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President's Message
A pretty damning report has surfaced this week about instances of jail terms in the Indian laws applicable on businesses. According to the report ‘Jailed For Doing Business India’ by TeamLease RegTech and Delhi-based think tank Observer Research Foundation, India has 69,233 unique compliances to regulate doing business in the country of which 26,134 clauses have imprisonment clauses. In other words, almost two out of five compliances can send an entrepreneur to jail. Indian Businessmen know that it is not that entrepreneurs are castrated routinely. But these clauses are routinely used to twist arms and extract money. On the one hand they increase cost of doing business and on the other, they have a demoralizing effect on entrepreneurs who dither setting up new ventures or expand in such an environment. The number may be little exaggerated though. There are cross cutting laws like land regulation, taxation etc and sectoral laws like for food or pharma or plastics etc. They seem to have clubbed all the instances together which of course will not be the case for each industry. At the same time, the compliance burden also varies from state to state. Still, the number is enough to make one shudder about doing business. In business laws, compounding should be the norm than imprisonment. A huge reform agenda needs to unfold we want to create 12 million jobs every year.
"
What gets measured gets done. Yet, most small business owners ignore the metrics in their business. They intuitively know what to do, so they bypass the most crucial tool to help make the right decisions to keep the business thriving.
It is easy to wing it. It is easy to make snap decisions based on your gut while telling yourself that you can’t measure anything worthwhile in your company. ...
The report by Gautam Chhikermane and Rishi Agarwal distils the risks of imprisonment faced by Indian entrepreneurs. Using newly isolated data on 26,134 imprisonment clauses embedded in laws enacted by the Union and state governments along seven categories—labour; secretarial; environment, health and safety; industry-specific; finance and taxation; commercial; and general.
Due to the gradual decrease in the impact of Covid-19’s third wave, the textile demand is expected to speed up in FY23 as per the India Ratings and Research (Ind-Ra). Reduction in logistics problems for export demand will help in maintaining vigorous demand, said the rating agency.
After seeing a slight dip in 1QFY22, the domestic demand for all the textile sub-sectors has continued to improve from 2QFY22, which also increased the realisation along with the increased demand momentum and supply chain issues, were the key findings
The current value of rupee is providing support to exports, said Dr A Sakthivel, President, FIEO urging the industry to be watchful as recent capital outflows in many emerging economies have resulted in depreciation of their currencies significantly making them much more competitive.
Demand side of Indian exports is extremely encouraging and the export sector is all set to repeat its spectacular performance in the next financial year as well despite logistics constraints, he added.
State-owned Punjab & Sind Bank (PSB) reported a net profit of Rs 301 crore for the quarter ending December 2021 as the lender saw good growth in overall business and better cash recoveries following its turnaround strategy started a year back.
Gross advances grew by 3.26 per cent to Rs 66,710 crore in Q3 FY22. RAM (Retail, Agriculture and MSME) business grew by 6.37 per cent. Retail, agriculture and MSME loan portfolios grew by 12.15 per cent, 3.53 per cent and 4.06 per cent, respectively.
The bank is ensuring that the balance sheet is strengthened, the focus is also on Retail, agriculture and MSME and "we are bringing down the corporate (portofolio) to avoid concentration risk", Krishnan added.
In efforts to improve MSMEs' access to financial assistance, the draft national policy has proposed the introduction of uniformity and simplification of various loan application formats and assessment process in line with learnings from supply chain financing.
The gap between credit and MSMEs has been widened even more due to the pandemic, hence it is safe to say that financial assistance is one of the most important aspects for MSMEs to function, recover and progress.
Amazon India today has launched a dedicated storefront on its marketplace to showcase unique regional products from artisans and small businesses based in different districts of the country.
The storefront called One District One Product (ODOP) Bazaar was launched in collaboration with the national investment promotion and facilitation agency Invest India and MSME body Indian Industries Association (IIA) and unveiled by MSME Minister Narayan Rane.
To address the issue regarding coal supply in the Vidarbha region of Maharashtra, Union Minister of State for Coal, Mines and Railways Raosaheb Patil Danve has assured the local MSMEs that the Ministry will soon come out with a specific Coal Supply Policy for the sector.
This decision was announced by him after a delegation led by VIA President Suresh Rathi submitted a memorandum to him highlighting the issue.
