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President Message
India's economy is a tale of two halves, with several positives and pitfalls ahead. On the one hand, India has emerged as the fastest-growing major economy in the world, with a GDP growth rate of 7.6% in the second quarter of 2023-24. This impressive growth is driven by strong domestic consumption, investment, and exports. The government's infrastructure push and reforms such as the Goods and Services Tax (GST) have also contributed to the economic momentum. On the other hand, India's economy faces several challenges, including rising inflation, unemployment, and a widening trade deficit. Inflation has been a persistent problem, with consumer prices rising by over 7% in 2023. This has eroded household purchasing power and dampened consumer sentiment. Leading sectors like Textiles, Chemicals and Gems and jewelry are struggling. Unemployment remains high, especially among the youth. The trade deficit has also widened, as imports have outpaced exports. This could strain the country's external finances. Despite these challenges, India's economy is expected to continue to grow at a robust pace in the coming years. The IMF projects that India's GDP will grow by 6.8% in 2023 and 6.6% in 2024. However, the government will need to address the challenges of inflation, unemployment, and the trade deficit to ensure that the economic growth is sustainable and inclusive. Many of these issues could be addressed by initiating reforms in factor markets- industrial raw material, banking & finance, industrial space etc. The incoming Government in 2024 will have its tasked cut out.
As a business leader, it's essential to understand the differences between working on and in your business. When discussing working 'on' your business, I refer to strategy, long-term planning, and analysis. These actions involve the development of the overall vision for the organization and how to implement that vision. On the other hand, when discussing working 'in' your business, I'm talking about operational functions such as implementation and day-to-day tasks. This involves taking those actionable steps to bring your vision to life.
India's latest GDP (gross domestic product) numbers flatter, though they don't deceive — because the underlying story is a good one. The flow of quarterly GDP numbers should probably come with a warning: Fragile, handle with care! To understand why, consider the latest set of numbers, which deliver GDP growth of 7.6 per cent for the July-September quarter. And pick the sectoral number that principally supports that upbeat total: Manufacturing sector growth of 13.9 per cent over a year earlier, unusual in itself and well above the growth rates for other sectors. It so happens that the corresponding quarter a year earlier had (again, unusually) seen the manufacturing sector shrink by 3.8 per cent
India's S&P Manufacturing PMI in November stood at 56, up from the eight-month low of 55.5 seen in October.
After slowing in October, growth of output gathered pace as strengthening client demand and more favourable input supply boosted production volumes. That marked nearly two and a half years of the index being above the 50-mark separating expansion from contraction.
Pollyanna De Lima, Economics Associate Director at S&P Global Market Intelligence, said, "India's manufacturing industry maintained its robust performance in November, with output regaining growth momentum.
This festive season, automakers reported a 19 per cent growth in retail sales at 37.93 lakh units compared with 31.95 lakh units a year ago, according to a report in the Telegraph India.
The strong sales have provided some respite to the dealers amid growing concerns over high inventory levels. As per reports, during the period, which starts from the first day of Navratri and ends 15 days after Dhanteras, passenger vehicle retail sales rose to 5.47 lakh units, up 10 per cent from 4.96 lakh units a year ago.
The central government on Thursday announced that it has given permission to export specific amounts of wheat, wheat flour and broken rice to five countries.
To Bhutan, the government notification has allowed export of 14,184 tonnes of wheat grain, 5,326 tonnes of atta, 15.226 tonnes of maida/semoline, and 48,804 tonnes of broken rice."Broken rice shipments are also permitted to Mali (1 lakh tonnes), Senegal (5 lakh tonnes in six months), Gambia (50,000 tonnes in six months), and Indonesia (2 lakh tonnes)," PTI reported. This export is permitted through the National Cooperative Exports Limited.
The central government has cleared about 43,904 claims by MSMEs which is worth Rs 700 crore under the Vivad se Vishwas II (contractual disputes) scheme, said Finance Secretary TV Somanathan on Thursday.
The scheme was announced in the FY24 Budget which aims to provide relief to the MSMEs.
