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President Message
GST regime completed five years. The reports carried in media about experience so far have been mixed. People have short memories. Businesses who have worked in pre-GST regime of Central and State Sales Tax can recall the horror of a regressive and oppressive tax regime. When each state classified a products as per its whims and substantial energy was lost in collecting C-forms. For small businesses the most dreaded audit each year used to be of Sales Tax. Trucks used to stand for days idly at borders of the states awaiting clearance by Sales Tax authorities. Then there were many state and central levies applicable on businesses. Each tax component increased cost and the movement of goods across value chains suffered from multiple taxation. It was becoming hugely difficult to compete with Chinese imports. It was nightmarish. GST has abolished all these ills. The entire country has been unified into a one single country having one classification and one tax on that category. One pays tax only on the value one adds and the tax paid on inputs is adjusted. As the entire taxation mechanism is based on digital platform of GSTN, there were initial glitches and teething troubles. Most importantly, the system has made theft of tax extremely difficult giving a level playing field to scrupulous traders. The hard part is sorted. As we move forward, we may concur on reducing the number of slabs to address related anomalies. There may be a case for those below a threshold MSMEs/ small business who are exempt from GST, are given all equal rights to sell and move goods as those who pay GST. The Tax officials in a few states are still finding ways to harass tax payers and exporters. Such practices need to captured and addressed. But GST is a game changer. FISME has been an active supporter of GST and would continue to work with policy makers to improve it and leverage it further to access essential services including finance.
"
The sector is significantly impacted by external factors, and was affected by COVID-19, just as all aspects of the economy, but MSMEs have been particularly badly hit because of supply-side disruption and reduced demand.
However, large companies report significant e-commerce growth despite the financial crisis. Brands from all over the world had to use online channels of commerce to stay profitable. Even well-established traditional businesses realized they had to sell online in order to survive the global financial crisis.
One nation, One market, One tax' - the driving motto behind the introduction of GST, with effect from 01 July 2017, has brought 1.3mn taxpayers into a unified indirect taxation system. The profound idea behind the implementation of GST was that it would offer a win-win situation for all stakeholders, be it the governments at the Centre or States, taxpayers or the tax administrators...
As per the Index of Industrial Production (IIP), the cement industry records the highest growth of 26.3 per cent amongst the eight core industries in May 2022.
The country’s combined index eight core industries accounts a Jump of 18.1 per cent in the month of May as compared to 16.4 per cent in the corresponding month last year. The production of cement, coal, fertilizers, electricity, refinery products, steel, natural gas and crude oil industries increased in May 2022 when compared to the same period of the previous year.
India’s marine product exports recorded an all-time high in FY 2021-22, marking a growth over 30 per cent to Rs 57,586.48 crore.
India shipped 13, 69,264 MT of seafood in FY21-22, with frozen shrimp retaining the top position as a major export item. The overall export of frozen shrimps was pegged at 7, 28,123 MT featching Rs 42,706.04 crore (USD 5,828.59 million). K N Raghavan, Chairman, Marine Products Export Development Authority (MPEDA), said, "India managed to achieve an all-time high export of seafood worth USD 7.76 billion with a volume of 13,69,264 MT of seafood, despite the several challenges in its major export markets caused by the COVID pandemic."
The government has announced the extension of goods and services tax (GST) compensation cess till March 2026.
It was notified on Saturday through a gazette notification by the finance ministry confirming the period of extension.
Certain good and services had already been extended from the imposition of GST compensation cess until March 2026 to make up for the borrowings and arrears of compensation paid to states in the last two financial years.
The extension has been notified in accordance with the payback plan agreed upon at the GST Council meeting in September 2021.
The Department of Telecommunications (DoT) has approved a Rs 50 crore grant to 43 startups and micro, small and medium enterprises (MSMEs) to develop indigenous 5G equipment and technologies.
The DoT sanctioned the grant under the Digital Communication Innovation Square initiative, under the Champion Services Sector Scheme. Under the scheme the government had invited applications in the month of April to promote an ecosystem for research, design, development, IPR creation and manufacturing.