The Small Industries Development Bank of India (SIDBI) is likely to lower down loan processing time to 72 hours from the current average of around three months to help MSMEs avail credit.
This will be done by transforming the entire process into digital. Sivasubramanian Ramann, Chairman and Managing Director, SIDBI pressed on the need to conduct a proper due diligence and a complete risk assessment of MSMEs.
WE HUB has launched its Flagship Rural Incubation Program for Women Entrepreneurs in Telangana to develop Role Model MSMEs through this yearlong program.
The program will incubate 50 women entrepreneurs across the state in the five targeted sectors namely manufacturing, textiles and handlooms, FMCG, food processing and handicrafts, said the press release. It is a state-led incubator to foster and promote women entrepreneurship to start up, scale up and accelerate with global market access.
The Delhi Pollution Control Committee (DPCC) has issued a public notice prohibiting manufacturing, importing, stocking, distribution, sale and use of certain single use plastic, including polystyrene and expanded polystyrene with effect from the 1st July, 2022.
The items included in the prohibition list are ear buds with plastic sticks, plastic sticks for balloons, plastic flags, candy sticks, ice-cream sticks, polystyrene [Thermocol] for decoration.
India EXIM Bank expects exports from Karnataka will strengthen by the financial year 2025.
Karnataka’s merchandise exports are expected to touch USD 35.3 billion by FY 2025 from USD 16.6 billion in FY 2020. The state’s software and services exports are expected to reach USD 150 billion by 2024-25, up from USD 83.9 billion in 2019-20, as has been set by the Karnataka Government. As per the study ‘Strengthening Exports from Karnataka’, merchandise exports from Karnataka in 2019-20 were valued at USD 16.6 billion, and registered an average annual growth rate of 4.8 per cent, during 2010-11 to 2019-20.
In order to provide employment to the residents near their habitation Andhra Pradesh government has decided to develop mini industrial estates and MSME parks near Jagan Anna housing colonies.
The project is aimed at implementing the ‘walk to work’ concept providing employment to the residents near their habitation. Allocating sites for housing colonies in Vijayawada city and other urban areas has become a problem and the authorities identified lands around 10-15 kilometers away from cities and towns.
India and Australia have been fair about understanding the sensitive sectors in respective nations, indicating that the interim trade deal is likely to steer away from making such areas a part of the agreement.
The interim trade deal, or the early harvest agreement, is expected to be finalized over the next 30 days. A December 25 deadline had been set earlier, but the deal could not be finalized as both countries were not able to iron out disagreements over market access issues. Commerce and industry minister Piyush Goyal said both countries have had fruitful discussions, made significant progress, with respect to the early harvest agreement, which will be followed by a full-fledged trade deal.
The proposed deal is likely to include lower tariffs and greater market access for Indian exporters in areas such as textiles, pharmaceuticals, footwear, leather, Goyal had said.
The concept of agility is not entirely new. However, it is getting more attention as organisations are exploring options to transform their ways of working. It is especially relevant now as we still...
Applying for a business loan in 2022? Here are 5 important factors you shouldn’t miss
As we head towards 2022, the economy looks way more upbeat than what it did this time last year. As markets opened up, businesses across a spectrum of industries slowly started getting back on their feet. The festive season sales too provided a real shot in the arm. So as businesses look forward to a 2022 filled with growth opportunities, securing funds to fuel that growth would be at the top of their wish list.
The past two years have shown a major increase in the amount of money allocated to digital marketing and communications, which has created challenges for senior-level marketers who have not been able to keep up with the changing times. The speed at which new techniques in digital advertising, social media marketing and SEO are growing and changing is faster than it has ever been.
KASSIA opposes BESCOM tariff hikes at KERC public hearing
Karnataka Small Scale Industries Association (KASSIA) has taken strong objection to the proposed Rs 1.58 paise per unit hike in power tariff by Bangalore Electricity Supply Company Limited (BESCOM) before the Karnataka Electricity Regulatory Commission (KERC) at the public hearing held today.
This agritech startup is helping farmers work more efficiently to produce better yields
Founded in December 2020, Hyderabad startup Kisanwala is on a mission to make farmers self-reliant with modern day technologies, information, high quality inputs, and marketing support by providing customised solutions for each farm and farmer.
