If you are unable to view this mailer, click here.
President Message
Prime Minister Narendra Modi in 2019 had put a target for India to achieve a GDP of US$ 5 Tn by 20024-25. Due to Covid disruption the growth momentum has been delayed. But it has given us opportunity to rethink our strategies. As an MSME body, we would like to know that in India’s 5 Trn economy target how much has to come from MSMEs and through which sectors. It is estimated that currently almost one third of GDP comes through MSMEs. It is important to know what is holding back MSMEs and in order to impulse their rapid economic growth what steps we need to take. There is a need to simultaneously work in areas of easing regulatory compliances, ensuring access to key inputs like finance and provide them basic industrial infrastructure. Further, if we want the real success, there is also a need to break-down these GDP goals and reforms initiatives to the level of States. FISME’s work programme would like to build upon these thoughts. I would welcome your suggestions and comments in this regard.
"
A digital lending platform is being jointly created by the Federation of Indian Micro and Small & Medium Enterprises (FISME) and Eqaro Surety Pvt Ltd, provider of Financial Guarantees to fulfil the need of urgent funds. In this regard, an MoU was signed by Prashant Patel, President FISME and Vikash Khandelwal, CEO of Eqaro in Delhi on 27th April, 2022. Former Secretary, Department of Financial Services, D.K. Mittal who was present during the MoU signing ceremony has termed the initiative ‘path breaking’.
It will provide access to collateral free capital up to Rs 25 lakh to Micro and Small & Medium Enterprises (MSMEs). The platform will on board MSMEs after due diligence and will have Banks & NBFCs on board to provide credit backed by guarantees of Eqaro and is expected to launch this year itself.
One of the most interesting phenomena I have seen over the last two decades in startups is the fascination with Unicorns. The term emerged at a time when startups worth $1 billion were rare, something only the luckiest of founders would ever glimpse. Now the production of Unicorns is reaching the scale of industrial agriculture. But founders shouldn’t be looked down on if they don’t have the goal of reaching Unicorn status. In my experience, one of the biggest reasons companies fail is the attempt to grow as fast as possible without taking the time to grow the right way. It’s a tale as old as the tortoise and the hare. In business, who wins the race?
Those who believe in the never-before possibilities of India’s growth are often baffled, sometimes even annoyed and indignant, over the country’s gargantuan regulatory and compliance apparatus that blocks, chokes and obstructs the exponential India story. Supposedly to protect the citizenry and the state from unscrupulous swindlers and outright fraudsters, this vast machinery of impediments makes doing business in India
The Ministry of Commerce and Industries has identified 102 items with a share of 57.66 per cent in total import from March-August 2021 to explore domestic production opportunities. There are 18 common items out of these 102 items which have both high share and high growth rate. To meet the domestic demand and generate employment opportunities, the Ministry has encouraged the Industry Associations, manufacturers to explore domestic capacity expansion in these 18 items.
TExports in the gem and jewellery sector has touched USD 39.15 billion in FY22 said the Gem and Jewellery Export Promotion Council (GJEPC).
The sector saw a jump of nearly 55 per cent in the last financial year, said the industry body. With regards to the gross exports for gems and jewellery the figure stood at USD 25.40 billion during 2020-21. Meanwhile, in March the overall gross gems and jewellery exports went up by 4.33 per cent to USD 3,393.29 million. Further a decline of 0.46 per cent was seen compared to USD 3,409.07 million for the same period in FY21.
The Department for Promotion of Industry and Internal Trade (DPIIT) has showed the wholesale price index (WPI) inflation at 14. 6 per cent in March owing to the supply chain disruptions caused by the Russia-Ukraine conflict.
As per the data released by DPIIT on Monday the wholesale price inflation rose to a four month high in March due to the sharp increase in prices of crude petroleum and natural gas, mineral oils and basic metals.
The Ministry of MSME has launched the renewed Zero Defect Zero Effect (ZED) Certification Scheme with an aim to make access to capital easier for the MSME sector. MSMEs in the manufacturing segment will be the area of focus in the first phase and MSMEs in the services sector will the main focus in phase 2. Present at the launch event, MSME Minister Narayan Rane underlined the contribution of MSMEs in India’s GDP (30 per cent) and the overall exports (50 per cent) of the country.
