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President Message
RBI has continued to raise interest rates to tame inflation. High interest rates and high inflation can have a significant impact on MSMEs. These two factors can affect MSMEs in multiple ways. High interest rates can make borrowing more expensive, making it difficult for MSMEs to access finance. This can lead to a shortage of funds, causing a decline in production, which can ultimately impact. Secondly, high-interest rates can also discourage investment by MSMEs. This is because they have to pay more to borrow funds to invest in their businesses, reducing their ability to expand and take on new projects. These two factors also adversely affect Operating Costs and Sales.
Overall, high-interest rates and high inflation can make it challenging for MSMEs to sustain and grow their businesses. To mitigate these effects, MSMEs may need to explore alternative financing options such as venture capital, private equity, or crowdfunding, as well as look for ways to improve operational efficiency and reduce costs. FISME is also exploring new financing avenues like cash discounting platforms or TReDS.
Following the steps of the state to make Uttar Pradesh USD 1 trillion economy, a round table was recently held in New Delhi comprising of stakeholders, economists and experts to discuss quadrupling the GDP of Meerut district by 2027.
A first of its kind exercise has been undertaken by Meerut Citizen Forum in association with Federation of Indian Micro and Small & Medium Enterprises (FISME). The study is being headed by Dr. Manak Singhi, IES and former Senior Economic Advisor in the central Ministries including Commerce, Corporate Affairs and Urban Development.
Thinking of opening a second location for your small business? Congratulations—expansion, while stressful at times, is a sure sign of your business' success. After all, you've done so well at your primary location that you need another to keep up with demand. This is the stage that the Candle Pour, a Tampa-based custom candle-making shop, was in during the fall of 2019. Co-owners Misty and Dennis Akers had opened their primary location earlier that year, but in 2020, COVID-19 put their expansion plans on the backburner.
In its first meeting of this calendar year, the monetary policy committee of the Reserve Bank of India has voted to raise the benchmark repo rate by 25 basis points, continuing its efforts to bring down inflation. Since the beginning of this tightening cycle, the MPC has cumulatively hiked rates by 250 basis points. The repo rate now stands at 6.5 per cent. Alongside, the committee has also retained its stance, deciding to remain focused on...
The annual rate of inflation based on all India Wholesale Price Index (WPI) has fallen to a 24-month low of 4.73 per cent in January 2023, revealed the government data on Tuesday.
Decline in the rate of inflation last month is primarily contributed by mineral oils, chemicals & chemical products, textiles, crude petroleum & natural gas, textiles, and food products, said the Ministry of Commerce & Industry in an official statement.
The Made in India toys continue to tap global markets as India’s toy exports touched Rs 1,017 crore during April-December period of this fiscal, according to a government data.
"Made in India’ toys continue to tap global markets! India’s toy exports rose to more than 6 times in April-December 2022 as compared to the same period in 2013," Union Commerce and Industry Minister Piyush Goyal said in a tweet on Saturday.
Reserve Bank of India (RBI) on Wednesday announced an increase in the repo rate by 25 basis points (bps) to 6.5 per cent as the Monetary Policy Committee (MPC) voted in favour of repo rate decision by 4 votes to 2.
In his post meeting address RBI Governor Shaktikanta Das said that it aims to expand scope for TReDS platform to help improve cash flows of MSMEs. “MPC also voted to continue focus on withdrawal of accommodation and in favour of stance decision by 4 votes to 2,” said Das.
The Central Board of Direct Taxes (CBDT) has notified Income-tax Return Forms (ITR Forms) for the Assessment Year 2023-24 vide Notifications No. 04 & 05 of 2023 dated February 2, 2023 and February 14, 2023.
These ITR forms will come into force from April 1, 2023 and have been notified well in advance in order to enable filing of returns from the beginning of the ensuing Assessment Year. No significant changes have been made to the ITR Forms in comparison to last year’s ITR Forms in order to facilitate the taxpayers and to improve ease of filing.
While presenting the Monetary Policy, RBI Governor Shaktikanta Das has conceded the divergence of views in regulated entities on penal interest on advances.