Meet the 3 friends who turned entrepreneurs with a baby apparel company
Founded in 2015 by three college friends Surya Prabha, Sakthipriyadharshini, and Gayatiri, Tirupur-based BeeLittle claims to be a one-stop shop for toddler garments and accessories made from natural fabrics.
The National Statistical Office (NSO), Ministry of Statistics and Programme Implementation (MoSPI) has released the All India Consumer Price Index (CPI) on Base 2012=100 and corresponding Consumer Food Price Index (CFPI) for Rural (R), Urban (U) and Combined (C) for the month of January 2022 (Provisional).
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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A pretty damning report has surfaced this week about instances of jail terms in the Indian laws applicable on businesses. According to the report ‘Jailed For Doing Business India’ by TeamLease RegTech and Delhi-based think tank Observer Research Foundation, India has 69,233 unique compliances to regulate doing business in the country of which 26,134 clauses have imprisonment clauses. In other words, almost two out of five compliances can send an entrepreneur to jail. Indian Businessmen know that it is not that entrepreneurs are castrated routinely. But these clauses are routinely used to twist arms and extract money. On the one hand they increase cost of doing business and on the other, they have a demoralizing effect on entrepreneurs who dither setting up new ventures or expand in such an environment. The number may be little exaggerated though. There are cross cutting laws like land regulation, taxation etc and sectoral laws like for food or pharma or plastics etc. They seem to have clubbed all the instances together which of course will not be the case for each industry. At the same time, the compliance burden also varies from state to state. Still, the number is enough to make one shudder about doing business. In business laws, compounding should be the norm than imprisonment. A huge reform agenda needs to unfold we want to create 12 million jobs every year.
"
What gets measured gets done. Yet, most small business owners ignore the metrics in their business. They intuitively know what to do, so they bypass the most crucial tool to help make the right decisions to keep the business thriving.
It is easy to wing it. It is easy to make snap decisions based on your gut while telling yourself that you can’t measure anything worthwhile in your company. ...
Due to the gradual decrease in the impact of Covid-19’s third wave, the textile demand is expected to speed up in FY23 as per the India Ratings and Research (Ind-Ra). Reduction in logistics problems for export demand will help in maintaining vigorous demand, said the rating agency.
After seeing a slight dip in 1QFY22, the domestic demand for all the textile sub-sectors has continued to improve from 2QFY22, which also increased the realisation along with the increased demand momentum and supply chain issues, were the key findings
The current value of rupee is providing support to exports, said Dr A Sakthivel, President, FIEO urging the industry to be watchful as recent capital outflows in many emerging economies have resulted in depreciation of their currencies significantly making them much more competitive.
Demand side of Indian exports is extremely encouraging and the export sector is all set to repeat its spectacular performance in the next financial year as well despite logistics constraints, he added.
State-owned Punjab & Sind Bank (PSB) reported a net profit of Rs 301 crore for the quarter ending December 2021 as the lender saw good growth in overall business and better cash recoveries following its turnaround strategy started a year back.
Gross advances grew by 3.26 per cent to Rs 66,710 crore in Q3 FY22. RAM (Retail, Agriculture and MSME) business grew by 6.37 per cent. Retail, agriculture and MSME loan portfolios grew by 12.15 per cent, 3.53 per cent and 4.06 per cent, respectively.
The bank is ensuring that the balance sheet is strengthened, the focus is also on Retail, agriculture and MSME and "we are bringing down the corporate (portofolio) to avoid concentration risk", Krishnan added.
In efforts to improve MSMEs' access to financial assistance, the draft national policy has proposed the introduction of uniformity and simplification of various loan application formats and assessment process in line with learnings from supply chain financing.
The gap between credit and MSMEs has been widened even more due to the pandemic, hence it is safe to say that financial assistance is one of the most important aspects for MSMEs to function, recover and progress.
Amazon India today has launched a dedicated storefront on its marketplace to showcase unique regional products from artisans and small businesses based in different districts of the country.
The storefront called One District One Product (ODOP) Bazaar was launched in collaboration with the national investment promotion and facilitation agency Invest India and MSME body Indian Industries Association (IIA) and unveiled by MSME Minister Narayan Rane.
To address the issue regarding coal supply in the Vidarbha region of Maharashtra, Union Minister of State for Coal, Mines and Railways Raosaheb Patil Danve has assured the local MSMEs that the Ministry will soon come out with a specific Coal Supply Policy for the sector.
