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President Message
The softening of Wholesale Price Index is an important development. MSMEs have been reeling under a lot of pressures due to runaway raw material prices: first due to disruption in supply chains because of Covid and later because of Russia-Ukraine war. Low raw material prices could reduce the cost of production for small producers, making their operations more affordable and potentially improving their profit margins. This can also enhance their competitiveness compared to larger players who may have higher economies of scale but face relatively higher production costs. But most importantly, the decrease in WPI reflected in lower prices of finished goods, can make products more affordable for consumers. This may increase the demand for goods produced by small businesses, leading to potential growth opportunities. Many MSME sectors are affected due to lack of demand both in domestic and international markets. Persistently high inflation in even rich markets have shrunk disposable incomes. Consumption in MSME dominated sector such as textiles and garments, leather and gems and jewelry have declined in these markets. I think it’s time we revisited our export strategy in light of these developments.
Plans are afoot to increase GDP of Meerut from Rs 67,000 crore estimated for 2023-24 to Rs 2 lakh crore by 2029-30.
A first of its kind study in India at district level conducted by M.C. Singhi, former Senior Economic Advisor to Govt of India, reports that such rapid growth is feasible and is line with ambition of Chief Minister of Uttar Pradesh Yogi Adityanath to make USD 1 trillion economy by 2027. The preliminary findings of the study were presented to the district administration for discussions in a high profile meeting held on Friday at Meerut Collectorate which was chaired by District Magistrate Deepak Meena.
In today's competitive business landscape, achieving growth and success requires strategic planning and implementing effective growth strategies. Whether you're an entrepreneur launching a small startup or overseeing the operations of an established business, having a clear growth strategy is essential. This article will explore ten growth strategies that every business owner should know. These strategies encompass various aspects of business operations and can help drive sustainable growth and long-term success
Credit and Finance for MSMEs: The monthly Wholesale Price Index data rolled out on Tuesday, has brought a wave of optimism to the market. According to the provisional data released by the Office of Economic Adviser, Government of India, the annual rate of inflation in all of India for the month of May 2023 (when compared to May 2022) turned negative, at -3.48 per cent.
The month-on-month change in WPI indicates a decline of -0.86 per cent...
The Central Government has reduced the basic import duty on refined soybean oil and refined sunflower oil from 17.5 per cent to 12.5 per cent.
An order to this effect was issued by the Department of Food and Public Distribution on June 14, wherein the import duty on Refined Soyabean Oil and Refined Sunflower Oil has been reduced with effect from June 15, 2023. This will remain in force till March 31, 2024.
The decision is expected to augment the earlier measures taken by the Government to reduce the prices of Edible Oils in the domestic market.
Wholesale Price Index (WPI)-based inflation of India in May declined to -3.48 per cent, said government data on Wednesday making it the second month in a row when WPI has been in negative territory.
In April, the wholesale inflation was -0.92 per cent and the drop in May is also the lowest level since November 2015. The food wholesale inflation has fallen to -1.59 per cent in May as compared to 0.17 per cent in April, said the Ministry of Commerce & Industry.
The inflation in fuel and power category was recorded at -9.17 per cent as compared to 0.93 per cent in April.
During the second bi-monthly monetary policy meeting of FY24 the Reserve Bank of India’s (RBI) Monetary Policy Committee (MPC) decided to leave the repo rate unchanged at 6.5 per cent.
The focus remains on withdrawal of accommodation. The RBI also retained FY24 GDP growth forecast at 6.5 per cent, while expects FY24 CPI inflation to be at 5.1 per cent. RBI Deputy Governor T Rabi Sankar informed that the launch of Central Bank Digital Currency (CBDC) will be gradual and calibrated.
RBI hopes to have 1 million customers by June end and it is working on making the CBDC interoperable with UPI QR codes, he added.
The Union Cabinet is likely to approve Rs 25,000 crore scheme for semiconductor manufacturing, according to a report by ET NOW.