“At present, Regulated Entities (REs) are required to have a policy for levy of penal interest on advances. The REs, however, follow divergent practices on levying of such charges. In certain cases, these charges are founded to be excessive”, he noted. “To further enhance transparency, reasonableness and consumer protection, draft guidelines on levy of penal charges will be issued to obtain comments from stakeholders”, RBI Governor announced.
Government e-Marketplace (GeM) is in process of validating all kind of BIS licence like CRS, MANAK and FMCS through the online information being provided by Bureau of Indian Standards (BIS).
It has brought to the attention of sellers that they need to ensure that BIS licence information are correct and valid in case their product is having BIS licence and they have indicated the same on the GeM portal. “Please take a note of this and take remedial action once the feature is launched,” said the online platform for public procurement.
In a bold move to strengthen the country's self-reliance in defence manufacturing, the government has announced that a whopping 75 per cent of its defence capital procurement budget in 2023-24 will be reserved for the local industry.
Addressing the 'Bandhan' and valedictory ceremony of Aero India 2023, Union Defence Minister Rajnath Singh on Wednesday said "We increased the share for the Indian defence industry to 64 per cent for 2021-22, then it increased to 65 per cent breaking the previous record and for 2022-23, we increased it to 68 per cent.”
Tamil Nadu Chief Minister M.K. Stalin on Tuesday launched the new EV policy for the state.
The state government through this policy aims to attract Rs 50,000 crore worth of investments in EV manufacturing, create over 1.5 lakh new jobs and develop a robust EV ecosystem in the State. The EV policy will provide various sops including reimbursement of state goods and services tax (SGST), investment and turnover based subsidy, advanced chemistry cell subsidy, electrification of public and commercial transport, formation of electric vehicle cities among others.
Punjab chief minister Bhagwant Mann on Sunday launched India’s first e-timber portal in Ludhiana to allow farmers to sell their timber online.
Addressing the occasion, Mann said, “this first of its kind portal in the country will ensure complete transparency in selling and buying of timber thereby benefitting the farmers.” “The buying and selling of timber till now was done largely through unorganised markets due to which farmers were not able to get its remunerative prices. With the launch of the Portal, remunerative price for the product will be provided and this will encourage farmers towards Agro-forestry,” Mann said.
The Uttar Pradesh cabinet on Tuesday approved the setting up of a textile park near Lucknow under the Prime Minister Mega Integrated Textile Region and Apparel Scheme (PM MITRA). Around 1,000 acre land will be transferred free of cost to the department of handloom and textiles for setting up the park. Nearly 903 acre land fr0m Lucknow and 259 acre fr0m Hardoi will be utilized for setting up the park, an official release said. As per the official statement, a total of Rs 10 crore investment will be needed for the project.51 per cent of the investment will be borne by the state government and the remaining 49 per cent by the Centre.
The Telangana government has signed an agreement with Mahindra & Mahindra (M&M) to set up an electric vehicle manufacturing facility at Zaheerabad.
As per reports, the proposed EV manufacturing facility is part of the company’s plan to expand the existing manufacturing facility at Zaheerabad in Medak district. M&M said the proposed expansion would entail setting up of manufacturing facility, including development and production of electric 3 and 4 wheelers pertaining to Last Mile Mobility business at the current plant situated at Zaheerabad.
Discussing various aspects of Nepal-India relations Foreign Secretary of both the countries have agreed to allow the export of power from Nepal to India on a long-term basis.
This commitment was expressed by Foreign Secretary Vinay Mohan Kwatra and his Nepali counterpart Bharat Raj Paudyal during a bilateral meeting in Kathmandu on Monday. Kwatra is currently on a two-day official visit to India’s immediate neighbour to hold talks with its top leaders on wide range of multifaceted cooperation between the two neighbouring countries, including connectivity, trade and transit and power sector cooperation.
The Indian wing of Malaysian copper tube maker, Mettube on Monday inked a pact with the Gujarat government to set up a copper tube manufacturing plant at Sanand in Ahmedabad district.
