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President Message
In India economic growth seems to be tapering. Recent economic data paints a worrying picture. Growth has stagnated around 6-6.5% against a belief that India will continue to grow at 8%. This sluggish growth poses a significant threat. We risk falling into a "middle-income trap" – a situation where economic growth slows down significantly, hindering further development. This is a serious concern for all of us, especially for MSMEs. Series of elections and disruptions by monsoon may have contributed to subdued consumption and stalling public investments. What is a greater cause of concern is that private investments are not picking up as expected, hindering growth and job creation. Many of MSMEs are burdened by debt and facing difficulties servicing credit. Experts are alluding to another area for concern: Centralization of Power. Policy decisions and resource allocation are increasingly concentrated at the center, hindering regional development and responsiveness to local needs as most states have run out of resources to spend on development projects. In this backdrop, the government must prioritize policies that support MSME growth, including easier access to credit, reduced tax burdens, and targeted support for innovation and technology adoption. We need a fairer and more equitable credit system, addressing the lopsided lending practices of major banks. The forthcoming Budget must aim to revive consumption by leaving disposable incomes in hand of the tax payers. Policies that encourage private investment are essential for long-term growth. This could include infrastructure development, tax incentives, and creating a more predictable and business-friendly environment. We, as MSMEs, play a vital role in driving economic growth and job creation. We must actively engage with policymakers, advocate for our needs, and strive for greater inclusivity and support within the economic ecosystem
The 21st edition of Automechanika, a leading international automotive trade fair, has returned to Dubai with remarkable momentum, showcasing a diverse contingent of Indian micro, small, and medium enterprises (MSMEs) in the automotive components sector. A dedicated India Pavilion, supported by the Union Ministry of MSME and organised by the Federation of Indian Micro and Small & Medium Enterprises (FISME), has been drawing substantial international attention. The pavilion comprises sixteen MSME manufacturers presenting a comprehensive range of automotive components and accessories, including sheet metal parts, cast components, machines, air filters, automotive lamps, wires, cables, fasteners, batteries, and radiators.
India's unicorn startups—those rare companies that reach a billion-dollar valuation—aren't just business powerhouses; they're a testament to the resilience, innovation, and adaptability of the entrepreneurs who founded them. From e-commerce to fintech, Indian unicorn founders have transformed markets, disrupting traditional industries and putting India on the global startup map. But their journeys to success are packed with hard-earned lessons—some of which can inspire every aspiring entrepreneur.
India on Sunday fiercely rejected the paltry $ 300 billion The economy’s capacity is constrained, Budget must unveil consumption booster and more.
India’s economic growth capacity seems to have settled around 6-6.5%, a far cry from over the 8% annual expansion required for it to meet the $35 trillion economy target by 2047, the 100th year of Independence. To become a “developed nation” with per capita income (PCI) above $13,000 by 2047, the PCI must grow at a daunting rate of over 11% a year. To be sure, between the second quarters of FY20 and FY25, the gross domestic product (GDP) grew by an annual average of just 4.87%, and between the first quarters of those years, at an even lower rate of 4.59%.
India’s micro, small, and medium enterprises (MSMEs) are driving a remarkable surge in exports, with the sector recording an export value of Rs 12.39 lakh crore during the eight-month period from April to November in the current fiscal year.
This figure has already surpassed the Rs 8.55 lakh crore worth of exports by MSMEs in the entire FY23. For FY24, MSME export value has risen further to Rs 14.05 lakh crore, according to data shared in Parliament.
India's foreign exchange reserves have continued their downward trajectory, reaching a six-month low of USD 654.86 billion in the week ending December 6, according to data released by the Reserve Bank of India (RBI) on Friday.
The reserves decreased by USD 3.2 billion from the previous week's total of USD 658.1 billion, marking a persistent trend of gradual reduction since reaching a record high of USD 704,885 billion in September. Despite the ongoing decline, the RBI has maintained a strategic approach to managing currency volatility. Outgoing RBI Governor Shaktikanta Das emphasized the central bank's consistent exchange rate policy, which is fundamentally market-determined.
The Indian automotive components industry has reported a significant turnover growth of 11.3 percent, reaching Rs 3.32 lakh crore during the first half of the fiscal year 2024-25, according to the Industry Performance Review released by the Automotive Component Manufacturers Association of India (ACMA).
