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President Message
The macro-economic assessment done by RBI announced on 30th Sept 2022 needs a closer look: In the August 2022 round of the PMI survey, business expectations of manufacturing and services firms improved to multi-year highs on optimism over strengthening demand. Taking into account the baseline assumptions, survey indicators and model forecasts, real GDP growth is expected at 7.0 per cent in 2022-23. RBI is confident that the Indian economy is advancing steadily, and is expected to be one of the fastest growing major economies in 2022. The above-normal south-west monsoon, improved reservoir position, government’s capex push, improvement in capacity utilisation, a broad-based revival in credit growth, strong corporate and bank balance sheets, upbeat consumer and business confidence and receding threat of the pandemic are all factors likely to provide impetus to growth. While inflation has eased somewhat from the April high, supported by some correction in global prices, it has ruled above the upper tolerance threshold around the target since January 2022. Monetary policy has moved into the withdrawal of accommodation mode and remains focused to ensure that inflation returns to the target while supporting growth. The daunting global environment, however, imparts considerable uncertainty to the outlook. With festive season ahead, we should be even more optimistic of an upward jump in consumer spending. Seasons’ greeting to the readers.
"
The heads of industry associations in the National Capital Region (NCR) on Wednesday signed a joint petition to allow gensets in areas having less than 3 per cent shutdowns.
Initiated by Federation of Indian Micro, Small and Medium Enterprises (FISME), the joint petition was signed by all about major industry associations of the region. The appeal is placed two days ahead of the implementation of the directions issued by the Commission for Air Quality Management (CAQM) which prohibits use of gensets from October 1, 2022.
Federation of Indian Micro, Small and Medium Enterprises (FISME) is holding a meeting on September 28 against the order of Commission for Air Quality Management (CAQM) use of diesel generator (DG) set in NCR.
The industry associations will discuss the issue followed by the signing of a joint petition and an interaction with media at 4 pm. Last week, FISME Vice President Rakesh Chhabra had urged Minister of State (MoS) for MSME Bhanu Pratap Singh Verma to allow usage of DG sets during maintenance related power cut.
In business, change is inevitable. Knowing how to navigate that change is the key to longevity.
In an age of rapid change and rising uncertainty, it is more important than ever that your business is built on a model that is adaptable and resilient. Since the onset of the Covid-19 pandemic, everyone has seen their personal and professional lives turned upside down as our living rooms have become our new office, and coworkers (for many of us) are now pixels on a screen. Add to this, a volatile global economy that has sent prices soaring and supply chains scrambling.
As one looks at the state of the world, it could well be a logical conclusion that among all the major economies, India is possibly the best country to live in right now. Unless, of course, you are filthy rich, when it doesn’t matter which harbour you park your yacht in, Monaco or Musha Cay. See the numbers. The US is experiencing 40-year-high inflation. Its gross domestic product (GDP) has fallen for two straight quarters...
The Monetary Policy Committee (MPC) of the Reserve Bank of India (RBI) on Friday announced a hike in its key lending rate by 50 basis points to 5.90 per cent.
After a 40 basis points increase in May, and 50 basis points hike each in June and August this is the fourth consecutive rate hike. To tame domestic retail inflation the central bank since May has raised the benchmark rate by 1.90 per cent. The rates for the standing deposit facility and the marginal standing facility were also raised by 50 basis points to 5.65 per cent and 6.15 per cent, respectively.
Exports of cut and polished diamonds (CPDs) from India are expected to fall down by 8-10 per cent to USD 22.0-22.5 billion in FY2023, said ICRA Ratings.
CPD exports have already declined YoY by 5 per cent in 5M FY2023, led by a 20 per cent decline in export volumes, partly offset by high YoY polished prices since January 2022. During FY22, India exported its decade-high level of CPDs worth USD 24.3 billion led by pent-up demand and large stimulus packages in key consuming countries like the US, partly aided by limited avenues of discretionary spending during the pandemic period.