As per the report, the cabinet meeting is underway and the announcement is expected to be made on Wednesday afternoon.
In May, finance minister Nirmala Sitharaman had underlined the government's priority to incentivise and facilitate investments in India through PLI schemes, which are being expanded beyond the initial 14 sectors to include semiconductors and solar components.
The Ministry of Finance's Central Board of Indirect Taxes & Customs (CBIC) has announced the implementation of new mandatory requirements in import/export declarations for specific products.
As per Circular No. 15/2023-Customs issued on June 7, 2023, these changes will come into effect from July 1, 2023. The objective of this measure, as stated in the circular, is to improve efficiency, minimize delays, and support policy-making efforts. Previously, importers were encouraged to voluntarily provide comprehensive details of imported goods, including scientific names, brand names, and other relevant parameters.
Micro and Small producers in the plastic packaging industry have publicly placed a request to the central government for exemption from Extended Producer Responsibility (EPR) regulatory regime owing to its complexities.
Making an appeal to Prime Minister Narendra Modi, the micro and small plastic packaging producers said that barring them from EPR regulatory regime is necessary for the survival of over 20 lakh jobs provided by the producers.
The Finance Ministry has announced the extension of deadline for MSMEs to submit claims of forfeited bid security for government contracts during the Covid-19 period till July 31.
Previously the deadline was set for June 30 and now with this step MSMEs will be allowed one more month. It adds 30 more days for MSMEs to claim a refund for bid security and liquidated damages that were forfeited by government departments and public sector enterprises.
The Uttar Pradesh government has announced plans to strengthen the fleet of electric buses in five major cities in the state. The move is part of a broader effort to promote electric vehicles and reduce air pollution.
Presiding over a conclave on improving electric mobility in Uttar Pradesh, chief secretary DS Mishra on Wednesday announced that the government will add 1,750 electric buses to the existing fleet of 750 buses in Kanpur, Agra, Varanasi, Ayodhya, and Lucknow.
Punjab chief minister Bhagwant Mann on Tuesday unveiled ‘Punjab Vision Document 2047’ with the aim to attract investments to the state.
The Vision Document aims at bringing investment-to-GSDP ratio to 25 per cent by 2030 and restore the investment-to-GSDP ratio of Punjab to 32 per cent by 2047. Describing it as a roadmap for the state, Mann said the document consisted of nine departmentalised sections and 16 socio-economic, indicator-based sub-sections focusing on the current status, major challenges that the state was facing and envisaged short-term and long-term strategies to overcome these challenges.
The West Bengal government has announced plans to establish eighteen green firecracker manufacturers clusters across the state.
As per reports, the state government will bear 90 per cent of the development cost and 10 per cent will be borne by the units. The decision regarding this was taken at a meeting, chaired by Chief Secretary HK Dwivedi, at the state secretariat 'Nabanna'. "A cluster with 15 units on six acres of land will cost Rs 1.20 crore, and the state government would bear 90 per cent of this cost. The land has already been identified in different districts for the purpose," the official said.
Weavers operating at Bargarh’s Behera Kapda market in Odisha are facing resistance from a group of people since last week regarding weekly market operations.
They have reached out to the district administration on Tuesday and urged to take necessary actions to ensure the smooth operation of the weekly handloom market on Wednesdays. The market also known as Balijhori haat used to operate on Fridays every week prior to the covid-19 pandemic.
India and the US on Tuesday unveiled the road map to drive cooperation in hi-tech across seven areas, ranging from artificial intelligence (AI) to semiconductors and defence, with the emphasis on eliminating barriers and export controls standing in the way of enhanced collaboration. National Security Adviser (NSA) Ajit Doval and his visiting US counterpart Jake Sullivan spelled out the initiative which is a part of the initiative on Critical and Emerging Technologies (iCET) launched in January to envisage closer cooperation between private industry, researchers and academia of the two sides.