Vinnie Mehta, Director General, ACMA, highlighted the industry's steady performance, emphasising that vehicle sales and exports have maintained a consistent trajectory.
The Indian government is contemplating significant modifications to its quality control regulations, potentially providing relief to local manufacturers and addressing concerns about potential product shortages.
Sources familiar with the development indicate that the Centre is exploring ways to make quality control orders (QCOs) more flexible and supportive of domestic industries. Under the proposed changes, small and micro enterprises (SMEs) with annual sales below Rs 2 crore may be exempted from stringent quality control requirements.
In a critical development for the steel industry, India might make a decisive move regarding import restrictions on metallurgical coke, a crucial component in steel production.
Sources close to the matter indicate that the federal trade ministry is on the verge of announcing a resolution to a complex policy deliberation that has significant implications for both domestic coke producers and steel manufacturers, reported Reuters. The proposed plan, initially put forward in April, aims to protect local suppliers of low-ash metallurgical coke by implementing country-specific import quotas.
Amazon India has reported significant progress in its commitment to empowering micro, small, and medium enterprises (MSMEs), successfully meeting and exceeding key pledges made during the inaugural Smbhav Summit in 2020.
At the Smbhav 2024 conference, Samir Kumar, Country Manager, Amazon India, announced that the company has digitised 10 million small businesses one year ahead of schedule. This milestone has enabled over 12 million small businesses to integrate into the digital economy, generating nearly USD 13 billion in cumulative exports and creating approximately 1.4 million direct and indirect jobs in India.
India's Renewable Energy Ministry has announced a significant policy shift to bolster domestic solar manufacturing, mandating that clean energy projects funded by the government must exclusively use locally produced solar cells starting June 2026.
This strategic move aims to reduce dependence on Chinese solar technology imports and accelerate the nation's domestic manufacturing capabilities. The directive expands upon existing regulations that already require government projects to utilise photovoltaic (PV) modules from approved domestic manufacturers.
The Tamil Nadu government, under the leadership of Chief Minister M.K. Stalin and the DMK, has launched a new state-level initiative aimed at empowering artisans across 25 sectors, named the Kalaignar Kaivinai Thittam (KKT).
This scheme is designed to provide comprehensive support to artisans, promoting inclusivity and social justice, and ensuring that individuals from all communities can participate in and benefit from traditional trades.
The political instability in Bangladesh, the world's second-largest apparel exporter, has opened up new opportunities for Indore’s garment manufacturers, who are now receiving a surge in orders from both domestic and international markets.
As global brands and retailers seek more politically stable sources for their finished products, India's garment sector, particularly in Indore, has seen heightened interest. However, the region faces significant challenges due to its insufficient infrastructure and limited production capacity.
In a significant move to bolster its industrial landscape, the Karnataka government has signed a Memorandum of Understanding (MoU) with Krones, a global leader in bottling and packaging equipment, to set up a state-of-the-art manufacturing facility at the Vemagal Industrial Park Phase 2.
The agreement was finalized during a delegation visit to Krones' headquarters in Neutraubling, Germany, under the leadership of M B Patil, the Minister for Large and Medium Industries.
Vedanta Group Chairman Anil Agarwal announced an ambitious plan to invest Rs 1 lakh crore in Rajasthan, aimed at boosting zinc and oil production and creating 5 lakh jobs.
The announcement was made at the ongoing Rising Rajasthan Global Investment Summit in Jaipur, which runs from December 9 to 11. Agarwal revealed that the investment would primarily focus on the operations of Hindustan Zinc and Cairn India, the group's two major subsidiaries in the state.
In a significant diplomatic engagement, India and the United Arab Emirates (UAE) convened the 15th India-UAE Joint Commission Meeting in New Delhi, focusing on deepening bilateral relations across multiple strategic sectors.
External Affairs Minister S Jaishankar and UAE Foreign Minister Sheikh Abdullah bin Zayed Al Nahyan co-chaired the discussions, which centered on expanding cooperation in trade, energy, technology, and infrastructure.
In a significant development that could potentially impact India's investment climate, Switzerland has announced the suspension of the Most Favoured Nation (MFN) treatment for India under their 30-year-old double-taxation avoidance agreement (DTAA).