Manufacturers in search of eco-friendly alternatives ahead of the single-use plastic ban in effect from today (July 1) increased the demand for wood and bamboo dealers on Just Dial from 35 per cent (QoQ) from March to May 2022.
The IT Company which acts as a local search engine has said that the highest demand has been for wood dealers at 80% and the remaining searches were for bamboo dealers. As per Just Dial’s latest consumer insight the demand also went up for a wide range of wooden cutlery like spoons, knives, and forks, wooden trays, wooden stirrers, wooden ice cream spoons, and bamboo sticks.
The industrial sector in India has increased 5.5 million employment in the last two months, as per the Centre for Monitoring Indian Economy (CMIE).
While agriculture sector saw a fall in employment by 5.2 million and services added 6.7 million. “Net employment, therefore, increased this time by a relatively modest 1 million,” MD and CEO Mahesh Vyas of CMIE said. “Industry and services harness labour more productively than agriculture and therefore there is reason to cheer this recent transition,” he added.
During the last fiscal year over one fourth of Indian MSMEs lost over 3 per cent market share due to the covid-19 pandemic, as per CRISIL Research’s SME Report 2022.
Because of a sharp rise in commodity prices in FY22 compared with pre-pandemic levels, half of the MSMEs saw their earnings before interest, tax, depreciation and amortisation (Ebitda) margins contract, said the report. The report by the rating agency covered 69 sectors and 147 clusters that logged aggregate revenue of Rs 47 lakh crore, representing 20-25 per cent of the gross domestic product (implying two-thirds coverage of the MSME universe).
The Chief Minister of Uttar Pradesh Yogi Adityanath distributed Rs 16,000 crore to about 1.90 lakh beneficiaries on Thursday under the employment initiative at the MSME loan fair at Lok Bhawan in Lucknow.
At the same time in all the districts of the state the loan distribution ceremony was being held. Addressing the event, the CM said that MSMEs had completely died before 2017 and the state had highest level of unemployment. He credit the present UP government and said, “We made an action plan for 1 district 1 product. Now products worth Rs 1.56 lakh crore are being exported.”
We've also reduced unemployment rate by 3 per cent, he said.
The CM also launched an annual loan scheme of Rs 2.35 lakh crore for the year FY22-23.
In the current fiscal year of 2022-23 the Rubber and Plastic industry in Tamil Nadu is opening up over 4,500 vacancies.
This development regarding apprenticeship and job opportunities in the sector was confirmed by Deepmala Moorjani, senior manager – industry connect, Rubber, Chemical & Petrochemical Skill Development Council (RCPSDC) at a recently held skill meet in Chennai. Tyre and parts majors like MRF, Ceat, Apollo Tyres, Sundaram Industries, Minda, JBM Auto and Emerald Tyres along with other large players have shown interest in hiring skilled manpower, said said Annamma Jacob, regional manager – south, RCPSDC.
The Haryana cabinet chaired by CM Manohar Lal approved the state’s new startup policy on Monday.
The policy has been formulated by the Department of Information Technology, Electronics and Communication with an aims to foster the vibrant startup ecosystem in the state and help entrepreneurs at different stages. It is expected that at least 5,000 new startups would be established in Haryana over the next five years providing direct and indirect employment to 75,000 persons. As per reports, the cabinet has also approved the new data centre policy with the vision to make Haryana the preferred stop for setting up such facilities and help the state emerge as a global data centre hub.
Under the CM Entrepreneurship Development Programme, the Kerala Financial Corporation (KFC) has raised the upper loan limit Rs 2 crore. The micro, small and medium enterprises (MSME) in the state will now get loans a 5 per cent interest.
The Kerala government will provide a subsidy of 3 per cent with KFC contributing the 2 per cent to make the interest rate 5 per cent. Up until now, KFC has assisted 2, 122 units under the scheme and its target is to lend to 2, 500 enterprises in five years. The cooperation will aim to provide loans to 500 enterprises every year and to meet this goal, the KFC will set aside Rs 500 crore every year. The industrial units that aspire to avail benefits under this programme must have MSME registration and the age of the chief entrepreneur should be below 50 years.
The Odisha Investors Meet, jointly organised by the Odisha Government and the Federation of Indian Chambers of Commerce & Industry (FICCI) is underway in Dubai.