Explaining the features of the revised scheme, Director of Ministry of MSME, Vinamra Mishra said that concessions on parcel special trains, as well as get preferences from credit bureaus and banks will be given to MSMEs that have ZED certification.
The Directorate General of Foreign Trade (DGFT) has announced the extension of compulsory electronic filing of Non-Preferential Certificate of Origin (CoO) through the common digital platform to August 1, 2022.
This allows exporters and NP CoO issuing agencies to use the existing systems of processing non-preferential CoO applications in manual/paper mode for the next three months. Option to use the online system would still be available for the exporters and NP CoO Issuing Agencies, said the notice issued on Wednesday.
Union Minister for MSME Narayan Rane in the presence of MoS MSME Bhanu Pratap Verma has launched a month long ‘Enterprise India’ initiative to promote entrepreneurship culture across the country.
The initiative will host a series of commemorative entrepreneurship development events and activities until May 27, 2022. Delivering his keynote address, the Union Minister highlighted on the key role played by MSMEs in promoting entrepreneurship and importance of industry associations in transforming India into a manufacturing hub.
Major banks such as State Bank of India (SBI), Bank of Baroda (BoB), Axis Bank and Kotak Mahindra Bank have increased their lending rate by 0.1 per cent which will result into an hike in EMIs for their existing borrowers.
Hence EMIs for car, personal, home loans are expected to rise for these banks. After a gap of about three years, these banks have hiked the lending rate and it is likely to be followed by others. This will push up the equated monthly installments (EMIs) for different categories of loans to consumers.
Altering the State Industrial Policy 2019, the Himachal Pradesh government has decided to give major incentives to MSMEs in areas of transport, SGST, interest subvention etc.
As per media reports, MSMEs and large anchor enterprises would be able to avail 3 per cent subsidy on interest subvention, 3.5 per cent as transport subsidy and 50-90 per cent net SGST reimbursement etc. To introduce the incentives, the state government will bring several changes in the industrial policy.
The Tamil Nadu government has earmarked Rs 4,445 crore to establish mega textile park in Virudhunagar, said R Gandhi, Minister for Handlooms and Textiles in the state assembly. It will be set up under the central government’s scheme of PM Mega Integrated Textile Regions and Apparel Parks (MITRA) aimed to strengthen Indian textile industry. To avail the scheme, a proposal has been sent by the state government to the union government, informed the minister. Explaining the policy note the minister said a special purpose vehicle would be set up with 51 per cent equity shareholding of the state government and 49 per cent of the Union government.
Chief Minister of Uttar Pradesh Yogi Adityanath will soon inaugurate five common faculty centres (CFCs) to help entrepreneurs under the One District One Product” (ODOP) scheme and 18 more centres are under construction.
It will provide facilities and support to entrepreneurs associated with the ODOP scheme. The common facility centres are set up in Azamgarh, Sitapur, Siddharthnagar, Ambedkar Nagar and Agra districts, informed Navneet Sehgal, additional chief secretary, MSME and Khadi, UP, on Thursday.
Industries Minister and Member of the Karnataka Legislative Assembly Murugesh Nirani has said that the government is ready to offer 75% concession in industrial sites to the economically weaker section (EWS) of society to encourage them to take up entrepreneurship.
Speaking after inaugurating ‘Udyami aagu, Udyoga needu’ (Become entrepreneur, create jobs) at KSOU convocation hall in Mysuru, the Minister said the government has taken the decision to encourage people from economically weaker sections of society on the lines of Karnataka Area Industrial Development Board’s scheme to promote SC/ST beneficiaries.
Ahead of crucial talks between Indian Prime Minister Narendra Modi and his British counterpart Boris Johnson, United Kingdom has said that it will offer New Delhi 'know-how' on building fighter jets.