The decision, stemming from a Supreme Court ruling in October 2023, marks a critical juncture in bilateral tax treaty relations. The Swiss authorities, in an official statement dated December 11, declared that the MFN clause under the DTAA will cease to be effective from January 1, 2025.
The invisible divide: How power distance is crippling modern workplaces
Power remains a fascinating and complex phenomenon. Over the past two decades, psychologists have consistently demonstrated that power—defined as control over resources, decision-making, and influence—does not inherently corrupt, but it does insulate. Those in positions of power often become less attuned to the needs and experiences of others. This is not a case of deliberate neglect or disregard but rather an unconscious drift into self-focus, as leaders become consumed by their own priorities and goals.
5 money-management insights to adopt from Indian business tycoons like Mukesh Ambani, Ratan Tata, Falguni Nayar, and more
Learning from the financial wisdom of billionaire Indian businessmen can be a valuable asset, and it doesn’t require a high-paying job to enhance your financial portfolio. While a substantial income is advantageous, smart money management is key to ensuring that your money works for you rather than the other way around.
Marketing automation: 4 game-changing benefits fueling business growth
What’s the secret behind top brand’s marketing campaigns that micro-targets their worldwide consumers with hyper-personalization? Well, the secret is – marketing automation. Recently, a F&B brand observed a 63% increase in click-through rates with deep personalization despite the complexities such as a large target group of around a billion consumers in 200+ countries.
Proposed GST Hike Sparks Concern Among Kashmiri Textile Artisans
The potential increase in Goods and Services Tax (GST) on Kashmir's traditional hand-crafted textiles has ignited widespread apprehension among local artisans and industry stakeholders.
The proposed hike, which would raise the tax rate from 12 per cent to 28 per cent on textile products priced above Rs. 10,000, including Kashmiri shawls and crewel items, has prompted significant pushback from regional political leaders and business representatives.
Made in India: this startup is developing indigenous drones for the Indian Army
India’s drone industry is on the brink of significant transformation, and companies like IG Drones are playing a pivotal role in shaping this evolution.
Founded by Bodhisattwa Sanghapriya and Om Prakash in 2018, the startup is addressing some of the key challenges faced by the industry, such as over-reliance on foreign suppliers and the skill gap in drone technology.
Dhanlaxmi Crop Science Launches SME IPO To Raise Rs 24 Crore
Dhanlaxmi Crop Science has initiated its Small and Medium Enterprise (SME) Initial Public Offering (IPO), opening for subscription today and set to close on December 11.
The company aims to raise Rs 24 crore through this public issue, with plans to list its shares on the National Stock Exchange (NSE) SME platform.
The National Statistical Office (NSO), Ministry of Statistics and Programme Implementation (MoSPI) has released the Quick Estimate of Index of Industrial Production and Use-Based Index for the month of October 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.
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In India economic growth seems to be tapering. Recent economic data paints a worrying picture. Growth has stagnated around 6-6.5% against a belief that India will continue to grow at 8%. This sluggish growth poses a significant threat. We risk falling into a "middle-income trap" – a situation where economic growth slows down significantly, hindering further development. This is a serious concern for all of us, especially for MSMEs. Series of elections and disruptions by monsoon may have contributed to subdued consumption and stalling public investments. What is a greater cause of concern is that private investments are not picking up as expected, hindering growth and job creation. Many of MSMEs are burdened by debt and facing difficulties servicing credit. Experts are alluding to another area for concern: Centralization of Power. Policy decisions and resource allocation are increasingly concentrated at the center, hindering regional development and responsiveness to local needs as most states have run out of resources to spend on development projects. In this backdrop, the government must prioritize policies that support MSME growth, including easier access to credit, reduced tax burdens, and targeted support for innovation and technology adoption. We need a fairer and more equitable credit system, addressing the lopsided lending practices of major banks. The forthcoming Budget must aim to revive consumption by leaving disposable incomes in hand of the tax payers. Policies that encourage private investment are essential for long-term growth. This could include infrastructure development, tax incentives, and creating a more predictable and business-friendly environment. We, as MSMEs, play a vital role in driving economic growth and job creation. We must actively engage with policymakers, advocate for our needs, and strive for greater inclusivity and support within the economic ecosystem
The 21st edition of Automechanika, a leading international automotive trade fair, has returned to Dubai with remarkable momentum, showcasing a diverse contingent of Indian micro, small, and medium enterprises (MSMEs) in the automotive components sector. A dedicated India Pavilion, supported by the Union Ministry of MSME and organised by the Federation of Indian Micro and Small & Medium Enterprises (FISME), has been drawing substantial international attention. The pavilion comprises sixteen MSME manufacturers presenting a comprehensive range of automotive components and accessories, including sheet metal parts, cast components, machines, air filters, automotive lamps, wires, cables, fasteners, batteries, and radiators.