United Arab Emirates (UAE) and India on Monday agreed to set-up a UAE-India CEPA Council (UICC) as a B2B collaboration mechanism, with a focus on MSMEs and start-ups, for building greater economic linkages and optimizing CEPA benefits. Discussing at the 1st Meeting of the Joint Committee (JC) of the India-UAE CEPA both the sides agreed on creation of a new sub-committee on Trade in Services.
Leadership onboarding plays a critical role in the success of organisations by ensuring that newly-appointed leaders are equipped with the necessary knowledge, skills and support to effectively navigate their roles. As leaders step into positions of authority and influence, they have a profound impact on the direction, culture and performance of their teams. Therefore, it is essential for organisations to prioritise a comprehensive onboarding process specifically tailored to leaders.
Developing countries across the world are facing a difficult period due to the global economic slowdown caused by the pandemic and heightened financial turbulence. With annual growth rates projected to be lower than before the pandemic and well below the strong growth rates of the pre-financial crisis decade
Transforming businesses with AI: The impact of AI-led marketing insights for businesses
In the ever-evolving landscape of technology, businesses are constantly seeking for innovative approaches to gain a competitive edge. The convergence of AI and marketing emerges as a potent force, offering unprecedented opportunities to leverage advanced data analytics, intelligent algorithms, and machine learning. By embracing AI-led marketing insights, companies can revolutionize their strategies, redefine customer experiences, and unlock untapped potential.
Proposed countervailing duty on Steel will hurt MSMEs: FISME
The union government may impose a countervailing duty (CVD) on stainless steel imports to check the flow of cheap imports and protect domestic manufacturers, reported Mint.
As per a steel ministry official, the ministry backed a CVD levy on steel, and the commerce ministry’s Directorate General of Trade Remedies has already recommended a 19 per cent duty to the finance ministry, which will take a final call on the matter, reported Mint.
Striking gold: bling bag on growth track after a pivot and a pandemic
Working as a successful IT business consultant at a large tech company, Harvi Shah had a stable income and a promising career trajectory. She worked on exciting on-site projects that required her to live away from home, traveling to different countries. However, despite the growth, Shah had a difficult decision to make. After living around six years away from her husband, she chose to return to India to start a family.
Eight years of wearables: Crossbeats is stepping into new horizons
In the year 2016, the concept of true wireless headphones were non-existent. Only a handful of brands took to this technology bringing out products in the category. While brands likeboAt now synonymous with it, Crossbeats is not far behind. And it all started with a drive to make better tech in India from its founders Archit Agrawal and Abhinav Agrawal.
The National Statistical Office (NSO), Ministry of Statistics and Programme Implementation (MoSPI) has released All India Consumer Price Index (CPI) on Base 2012=100 and corresponding Consumer Food Price Index (CFPI) for Rural (R), Urban (U) and Combined (C) for the month of May 2023 (Provisional).
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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The softening of Wholesale Price Index is an important development. MSMEs have been reeling under a lot of pressures due to runaway raw material prices: first due to disruption in supply chains because of Covid and later because of Russia-Ukraine war. Low raw material prices could reduce the cost of production for small producers, making their operations more affordable and potentially improving their profit margins. This can also enhance their competitiveness compared to larger players who may have higher economies of scale but face relatively higher production costs. But most importantly, the decrease in WPI reflected in lower prices of finished goods, can make products more affordable for consumers. This may increase the demand for goods produced by small businesses, leading to potential growth opportunities. Many MSME sectors are affected due to lack of demand both in domestic and international markets. Persistently high inflation in even rich markets have shrunk disposable incomes. Consumption in MSME dominated sector such as textiles and garments, leather and gems and jewelry have declined in these markets. I think it’s time we revisited our export strategy in light of these developments.
Plans are afoot to increase GDP of Meerut from Rs 67,000 crore estimated for 2023-24 to Rs 2 lakh crore by 2029-30.