The plant that will be set up in Sanand-II industrial area will manufacture “fifth-generation copper tubes” to be used in air conditioning and refrigeration applications, stated an official release from the state government. As per reports, the tube manufacturing plant is expected to be commissioned by January 2024. “This project will boost the purpose of Atmanirbhar Bharat. This will be the first ever copper tube manufacturing plant to be set up in India and Gujarat,” said Bhupendra Patel, Chief Minister of Gujarat at the time of signing of the MoU between Gujarat Government officials and the senior officers of Mettube India at Gandhinagar.
Once you've hung the proverbial Help Wanted sign on job boards like ZipRecruiter and more, candidates will hopefully come knocking. To stay organized and hire the best, you'll need to streamline the process. Optimizing your hiring strategy is important because it can help you attract and retain top talent, reduce turnover, and improve your organization's overall performance.
What Startup Founders Need To Know About Fundraising In 2023
Now that it is gone, I can say that 2022 was another challenging year for the world economy, startups, big companies and people everywhere. After almost three years of a pandemic, a war and an energy crisis, geopolitical tensions and many other crises at the human level, the world is still surviving. But with so many events happening worldwide, how are things changing for startups and SaaS businesses?
The Future of Startup Marketing: 2 Popular Lead Magnets Your Startup Needs
The startup landscape is constantly evolving, and to stay competitive, entrepreneurs, investors, marketers and business leaders must stay ahead of the latest trends and strategies.
One such trend gaining traction in the startup world is using eBooks and whitepapers as "lead magnets."
Honestly, it's not a new trend or a fad.
Bamboo MSME suffers as Maharashtra Forest Dept delays payment
Micro, Small and Medium Enterprise (MSME), Faridabad’s Green Gold Bamboo Tech Private Limited is facing delay payment issues from the state forest department in Maharashtra, reported TOI.
Despite the central government taking several initiatives to promote bamboo the uninterested behaviour of Maharashtra’s forest department is dispiriting small entrepreneurs by failing to release dues for a long time.
A Gurugram startup is helping users charge their EVs at their favourite holiday destinations
As a child growing up in Himachal Pradesh, Sudhir Nayak witnessed how global warming affected the delicate climate of his hometown. He says snowfall in the region has gradually declined over the years. “In my teens, I have seen snow only twice,” Sudhir, Founder of EV (electric vehicle) charging solutions provider SunFuel Electric, recalls.
This mother-daughter’s chikankari venture bagged Rs 75 lakh funding on Shark Tank India
In January 2021, Aakriti and Poonam Rawal had no thoughts on raising funding for their venture, House of Chikankari. Started in 2020 during the pandemic, the mother-daughter duo had already made good headway in popularising the brand, closing the first year with a revenue of 33 lakh.
More than two years later, they are expected to close the current fiscal at Rs 17-18 crore with a net profit of around Rs 2 crore.
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.
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.
RBI has continued to raise interest rates to tame inflation. High interest rates and high inflation can have a significant impact on MSMEs. These two factors can affect MSMEs in multiple ways. High interest rates can make borrowing more expensive, making it difficult for MSMEs to access finance. This can lead to a shortage of funds, causing a decline in production, which can ultimately impact. Secondly, high-interest rates can also discourage investment by MSMEs. This is because they have to pay more to borrow funds to invest in their businesses, reducing their ability to expand and take on new projects. These two factors also adversely affect Operating Costs and Sales.
Overall, high-interest rates and high inflation can make it challenging for MSMEs to sustain and grow their businesses. To mitigate these effects, MSMEs may need to explore alternative financing options such as venture capital, private equity, or crowdfunding, as well as look for ways to improve operational efficiency and reduce costs. FISME is also exploring new financing avenues like cash discounting platforms or TReDS.
Following the steps of the state to make Uttar Pradesh USD 1 trillion economy, a round table was recently held in New Delhi comprising of stakeholders, economists and experts to discuss quadrupling the GDP of Meerut district by 2027.
A first of its kind exercise has been undertaken by Meerut Citizen Forum in association with Federation of Indian Micro and Small & Medium Enterprises (FISME). The study is being headed by Dr. Manak Singhi, IES and former Senior Economic Advisor in the central Ministries including Commerce, Corporate Affairs and Urban Development.