India's unicorn startups—those rare companies that reach a billion-dollar valuation—aren't just business powerhouses; they're a testament to the resilience, innovation, and adaptability of the entrepreneurs who founded them. From e-commerce to fintech, Indian unicorn founders have transformed markets, disrupting traditional industries and putting India on the global startup map. But their journeys to success are packed with hard-earned lessons—some of which can inspire every aspiring entrepreneur.
India’s micro, small, and medium enterprises (MSMEs) are driving a remarkable surge in exports, with the sector recording an export value of Rs 12.39 lakh crore during the eight-month period from April to November in the current fiscal year.
This figure has already surpassed the Rs 8.55 lakh crore worth of exports by MSMEs in the entire FY23. For FY24, MSME export value has risen further to Rs 14.05 lakh crore, according to data shared in Parliament.
India's foreign exchange reserves have continued their downward trajectory, reaching a six-month low of USD 654.86 billion in the week ending December 6, according to data released by the Reserve Bank of India (RBI) on Friday.
The reserves decreased by USD 3.2 billion from the previous week's total of USD 658.1 billion, marking a persistent trend of gradual reduction since reaching a record high of USD 704,885 billion in September. Despite the ongoing decline, the RBI has maintained a strategic approach to managing currency volatility. Outgoing RBI Governor Shaktikanta Das emphasized the central bank's consistent exchange rate policy, which is fundamentally market-determined.
The Indian automotive components industry has reported a significant turnover growth of 11.3 percent, reaching Rs 3.32 lakh crore during the first half of the fiscal year 2024-25, according to the Industry Performance Review released by the Automotive Component Manufacturers Association of India (ACMA).
Vinnie Mehta, Director General, ACMA, highlighted the industry's steady performance, emphasising that vehicle sales and exports have maintained a consistent trajectory.
The Indian government is contemplating significant modifications to its quality control regulations, potentially providing relief to local manufacturers and addressing concerns about potential product shortages.
Sources familiar with the development indicate that the Centre is exploring ways to make quality control orders (QCOs) more flexible and supportive of domestic industries. Under the proposed changes, small and micro enterprises (SMEs) with annual sales below Rs 2 crore may be exempted from stringent quality control requirements.
In a critical development for the steel industry, India might make a decisive move regarding import restrictions on metallurgical coke, a crucial component in steel production.
Sources close to the matter indicate that the federal trade ministry is on the verge of announcing a resolution to a complex policy deliberation that has significant implications for both domestic coke producers and steel manufacturers, reported Reuters. The proposed plan, initially put forward in April, aims to protect local suppliers of low-ash metallurgical coke by implementing country-specific import quotas.
Amazon India has reported significant progress in its commitment to empowering micro, small, and medium enterprises (MSMEs), successfully meeting and exceeding key pledges made during the inaugural Smbhav Summit in 2020.
At the Smbhav 2024 conference, Samir Kumar, Country Manager, Amazon India, announced that the company has digitised 10 million small businesses one year ahead of schedule. This milestone has enabled over 12 million small businesses to integrate into the digital economy, generating nearly USD 13 billion in cumulative exports and creating approximately 1.4 million direct and indirect jobs in India.
India's Renewable Energy Ministry has announced a significant policy shift to bolster domestic solar manufacturing, mandating that clean energy projects funded by the government must exclusively use locally produced solar cells starting June 2026.
This strategic move aims to reduce dependence on Chinese solar technology imports and accelerate the nation's domestic manufacturing capabilities. The directive expands upon existing regulations that already require government projects to utilise photovoltaic (PV) modules from approved domestic manufacturers.
The Tamil Nadu government, under the leadership of Chief Minister M.K. Stalin and the DMK, has launched a new state-level initiative aimed at empowering artisans across 25 sectors, named the Kalaignar Kaivinai Thittam (KKT).