"There are approximately 4,000 claims remaining to be decided but a majority have been decided. This makes them eligible for further credit, for further supply," he said.
The Vivad se Vishwas II scheme was launched on July 15 to settle disputes in government contracts and the last date for submitting claims by contractors was October 31. Recently, the Department of Expenditure then extended the deadline to December 31.
A large number of pharmaceutical companies in the micro, small and medium enterprise (MSME) sector have been identified to be manufacturing substandard drugs, reported ET.
The government has found over 65 per cent of MSME enterprises manufacturing drugs that were not of standard quality (NSQ) during risk-based inspections of pharma companies undertaken since December last year.
"Out of the total MSME units inspected, 30 per cent were issued stop production orders (SPO), while samples of 68 per cent MSME companies have failed. This is alarming," a person aware of the matter told ET.
Red Fort Capital Finance Company, a NBFC lender to small businesses on Tuesday launched its invoice discounting solution to help MSMEs bridge gaps in working capital requirements.
The invoice discounting mechanism involves a financing arrangement where a business sells its unpaid bills to a third-party financier, such as a bank, at a reduced rate for quick access to working capital. The financier later collects the full amount from the customer upon the invoice's maturity.
To boost MSME e-commerce exports, the Directorate General of Foreign Trade (DGFT) on Thursday signed a MoU with Amazon India to leverage the Districts as Export Hubs initiative and promote e-commerce exports from the country.
As part of this MoU, Amazon and DGFT will co-create capacity building sessions, training and workshops for MSMEs in districts identified by the DGFT as part of the District as Exports Hub initiative outlined in the Foreign Trade Policy 2023, in a phased manner, as per the official statement.
The Uttar Pradesh government is taking key steps for establishing and strengthening the cottage industries in state, Minister for micro, small and medium enterprises Rakesh Sachan said on Thursday.
In a written response to a question on the third day of the Winter session in the State Assembly, Sachan mentioned that the UP government led by Yogi Adityanath is encouraging the establishment of small and cottage industries in the state through its policies and programs, which include several incentives for entrepreneurs.
The Goa Industrial Development Corporation (GIDC) has requested industry associations to pinpoint infrastructure and service priorities for 2024.
This initiative aims to address the identified priorities, enhancing Goa's standings in the Department for Promotion of Industry and Internal Trade's (DPIIT) Industrial Park Rating System (IPRS). As per reports, the exercise is expected to be completed by mid-December, after which the GIDC will finalise its action plan.
The Punjab government has submitted over 18 projects with total worth of Rs 710 crore to the Union MSME Ministry.
DPS Kharbanda, CEO of Invest Punjab, said they had presented project proposals, which included projects like setting up of MSME wing, capacity building of MSMEs.
The proposals also includes creating an export cell, testing labs and roof-top solarisation among others, before the evaluation committee.
Chief Minister YS Jaganmohan Reddy on Wednesday launched industrial projects worth Rs 1,072 crore through virtual mode. These industrial projects will provide employment opportunities to around 21,079 persons in the state. At the event, the chief minister inaugurated the Kakinada Printing Cluster, an establishment by the Sri Satyadev Printing Cluster Association. Orchestrated through 250 beneficiary MSMEs, this initiative aims to generate 1,000 direct employment opportunities and an additional 5,000 indirect employment opportunities.
The Confederation of Indian Textile Industry (CITI) and Swiss Textiles signed a Joint Declaration last week to solidify their commitment to a robust trade and economic partnership.
This marks a significant step towards fostering collaboration between the two nations and fortifying their ties in the textile sector. The 19th Joint Economic Commission (JEC) between India and Switzerland was also held in Geneva, wherein Dinesh Nolkha, Vice Chairman, CITI participated in the JEC session to talk about the strategic Joint Declaration and plans of engagement with the Swiss Textile Industry.
India and Australia are now working towards expanding their bilateral relations following the successful conclusion of a preliminary Free Trade Agreement (FTA) last year.