The development is likely to provide a much-needed boost for India’s ‘Make in India’ programme in the defence sector. A statement from the UK Prime Minister's Office said that the country will "support new Indian-designed and built fighter jets, offering the best of British know-how on building battle-winning aircraft."
The offer is being seen as London's attempts to away India’s reliance on Russia for its defence needs. India imports a bulk of defence equipment, including spare parts, from Russia.
In an effort to deepen its ties with India amid western sanctions, the Russian Government has invited Indian investors to explore the economic potential of Ryazan Province which is connected to Europe along with China, Mongolia and Kazakhstan.
Speaking at a meeting organised by MVIRDC World Trade Center Mumbai and All India Association of Industries, Nikolai Lyubimov, Governor of Ryazan region of the Russian Federation said, “Ryazan has four federal railroads, two river ports and it is located within 200 km from three major airports. We invite Indian investors to explore our territory of accelerated social and economic development.”
Best Way to Hire Employees: 3 Tips for Landing Top Talent
Hiring new employees is an exciting opportunity to bring a fresh perspective and unique experience to your company. It can be a sign of a growing business, and you need someone who shares the same values and drive as your organization. However, filtering through a sea of applications is time-consuming and inefficient.
Eleven Financial Fundamentals Every Small Business CEO Must Know
Regardless of the size of the business, the ultimate responsibility for success lies with the CEO. If you're a small business owner, that's you. And the most critical CEO tasks that result in success or failure lie in the knowledge and practice of financial management fundamentals.
4 Tips for Developing a Marketing Plan That Will Actually Grow Your Business
Your business’ marketing strategy has the potential to boost sales and thrust you into the limelight. However, if your strategy is not properly planned, you may inadvertently stall revenue and limit your own success. We have to be intentional in order to create an effective marketing plan that will grow our business, especially in the world of startups.
TEA appeal FM to provide garment MSMEs 20% additional loan support under ECLGS
The Tirupur Exporters' Association (TEA) has urged the Union Finance Minister Nirmala Sitharaman to provide labour intensive MSME driven garment industries an additional 20 per cent loan support under Emergency Credit Line Guarantee Scheme (ECLGS).
Speaking exclusively with KNN India, Raja Shanmugam said that the 20 per cent additional support would help the MSMEs.
With just Rs 5,000, this woman entrepreneur started a gold and diamond jewellery business online
It is often said that a comfort zone is a beautiful place - but nothing ever grows there. For thirty-six-year-old Dishi Somani, her cushy bank job left her comfortable but still yearning for more.
This mother-daughter duo’s home decor brand creates and curates pieces from artisans across India
After a long stint at supply chain and logistics platform, Delhivery, Ayessha Gurung decided to start Junekeri Homes, a homegrown brand that specialises in handcrafted goods for the home. The change was not incidental. Ayessha says the ‘Aha’ moment happened when she was setting up her first house in Delhi.
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.
FISME regularly receives monthly reports on the economies of various countries from their missions in India. These reports provide information on key economic parameters, trade related information and all news relevant for importers and exporters. In this edition you can take a look at reports on:
Write your comments on the FISME Factor. Share your views and suggestions on MSME issues. Win prize! The best mail will get a special book every fortnight.
send mail to: newsletter@fisme.org.in
You are receiving this Newsletter because you are included in our mailing list of recipients who are involved or interested in FISME or Indian MSMEs. You are welcome to partly or fully reproduce and disseminate the contents of this publication provided that you acknowledge the source.
This Newsletter is edited by the FISME Secretariat. We welcome contributions as well as comments and suggestions. Please write to newsletter@fisme.org.in
Prime Minister Narendra Modi in 2019 had put a target for India to achieve a GDP of US$ 5 Tn by 20024-25. Due to Covid disruption the growth momentum has been delayed. But it has given us opportunity to rethink our strategies. As an MSME body, we would like to know that in India’s 5 Trn economy target how much has to come from MSMEs and through which sectors. It is estimated that currently almost one third of GDP comes through MSMEs. It is important to know what is holding back MSMEs and in order to impulse their rapid economic growth what steps we need to take. There is a need to simultaneously work in areas of easing regulatory compliances, ensuring access to key inputs like finance and provide them basic industrial infrastructure. Further, if we want the real success, there is also a need to break-down these GDP goals and reforms initiatives to the level of States. FISME’s work programme would like to build upon these thoughts. I would welcome your suggestions and comments in this regard.