Thinking of opening a second location for your small business? Congratulations—expansion, while stressful at times, is a sure sign of your business' success. After all, you've done so well at your primary location that you need another to keep up with demand. This is the stage that the Candle Pour, a Tampa-based custom candle-making shop, was in during the fall of 2019. Co-owners Misty and Dennis Akers had opened their primary location earlier that year, but in 2020, COVID-19 put their expansion plans on the backburner.
The annual rate of inflation based on all India Wholesale Price Index (WPI) has fallen to a 24-month low of 4.73 per cent in January 2023, revealed the government data on Tuesday.
Decline in the rate of inflation last month is primarily contributed by mineral oils, chemicals & chemical products, textiles, crude petroleum & natural gas, textiles, and food products, said the Ministry of Commerce & Industry in an official statement.
The Made in India toys continue to tap global markets as India’s toy exports touched Rs 1,017 crore during April-December period of this fiscal, according to a government data.
"Made in India’ toys continue to tap global markets! India’s toy exports rose to more than 6 times in April-December 2022 as compared to the same period in 2013," Union Commerce and Industry Minister Piyush Goyal said in a tweet on Saturday.
Reserve Bank of India (RBI) on Wednesday announced an increase in the repo rate by 25 basis points (bps) to 6.5 per cent as the Monetary Policy Committee (MPC) voted in favour of repo rate decision by 4 votes to 2.
In his post meeting address RBI Governor Shaktikanta Das said that it aims to expand scope for TReDS platform to help improve cash flows of MSMEs. “MPC also voted to continue focus on withdrawal of accommodation and in favour of stance decision by 4 votes to 2,” said Das.
The Central Board of Direct Taxes (CBDT) has notified Income-tax Return Forms (ITR Forms) for the Assessment Year 2023-24 vide Notifications No. 04 & 05 of 2023 dated February 2, 2023 and February 14, 2023.
These ITR forms will come into force from April 1, 2023 and have been notified well in advance in order to enable filing of returns from the beginning of the ensuing Assessment Year. No significant changes have been made to the ITR Forms in comparison to last year’s ITR Forms in order to facilitate the taxpayers and to improve ease of filing.
While presenting the Monetary Policy, RBI Governor Shaktikanta Das has conceded the divergence of views in regulated entities on penal interest on advances.
“At present, Regulated Entities (REs) are required to have a policy for levy of penal interest on advances. The REs, however, follow divergent practices on levying of such charges. In certain cases, these charges are founded to be excessive”, he noted. “To further enhance transparency, reasonableness and consumer protection, draft guidelines on levy of penal charges will be issued to obtain comments from stakeholders”, RBI Governor announced.
Government e-Marketplace (GeM) is in process of validating all kind of BIS licence like CRS, MANAK and FMCS through the online information being provided by Bureau of Indian Standards (BIS).
It has brought to the attention of sellers that they need to ensure that BIS licence information are correct and valid in case their product is having BIS licence and they have indicated the same on the GeM portal. “Please take a note of this and take remedial action once the feature is launched,” said the online platform for public procurement.
In a bold move to strengthen the country's self-reliance in defence manufacturing, the government has announced that a whopping 75 per cent of its defence capital procurement budget in 2023-24 will be reserved for the local industry.
Addressing the 'Bandhan' and valedictory ceremony of Aero India 2023, Union Defence Minister Rajnath Singh on Wednesday said "We increased the share for the Indian defence industry to 64 per cent for 2021-22, then it increased to 65 per cent breaking the previous record and for 2022-23, we increased it to 68 per cent.”
Tamil Nadu Chief Minister M.K. Stalin on Tuesday launched the new EV policy for the state.
The state government through this policy aims to attract Rs 50,000 crore worth of investments in EV manufacturing, create over 1.5 lakh new jobs and develop a robust EV ecosystem in the State. The EV policy will provide various sops including reimbursement of state goods and services tax (SGST), investment and turnover based subsidy, advanced chemistry cell subsidy, electrification of public and commercial transport, formation of electric vehicle cities among others.
Punjab chief minister Bhagwant Mann on Sunday launched India’s first e-timber portal in Ludhiana to allow farmers to sell their timber online.
