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President Message |
India UK-FTA which was to be concluded by Diwali got postponed due to political upheaval in UK. This is supposed to be the first FTA with a Western developed country having sizeable bilateral trade. The trade between the two countries stood around Pound 29 Bn which is slated to double by 2030. During the Covid period when the world trade plummeted, the trade between the two countries registered a 40% jump. India offers a vast market especially upper middle class of 200 Mn people with purchasing power of developed countries. After Brexit, UK looks at India as a low hanging fruit. For India, the FTA would confer the competitive advantage over its neighbouring competitors viz. Pakistan, Bangladesh and Sri Lanka in many traditional sectors such as textile and garments, leather, tea etc India lose out to these countries as they still can access UK market at preferential duties because of GSP. The FTA will tilt the balance in the favour of Indian exporters. Secondly, UK is an advanced economy with cutting edge technologies in sectors such as aviation, auto, bio-tech, pharma and AI. JVs in these field could be hugely beneficial to both the countries: India providing the market and production base and UK the tech transfer. In all these fields MSMEs have a huge stake especially for exports. Let’s keep a close watch.
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Vol VIV, Issue 263: Nov 1, 2022 |
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Activities |
Korean Small and Medium Enterprises Association in India's (KOSMA) official Jeong Mun Hong on Friday met Anil Bhardwaj, Secretary General of Federation of Indian Micro and Small & Medium Enterprises (FISME).
The agenda was to finalize the details of engagements regarding the upcoming visit of Mayor of the city of Yangsan Na Dong-Yeon leading a 41 member trade delegation to India from November 7 to 11, 2022.
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Business Banter: Lessons from Entrepreneurs |
We all know the statistics for startups — and they're not good.
More than two-thirds of startup companies never make a profit. Most companies simply don't bring in enough money to grow. However, not every startup fails. Founders who research their target market, find early adopters and retain their customers can build long-lasting, profitable companies. Here are some lessons we've learned at Freshworks to grow our company from 100 customers to over 58,000 now.
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Writing on the Wall |
Two controversial issues ended up putting a spanner on the Diwali deadline for the UK-India FTA—the depth of commitments on movement of natural persons and impediments to flow of data. Suella Braverman, in her first stint as the British as concerns that Indians tend to overstay their visas stirred up strong emotions on both sides. On the data issue, India’s requirements for data localisation are perceived by the UK as an impediment for cross-border data flows.
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Media Monitor |
Macro Metre |
The Manufacturing activities in India remained strong as the Manufacturing Purchasing Managers’ Index (PMI) was up from 55.1 in September to 55.3 in October. The survey released by the S&P Global Market Intelligence, pointed out that the October PMI showcased improvement in overall operating conditions for the 16th straight month. The Indian manufacturing industry again showed signs of resilience in October, with factory orders and production rising strongly despite losing growth momentum,” said Pollyanna De Lima, economics associate director at S&P Global Market Intelligence.
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Beating China and Bangladesh, the Netherlands has become India’s third largest export market.
Since FY22 it has moved up two spots in the list of India’s top ten export destinations due to a 106 per cent surge in dispatches until August this fiscal from a year before to USD 7.5 billion. Brazil is now India’s 8th biggest export market which occupied the 21st spot in FY22 and Indonesia has moved up seven notches to grab the 7th position. Apart from Netherlands the only European nation on India’s top ten markets is UK, against 4 in FY22. Germany and Belgium, which featured in the list last fiscal, are out of it now.
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The economy of India is expected to expand at 6.8 per cent in the current financial year, said the International Monetary Fund (IMF) on Thursday.
It is a revision down by 1.4 percentage points since the April 2022 World Economic Outlook.
The reason is a weaker-than-expected recovery in the second quarter and subdued external demand. In the next financial year it is expected that India will see a slowdown to 6.1 per cent due to external demand and a tightening in monetary and financial conditions weigh on growth. This was said by IMF in its Regional Economic Outlook.
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The central government has formed a three sub-panel to evaluate the proposals received under the India Semiconductor Mission (ISM), reported the Economic Times. The people who are aware of the matter told ET that the government aims to approve the first applications “soon”. Under ISM’s USD 10 billion package five consortiums—including Vedanta-Foxconn, Next Orbit Ventures-Tower Semiconductor (now owned by Intel) and Rajesh Exports have applied for incentives. To set up semiconductor fabrication units they are awaiting official sanction. One of the sub-committees that will hone the proposals constitutes members from the Ministry of Electronics and Information Technology (MeitY) and the Industrial Finance Corporation of India (IFCI).