"
The Ministry of Commerce and Industries has identified 102 items with a share of 57.66 per cent in total import from March-August 2021 to explore domestic production opportunities. There are 18 common items out of these 102 items which have both high share and high growth rate. To meet the domestic demand and generate employment opportunities, the Ministry has encouraged the Industry Associations, manufacturers to explore domestic capacity expansion in these 18 items.
TExports in the gem and jewellery sector has touched USD 39.15 billion in FY22 said the Gem and Jewellery Export Promotion Council (GJEPC).
The sector saw a jump of nearly 55 per cent in the last financial year, said the industry body. With regards to the gross exports for gems and jewellery the figure stood at USD 25.40 billion during 2020-21. Meanwhile, in March the overall gross gems and jewellery exports went up by 4.33 per cent to USD 3,393.29 million. Further a decline of 0.46 per cent was seen compared to USD 3,409.07 million for the same period in FY21.
The Department for Promotion of Industry and Internal Trade (DPIIT) has showed the wholesale price index (WPI) inflation at 14. 6 per cent in March owing to the supply chain disruptions caused by the Russia-Ukraine conflict.
As per the data released by DPIIT on Monday the wholesale price inflation rose to a four month high in March due to the sharp increase in prices of crude petroleum and natural gas, mineral oils and basic metals.
The Ministry of MSME has launched the renewed Zero Defect Zero Effect (ZED) Certification Scheme with an aim to make access to capital easier for the MSME sector. MSMEs in the manufacturing segment will be the area of focus in the first phase and MSMEs in the services sector will the main focus in phase 2. Present at the launch event, MSME Minister Narayan Rane underlined the contribution of MSMEs in India’s GDP (30 per cent) and the overall exports (50 per cent) of the country.
Explaining the features of the revised scheme, Director of Ministry of MSME, Vinamra Mishra said that concessions on parcel special trains, as well as get preferences from credit bureaus and banks will be given to MSMEs that have ZED certification.
The Directorate General of Foreign Trade (DGFT) has announced the extension of compulsory electronic filing of Non-Preferential Certificate of Origin (CoO) through the common digital platform to August 1, 2022.
This allows exporters and NP CoO issuing agencies to use the existing systems of processing non-preferential CoO applications in manual/paper mode for the next three months. Option to use the online system would still be available for the exporters and NP CoO Issuing Agencies, said the notice issued on Wednesday.
Union Minister for MSME Narayan Rane in the presence of MoS MSME Bhanu Pratap Verma has launched a month long ‘Enterprise India’ initiative to promote entrepreneurship culture across the country.
The initiative will host a series of commemorative entrepreneurship development events and activities until May 27, 2022. Delivering his keynote address, the Union Minister highlighted on the key role played by MSMEs in promoting entrepreneurship and importance of industry associations in transforming India into a manufacturing hub.
Major banks such as State Bank of India (SBI), Bank of Baroda (BoB), Axis Bank and Kotak Mahindra Bank have increased their lending rate by 0.1 per cent which will result into an hike in EMIs for their existing borrowers.
Hence EMIs for car, personal, home loans are expected to rise for these banks. After a gap of about three years, these banks have hiked the lending rate and it is likely to be followed by others. This will push up the equated monthly installments (EMIs) for different categories of loans to consumers.
Altering the State Industrial Policy 2019, the Himachal Pradesh government has decided to give major incentives to MSMEs in areas of transport, SGST, interest subvention etc.
As per media reports, MSMEs and large anchor enterprises would be able to avail 3 per cent subsidy on interest subvention, 3.5 per cent as transport subsidy and 50-90 per cent net SGST reimbursement etc. To introduce the incentives, the state government will bring several changes in the industrial policy.