Addressing the occasion, Mann said, “this first of its kind portal in the country will ensure complete transparency in selling and buying of timber thereby benefitting the farmers.” “The buying and selling of timber till now was done largely through unorganised markets due to which farmers were not able to get its remunerative prices. With the launch of the Portal, remunerative price for the product will be provided and this will encourage farmers towards Agro-forestry,” Mann said.
The Uttar Pradesh cabinet on Tuesday approved the setting up of a textile park near Lucknow under the Prime Minister Mega Integrated Textile Region and Apparel Scheme (PM MITRA). Around 1,000 acre land will be transferred free of cost to the department of handloom and textiles for setting up the park. Nearly 903 acre land fr0m Lucknow and 259 acre fr0m Hardoi will be utilized for setting up the park, an official release said. As per the official statement, a total of Rs 10 crore investment will be needed for the project.51 per cent of the investment will be borne by the state government and the remaining 49 per cent by the Centre.
The Telangana government has signed an agreement with Mahindra & Mahindra (M&M) to set up an electric vehicle manufacturing facility at Zaheerabad.
As per reports, the proposed EV manufacturing facility is part of the company’s plan to expand the existing manufacturing facility at Zaheerabad in Medak district. M&M said the proposed expansion would entail setting up of manufacturing facility, including development and production of electric 3 and 4 wheelers pertaining to Last Mile Mobility business at the current plant situated at Zaheerabad.
Discussing various aspects of Nepal-India relations Foreign Secretary of both the countries have agreed to allow the export of power from Nepal to India on a long-term basis.
This commitment was expressed by Foreign Secretary Vinay Mohan Kwatra and his Nepali counterpart Bharat Raj Paudyal during a bilateral meeting in Kathmandu on Monday. Kwatra is currently on a two-day official visit to India’s immediate neighbour to hold talks with its top leaders on wide range of multifaceted cooperation between the two neighbouring countries, including connectivity, trade and transit and power sector cooperation.
The Indian wing of Malaysian copper tube maker, Mettube on Monday inked a pact with the Gujarat government to set up a copper tube manufacturing plant at Sanand in Ahmedabad district.
The plant that will be set up in Sanand-II industrial area will manufacture “fifth-generation copper tubes” to be used in air conditioning and refrigeration applications, stated an official release from the state government. As per reports, the tube manufacturing plant is expected to be commissioned by January 2024. “This project will boost the purpose of Atmanirbhar Bharat. This will be the first ever copper tube manufacturing plant to be set up in India and Gujarat,” said Bhupendra Patel, Chief Minister of Gujarat at the time of signing of the MoU between Gujarat Government officials and the senior officers of Mettube India at Gandhinagar.
According to the FISME factor, 100% of MSMEs think that the Union Budget 2023-24 will accelerate growth of Indian MSMEs.
Once you've hung the proverbial Help Wanted sign on job boards like ZipRecruiter and more, candidates will hopefully come knocking. To stay organized and hire the best, you'll need to streamline the process. Optimizing your hiring strategy is important because it can help you attract and retain top talent, reduce turnover, and improve your organization's overall performance.
Micro, Small and Medium Enterprise (MSME), Faridabad’s Green Gold Bamboo Tech Private Limited is facing delay payment issues from the state forest department in Maharashtra, reported TOI.
Despite the central government taking several initiatives to promote bamboo the uninterested behaviour of Maharashtra’s forest department is dispiriting small entrepreneurs by failing to release dues for a long time.
As a child growing up in Himachal Pradesh, Sudhir Nayak witnessed how global warming affected the delicate climate of his hometown. He says snowfall in the region has gradually declined over the years. “In my teens, I have seen snow only twice,” Sudhir, Founder of EV (electric vehicle) charging solutions provider SunFuel Electric, recalls.
In January 2021, Aakriti and Poonam Rawal had no thoughts on raising funding for their venture, House of Chikankari. Started in 2020 during the pandemic, the mother-daughter duo had already made good headway in popularising the brand, closing the first year with a revenue of 33 lakh.
More than two years later, they are expected to close the current fiscal at Rs 17-18 crore with a net profit of around Rs 2 crore.
“We are what we repeatedly do. Excellence is therefore not an act but a habit. ”
