Harikishore, Director, Industries & Commerce Kerala during a panel discussion at a MSME Growth Summit.
The Kerala chapter of MSME Growth Summit was organised by Elets Technomedia and Meta to showcase the key role of MSMEs in the economic development of the state.
The Kanara Chamber of Commerce and Industry has raised the issue of increase in power tariff for MSME sector by Electricity Supply Companies (ESCOMs) in Karnataka.
They have reached out to Chief Minister Basavaraj Bommai urging the government to not increase the electricity pricing for MSME sector. Only six months ago the tariffs were increased, pointed out B.A. Nazeer, Director of KCCI in a conversation with KNN.
The Odisha Assembly of Small and Medium Enterprises (OASME) has reached out to the state government for help as the ongoing coal crisis have hit the local industries drastically.
Naveen Patnaik, Chief Minister of Odisha has received letters from the Utkal Chamber of Commerce and Industry (UCCI) Ltd and OASME urging the government to take steps to avert the looming crisis.
The MSME sector is a significant segment for the Eastern state providing lakhs of employment, hence this shortage challenges the viability of industries.
During the first round of talks on India-UK Free Trade Agreement (FTA) technical experts from both the countries discussed 26 policy which covered Trade in Goods, Fintech, SMEs, Telecommunications, Investment, Intellectual Property.
They also talked through areas such as Customs and Trade Facilitation, Technical Barriers to Trade, Competition, Sustainability, Trade and Development, Geographical Indicators and Digital etc. It was held virtually for two weeks in 32 separate sessions which led to productive negotiations, said the official release.
Both the countries are determined to conclude negotiations before this year ends with the second round of negotiations scheduled to take place on 7th to 18th March 2022.
The main negotiators eye on the benefits of Interim Agreement for both the economies, hence efforts are high from both ends to secure a comprehensive agreement.
According to the FISME factor, 50% of MSMEs think that the new GST provisions effective from 1st Jan 2022 have increased the compliance costs while 50% think provisions decreased the compliance costs. 
Unfortunately, there are no shortcuts when it comes to effective HR management. So, if you are an entrepreneur who plans to hire employees, do yourself a favor. Consider these five HR challenges in making sure you are compliant in all aspects of your business.
Your business is crucial, of course, but it probably shouldn't be your only source of income. The wealthiest people know they need to find ways to create wealth over time to both supplement their businesses and help them to achieve their long-term financial goals.
The year 2021 has been a remarkable year for business. Brands have seen massive growth throughout this year, and it’s all thanks to the key marketing strategies they have employed in the ever-growing digital world. Dillon Kivo is no stranger to the ins and outs of the digital marketing industry.
The new government of Uttar Pradesh must remove the barriers impeding the growth of micro, small and medium enterprises (MSMEs) which includes simplifying complex policies and setting up clusters, boost technology upgradation to push One District One Product (ODOP) initiative
With climate change becoming a looming existential threat, the world is now moving away from thermal sources of energy and switching to renewables. Prime Minister Narendra Modi also pledged at the COP26 Climate Conference that India would achieve net-zero carbon emissions by 2070.
Founded in 2017, Praan provides low-cost, filter-less and artificial intelligence-based outdoor air purification systems. On January 12, it secured $1.56 million in funding.
“The butterfly counts not months but moments, and has time enough.
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