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To keep a check on the domestic prices and its availability in the country, the central government has decided to further extend the ban on sugar exports by a year till October 31, 2023.
This move by the government is being seen as a step towards curbing rising food inflation. “Restriction on export of sugar (raw, refined, and white sugar) is extended beyond October 31, 2022 till October 31, 2023, or until further orders, whichever is earlier. Other conditions will remain unchanged,” the Directorate General of Foreign Trade (DGFT) said in a notification dated October 28.
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In an effort to boost shipments to countries like Russia the government is likely to allow exporters settling their trades in rupees to use export incentives and duty rebates under India’s foreign trade policy.
After receiving an approval from the Finance Ministry, the Directorate General of Foreign Trade (DGFT) may issue a clarification on this matter soon, reported Mint citing government officials. Presently, if payment or export realizations come in freely convertible currencies including the dollar, British pound, euro and yen, only then incentives to exporters in the form of duty drawbacks, EPCG incentives, and rebates on duties and taxes under different government schemes ROSCTL and RODTEP are available.
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The Ministry of MSME notified on Tuesday that an enterprise shall continue to avail of all non-tax benefits of the category it was in before the re-classification, for a period of three years from the date of such upward change. The notification replaces the old text with the new insertion: "(5) In case of an upward change in terms of investment in plant and machinery or equipment or turnover or both, and consequent re-classification, an enterprise shall continue to avail of all non-tax benefits of the category (micro or small or medium) it was in before the reclassification, for a period of three years from the date of such upward change."
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State Scan |
Tamil Nadu
Due to the sluggish overseas demand for textile and clothing products, the Tamil Nadu textile units are likely to reduce their utilisation of cotton till the end of Q3 of 2022, a report by The Hindu stated.
The total consumption of these mills in Q3 (October to December) last year was 15.37 lakh bales of cotton whereas this year the amount is expected to reduce to 10.56 lakh bales during the same period. The survey conducted by the textile industry association, Indian Texpreneurs Federation (ITF) of 132 textile mills in the state of Tamil Nadu which have a total of 61 lakh spindles.
Uttar Pradesh
The Uttar Pradesh government has partnered with Singapore, France and the United Kingdom as major countries for the upcoming global investor summit scheduled in February next year. “We are making efforts to on-board other leading partner countries, including the US, Germany, Russia, Israel, Canada, the UAE, Netherlands, South Africa, Belgium, Brazil, and Australia,” a senior state government official said.
Andhra Pradesh
IT and Industries Minister of Andhra Pradesh Gudivada Amarnath on Sunday laid the foundation stone for the MSME Park to be set up in Koduru village of Anakapalli district.
Speaking at the event, he said “Anakapalli district will soon gain the top position in the industrial sector in Andhra Pradesh.” Referring to the negligence of previous state government, the minister said the Yuvajana Shramika Rythu Congress Party (YSRCP) was bent on undoing their mistakes. He informed that the decision to set up MSME Park in Anakapalli was taken only after YS Jagan Mohan Reddy came to power.
Odisha
Chief Minister Naveen Patnaik in a meeting with Larsen and Toubro (L&T) CEO and MD SN Subramaniyan on Friday invited the company to explore the option of setting up units in aerospace and defence manufacturing and green hydrogen sectors. The chief minister also asked L&T to explore the possibility of setting up common industrial facilities such as water and effluent treatment plant for the upcoming industrial hubs in the State at Paradip, Gopalpur and Dhamra.
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World Watch |
Singapore
From 2025 India will start with its first ever export of green energy with the first shipments going to a Singapore power plant.
This will be facilitated through a MoU signed on Tuesday between an India-based dispatchable renewables company and Singapore's energy business. The pact will explore opportunities and green hydrogen potential in India. It will see Greenko group and Singapore’s Keppel Infrastructure working towards a 250,000 tonne per annum contract to be supplied to Keppel's new 600Mw power plant in Singapore. Mahesh Kolli, President and Joint Managing Director of Greenko Group said the contract for the export of green ammonia would also expand to cover bunker fuel through the Keppel network in Singapore's network of bunker fuel supplies to ships.
He further said that Greenko's wide range of investments includes USD 5 billion in the storage of carbon-free green hydrogen energy across India.