The Tamil Nadu government has earmarked Rs 4,445 crore to establish mega textile park in Virudhunagar, said R Gandhi, Minister for Handlooms and Textiles in the state assembly. It will be set up under the central government’s scheme of PM Mega Integrated Textile Regions and Apparel Parks (MITRA) aimed to strengthen Indian textile industry. To avail the scheme, a proposal has been sent by the state government to the union government, informed the minister. Explaining the policy note the minister said a special purpose vehicle would be set up with 51 per cent equity shareholding of the state government and 49 per cent of the Union government.
Chief Minister of Uttar Pradesh Yogi Adityanath will soon inaugurate five common faculty centres (CFCs) to help entrepreneurs under the One District One Product” (ODOP) scheme and 18 more centres are under construction.
It will provide facilities and support to entrepreneurs associated with the ODOP scheme. The common facility centres are set up in Azamgarh, Sitapur, Siddharthnagar, Ambedkar Nagar and Agra districts, informed Navneet Sehgal, additional chief secretary, MSME and Khadi, UP, on Thursday.
Industries Minister and Member of the Karnataka Legislative Assembly Murugesh Nirani has said that the government is ready to offer 75% concession in industrial sites to the economically weaker section (EWS) of society to encourage them to take up entrepreneurship.
Speaking after inaugurating ‘Udyami aagu, Udyoga needu’ (Become entrepreneur, create jobs) at KSOU convocation hall in Mysuru, the Minister said the government has taken the decision to encourage people from economically weaker sections of society on the lines of Karnataka Area Industrial Development Board’s scheme to promote SC/ST beneficiaries.
Ahead of crucial talks between Indian Prime Minister Narendra Modi and his British counterpart Boris Johnson, United Kingdom has said that it will offer New Delhi 'know-how' on building fighter jets.
The development is likely to provide a much-needed boost for India’s ‘Make in India’ programme in the defence sector. A statement from the UK Prime Minister's Office said that the country will "support new Indian-designed and built fighter jets, offering the best of British know-how on building battle-winning aircraft."
The offer is being seen as London's attempts to away India’s reliance on Russia for its defence needs. India imports a bulk of defence equipment, including spare parts, from Russia.
In an effort to deepen its ties with India amid western sanctions, the Russian Government has invited Indian investors to explore the economic potential of Ryazan Province which is connected to Europe along with China, Mongolia and Kazakhstan.
Speaking at a meeting organised by MVIRDC World Trade Center Mumbai and All India Association of Industries, Nikolai Lyubimov, Governor of Ryazan region of the Russian Federation said, “Ryazan has four federal railroads, two river ports and it is located within 200 km from three major airports. We invite Indian investors to explore our territory of accelerated social and economic development.”
According to the FISME factor, 100% of MSMEs think that the rise in raw material prices during last 12 months impacted their business adversely. 
Hiring new employees is an exciting opportunity to bring a fresh perspective and unique experience to your company. It can be a sign of a growing business, and you need someone who shares the same values and drive as your organization. However, filtering through a sea of applications is time-consuming and inefficient.
Regardless of the size of the business, the ultimate responsibility for success lies with the CEO. If you're a small business owner, that's you. And the most critical CEO tasks that result in success or failure lie in the knowledge and practice of financial management fundamentals.
The Tirupur Exporters' Association (TEA) has urged the Union Finance Minister Nirmala Sitharaman to provide labour intensive MSME driven garment industries an additional 20 per cent loan support under Emergency Credit Line Guarantee Scheme (ECLGS).
Speaking exclusively with KNN India, Raja Shanmugam said that the 20 per cent additional support would help the MSMEs.
It is often said that a comfort zone is a beautiful place - but nothing ever grows there. For thirty-six-year-old Dishi Somani, her cushy bank job left her comfortable but still yearning for more.
After a long stint at supply chain and logistics platform, Delhivery, Ayessha Gurung decided to start Junekeri Homes, a homegrown brand that specialises in handcrafted goods for the home. The change was not incidental. Ayessha says the ‘Aha’ moment happened when she was setting up her first house in Delhi.
“When you work, work as if everything depends on you. When you pray, pray as if everything depends on God. ”
