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President Message
Greetings fellow entrepreneurs!
I am honored to begin my tenure as FIMSE president and address you in our first newsletter, of the new term. Together, we represent the backbone of the Indian economy, and I am committed to working tirelessly to advocate for the needs and aspirations of MSMEs nationwide. On a very positive note, I want to highlight a recent development that will significantly benefit all of us. The Reserve Bank of India (RBI) has issued a landmark notification directing banks to disclose all fees and charges associated with loans prior to obtaining an agreement from MSME borrowers by sharing Key Fact Statement (KFS). Therefore, any fees or charges which are not mentioned in the KFS, cannot be charged by the Banks/ NBFCs etc. to the borrower at any stage during the term of the loan, without explicit consent of the borrower. This is a monumental step towards increased transparency and fairness in the loan approval process. For far too long, many MSMEs have been burdened by hidden fees and unexpected charges that significantly inflate the true cost of borrowing. FISME has been waging a war against such mal-practices for years. It is heartening that RBI has moved to bring in some discipline.
Yours sincerely
Sandeep K Jain
President, President, FISME
The Federation of Indian Micro and Small & Medium Enterprises (FISME) conducted a one-day workshop with members of Thar Dhat Handicraft Society (TDHS) on 12 April in Jodhpur. The workshop aimed to build a broader consensus on collective initiatives and cooperation and also alignment with the purpose and need of association.
Some of the key issues plaguing the growth of TDHS identified at the workshop were - lack of availability of land in industrial areas, challenges in accessing the domestic and export market, difficulty in availing finance for working capital requirements and for purchasing new machinery, lack of information on government regulations and support schemes available.
The workshop concluded with the formation of a core group of members who would assume leadership roles in the Association.
Aspiring entrepreneurs have a myriad of books, podcasts, articles and more that all promise to prepare them to take the leap to start their own businesses. However, experience can sometimes be the best teacher of all. While different business media may offer valuable insights into what it takes to launch your own business, many seasoned entrepreneurs would agree that their experiences have taught them valuable lessons they continue to draw on today.
The Reserve Bank of India (RBI) on Monday issued a directive that prohibits banks and other regulated entities from levying additional fees on loans that are not previously disclosed in the Key Fact Statement (KFS). The notification stipulates strict adherence to these guidelines for all new retail and MSME term loans sanctioned from October 1 onwards, including loans issued to existing customers."Any fees, charges, etc., which are not mentioned in the KFS, cannot be charged by the REs to the borrower at any stage during the term of the loan, without explicit consent of the borrower," the regulator said.REs shall put in place the necessary systems and processes to implement...
Apple has set a new milestone by exporting USD 10 billion worth of iPhones from India during the fiscal year 2024, according to government data. This represents a staggering 100 per cent increase over the previous fiscal year's exports under India's Production-Linked Incentive (PLI) scheme. This achievement marks the largest-ever export of a single branded consumer product from India by any company. iPhone exports accounted for a whopping 70 per cent of Apple's total production in India during fiscal 2024.
India's merchandise trade deficit narrowed substantially to USD 15.60 billion in March 2024, according to the data released by the Ministry of Commerce. This significant reduction in the trade deficit was driven by an increase in exports and a decline in imports during the month. India's merchandise exports rose to USD 41.68 billion in March 2024, while imports declined to USD 57.28 billion. In the previous month of February 2024, merchandise exports were USD 41.40 billion, and imports stood at USD 60.11 billion.
The Commerce Ministry is likely to seek a substantial five-year extension of the interest equalisation scheme on pre- and post-shipment rupee export credit, an official source revealed.
This move aims to bolster India's export performance and fuel growth in the sector. According to the official, the ministry plans to revamp certain export promotion schemes, with the interest equalisation programme being a key focus. "We would propose an extension of the scheme for five years. The scheme is doing good and it is helping the exporters," the official stated.
Pusa Krishi, Indian Agricultural Research Institute (IARI), a premier institution fostering innovation in agriculture, has launched two flagship startup incubation programs – UPJA and ARISE, to support agri-preneurs and drive transformative solutions in the sector. Launched on April 1, 2024, these initiatives provide comprehensive support, including funding, mentorship, and industry linkages, to nurture entrepreneurship and accelerate growth.