The latest report released by the Asian Development Bank (ADB) has lowered down India’s GDP growth projection for the year 2022-23 to 7 per cent from the earlier 7.2 per cent based on higher-than-expected inflation and monetary tightening.
ADB’s flagship Asian Development Outlook (ADO) report, released on Wednesday, said India’s economy grew 13.5 per cent year-on-year in the first quarter of 2022-23, reflecting strong growth in services.
The government has decided to further extend the last date for the export of broken rice in transit till October 15, 2022, said the Directorate General of Foreign Trade is a notification on Tuesday.
The government on September 9 had banned the export of broken rice due to the declining sown area under paddy this kharif season than that of last year. The export policy for the commodity was revised from “free” to “prohibited”.
The Tiruppur Exporters' Association (TEA) on Saturday urged the government to announce Emergency Credit Line Guarantee Scheme (ECLGS) specifically for Garment Sector MSMEs.
TEA in a press release to Nirmala Sitharaman, Union Minister of Finance has said that 20 per cent of existing credit should be provided to bailout the Tirupur knitwear garment exporting units from the ongoing liquidity crisis happening due to issues like fewer booking orders, delay in receiving the payment, non-acceptance of booked orders and deferment of shipment.
As of September 24, 2022, the government has committed Rs. 7,385 crore under Fund of Funds for Startup (FFS) India Investment for 88 Alternative Investment Funds (AIFs), said Ministry of Commerce & Industry in a statement.
Under FFS, support is extended to SEBI registered Alternative Investment Funds (AIFs), which in turn invest in startups. These AIFs have so far invested Rs. 11,206 crore in 720 startups. The FFS launched by the Prime Minister Narendra Modi has been playing a monumental role in mobilizing domestic capital in Indian startup ecosystem.
The Ministry of MSME has appointed Export Credit Guarantee Corporation of India (ECGC) Ltd. as the implementing agency for the ‘Capacity Building of First Time MSE Exporters’ (CBFTE) component of International Cooperation (IC) Scheme.
On Tuesday, a MoU was signed between the Ministry and ECGC Ltd in New Delhi in the presence of MSME Secretary B. B. Swain. Under the pact, the export credit insurance premium paid by the MSE exporters, holding the ECGC Small Exporter’s Policy, will now be eligible for reimbursement from the Ministry of MSME.
The Kerala government has plans to provide waiver on electricity bill of new Micro, Small and Medium Enterprises (MSME) for five years under the industrial policy which is underway.
The electricity tariff as a duty is 10 per cent for the small-scale industries. To make the state a business-friendly state various new schemes are recommended, and to encourage MSME raise funds from the stock market a maximum of Rs 1 crore will be returned to the entrepreneurs, said Minister of Industries, P Rajeev.
The toy market in Tamil Nadu is estimated to be worth Rs 600-700 crore and the sector is growing year after year, keeping this in mind the state should consider coming up with a policy for this particular sector, said Santosh Kumar, president of Tamil Nadu Toy Dealers’ Association.
“Tamil Nadu is not conducive to the toy industry. They focus is on information technology, electronics and real estate but not toys. There is huge potential, and it is high time they realise that many children are playing with toys,” Kumar told The Hindu at the side-lines of the ‘Toy Expo Chennai 2022’.
It is likely that the state government of West Bengal will notify the Textile Incentive Policy soon after the end of Dura Puja next week.
The policy has been recently approved by the state cabinet, reported Millennium Post. Chairing the State Level Bankers' Committee (SLBC) meeting at Nabanna Sabhaghar on Thursday, Chief Secretary HK Dwivedi urged the bankers to be ready to provide necessary assistance to those who will derive the facilities of the Textile Incentive Policy.
An Integrated Skill Development Centre in the Dima Hasao district was inaugurated by Chief Minister Himanta Biswa Sarma on Wednesday.
