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President Message
The GDP growth numbers for India come with a mixed bag. It is encouraging that Indian economy grew at 8.7% in FY22. It is the fastest growth in last two decades! The point of concern is that this jump is based on last year’s numbers of GDP which had contracted by 6.6 %. So the growth is not as spectacular as it may seem. Experts are alluding that the GDP growth next year many be more sobering. The Ukraine crisis and subsequent boil in energy prices with disruptions in supply chains have precipitated in high inflation in the entire range of commodity prices. MSMEs are feeling the heat of higher input costs and another liquidity crisis stare them. After increase in benchmark rates by RBI, Banks have started raising interest rates. It feels like rubbing salt on wounds. Firstly, the Government should do whatever it takes to arrest the runaway prices by reducing, even completely eliminating, tariffs from major raw material to bring down commodity prices. Further, the additional duties whether anti-dumping or safeguard duties, must be done away with. Secondly, if Banks raise interest rates, Government may announce subvention scheme to alleviate the interest payment burden on MSMEs. Let’s not fritter away the gains that we have accumulated by coming out of pandemic with least harm.
"
Deciding when to launch a business can be one of the most difficult decisions for entrepreneurs. For many, it's a choice between a typical 9-5 corporate grind with the risk of burnout vs. becoming an entrepreneur too early in life before you have had enough real-world experience.
Consider this: The majority of startups fail in their first year, there's an even higher percentage of failure in the second year, and only about 2% of surviving startups make it to year three.
India’s exports surpassing the pre-pandemic level of $331 billion in FY 2018-19 and reaching $418 billion in FY 2021-22 is certainly an achievement. Total exports, including the services exports of around $240 billion, amount to more than $650 billion. The revival of exports has provided relief at a time when major components of aggregate demand such as consumption and investment had been slowing down...
The Indian economy is expected to recover despite the challenges and problems due to global risks, said the Reserve Bank of India (RBI) in its latest annual report.
The central bank has said that it will follow a nuanced approach in the wake of inflation risks emanating from high commodity prices. While it will ensure adequate liquidity in the banking system to support the need of the productive sectors of the economy, said the apex bank on Friday.
According to the data from the Department for Promotion of Industry and Internal Trade (DPIIT), Karnataka has attracted the highest FDI with USD 22 billion, followed by Maharashtra with USD 15.4 billion in the financial year of 2021-22.
India has also recorded highest ever annual FDI inflow of USD 83.57 billion in the Financial Year 2021-22. Next in ranking stood Delhi at about USD 8.2 billion, followed by Tamil Nadu with USD 3 billion and Gujarat with USD 2.7 billion.
Union Minister of State for Commerce & Industry Anupriya Patel launched the Indian Business Portal, an international trade hub for Indian exporters and foreign buyers.
The portal is designed by FIEO in partnership with GlobalLinker and it is a B2B digital marketplace to empower SME exporters, artisans and farmers to identify new markets for their products and grow their sales globally. Launching the portal MoS Patel said, “Indian Business Portal addresses a number of elements which are part of the vision of the Prime Minister Narendra Modi and a commitment of this government like digitizing exporters, supporting MSME and encouraging greater exports of products Made in India.”
Some major modifications has been proposed for the Prime Minister’s Employment Generation Programme (PMEGP) implemented by the Ministry of MSME and has been approved for continuation over the 15th Finance Commission Cycle for five years from 2021-22 to 2025-26 with an outlay of Rs.13554.42 crore.
The scheme facilitates generation of employment opportunities for unemployed youth across the country by assisting setting up of micro-enterprises in non-farm sector. The maximum project cost from existing Rs.25 lakh is increased to Rs. 50 lakh for manufacturing units and from existing Rs.10 lakh to Rs.20 lakh for service units.
Bamboo stick with less than 6 mm thickness that are used for Agarbathi production have been exempted from the Plant Quarantine (PQ) clearance.