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FISME’s official Twitter handle @fisme |
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KNN India’s official Twitter handle @knnindia |
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Other Events |
Uniforms & Sportswear Expo
Date: 04 - 06 Nov 2022
Venue: Nehru Centre, Mumbai
See Details
Auto EV India
Date: 09 - 11 Nov 2022
Venue: KTPO Convention Centre, Whitefeild, Bengaluru
See Details
Yarn, Fabric and Accessories Trade Show
Date: 10 - 12 Nov 2022
Venue: Saya Grand Club & Spa Resort, Thane
See Details
Economic Times Acetech - Mumbai
Date: 10 - 13 Nov 2022
Venue: Bombay Exhibition Centre (BEC), Mumbai
See Details
India Stonemart
Date: 10 - 13 Nov 2022
Venue: Jaipur Exhibition & Convention Centre, Jaipur
See Details
Labelexpo India
Date: 10 - 13 Nov 2022
Venue: India Exposition Mart, Greater Noida
See Details
Indian Pharma Expo - Hyderabad
Date: 11 - 12 Nov 2022
Venue: Hitex Exhibition Center, Hyderabad
See Details
NPrintech & NPacktech Today
Date: 11 - 13 Nov 2022
Venue: Chennai Trade Centre, Chennai
See Details
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Your Views |
What should be the top priority to improve for Govt to strengthen Indian economy amid talks of recession and uncertainty in the world?
According to the FISME factor, 100% of MSMEs think that the top priority to improve for Govt to strengthen Indian economy amid talks of recession and uncertainty in the world is competitively priced quality raw material.
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Knowledge Store |
HR Heuristics
How to eliminate gaps between employees and their immediate bosses
The differences between employees and their managers can be easily done away with if the managers are adequately trained in this area Employee retention has become one of the greatest challenges for organisations today. Quite understandable, because the job market has opened up and how!
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Finance Fundamentals
How To Negotiate Renewed Contracts During Periods of Inflation
Inflation is far from slowing down. Despite optimistic estimates from some economists earlier this summer, consumer prices have risen 8.3% through August. The effects of inflation are being felt throughout the economy and can make negotiating contract renewals with your current clients challenging.
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Marketing Mantras
7 strategies to make your omnichannel marketing plan more effective
Omnichannel marketing refers to an interconnected multi-channel sales strategy that gives customers a seamless buying experience across sales channels commissioned by a brand. The purpose of advancing marketing efforts over these interlinked channels is to provide a consistent and coherent buying experience for the customer, coming from different sources via different means.
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Policy Polemic
Telangana handloom weavers demand abolition of GST
Protesting against the 5 per cent Goods & Service Tax (GST) on handloom products, weavers and workers in Telangana have urged the government to do away with the GST.
On Monday, ‘postcard protest’ was staged demanding zero GST on handloom products.
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SME Special
How an 80% women workforce is the backbone of this Rs 500 Cr agarbatti company
In 1992, Prakash Agrawal, an Indore-based entrepreneur, started Mysore Deep Perfumery House (MDPH) in the garage of his house in Indore with its flagship brand, Zed Black. Thirty years later, the company processes three crore incense sticks every day at its 9,40,000 sq. ft manufacturing space in the city comprising five factories. It has five factories, 35 regional sales offices, and a kitty of 1,200+ products that are exported to over 30+ countries across six continents. Fifteen lakh packs of Zed Black are sold in a day. In FY21, MDPH clocked a turnover of Rs 500 crore.
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Success Story
How SWYTCHD is helping people ride an electric vehicle without buying one
Electric vehicles (EVs) may play a critical role in the future of mobility but the journey so far has been fraught with challenges. While customers may fundamentally be in favour of switching to electric alternatives, when it comes to buying one, they are still hesitant. The biggest impediments to the adoption of these vehicles on a large scale are range anxiety (the worry that the vehicle will run out of charge before reaching the destination or charging point) and its price. According to an EY report, an electric car costs 2X times an ICE variant in India. The cost of an electric two-wheeler is 15% more than that of an ICE variant.
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Stockpile
The National Statistical Office (NSO), Ministry of Statistics and Programme Implementation (MoSPI) has released the Quick Estimates of Index Of Industrial Production and Use-Based Index for the Month of August 2022 (base 2011-12=100).
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Quotable Quotes
“ When you work, work as if everything depends on you. When you pray, pray as if everything depends on God. ”
– - J.R.D. Tata – Industrialist, Entrepreneur & Chairman of Tata Group
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Country Chronicles |
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:
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New Members |
2 new MSMEs became members of FISME during the period from 16th October to 31st October 2022
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Reader Reactions |
Write and Win prize!
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
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Editorial Team: |
Hon. Editor: Anil Bhardwaj
Asstt. Editor: Kalpana Sharma
Types setting & websdesigning: Sanjay Sachan
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