The Ministry of New and Renewable Energy has announced an extension for submitting research and development (R&D) proposals under the National Green Hydrogen Mission.
The new deadline is April 27, 2024, providing additional time for researchers and institutions to prepare high-quality proposals focused on advancing green hydrogen technologies, India's National Green Hydrogen Mission, launched with a Rs 19,744 crore outlay until 2029-30, aims to establish the country as a global hub for producing, utilising, and exporting green hydrogen and its derivatives.
The cotton market has seen a downturn recently, with multinational traders in India starting to offload their stocks due to muted global demand and prospects of a better crop in countries like Australia.
The May cotton futures contract on the Intercontinental Exchange (ICE) touched a high of 103.80 cents on February 28 but has since eased to 85.89 cents on April 10. The December 2024 contract hovers around 82 cents. "Multinationals have started selling for April, May, June and July delivery, mainly due to the decline in ICE futures and low demand," said Ramanuj Das Boob from the All India Cotton Brokers Association, reported BL.
The Department for Promotion of Industry and Internal Trade (DPIIT) has revealed plans to introduce a separate policy and funding mechanisms for deep tech start-ups in India.
According to DPIIT Secretary Rajesh Kumar Singh, the start-up ecosystem has different requirements for intensive research and development (R&D) and innovation, which necessitates a separate policy framework, reported Republic World. Singh stated that there is a suggestion to establish separate funding mechanisms for deep tech start-ups, which require long gestation periods and more hand-holding than typical process improvement start-ups.
A Centre for Industry 4.0 (C4i4) lab was inaugurated in Trichy, on Friday, aimed at empowering public sector undertakings (PSUs), micro, small and medium enterprises (MSMEs), and startups to explore advanced technologies, including robotics, for assembly and packaging of their components or products.
Sponsored by the Ministry of Heavy Industries as part of the Smart Advanced Manufacturing and Rapid Transformation Hub (SAMARTH) initiative, the lab adopts Industry 4.0 solutions.
Leading industry and trade associations of Nagpur collectively raised several long-pending issues and demands before the Chief Minister of Maharashtra, Eknath Shinde, during an interactive meet on Monday.
The associations sought to address various challenges faced by businesses, industries, and traders in the region. At the outset, Dr. Dipen Agrawal, President of Chamber of Associations of Maharashtra Industry and Trade (CAMIT), requested the CM to extend the benefit of the ongoing Abhay Yojana scheme to leased Nazul land for commercial use. He proposed allowing the conversion of such land to freehold on payment of a 4 per cent premium, at par with leased Nazul land for residential purposes.
The textile industry in Ahmedabad, one of India's biggest cotton hubs, is witnessing a bullish trend as the festival season approaches.
Despite the new MSME 45-day payment rule, which had initially raised apprehensions among traders, the demand for textiles has remained robust, signalling good times ahead for the industry. Eid-ul-Fitr is just around the corner, and the city's textile market is abuzz with activity. Retail demand has been high, leaving the market in a buoyant mode for the upcoming festival season. The order cycles typically run around four months ahead of each season, and Ahmedabad's processing houses have the capacity to churn out more than 3 crore meters of fabric per day.
The World Skill Centre in Bhubaneswar recently hosted Swakalpa Sahajoga II, a landmark event that brought together 100 nano entrepreneurs, mentors, industry experts, and partners.
The event witnessed the launch of the Swakalpa Suraksha initiative, in collaboration with United India Insurance Company Ltd. This initiative aims to provide insurance support to nano businesses, helping them mitigate risks and secure their future.
India's pharmaceutical exports to the United States, which accounts for nearly a third of the country's total pharma exports, have rebounded strongly after a period of stagnation.
According to estimates by the Pharmaceutical Export Promotion Council (Pharmexcil), exports to the US surged by 15 per cent to USD 7.83 billion in the first 11 months of the last financial year, more than doubling the 6.18 per cent growth rate seen in the same period of the previous year.