As per media report the seventh round of talks concluded on October 20, with both countries agreeing to pursue negotiations on five tracks and 14 new areas. These areas include digital trade, micro, small and medium enterprises (MSMEs), traditional knowledge, labour, and sports.
The negotiations aim to build on the momentum gained from the preliminary FTA, focusing on comprehensive areas of cooperation. The discussions cover diverse sectors such as digital trade, government procurement, MSMEs, traditional knowledge, sports, gender, environment, innovations, space, labour, and competition policy.
From Passive to Resilient — These 7 Strategies Will Empower Your Team to Thrive Through Change
Change is hard. Yet change is also necessary for organizations to adapt, evolve and stay relevant in today's dynamic world. However, change that is not managed effectively often leads to employee resistance. This resistance can sabotage even the best-intended transformations.
7 tips for pitching your business ideas to investors to start your journey
A successful business needs a good idea to work on and turn it into a successful enterprise. But the business idea is worthless if you haven't got sufficient funding. Young business entrepreneurs need money to invest in their business, and for that they need to pitch their business ideas to potential investors.
How to Craft a Sales Funnel That Meets Your Business Needs
Can small businesses outperform their larger competition? Recent history would suggest so. Take a look at Tesla. A successful company now, just a few years ago, Tesla was simply a startup with an idea to revolutionize electric cars. Arguably, larger car manufacturers had more resources to do the same, yet Tesla remains the market leader.
Chemical Industry Seeks Higher Duties On Chinese Imports
The cheaper raw material supply from China is posing a major challenge on Gujarat's chemical industry and is making it difficult for local manufacturers to compete in the domestic market.
Speaking exclusively with KNN India, Prashant Patel, Director, Prashant Industries said that dumping of Chinese products and raw materials has created a big challenge for domestic manufacturers as we are struggling to compete in our own market.
Anatomech Is Building Healthcare Wearable Tech To Assist With Cancer-Related Lymphedema
For those managing chronic physical discomfort or are on the path to recovery from long-term injuries, access to home-based physical rehabilitation remains a challenge. Pune-based Anatomech aims to bridge this gap with its smart wearable devices that carry out daily therapy sessions at the convenience of your home.
The ePlane Company Aims To Make Travel 10x Faster With Its Flying Taxis
Prof Satyanarayanan Chakravarthy, who is ambitious about democratising technology and fostering sustainable development, has been an aerospace engineering professor at IIT-M since 1998. He has founded and also heads the National Centre for Combustion Research and Development (NCCRD), one of the world's largest research centres that houses state-of-the-art infrastructure for combustion research.
The National Statistical Office (NSO), Ministry of Statistics and Programme Implementation (MoSPI) has release the estimates of Gross Domestic Product (GDP) for the July-September quarter (Q2) of 2023-24, both at Constant (2011-12) and Current Prices.
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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India's economy is a tale of two halves, with several positives and pitfalls ahead. On the one hand, India has emerged as the fastest-growing major economy in the world, with a GDP growth rate of 7.6% in the second quarter of 2023-24. This impressive growth is driven by strong domestic consumption, investment, and exports. The government's infrastructure push and reforms such as the Goods and Services Tax (GST) have also contributed to the economic momentum. On the other hand, India's economy faces several challenges, including rising inflation, unemployment, and a widening trade deficit. Inflation has been a persistent problem, with consumer prices rising by over 7% in 2023. This has eroded household purchasing power and dampened consumer sentiment. Leading sectors like Textiles, Chemicals and Gems and jewelry are struggling. Unemployment remains high, especially among the youth. The trade deficit has also widened, as imports have outpaced exports. This could strain the country's external finances. Despite these challenges, India's economy is expected to continue to grow at a robust pace in the coming years. The IMF projects that India's GDP will grow by 6.8% in 2023 and 6.6% in 2024. However, the government will need to address the challenges of inflation, unemployment, and the trade deficit to ensure that the economic growth is sustainable and inclusive. Many of these issues could be addressed by initiating reforms in factor markets- industrial raw material, banking & finance, industrial space etc. The incoming Government in 2024 will have its tasked cut out.