Following the intervention of Union Minister of State for Agriculture and Farmers Welfare Shobha Karandlaje the Union Agriculture Ministry made this announcement. In an official memorandum of May 24, Joint Director (PQ) Sanjay Arya of the Directorate of Plant Protection, Quarantine and Storage, informed all Plant Quarantine Stations that the Competent Authority has approved the inclusion of bamboo stick less than 6 mm thickness in the list of processed items that do not require PQ clearance.
The central government has approved the fresh guidelines for Micro & Small Enterprises Cluster Development Programme (MSE-CDP) for 2021-22 to 2025-26 which aims at enhancing the competitiveness and productivity of micro & small enterprises.
Under the Common Facility Centers (CFCs), the central government grant will be restricted to 70 per cent of the cost of project from Rs 5 crore to Rs 10 crore and 60 per cent of the cost of project from Rs 10 crore to Rs 30 crore, said the MSME Ministry on Friday.
Amazon India has so far helped 40 lakh Micro, Small and Medium Enterprises (MSMEs) digitise their business from its overall target of 1 crore set to achieve by 2025 as a commitment to boost entrepreneurial spirit of Indian businesses.
The e-commerce giant has claimed to enable about nearly USD 5 billion in cumulative exports and created more than 11.6 lakh direct and indirect jobs. During its first annual event Amazon Smbhav in January 2020, the company had pledged to digitise 1 crore MSMEs, enable USD 10 billion in cumulative exports and create 20 lakh jobs in India by 2025.
The state cabinet of Arunachal Pradesh chaired by Chief Minister Pema Khandu gave a green signal to the ‘Arunachal Pradesh Startup Policy’ on Monday which has created a roadmap to facilitate growth of about 250 new startups over the next five years.
The development of 250 startups is expected to create significant direct and indirect employment opportunities in the state. The chief aim behind the formulation of the policy is to promote start-ups and to provide necessary stimulus to the entrepreneurial ecosystem in the state.
The Micro Small and Medium Enterprises (MSME) in Tiruchi District of Tamil Nadu has been allocated Rs 1,821.45 crore under the Annual Credit Plan (ACP) for the financial year 2022-23. The total outlay stands at Rs 10,839.86 crore which is 7.42 per cent higher than the previous year.
The ACP is coordinated with the Potential Linked Credit Plan of the National Bank for Agriculture and Rural Development (NABARD). For agriculture and allied activities, Rs 6,068.70 crore has been allocated and Rs 450.48 crore for education and Rs 1,441.90 crore for housing.
The state cabinet of Bihar has approved the industrial promotion policy for textile and leather industries on Thursday through various forms of subsidies.
Those setting up textile and leather or related units will get capital investment subsidy up to Rs 10 crore and power at Rs 2 per unit under the Bihar Industrial Investment Promotion Policy (Textiles and Leather) Policy, said State industries minister Syed Shahnawaz Hussain.
Banks in Madhya Pradesh have disbursed an amount of Rs 46,945 crore to the MSME sector as against the target of Rs 35,009 crore under the Annual Credit Plan for FY 2021-22.
It achieved 134 per cent of the target for MSMEs, which is higher than the achievement of 105 per cent during the previous financial year.
A total amount of Rs 2, 70,909 crore was disbursed at the end of March 31, 2022 against the target of Rs 2, 12,821 crore (priority & non-priority) under the same plan.
The India-UAE Start-Up Corridor which will be soon launched in Dubai is to target a minimum of 50 validated start-ups based in India and the UAE over a period of five years with the vision to grow 10 of them into unicorns by 2025.
A unicorn is a start-up valued at more than USD 1 billion, and as of May 6, 2022 India has 100 unicorns.
FICCI LEAD and the Dubai International Financial Centre (DIFC) also recently inked a landmark MoU to launch the ‘India-UAE Start-Up Corridor’.
The South African government has invited Indian companies to invest in their Special Economic Zones (SEZs) and export to entire Africa, USA and European Union, as South Africa has signed trade agreements with them.