India is set to gain access to critical mineral resources like copper and cobalt from the Democratic Republic of Congo under a new agreement expected to be finalized within the next three months.
The draft Memorandum of Understanding (MoU) has been shared with Congolese officials, paving the way for Indian companies to conduct mineral exploration and commercial off-take of successful finds in the resource-rich African nation.
Do you think that climate change poses a significant risk to the long-term profitability of your business?
According to the FISME factor, 30% of MSMEs think that climate change poses a significant risk to the long-term profitability of their business, while 70% can't say.
Revolutionisng Enterprise Learning: The impact of upskilling accelerators
Upskilling and reskilling are more important than ever in today's ever changing business environment. Businesses struggle to maintain the skills needed for their workers to remain competitive in the face of market upheavals and technological improvements. The needs of this changing workplace environment are frequently not met by traditional methods of staff development. To address this, a fresh approach has surfaced: workplace learning is being revolutionised by upskilling accelerators.
How to Combat Payment Fraud and Negative Cash Flow
Payment fraud poses significant risks for small businesses, often overlooked by the owners. Ignoring this threat can lead to devastating consequences, even business closure. Shockingly, the SEON report of 2021 revealed a staggering 1,862 data breaches and 293 million victims, highlighting the pervasive threat. Business owners must prioritize security and stay vigilant against evolving fraud tactics to safeguard their businesses and customers.
Why Indian MSMEs should see the world as their target market
India's MSME ecosystem is vast. According to some estimates, there are around 6.4 crore MSMEs, employing around 23 percent of the Indian labour force. At the same time, these MSMEs struggle to grow over their lifecycle, with 85 percent classified as 'dwarfs'—more than ten years old and employing fewer than 100 people. This problem is also particularly pronounced as the average 40-year-old MSME manufacturer usually employs the same number of people as the average 5-year-old manufacturer. In contrast, in the US, older companies employ eight times as many people on average.
FISME Seeks Phased Implementation, Stakeholder Discussions On New Labour Codes
Federation of Indian Micro and Small & Medium Enterprises (FISME) is gearing up to make representations to the new government after the upcoming general elections.
The key demands revolve around seeking a phased implementation of the recently passed labour codes and holding comprehensive stakeholder discussions before enforcing the reforms
Agri-tech Startup ONO Raises Rs 11 Cr In Seed Funding Round
ONO, an innovative agri-tech company, has successfully closed its seed funding round, securing a whopping Rs 11 crore in investment. The funding round was led by Aeravti Ventures, with participation from Indigram Labs. This significant investment will contribute towards empowering the agricultural supply chain by creating inclusive economic growth opportunities for farmers and ecosystem players across India's vast APMC/MANDI network.
Mumbai-Based VC Firm Cornerstone Ventures Unveils $200 Million Fund For Enterprise Tech
Cornerstone Ventures, a Mumbai-based venture capital firm focused on business-to-business (B2B) enterprise technology investments, announced the launch of its second fund on Tuesday.
The new fund has a target size of USD 200 million, with an additional USD 50 million green-shoe option.
The National Statistical Office (NSO), Ministry of Statistics and Programme Implementation (MoSPI) has released the Quick Estimates of Index of Industrial Production and Use-Based Index for the month of February 2024 (Base 2011-12=100).
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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Greetings fellow entrepreneurs! 
The Federation of Indian Micro and Small & Medium Enterprises (FISME) conducted a one-day workshop with members of Thar Dhat Handicraft Society (TDHS) on 12 April in Jodhpur. The workshop aimed to build a broader consensus on collective initiatives and cooperation and also alignment with the purpose and need of association.
Some of the key issues plaguing the growth of TDHS identified at the workshop were - lack of availability of land in industrial areas, challenges in accessing the domestic and export market, difficulty in availing finance for working capital requirements and for purchasing new machinery, lack of information on government regulations and support schemes available.
The workshop concluded with the formation of a core group of members who would assume leadership roles in the Association.
Aspiring entrepreneurs have a myriad of books, podcasts, articles and more that all promise to prepare them to take the leap to start their own businesses. However, experience can sometimes be the best teacher of all. While different business media may offer valuable insights into what it takes to launch your own business, many seasoned entrepreneurs would agree that their experiences have taught them valuable lessons they continue to draw on today.