The skill centre has been established under a special financial package that was agreed upon as per the accord between the Government of India, the Government of Assam and both the factions of erstwhile militant group Dima Halim Daogah (DHD). The centre has been built at the cost of Rs 36.60 crore.
The Karnataka delegation led by state Minister of Large and Medium Industries, Murugesh R Nirani on Thursday began its Europe roadshows for Global Investors’ Meet (GIM) 2022 in London.
The aim of the European roadshow is to attract large companies to come ‘Build in India’. The state government is offering various initiatives to businesses who are ready to invest in the state. While presenting the state as an ideal investment destination, Nirani said, “The State of Karnataka offers an excellent industrial ecosystem, world-class infrastructure and industrial-friendly policies.
Talent Matters: Seven Tips To Build A Strong Virtual Recruitment Strategy
A few years ago, companies did everything they could to avoid virtual recruitment. Many saw virtual recruiting as a last resort to attracting talent when they could not find a qualified candidate close enough to interview in the office. But when the COVID-19 pandemic hit, in-person recruiting was no longer a safe or efficient hiring method, and companies had to adapt.
4 Ways Small Business Owners Can Prepare to Weather All Phases of the Business Cycle
Facing higher costs, ongoing supply chain issues and deteriorating market conditions, small business owners are navigating an economic environment that is once again threatening their ability to survive. Today's landscape may be historic in its own right, but if there's one thing we can rely on, it's the inevitability of the business cycle.
3 Subtle But Effective Marketing Strategies For Small-Business Owners In 2022
Small businesses have been through a lot these past few years. Due to the pandemic, many are barely surviving.
It definitely hasn’t been easy for anyone to keep the show rolling, and small businesses have closed shop left and right.
MSME exporters lose export share due to lack of coordination among ministries
Micro, small and medium enterprises (MSME) exporters have blamed the lack of coordination among central ministries as one of the factors for their fall in share of exports.
Small exporters have asked the government to set up an “empowered" grievance redressal mechanism, reported The Mint.
Meet the social entrepreneur couple working with women of ethnic communities in Kerala
Rakkee Thimothy co-founded social enterprise Graamyam with her husband, Biju George, in 2020. The couple work with five craft communities in Kerala, and aims to elevate the livelihood of women craftspersons in the region.
What led these founders to launch D2C milk and grocery delivery startup Country Delight
The NDDB’s landmark Operation Flood may have transformed India from a milk-deficient nation into the world's largest milk producer, but it did not organise the sector and solve other related problems.
Chakradhar Gade and Nitin Kaushal say they continued to find it difficult to “source high-quality milk”. In 2013, this led the duo to start direct-to-consumer (D2C) milk and grocery delivery company, Country Delight.
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, the ESI Scheme and the 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.
send mail to: newsletter@fisme.org.in
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The macro-economic assessment done by RBI announced on 30th Sept 2022 needs a closer look: In the August 2022 round of the PMI survey, business expectations of manufacturing and services firms improved to multi-year highs on optimism over strengthening demand. Taking into account the baseline assumptions, survey indicators and model forecasts, real GDP growth is expected at 7.0 per cent in 2022-23. RBI is confident that the Indian economy is advancing steadily, and is expected to be one of the fastest growing major economies in 2022. The above-normal south-west monsoon, improved reservoir position, government’s capex push, improvement in capacity utilisation, a broad-based revival in credit growth, strong corporate and bank balance sheets, upbeat consumer and business confidence and receding threat of the pandemic are all factors likely to provide impetus to growth. While inflation has eased somewhat from the April high, supported by some correction in global prices, it has ruled above the upper tolerance threshold around the target since January 2022. Monetary policy has moved into the withdrawal of accommodation mode and remains focused to ensure that inflation returns to the target while supporting growth. The daunting global environment, however, imparts considerable uncertainty to the outlook. With festive season ahead, we should be even more optimistic of an upward jump in consumer spending. Seasons’ greeting to the readers.