This event aims to strengthen Odisha’s economic ties with the Middle East and North Africa (MENA) region. The meet will also help attract investors from the countries present in this region. Chief Minister Naveen Patnaik will be inaugurating the event.According to reports, Odia expats in the MENA region are likely to urge the Odisha Chief Minister for a direct flight between Dubai and Bhubaneswar.
At least 500 Odias residing in the UAE, Bahrain, Oman and nearby countries will be attending the interaction session with the Chief Minister.
Despite global challenges, Indian exports rose by 24 per cent to USD 38.19 billion in April 2022. Do you think that the growth will continue in upcoming months?
Indian exports rose by 24 per cent to USD 38.19 billion in April 2022. According to the FISME factor, 100% of MSMEs think that the growth of Indian exports will continue in upcoming months.
Reskilling & upskilling will help employees navigate the new normal
The COVID-19 pandemic has had lasting implications on the future of work. The way most organisations used to operate has changed dramatically as more employees are now working remotely. One big change that most organisations have seen and will adopt in the future is the hybrid work model; which is a combination of remote work and office collaboration with a particular focus on wellness and employee experience.
Eight Essential Financial Tips To Keep Your Business Going Past Year One
In all the excitement of opening a business and launching that first product or service, it can be easy for aspiring entrepreneurs to forgo a thorough audit of their finances in favor of speed to market.
There's no one way to get customers. It should be a multi-faceted approach, not only for the near future, but also to create enough inbound traffic so that two years from now, having taken the right actions today, your offerings practically fill themselves up. This is why getting customers needs to be a system. Like cogs in a wheel, there's an integration, and if one gear is off, you can't expect the most effective results.
The Open End Spinning Mills’ Association (OSMA) and North India Rotor Spinning Mills Association have urged the government to restrict the export of comber noil to check prices of cotton made-ups.
This Chennai woman entrepreneur is using ancient minor millets to create major impact
After spending many years working in the corporate world, Sanjeeta KK’s life took a sudden turn in the 90s when she had to undergo a medical emergency. It made her quit her full-time job and take a break for eight long years.
Using Jacquard and vegan leather, this woman entrepreneur is giving the handbag market a nudge
Esha Shah had spent three years interning as an inter-CA student and had just sat for her final exams when she knew it wasn’t the career for her. She then decided to go back to her first love, design, and joined her husband’s packing business to help conceptualise tote bags for a travel company.
Since April, 2018 the National Statistical Office (NSO), Ministry of Statistics and Programme Implementation (MoSPI) has been bringing out the employment related statistics in the formal sector covering the period September 2017 onwards, using information on the number of subscribers who have subscribed under three major schemes, namely the EPF Scheme, ESI Scheme and National Pension Scheme.
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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GST regime completed five years. The reports carried in media about experience so far have been mixed. People have short memories. Businesses who have worked in pre-GST regime of Central and State Sales Tax can recall the horror of a regressive and oppressive tax regime. When each state classified a products as per its whims and substantial energy was lost in collecting C-forms. For small businesses the most dreaded audit each year used to be of Sales Tax. Trucks used to stand for days idly at borders of the states awaiting clearance by Sales Tax authorities. Then there were many state and central levies applicable on businesses. Each tax component increased cost and the movement of goods across value chains suffered from multiple taxation. It was becoming hugely difficult to compete with Chinese imports. It was nightmarish. GST has abolished all these ills. The entire country has been unified into a one single country having one classification and one tax on that category. One pays tax only on the value one adds and the tax paid on inputs is adjusted. As the entire taxation mechanism is based on digital platform of GSTN, there were initial glitches and teething troubles. Most importantly, the system has made theft of tax extremely difficult giving a level playing field to scrupulous traders. The hard part is sorted. As we move forward, we may concur on reducing the number of slabs to address related anomalies. There may be a case for those below a threshold MSMEs/ small business who are exempt from GST, are given all equal rights to sell and move goods as those who pay GST. The Tax officials in a few states are still finding ways to harass tax payers and exporters. Such practices need to captured and addressed. But GST is a game changer. FISME has been an active supporter of GST and would continue to work with policy makers to improve it and leverage it further to access essential services including finance.