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Apple has set a new milestone by exporting USD 10 billion worth of iPhones from India during the fiscal year 2024, according to government data. This represents a staggering 100 per cent increase over the previous fiscal year's exports under India's Production-Linked Incentive (PLI) scheme. This achievement marks the largest-ever export of a single branded consumer product from India by any company. iPhone exports accounted for a whopping 70 per cent of Apple's total production in India during fiscal 2024.
India's merchandise trade deficit narrowed substantially to USD 15.60 billion in March 2024, according to the data released by the Ministry of Commerce. This significant reduction in the trade deficit was driven by an increase in exports and a decline in imports during the month. India's merchandise exports rose to USD 41.68 billion in March 2024, while imports declined to USD 57.28 billion. In the previous month of February 2024, merchandise exports were USD 41.40 billion, and imports stood at USD 60.11 billion.
The Commerce Ministry is likely to seek a substantial five-year extension of the interest equalisation scheme on pre- and post-shipment rupee export credit, an official source revealed.
This move aims to bolster India's export performance and fuel growth in the sector. According to the official, the ministry plans to revamp certain export promotion schemes, with the interest equalisation programme being a key focus. "We would propose an extension of the scheme for five years. The scheme is doing good and it is helping the exporters," the official stated.
Pusa Krishi, Indian Agricultural Research Institute (IARI), a premier institution fostering innovation in agriculture, has launched two flagship startup incubation programs – UPJA and ARISE, to support agri-preneurs and drive transformative solutions in the sector. Launched on April 1, 2024, these initiatives provide comprehensive support, including funding, mentorship, and industry linkages, to nurture entrepreneurship and accelerate growth.
The Ministry of New and Renewable Energy has announced an extension for submitting research and development (R&D) proposals under the National Green Hydrogen Mission.
The new deadline is April 27, 2024, providing additional time for researchers and institutions to prepare high-quality proposals focused on advancing green hydrogen technologies, India's National Green Hydrogen Mission, launched with a Rs 19,744 crore outlay until 2029-30, aims to establish the country as a global hub for producing, utilising, and exporting green hydrogen and its derivatives.
The cotton market has seen a downturn recently, with multinational traders in India starting to offload their stocks due to muted global demand and prospects of a better crop in countries like Australia.
The May cotton futures contract on the Intercontinental Exchange (ICE) touched a high of 103.80 cents on February 28 but has since eased to 85.89 cents on April 10. The December 2024 contract hovers around 82 cents. "Multinationals have started selling for April, May, June and July delivery, mainly due to the decline in ICE futures and low demand," said Ramanuj Das Boob from the All India Cotton Brokers Association, reported BL.
The Department for Promotion of Industry and Internal Trade (DPIIT) has revealed plans to introduce a separate policy and funding mechanisms for deep tech start-ups in India.
According to DPIIT Secretary Rajesh Kumar Singh, the start-up ecosystem has different requirements for intensive research and development (R&D) and innovation, which necessitates a separate policy framework, reported Republic World. Singh stated that there is a suggestion to establish separate funding mechanisms for deep tech start-ups, which require long gestation periods and more hand-holding than typical process improvement start-ups.
A Centre for Industry 4.0 (C4i4) lab was inaugurated in Trichy, on Friday, aimed at empowering public sector undertakings (PSUs), micro, small and medium enterprises (MSMEs), and startups to explore advanced technologies, including robotics, for assembly and packaging of their components or products.
Sponsored by the Ministry of Heavy Industries as part of the Smart Advanced Manufacturing and Rapid Transformation Hub (SAMARTH) initiative, the lab adopts Industry 4.0 solutions.
Leading industry and trade associations of Nagpur collectively raised several long-pending issues and demands before the Chief Minister of Maharashtra, Eknath Shinde, during an interactive meet on Monday.