Speaking at an interactive session organized by All India Association of Industries (AIAI) and WTC Mumbai, Andrea Kuhn, Consul General, Consulate General of the Rep. of South Africa, Mumbai said, “There are more than 13 Special Economic Zones in South Africa, where Indian companies can invest and export to entire Africa, USA and European Union, with which we have trade agreements.”
How to drive creative leadership in an organisation
Ever since Marry Barra, CEO, General Motors (GM), took to the steering in 2014, a lot has changed at GM in terms of the organisational culture. It all started with the switch-ignition crisis that came to light at GM in 2014, just a few days after Barra donned the mantle of CEO.
5 revenue-based financing platforms enabling early-stage startups to scale
Revenue-based financing (RBF), a popular fundraising model in the United States, is taking off in India to enable young startups to access funding. The model allows startups to raise funds from investors, who, in return, receive a percentage of a company's gross revenue.
For many industries, online sales make for the vast amount of their takings. Most businesses are online, but the big question is: are they fulfilling their fullest potential? The answer is frankly, no!
Many businesses may exist on the Internet but they truly are not living up to promise, according to Julius Tirrá of Celebian.
Indore industries request pollution Control Board to improve online application process
Industries in Indore have urged the Madhya Pradesh Pollution Control Board to make the website industry friendly as they are still facing a lot of difficulties in the entire application process.
The industrialist reached out to Anirudh Mukherjee, principal secretary Pollution Department and chairman of Madhya Pradesh Pollution Control Board and informed them about the problems faces by the industries pertaining to the website.
This 4-year-old Tamil Nadu-based milk delivery company has onboarded thousands of farmers, consumers
For over five years, Sellamma, who lives in Sirunallur, a village roughly 92 kilometres away from Chennai, has been supplying milk to companies. However, during the COVID-19 pandemic-induced lockdown, she couldn’t complete milk deliveries. This is when she found Uzhavarbumi.
This skincare brand from Himachal Pradesh is combining the best of Ayurveda and modern science
Skincare products tagged as herbal or organic have many takers in India. This bothered Jayati Goel who embarked on an entrepreneurial journey to start her own skincare brand Hanoor in 2021. “That herbal and organic equals good is a very big myth in India.
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, ESI and NPS.
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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The GDP growth numbers for India come with a mixed bag. It is encouraging that Indian economy grew at 8.7% in FY22. It is the fastest growth in last two decades! The point of concern is that this jump is based on last year’s numbers of GDP which had contracted by 6.6 %. So the growth is not as spectacular as it may seem. Experts are alluding that the GDP growth next year many be more sobering. The Ukraine crisis and subsequent boil in energy prices with disruptions in supply chains have precipitated in high inflation in the entire range of commodity prices. MSMEs are feeling the heat of higher input costs and another liquidity crisis stare them. After increase in benchmark rates by RBI, Banks have started raising interest rates. It feels like rubbing salt on wounds. Firstly, the Government should do whatever it takes to arrest the runaway prices by reducing, even completely eliminating, tariffs from major raw material to bring down commodity prices. Further, the additional duties whether anti-dumping or safeguard duties, must be done away with. Secondly, if Banks raise interest rates, Government may announce subvention scheme to alleviate the interest payment burden on MSMEs. Let’s not fritter away the gains that we have accumulated by coming out of pandemic with least harm.
"
Deciding when to launch a business can be one of the most difficult decisions for entrepreneurs. For many, it's a choice between a typical 9-5 corporate grind with the risk of burnout vs. becoming an entrepreneur too early in life before you have had enough real-world experience.
Consider this: The majority of startups fail in their first year, there's an even higher percentage of failure in the second year, and only about 2% of surviving startups make it to year three.
The Indian economy is expected to recover despite the challenges and problems due to global risks, said the Reserve Bank of India (RBI) in its latest annual report.
The central bank has said that it will follow a nuanced approach in the wake of inflation risks emanating from high commodity prices. While it will ensure adequate liquidity in the banking system to support the need of the productive sectors of the economy, said the apex bank on Friday.