A first of its kind study in India at district level conducted by M.C. Singhi, former Senior Economic Advisor to Govt of India, reports that such rapid growth is feasible and is line with ambition of Chief Minister of Uttar Pradesh Yogi Adityanath to make USD 1 trillion economy by 2027. The preliminary findings of the study were presented to the district administration for discussions in a high profile meeting held on Friday at Meerut Collectorate which was chaired by District Magistrate Deepak Meena.
The Central Government has reduced the basic import duty on refined soybean oil and refined sunflower oil from 17.5 per cent to 12.5 per cent.
An order to this effect was issued by the Department of Food and Public Distribution on June 14, wherein the import duty on Refined Soyabean Oil and Refined Sunflower Oil has been reduced with effect from June 15, 2023. This will remain in force till March 31, 2024.
The decision is expected to augment the earlier measures taken by the Government to reduce the prices of Edible Oils in the domestic market.
Wholesale Price Index (WPI)-based inflation of India in May declined to -3.48 per cent, said government data on Wednesday making it the second month in a row when WPI has been in negative territory.
In April, the wholesale inflation was -0.92 per cent and the drop in May is also the lowest level since November 2015. The food wholesale inflation has fallen to -1.59 per cent in May as compared to 0.17 per cent in April, said the Ministry of Commerce & Industry.
The inflation in fuel and power category was recorded at -9.17 per cent as compared to 0.93 per cent in April.
During the second bi-monthly monetary policy meeting of FY24 the Reserve Bank of India’s (RBI) Monetary Policy Committee (MPC) decided to leave the repo rate unchanged at 6.5 per cent.
The focus remains on withdrawal of accommodation. The RBI also retained FY24 GDP growth forecast at 6.5 per cent, while expects FY24 CPI inflation to be at 5.1 per cent. RBI Deputy Governor T Rabi Sankar informed that the launch of Central Bank Digital Currency (CBDC) will be gradual and calibrated.
RBI hopes to have 1 million customers by June end and it is working on making the CBDC interoperable with UPI QR codes, he added.
The Union Cabinet is likely to approve Rs 25,000 crore scheme for semiconductor manufacturing, according to a report by ET NOW.
As per the report, the cabinet meeting is underway and the announcement is expected to be made on Wednesday afternoon.
In May, finance minister Nirmala Sitharaman had underlined the government's priority to incentivise and facilitate investments in India through PLI schemes, which are being expanded beyond the initial 14 sectors to include semiconductors and solar components.
The Ministry of Finance's Central Board of Indirect Taxes & Customs (CBIC) has announced the implementation of new mandatory requirements in import/export declarations for specific products.
As per Circular No. 15/2023-Customs issued on June 7, 2023, these changes will come into effect from July 1, 2023. The objective of this measure, as stated in the circular, is to improve efficiency, minimize delays, and support policy-making efforts. Previously, importers were encouraged to voluntarily provide comprehensive details of imported goods, including scientific names, brand names, and other relevant parameters.
Micro and Small producers in the plastic packaging industry have publicly placed a request to the central government for exemption from Extended Producer Responsibility (EPR) regulatory regime owing to its complexities.
Making an appeal to Prime Minister Narendra Modi, the micro and small plastic packaging producers said that barring them from EPR regulatory regime is necessary for the survival of over 20 lakh jobs provided by the producers.
The Finance Ministry has announced the extension of deadline for MSMEs to submit claims of forfeited bid security for government contracts during the Covid-19 period till July 31.
Previously the deadline was set for June 30 and now with this step MSMEs will be allowed one more month. It adds 30 more days for MSMEs to claim a refund for bid security and liquidated damages that were forfeited by government departments and public sector enterprises.
The Uttar Pradesh government has announced plans to strengthen the fleet of electric buses in five major cities in the state. The move is part of a broader effort to promote electric vehicles and reduce air pollution.
Presiding over a conclave on improving electric mobility in Uttar Pradesh, chief secretary DS Mishra on Wednesday announced that the government will add 1,750 electric buses to the existing fleet of 750 buses in Kanpur, Agra, Varanasi, Ayodhya, and Lucknow.