"
The heads of industry associations in the National Capital Region (NCR) on Wednesday signed a joint petition to allow gensets in areas having less than 3 per cent shutdowns.
Initiated by Federation of Indian Micro, Small and Medium Enterprises (FISME), the joint petition was signed by all about major industry associations of the region. The appeal is placed two days ahead of the implementation of the directions issued by the Commission for Air Quality Management (CAQM) which prohibits use of gensets from October 1, 2022.
Federation of Indian Micro, Small and Medium Enterprises (FISME) is holding a meeting on September 28 against the order of Commission for Air Quality Management (CAQM) use of diesel generator (DG) set in NCR.
The industry associations will discuss the issue followed by the signing of a joint petition and an interaction with media at 4 pm. Last week, FISME Vice President Rakesh Chhabra had urged Minister of State (MoS) for MSME Bhanu Pratap Singh Verma to allow usage of DG sets during maintenance related power cut.
The Monetary Policy Committee (MPC) of the Reserve Bank of India (RBI) on Friday announced a hike in its key lending rate by 50 basis points to 5.90 per cent.
After a 40 basis points increase in May, and 50 basis points hike each in June and August this is the fourth consecutive rate hike. To tame domestic retail inflation the central bank since May has raised the benchmark rate by 1.90 per cent. The rates for the standing deposit facility and the marginal standing facility were also raised by 50 basis points to 5.65 per cent and 6.15 per cent, respectively.
Exports of cut and polished diamonds (CPDs) from India are expected to fall down by 8-10 per cent to USD 22.0-22.5 billion in FY2023, said ICRA Ratings.
CPD exports have already declined YoY by 5 per cent in 5M FY2023, led by a 20 per cent decline in export volumes, partly offset by high YoY polished prices since January 2022. During FY22, India exported its decade-high level of CPDs worth USD 24.3 billion led by pent-up demand and large stimulus packages in key consuming countries like the US, partly aided by limited avenues of discretionary spending during the pandemic period.
The latest report released by the Asian Development Bank (ADB) has lowered down India’s GDP growth projection for the year 2022-23 to 7 per cent from the earlier 7.2 per cent based on higher-than-expected inflation and monetary tightening.
ADB’s flagship Asian Development Outlook (ADO) report, released on Wednesday, said India’s economy grew 13.5 per cent year-on-year in the first quarter of 2022-23, reflecting strong growth in services.
The government has decided to further extend the last date for the export of broken rice in transit till October 15, 2022, said the Directorate General of Foreign Trade is a notification on Tuesday.
The government on September 9 had banned the export of broken rice due to the declining sown area under paddy this kharif season than that of last year. The export policy for the commodity was revised from “free” to “prohibited”.
The Tiruppur Exporters' Association (TEA) on Saturday urged the government to announce Emergency Credit Line Guarantee Scheme (ECLGS) specifically for Garment Sector MSMEs.
TEA in a press release to Nirmala Sitharaman, Union Minister of Finance has said that 20 per cent of existing credit should be provided to bailout the Tirupur knitwear garment exporting units from the ongoing liquidity crisis happening due to issues like fewer booking orders, delay in receiving the payment, non-acceptance of booked orders and deferment of shipment.
As of September 24, 2022, the government has committed Rs. 7,385 crore under Fund of Funds for Startup (FFS) India Investment for 88 Alternative Investment Funds (AIFs), said Ministry of Commerce & Industry in a statement.
Under FFS, support is extended to SEBI registered Alternative Investment Funds (AIFs), which in turn invest in startups. These AIFs have so far invested Rs. 11,206 crore in 720 startups. The FFS launched by the Prime Minister Narendra Modi has been playing a monumental role in mobilizing domestic capital in Indian startup ecosystem.
The Ministry of MSME has appointed Export Credit Guarantee Corporation of India (ECGC) Ltd. as the implementing agency for the ‘Capacity Building of First Time MSE Exporters’ (CBFTE) component of International Cooperation (IC) Scheme.