According to the data from the Department for Promotion of Industry and Internal Trade (DPIIT), Karnataka has attracted the highest FDI with USD 22 billion, followed by Maharashtra with USD 15.4 billion in the financial year of 2021-22.
India has also recorded highest ever annual FDI inflow of USD 83.57 billion in the Financial Year 2021-22. Next in ranking stood Delhi at about USD 8.2 billion, followed by Tamil Nadu with USD 3 billion and Gujarat with USD 2.7 billion.
Union Minister of State for Commerce & Industry Anupriya Patel launched the Indian Business Portal, an international trade hub for Indian exporters and foreign buyers.
The portal is designed by FIEO in partnership with GlobalLinker and it is a B2B digital marketplace to empower SME exporters, artisans and farmers to identify new markets for their products and grow their sales globally. Launching the portal MoS Patel said, “Indian Business Portal addresses a number of elements which are part of the vision of the Prime Minister Narendra Modi and a commitment of this government like digitizing exporters, supporting MSME and encouraging greater exports of products Made in India.”
Some major modifications has been proposed for the Prime Minister’s Employment Generation Programme (PMEGP) implemented by the Ministry of MSME and has been approved for continuation over the 15th Finance Commission Cycle for five years from 2021-22 to 2025-26 with an outlay of Rs.13554.42 crore.
The scheme facilitates generation of employment opportunities for unemployed youth across the country by assisting setting up of micro-enterprises in non-farm sector. The maximum project cost from existing Rs.25 lakh is increased to Rs. 50 lakh for manufacturing units and from existing Rs.10 lakh to Rs.20 lakh for service units.
Bamboo stick with less than 6 mm thickness that are used for Agarbathi production have been exempted from the Plant Quarantine (PQ) clearance.
Following the intervention of Union Minister of State for Agriculture and Farmers Welfare Shobha Karandlaje the Union Agriculture Ministry made this announcement. In an official memorandum of May 24, Joint Director (PQ) Sanjay Arya of the Directorate of Plant Protection, Quarantine and Storage, informed all Plant Quarantine Stations that the Competent Authority has approved the inclusion of bamboo stick less than 6 mm thickness in the list of processed items that do not require PQ clearance.
The central government has approved the fresh guidelines for Micro & Small Enterprises Cluster Development Programme (MSE-CDP) for 2021-22 to 2025-26 which aims at enhancing the competitiveness and productivity of micro & small enterprises.
Under the Common Facility Centers (CFCs), the central government grant will be restricted to 70 per cent of the cost of project from Rs 5 crore to Rs 10 crore and 60 per cent of the cost of project from Rs 10 crore to Rs 30 crore, said the MSME Ministry on Friday.
Amazon India has so far helped 40 lakh Micro, Small and Medium Enterprises (MSMEs) digitise their business from its overall target of 1 crore set to achieve by 2025 as a commitment to boost entrepreneurial spirit of Indian businesses.
The e-commerce giant has claimed to enable about nearly USD 5 billion in cumulative exports and created more than 11.6 lakh direct and indirect jobs. During its first annual event Amazon Smbhav in January 2020, the company had pledged to digitise 1 crore MSMEs, enable USD 10 billion in cumulative exports and create 20 lakh jobs in India by 2025.
The state cabinet of Arunachal Pradesh chaired by Chief Minister Pema Khandu gave a green signal to the ‘Arunachal Pradesh Startup Policy’ on Monday which has created a roadmap to facilitate growth of about 250 new startups over the next five years.
The development of 250 startups is expected to create significant direct and indirect employment opportunities in the state. The chief aim behind the formulation of the policy is to promote start-ups and to provide necessary stimulus to the entrepreneurial ecosystem in the state.
The Micro Small and Medium Enterprises (MSME) in Tiruchi District of Tamil Nadu has been allocated Rs 1,821.45 crore under the Annual Credit Plan (ACP) for the financial year 2022-23. The total outlay stands at Rs 10,839.86 crore which is 7.42 per cent higher than the previous year.