"
The sector is significantly impacted by external factors, and was affected by COVID-19, just as all aspects of the economy, but MSMEs have been particularly badly hit because of supply-side disruption and reduced demand.
However, large companies report significant e-commerce growth despite the financial crisis. Brands from all over the world had to use online channels of commerce to stay profitable. Even well-established traditional businesses realized they had to sell online in order to survive the global financial crisis.
As per the Index of Industrial Production (IIP), the cement industry records the highest growth of 26.3 per cent amongst the eight core industries in May 2022.
The country’s combined index eight core industries accounts a Jump of 18.1 per cent in the month of May as compared to 16.4 per cent in the corresponding month last year. The production of cement, coal, fertilizers, electricity, refinery products, steel, natural gas and crude oil industries increased in May 2022 when compared to the same period of the previous year.
India’s marine product exports recorded an all-time high in FY 2021-22, marking a growth over 30 per cent to Rs 57,586.48 crore.
India shipped 13, 69,264 MT of seafood in FY21-22, with frozen shrimp retaining the top position as a major export item. The overall export of frozen shrimps was pegged at 7, 28,123 MT featching Rs 42,706.04 crore (USD 5,828.59 million). K N Raghavan, Chairman, Marine Products Export Development Authority (MPEDA), said, "India managed to achieve an all-time high export of seafood worth USD 7.76 billion with a volume of 13,69,264 MT of seafood, despite the several challenges in its major export markets caused by the COVID pandemic."
The government has announced the extension of goods and services tax (GST) compensation cess till March 2026.
It was notified on Saturday through a gazette notification by the finance ministry confirming the period of extension.
Certain good and services had already been extended from the imposition of GST compensation cess until March 2026 to make up for the borrowings and arrears of compensation paid to states in the last two financial years.
The extension has been notified in accordance with the payback plan agreed upon at the GST Council meeting in September 2021.
The Department of Telecommunications (DoT) has approved a Rs 50 crore grant to 43 startups and micro, small and medium enterprises (MSMEs) to develop indigenous 5G equipment and technologies.
The DoT sanctioned the grant under the Digital Communication Innovation Square initiative, under the Champion Services Sector Scheme. Under the scheme the government had invited applications in the month of April to promote an ecosystem for research, design, development, IPR creation and manufacturing.
Manufacturers in search of eco-friendly alternatives ahead of the single-use plastic ban in effect from today (July 1) increased the demand for wood and bamboo dealers on Just Dial from 35 per cent (QoQ) from March to May 2022.
The IT Company which acts as a local search engine has said that the highest demand has been for wood dealers at 80% and the remaining searches were for bamboo dealers. As per Just Dial’s latest consumer insight the demand also went up for a wide range of wooden cutlery like spoons, knives, and forks, wooden trays, wooden stirrers, wooden ice cream spoons, and bamboo sticks.
The industrial sector in India has increased 5.5 million employment in the last two months, as per the Centre for Monitoring Indian Economy (CMIE).
While agriculture sector saw a fall in employment by 5.2 million and services added 6.7 million. “Net employment, therefore, increased this time by a relatively modest 1 million,” MD and CEO Mahesh Vyas of CMIE said. “Industry and services harness labour more productively than agriculture and therefore there is reason to cheer this recent transition,” he added.
During the last fiscal year over one fourth of Indian MSMEs lost over 3 per cent market share due to the covid-19 pandemic, as per CRISIL Research’s SME Report 2022.
Because of a sharp rise in commodity prices in FY22 compared with pre-pandemic levels, half of the MSMEs saw their earnings before interest, tax, depreciation and amortisation (Ebitda) margins contract, said the report. The report by the rating agency covered 69 sectors and 147 clusters that logged aggregate revenue of Rs 47 lakh crore, representing 20-25 per cent of the gross domestic product (implying two-thirds coverage of the MSME universe).
The Chief Minister of Uttar Pradesh Yogi Adityanath distributed Rs 16,000 crore to about 1.90 lakh beneficiaries on Thursday under the employment initiative at the MSME loan fair at Lok Bhawan in Lucknow.