Punjab chief minister Bhagwant Mann on Tuesday unveiled ‘Punjab Vision Document 2047’ with the aim to attract investments to the state.
The Vision Document aims at bringing investment-to-GSDP ratio to 25 per cent by 2030 and restore the investment-to-GSDP ratio of Punjab to 32 per cent by 2047. Describing it as a roadmap for the state, Mann said the document consisted of nine departmentalised sections and 16 socio-economic, indicator-based sub-sections focusing on the current status, major challenges that the state was facing and envisaged short-term and long-term strategies to overcome these challenges.
The West Bengal government has announced plans to establish eighteen green firecracker manufacturers clusters across the state.
As per reports, the state government will bear 90 per cent of the development cost and 10 per cent will be borne by the units. The decision regarding this was taken at a meeting, chaired by Chief Secretary HK Dwivedi, at the state secretariat 'Nabanna'. "A cluster with 15 units on six acres of land will cost Rs 1.20 crore, and the state government would bear 90 per cent of this cost. The land has already been identified in different districts for the purpose," the official said.
Weavers operating at Bargarh’s Behera Kapda market in Odisha are facing resistance from a group of people since last week regarding weekly market operations.
They have reached out to the district administration on Tuesday and urged to take necessary actions to ensure the smooth operation of the weekly handloom market on Wednesdays. The market also known as Balijhori haat used to operate on Fridays every week prior to the covid-19 pandemic.
India and the US on Tuesday unveiled the road map to drive cooperation in hi-tech across seven areas, ranging from artificial intelligence (AI) to semiconductors and defence, with the emphasis on eliminating barriers and export controls standing in the way of enhanced collaboration. National Security Adviser (NSA) Ajit Doval and his visiting US counterpart Jake Sullivan spelled out the initiative which is a part of the initiative on Critical and Emerging Technologies (iCET) launched in January to envisage closer cooperation between private industry, researchers and academia of the two sides.
United Arab Emirates (UAE) and India on Monday agreed to set-up a UAE-India CEPA Council (UICC) as a B2B collaboration mechanism, with a focus on MSMEs and start-ups, for building greater economic linkages and optimizing CEPA benefits. Discussing at the 1st Meeting of the Joint Committee (JC) of the India-UAE CEPA both the sides agreed on creation of a new sub-committee on Trade in Services.
According to the FISME factor, 80% MSMEs think that Indian economy can sustain its growth momentum while 20% can’t say.
Leadership onboarding plays a critical role in the success of organisations by ensuring that newly-appointed leaders are equipped with the necessary knowledge, skills and support to effectively navigate their roles. As leaders step into positions of authority and influence, they have a profound impact on the direction, culture and performance of their teams. Therefore, it is essential for organisations to prioritise a comprehensive onboarding process specifically tailored to leaders.
Developing countries across the world are facing a difficult period due to the global economic slowdown caused by the pandemic and heightened financial turbulence. With annual growth rates projected to be lower than before the pandemic and well below the strong growth rates of the pre-financial crisis decade
The union government may impose a countervailing duty (CVD) on stainless steel imports to check the flow of cheap imports and protect domestic manufacturers, reported Mint.
As per a steel ministry official, the ministry backed a CVD levy on steel, and the commerce ministry’s Directorate General of Trade Remedies has already recommended a 19 per cent duty to the finance ministry, which will take a final call on the matter, reported Mint.
Working as a successful IT business consultant at a large tech company, Harvi Shah had a stable income and a promising career trajectory. She worked on exciting on-site projects that required her to live away from home, traveling to different countries. However, despite the growth, Shah had a difficult decision to make. After living around six years away from her husband, she chose to return to India to start a family.
In the year 2016, the concept of true wireless headphones were non-existent. Only a handful of brands took to this technology bringing out products in the category. While brands likeboAt now synonymous with it, Crossbeats is not far behind. And it all started with a drive to make better tech in India from its founders Archit Agrawal and Abhinav Agrawal.