The associations sought to address various challenges faced by businesses, industries, and traders in the region. At the outset, Dr. Dipen Agrawal, President of Chamber of Associations of Maharashtra Industry and Trade (CAMIT), requested the CM to extend the benefit of the ongoing Abhay Yojana scheme to leased Nazul land for commercial use. He proposed allowing the conversion of such land to freehold on payment of a 4 per cent premium, at par with leased Nazul land for residential purposes.
The textile industry in Ahmedabad, one of India's biggest cotton hubs, is witnessing a bullish trend as the festival season approaches.
Despite the new MSME 45-day payment rule, which had initially raised apprehensions among traders, the demand for textiles has remained robust, signalling good times ahead for the industry. Eid-ul-Fitr is just around the corner, and the city's textile market is abuzz with activity. Retail demand has been high, leaving the market in a buoyant mode for the upcoming festival season. The order cycles typically run around four months ahead of each season, and Ahmedabad's processing houses have the capacity to churn out more than 3 crore meters of fabric per day.
The World Skill Centre in Bhubaneswar recently hosted Swakalpa Sahajoga II, a landmark event that brought together 100 nano entrepreneurs, mentors, industry experts, and partners.
The event witnessed the launch of the Swakalpa Suraksha initiative, in collaboration with United India Insurance Company Ltd. This initiative aims to provide insurance support to nano businesses, helping them mitigate risks and secure their future.
India's pharmaceutical exports to the United States, which accounts for nearly a third of the country's total pharma exports, have rebounded strongly after a period of stagnation.
According to estimates by the Pharmaceutical Export Promotion Council (Pharmexcil), exports to the US surged by 15 per cent to USD 7.83 billion in the first 11 months of the last financial year, more than doubling the 6.18 per cent growth rate seen in the same period of the previous year.
India is set to gain access to critical mineral resources like copper and cobalt from the Democratic Republic of Congo under a new agreement expected to be finalized within the next three months.
The draft Memorandum of Understanding (MoU) has been shared with Congolese officials, paving the way for Indian companies to conduct mineral exploration and commercial off-take of successful finds in the resource-rich African nation.
According to the FISME factor, 30% of MSMEs think that climate change poses a significant risk to the long-term profitability of their business, while 70% can't say.
Upskilling and reskilling are more important than ever in today's ever changing business environment. Businesses struggle to maintain the skills needed for their workers to remain competitive in the face of market upheavals and technological improvements. The needs of this changing workplace environment are frequently not met by traditional methods of staff development. To address this, a fresh approach has surfaced: workplace learning is being revolutionised by upskilling accelerators.
Payment fraud poses significant risks for small businesses, often overlooked by the owners. Ignoring this threat can lead to devastating consequences, even business closure. Shockingly, the SEON report of 2021 revealed a staggering 1,862 data breaches and 293 million victims, highlighting the pervasive threat. Business owners must prioritize security and stay vigilant against evolving fraud tactics to safeguard their businesses and customers.
India's MSME ecosystem is vast. According to some estimates, there are around 6.4 crore MSMEs, employing around 23 percent of the Indian labour force. At the same time, these MSMEs struggle to grow over their lifecycle, with 85 percent classified as 'dwarfs'—more than ten years old and employing fewer than 100 people. This problem is also particularly pronounced as the average 40-year-old MSME manufacturer usually employs the same number of people as the average 5-year-old manufacturer. In contrast, in the US, older companies employ eight times as many people on average.
Federation of Indian Micro and Small & Medium Enterprises (FISME) is gearing up to make representations to the new government after the upcoming general elections.
The key demands revolve around seeking a phased implementation of the recently passed labour codes and holding comprehensive stakeholder discussions before enforcing the reforms
ONO, an innovative agri-tech company, has successfully closed its seed funding round, securing a whopping Rs 11 crore in investment. The funding round was led by Aeravti Ventures, with participation from Indigram Labs. This significant investment will contribute towards empowering the agricultural supply chain by creating inclusive economic growth opportunities for farmers and ecosystem players across India's vast APMC/MANDI network.
Cornerstone Ventures, a Mumbai-based venture capital firm focused on business-to-business (B2B) enterprise technology investments, announced the launch of its second fund on Tuesday.
The new fund has a target size of USD 200 million, with an additional USD 50 million green-shoe option.