At the same time in all the districts of the state the loan distribution ceremony was being held. Addressing the event, the CM said that MSMEs had completely died before 2017 and the state had highest level of unemployment. He credit the present UP government and said, “We made an action plan for 1 district 1 product. Now products worth Rs 1.56 lakh crore are being exported.”
We've also reduced unemployment rate by 3 per cent, he said.
The CM also launched an annual loan scheme of Rs 2.35 lakh crore for the year FY22-23.
In the current fiscal year of 2022-23 the Rubber and Plastic industry in Tamil Nadu is opening up over 4,500 vacancies.
This development regarding apprenticeship and job opportunities in the sector was confirmed by Deepmala Moorjani, senior manager – industry connect, Rubber, Chemical & Petrochemical Skill Development Council (RCPSDC) at a recently held skill meet in Chennai. Tyre and parts majors like MRF, Ceat, Apollo Tyres, Sundaram Industries, Minda, JBM Auto and Emerald Tyres along with other large players have shown interest in hiring skilled manpower, said said Annamma Jacob, regional manager – south, RCPSDC.
The Haryana cabinet chaired by CM Manohar Lal approved the state’s new startup policy on Monday.
The policy has been formulated by the Department of Information Technology, Electronics and Communication with an aims to foster the vibrant startup ecosystem in the state and help entrepreneurs at different stages. It is expected that at least 5,000 new startups would be established in Haryana over the next five years providing direct and indirect employment to 75,000 persons. As per reports, the cabinet has also approved the new data centre policy with the vision to make Haryana the preferred stop for setting up such facilities and help the state emerge as a global data centre hub.
Under the CM Entrepreneurship Development Programme, the Kerala Financial Corporation (KFC) has raised the upper loan limit Rs 2 crore. The micro, small and medium enterprises (MSME) in the state will now get loans a 5 per cent interest.
The Kerala government will provide a subsidy of 3 per cent with KFC contributing the 2 per cent to make the interest rate 5 per cent. Up until now, KFC has assisted 2, 122 units under the scheme and its target is to lend to 2, 500 enterprises in five years. The cooperation will aim to provide loans to 500 enterprises every year and to meet this goal, the KFC will set aside Rs 500 crore every year. The industrial units that aspire to avail benefits under this programme must have MSME registration and the age of the chief entrepreneur should be below 50 years.
The Odisha Investors Meet, jointly organised by the Odisha Government and the Federation of Indian Chambers of Commerce & Industry (FICCI) is underway in Dubai.
This event aims to strengthen Odisha’s economic ties with the Middle East and North Africa (MENA) region. The meet will also help attract investors from the countries present in this region. Chief Minister Naveen Patnaik will be inaugurating the event.According to reports, Odia expats in the MENA region are likely to urge the Odisha Chief Minister for a direct flight between Dubai and Bhubaneswar.
At least 500 Odias residing in the UAE, Bahrain, Oman and nearby countries will be attending the interaction session with the Chief Minister.
Indian exports rose by 24 per cent to USD 38.19 billion in April 2022. According to the FISME factor, 100% of MSMEs think that the growth of Indian exports will continue in upcoming months. 
The COVID-19 pandemic has had lasting implications on the future of work. The way most organisations used to operate has changed dramatically as more employees are now working remotely. One big change that most organisations have seen and will adopt in the future is the hybrid work model; which is a combination of remote work and office collaboration with a particular focus on wellness and employee experience.
In all the excitement of opening a business and launching that first product or service, it can be easy for aspiring entrepreneurs to forgo a thorough audit of their finances in favor of speed to market.
The Open End Spinning Mills’ Association (OSMA) and North India Rotor Spinning Mills Association have urged the government to restrict the export of comber noil to check prices of cotton made-ups.
After spending many years working in the corporate world, Sanjeeta KK’s life took a sudden turn in the 90s when she had to undergo a medical emergency. It made her quit her full-time job and take a break for eight long years. 
Esha Shah had spent three years interning as an inter-CA student and had just sat for her final exams when she knew it wasn’t the career for her. She then decided to go back to her first love, design, and joined her husband’s packing business to help conceptualise tote bags for a travel company.
“ Many of life’s failures are people who did not realize how close they were to success when they gave up. ”