India's S&P Manufacturing PMI in November stood at 56, up from the eight-month low of 55.5 seen in October.
After slowing in October, growth of output gathered pace as strengthening client demand and more favourable input supply boosted production volumes. That marked nearly two and a half years of the index being above the 50-mark separating expansion from contraction.
Pollyanna De Lima, Economics Associate Director at S&P Global Market Intelligence, said, "India's manufacturing industry maintained its robust performance in November, with output regaining growth momentum.
This festive season, automakers reported a 19 per cent growth in retail sales at 37.93 lakh units compared with 31.95 lakh units a year ago, according to a report in the Telegraph India.
The strong sales have provided some respite to the dealers amid growing concerns over high inventory levels. As per reports, during the period, which starts from the first day of Navratri and ends 15 days after Dhanteras, passenger vehicle retail sales rose to 5.47 lakh units, up 10 per cent from 4.96 lakh units a year ago.
The central government on Thursday announced that it has given permission to export specific amounts of wheat, wheat flour and broken rice to five countries.
To Bhutan, the government notification has allowed export of 14,184 tonnes of wheat grain, 5,326 tonnes of atta, 15.226 tonnes of maida/semoline, and 48,804 tonnes of broken rice."Broken rice shipments are also permitted to Mali (1 lakh tonnes), Senegal (5 lakh tonnes in six months), Gambia (50,000 tonnes in six months), and Indonesia (2 lakh tonnes)," PTI reported. This export is permitted through the National Cooperative Exports Limited.
The central government has cleared about 43,904 claims by MSMEs which is worth Rs 700 crore under the Vivad se Vishwas II (contractual disputes) scheme, said Finance Secretary TV Somanathan on Thursday.
The scheme was announced in the FY24 Budget which aims to provide relief to the MSMEs.
"There are approximately 4,000 claims remaining to be decided but a majority have been decided. This makes them eligible for further credit, for further supply," he said.
The Vivad se Vishwas II scheme was launched on July 15 to settle disputes in government contracts and the last date for submitting claims by contractors was October 31. Recently, the Department of Expenditure then extended the deadline to December 31.
A large number of pharmaceutical companies in the micro, small and medium enterprise (MSME) sector have been identified to be manufacturing substandard drugs, reported ET.
The government has found over 65 per cent of MSME enterprises manufacturing drugs that were not of standard quality (NSQ) during risk-based inspections of pharma companies undertaken since December last year.
"Out of the total MSME units inspected, 30 per cent were issued stop production orders (SPO), while samples of 68 per cent MSME companies have failed. This is alarming," a person aware of the matter told ET.
Red Fort Capital Finance Company, a NBFC lender to small businesses on Tuesday launched its invoice discounting solution to help MSMEs bridge gaps in working capital requirements.
The invoice discounting mechanism involves a financing arrangement where a business sells its unpaid bills to a third-party financier, such as a bank, at a reduced rate for quick access to working capital. The financier later collects the full amount from the customer upon the invoice's maturity.
To boost MSME e-commerce exports, the Directorate General of Foreign Trade (DGFT) on Thursday signed a MoU with Amazon India to leverage the Districts as Export Hubs initiative and promote e-commerce exports from the country.
As part of this MoU, Amazon and DGFT will co-create capacity building sessions, training and workshops for MSMEs in districts identified by the DGFT as part of the District as Exports Hub initiative outlined in the Foreign Trade Policy 2023, in a phased manner, as per the official statement.
The Uttar Pradesh government is taking key steps for establishing and strengthening the cottage industries in state, Minister for micro, small and medium enterprises Rakesh Sachan said on Thursday.
In a written response to a question on the third day of the Winter session in the State Assembly, Sachan mentioned that the UP government led by Yogi Adityanath is encouraging the establishment of small and cottage industries in the state through its policies and programs, which include several incentives for entrepreneurs.
The Goa Industrial Development Corporation (GIDC) has requested industry associations to pinpoint infrastructure and service priorities for 2024.