The ACP is coordinated with the Potential Linked Credit Plan of the National Bank for Agriculture and Rural Development (NABARD). For agriculture and allied activities, Rs 6,068.70 crore has been allocated and Rs 450.48 crore for education and Rs 1,441.90 crore for housing.
The state cabinet of Bihar has approved the industrial promotion policy for textile and leather industries on Thursday through various forms of subsidies.
Those setting up textile and leather or related units will get capital investment subsidy up to Rs 10 crore and power at Rs 2 per unit under the Bihar Industrial Investment Promotion Policy (Textiles and Leather) Policy, said State industries minister Syed Shahnawaz Hussain.
Banks in Madhya Pradesh have disbursed an amount of Rs 46,945 crore to the MSME sector as against the target of Rs 35,009 crore under the Annual Credit Plan for FY 2021-22.
It achieved 134 per cent of the target for MSMEs, which is higher than the achievement of 105 per cent during the previous financial year.
A total amount of Rs 2, 70,909 crore was disbursed at the end of March 31, 2022 against the target of Rs 2, 12,821 crore (priority & non-priority) under the same plan.
The India-UAE Start-Up Corridor which will be soon launched in Dubai is to target a minimum of 50 validated start-ups based in India and the UAE over a period of five years with the vision to grow 10 of them into unicorns by 2025.
A unicorn is a start-up valued at more than USD 1 billion, and as of May 6, 2022 India has 100 unicorns.
FICCI LEAD and the Dubai International Financial Centre (DIFC) also recently inked a landmark MoU to launch the ‘India-UAE Start-Up Corridor’.
The South African government has invited Indian companies to invest in their Special Economic Zones (SEZs) and export to entire Africa, USA and European Union, as South Africa has signed trade agreements with them.
Speaking at an interactive session organized by All India Association of Industries (AIAI) and WTC Mumbai, Andrea Kuhn, Consul General, Consulate General of the Rep. of South Africa, Mumbai said, “There are more than 13 Special Economic Zones in South Africa, where Indian companies can invest and export to entire Africa, USA and European Union, with which we have trade agreements.”
According to the FISME factor, 100% of MSMEs think that RBI’s repo rate hike is the right move to deal with inflation? 
Ever since Marry Barra, CEO, General Motors (GM), took to the steering in 2014, a lot has changed at GM in terms of the organisational culture. It all started with the switch-ignition crisis that came to light at GM in 2014, just a few days after Barra donned the mantle of CEO.
Revenue-based financing (RBF), a popular fundraising model in the United States, is taking off in India to enable young startups to access funding. The model allows startups to raise funds from investors, who, in return, receive a percentage of a company's gross revenue.
For many industries, online sales make for the vast amount of their takings. Most businesses are online, but the big question is: are they fulfilling their fullest potential? The answer is frankly, no!
Many businesses may exist on the Internet but they truly are not living up to promise, according to Julius Tirrá of Celebian.
Industries in Indore have urged the Madhya Pradesh Pollution Control Board to make the website industry friendly as they are still facing a lot of difficulties in the entire application process.
The industrialist reached out to Anirudh Mukherjee, principal secretary Pollution Department and chairman of Madhya Pradesh Pollution Control Board and informed them about the problems faces by the industries pertaining to the website.
For over five years, Sellamma, who lives in Sirunallur, a village roughly 92 kilometres away from Chennai, has been supplying milk to companies. However, during the COVID-19 pandemic-induced lockdown, she couldn’t complete milk deliveries. This is when she found Uzhavarbumi. 
Skincare products tagged as herbal or organic have many takers in India. This bothered Jayati Goel who embarked on an entrepreneurial journey to start her own skincare brand Hanoor in 2021. “That herbal and organic equals good is a very big myth in India.
“The journey of a thousand miles begins with one step. ”