On Tuesday, a MoU was signed between the Ministry and ECGC Ltd in New Delhi in the presence of MSME Secretary B. B. Swain. Under the pact, the export credit insurance premium paid by the MSE exporters, holding the ECGC Small Exporter’s Policy, will now be eligible for reimbursement from the Ministry of MSME.
The Kerala government has plans to provide waiver on electricity bill of new Micro, Small and Medium Enterprises (MSME) for five years under the industrial policy which is underway.
The electricity tariff as a duty is 10 per cent for the small-scale industries. To make the state a business-friendly state various new schemes are recommended, and to encourage MSME raise funds from the stock market a maximum of Rs 1 crore will be returned to the entrepreneurs, said Minister of Industries, P Rajeev.
The toy market in Tamil Nadu is estimated to be worth Rs 600-700 crore and the sector is growing year after year, keeping this in mind the state should consider coming up with a policy for this particular sector, said Santosh Kumar, president of Tamil Nadu Toy Dealers’ Association.
“Tamil Nadu is not conducive to the toy industry. They focus is on information technology, electronics and real estate but not toys. There is huge potential, and it is high time they realise that many children are playing with toys,” Kumar told The Hindu at the side-lines of the ‘Toy Expo Chennai 2022’.
It is likely that the state government of West Bengal will notify the Textile Incentive Policy soon after the end of Dura Puja next week.
The policy has been recently approved by the state cabinet, reported Millennium Post. Chairing the State Level Bankers' Committee (SLBC) meeting at Nabanna Sabhaghar on Thursday, Chief Secretary HK Dwivedi urged the bankers to be ready to provide necessary assistance to those who will derive the facilities of the Textile Incentive Policy.
An Integrated Skill Development Centre in the Dima Hasao district was inaugurated by Chief Minister Himanta Biswa Sarma on Wednesday.
The skill centre has been established under a special financial package that was agreed upon as per the accord between the Government of India, the Government of Assam and both the factions of erstwhile militant group Dima Halim Daogah (DHD). The centre has been built at the cost of Rs 36.60 crore.
The Karnataka delegation led by state Minister of Large and Medium Industries, Murugesh R Nirani on Thursday began its Europe roadshows for Global Investors’ Meet (GIM) 2022 in London.
The aim of the European roadshow is to attract large companies to come ‘Build in India’. The state government is offering various initiatives to businesses who are ready to invest in the state. While presenting the state as an ideal investment destination, Nirani said, “The State of Karnataka offers an excellent industrial ecosystem, world-class infrastructure and industrial-friendly policies.
According to the FISME factor, 100% of MSMEs think that the major problem faced by small exporters with institutions is customs. 
A few years ago, companies did everything they could to avoid virtual recruitment. Many saw virtual recruiting as a last resort to attracting talent when they could not find a qualified candidate close enough to interview in the office. But when the COVID-19 pandemic hit, in-person recruiting was no longer a safe or efficient hiring method, and companies had to adapt.
Small businesses have been through a lot these past few years. Due to the pandemic, many are barely surviving.
It definitely hasn’t been easy for anyone to keep the show rolling, and small businesses have closed shop left and right.
Micro, small and medium enterprises (MSME) exporters have blamed the lack of coordination among central ministries as one of the factors for their fall in share of exports.
Small exporters have asked the government to set up an “empowered" grievance redressal mechanism, reported The Mint.
Rakkee Thimothy co-founded social enterprise Graamyam with her husband, Biju George, in 2020. The couple work with five craft communities in Kerala, and aims to elevate the livelihood of women craftspersons in the region.
The NDDB’s landmark Operation Flood may have transformed India from a milk-deficient nation into the world's largest milk producer, but it did not organise the sector and solve other related problems.
Chakradhar Gade and Nitin Kaushal say they continued to find it difficult to “source high-quality milk”. In 2013, this led the duo to start direct-to-consumer (D2C) milk and grocery delivery company, Country Delight.