This decision was announced by him after a delegation led by VIA President Suresh Rathi submitted a memorandum to him highlighting the issue.
The Small Industries Development Bank of India (SIDBI) is likely to lower down loan processing time to 72 hours from the current average of around three months to help MSMEs avail credit.
This will be done by transforming the entire process into digital. Sivasubramanian Ramann, Chairman and Managing Director, SIDBI pressed on the need to conduct a proper due diligence and a complete risk assessment of MSMEs.
WE HUB has launched its Flagship Rural Incubation Program for Women Entrepreneurs in Telangana to develop Role Model MSMEs through this yearlong program.
The program will incubate 50 women entrepreneurs across the state in the five targeted sectors namely manufacturing, textiles and handlooms, FMCG, food processing and handicrafts, said the press release. It is a state-led incubator to foster and promote women entrepreneurship to start up, scale up and accelerate with global market access.
The Delhi Pollution Control Committee (DPCC) has issued a public notice prohibiting manufacturing, importing, stocking, distribution, sale and use of certain single use plastic, including polystyrene and expanded polystyrene with effect from the 1st July, 2022.
The items included in the prohibition list are ear buds with plastic sticks, plastic sticks for balloons, plastic flags, candy sticks, ice-cream sticks, polystyrene [Thermocol] for decoration.
India EXIM Bank expects exports from Karnataka will strengthen by the financial year 2025.
Karnataka’s merchandise exports are expected to touch USD 35.3 billion by FY 2025 from USD 16.6 billion in FY 2020. The state’s software and services exports are expected to reach USD 150 billion by 2024-25, up from USD 83.9 billion in 2019-20, as has been set by the Karnataka Government. As per the study ‘Strengthening Exports from Karnataka’, merchandise exports from Karnataka in 2019-20 were valued at USD 16.6 billion, and registered an average annual growth rate of 4.8 per cent, during 2010-11 to 2019-20.
In order to provide employment to the residents near their habitation Andhra Pradesh government has decided to develop mini industrial estates and MSME parks near Jagan Anna housing colonies.
The project is aimed at implementing the ‘walk to work’ concept providing employment to the residents near their habitation. Allocating sites for housing colonies in Vijayawada city and other urban areas has become a problem and the authorities identified lands around 10-15 kilometers away from cities and towns.
India and Australia have been fair about understanding the sensitive sectors in respective nations, indicating that the interim trade deal is likely to steer away from making such areas a part of the agreement.
The interim trade deal, or the early harvest agreement, is expected to be finalized over the next 30 days. A December 25 deadline had been set earlier, but the deal could not be finalized as both countries were not able to iron out disagreements over market access issues. Commerce and industry minister Piyush Goyal said both countries have had fruitful discussions, made significant progress, with respect to the early harvest agreement, which will be followed by a full-fledged trade deal.
The proposed deal is likely to include lower tariffs and greater market access for Indian exporters in areas such as textiles, pharmaceuticals, footwear, leather, Goyal had said.
According to the FISME factor, 100% of MSMEs think that the proposals of Union Budget 2022-23 help boost the economy. 
The concept of agility is not entirely new. However, it is getting more attention as organisations are exploring options to transform their ways of working. It is especially relevant now as we still...
The past two years have shown a major increase in the amount of money allocated to digital marketing and communications, which has created challenges for senior-level marketers who have not been able to keep up with the changing times. The speed at which new techniques in digital advertising, social media marketing and SEO are growing and changing is faster than it has ever been.
Karnataka Small Scale Industries Association (KASSIA) has taken strong objection to the proposed Rs 1.58 paise per unit hike in power tariff by Bangalore Electricity Supply Company Limited (BESCOM) before the Karnataka Electricity Regulatory Commission (KERC) at the public hearing held today.
Founded in December 2020, Hyderabad startup Kisanwala is on a mission to make farmers self-reliant with modern day technologies, information, high quality inputs, and marketing support by providing customised solutions for each farm and farmer.
Founded in 2015 by three college friends Surya Prabha, Sakthipriyadharshini, and Gayatiri, Tirupur-based BeeLittle claims to be a one-stop shop for toddler garments and accessories made from natural fabrics.
“Great dreams of great dreamers are always transcended. ”