This initiative aims to address the identified priorities, enhancing Goa's standings in the Department for Promotion of Industry and Internal Trade's (DPIIT) Industrial Park Rating System (IPRS). As per reports, the exercise is expected to be completed by mid-December, after which the GIDC will finalise its action plan.
The Punjab government has submitted over 18 projects with total worth of Rs 710 crore to the Union MSME Ministry.
DPS Kharbanda, CEO of Invest Punjab, said they had presented project proposals, which included projects like setting up of MSME wing, capacity building of MSMEs.
The proposals also includes creating an export cell, testing labs and roof-top solarisation among others, before the evaluation committee.
Chief Minister YS Jaganmohan Reddy on Wednesday launched industrial projects worth Rs 1,072 crore through virtual mode. These industrial projects will provide employment opportunities to around 21,079 persons in the state. At the event, the chief minister inaugurated the Kakinada Printing Cluster, an establishment by the Sri Satyadev Printing Cluster Association. Orchestrated through 250 beneficiary MSMEs, this initiative aims to generate 1,000 direct employment opportunities and an additional 5,000 indirect employment opportunities.
The Confederation of Indian Textile Industry (CITI) and Swiss Textiles signed a Joint Declaration last week to solidify their commitment to a robust trade and economic partnership.
This marks a significant step towards fostering collaboration between the two nations and fortifying their ties in the textile sector. The 19th Joint Economic Commission (JEC) between India and Switzerland was also held in Geneva, wherein Dinesh Nolkha, Vice Chairman, CITI participated in the JEC session to talk about the strategic Joint Declaration and plans of engagement with the Swiss Textile Industry.
India and Australia are now working towards expanding their bilateral relations following the successful conclusion of a preliminary Free Trade Agreement (FTA) last year.
As per media report the seventh round of talks concluded on October 20, with both countries agreeing to pursue negotiations on five tracks and 14 new areas. These areas include digital trade, micro, small and medium enterprises (MSMEs), traditional knowledge, labour, and sports.
The negotiations aim to build on the momentum gained from the preliminary FTA, focusing on comprehensive areas of cooperation. The discussions cover diverse sectors such as digital trade, government procurement, MSMEs, traditional knowledge, sports, gender, environment, innovations, space, labour, and competition policy.
According to the FISME factor, 100% of MSMEs have a positive outlook for the growth of the Indian economy for Samwat 2080.
Change is hard. Yet change is also necessary for organizations to adapt, evolve and stay relevant in today's dynamic world. However, change that is not managed effectively often leads to employee resistance. This resistance can sabotage even the best-intended transformations.
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A successful business needs a good idea to work on and turn it into a successful enterprise. But the business idea is worthless if you haven't got sufficient funding. Young business entrepreneurs need money to invest in their business, and for that they need to pitch their business ideas to potential investors.
Can small businesses outperform their larger competition? Recent history would suggest so. Take a look at Tesla. A successful company now, just a few years ago, Tesla was simply a startup with an idea to revolutionize electric cars. Arguably, larger car manufacturers had more resources to do the same, yet Tesla remains the market leader.
The cheaper raw material supply from China is posing a major challenge on Gujarat's chemical industry and is making it difficult for local manufacturers to compete in the domestic market.
Speaking exclusively with KNN India, Prashant Patel, Director, Prashant Industries said that dumping of Chinese products and raw materials has created a big challenge for domestic manufacturers as we are struggling to compete in our own market.
For those managing chronic physical discomfort or are on the path to recovery from long-term injuries, access to home-based physical rehabilitation remains a challenge. Pune-based Anatomech aims to bridge this gap with its smart wearable devices that carry out daily therapy sessions at the convenience of your home.
Prof Satyanarayanan Chakravarthy, who is ambitious about democratising technology and fostering sustainable development, has been an aerospace engineering professor at IIT-M since 1998. He has founded and also heads the National Centre for Combustion Research and Development (NCCRD), one of the world's largest research centres that houses state-of-the-art infrastructure for combustion research.