This scheme is designed to provide comprehensive support to artisans, promoting inclusivity and social justice, and ensuring that individuals from all communities can participate in and benefit from traditional trades.
The political instability in Bangladesh, the world's second-largest apparel exporter, has opened up new opportunities for Indore’s garment manufacturers, who are now receiving a surge in orders from both domestic and international markets.
As global brands and retailers seek more politically stable sources for their finished products, India's garment sector, particularly in Indore, has seen heightened interest. However, the region faces significant challenges due to its insufficient infrastructure and limited production capacity.
In a significant move to bolster its industrial landscape, the Karnataka government has signed a Memorandum of Understanding (MoU) with Krones, a global leader in bottling and packaging equipment, to set up a state-of-the-art manufacturing facility at the Vemagal Industrial Park Phase 2.
The agreement was finalized during a delegation visit to Krones' headquarters in Neutraubling, Germany, under the leadership of M B Patil, the Minister for Large and Medium Industries.
Vedanta Group Chairman Anil Agarwal announced an ambitious plan to invest Rs 1 lakh crore in Rajasthan, aimed at boosting zinc and oil production and creating 5 lakh jobs.
The announcement was made at the ongoing Rising Rajasthan Global Investment Summit in Jaipur, which runs from December 9 to 11. Agarwal revealed that the investment would primarily focus on the operations of Hindustan Zinc and Cairn India, the group's two major subsidiaries in the state.
In a significant diplomatic engagement, India and the United Arab Emirates (UAE) convened the 15th India-UAE Joint Commission Meeting in New Delhi, focusing on deepening bilateral relations across multiple strategic sectors.
External Affairs Minister S Jaishankar and UAE Foreign Minister Sheikh Abdullah bin Zayed Al Nahyan co-chaired the discussions, which centered on expanding cooperation in trade, energy, technology, and infrastructure.
In a significant development that could potentially impact India's investment climate, Switzerland has announced the suspension of the Most Favoured Nation (MFN) treatment for India under their 30-year-old double-taxation avoidance agreement (DTAA).
The decision, stemming from a Supreme Court ruling in October 2023, marks a critical juncture in bilateral tax treaty relations. The Swiss authorities, in an official statement dated December 11, declared that the MFN clause under the DTAA will cease to be effective from January 1, 2025.
According to the FISME Factor, 100% of MSMEs believe that Prof. Debroy's WTO awareness campaigns had the greatest impact on the MSME sector.
Power remains a fascinating and complex phenomenon. Over the past two decades, psychologists have consistently demonstrated that power—defined as control over resources, decision-making, and influence—does not inherently corrupt, but it does insulate. Those in positions of power often become less attuned to the needs and experiences of others. This is not a case of deliberate neglect or disregard but rather an unconscious drift into self-focus, as leaders become consumed by their own priorities and goals.
Learning from the financial wisdom of billionaire Indian businessmen can be a valuable asset, and it doesn’t require a high-paying job to enhance your financial portfolio. While a substantial income is advantageous, smart money management is key to ensuring that your money works for you rather than the other way around.
What’s the secret behind top brand’s marketing campaigns that micro-targets their worldwide consumers with hyper-personalization? Well, the secret is – marketing automation. Recently, a F&B brand observed a 63% increase in click-through rates with deep personalization despite the complexities such as a large target group of around a billion consumers in 200+ countries.
The potential increase in Goods and Services Tax (GST) on Kashmir's traditional hand-crafted textiles has ignited widespread apprehension among local artisans and industry stakeholders.
The proposed hike, which would raise the tax rate from 12 per cent to 28 per cent on textile products priced above Rs. 10,000, including Kashmiri shawls and crewel items, has prompted significant pushback from regional political leaders and business representatives.
India’s drone industry is on the brink of significant transformation, and companies like IG Drones are playing a pivotal role in shaping this evolution.
Founded by Bodhisattwa Sanghapriya and Om Prakash in 2018, the startup is addressing some of the key challenges faced by the industry, such as over-reliance on foreign suppliers and the skill gap in drone technology.
Dhanlaxmi Crop Science has initiated its Small and Medium Enterprise (SME) Initial Public Offering (IPO), opening for subscription today and set to close on December 11.
The company aims to raise Rs 24 crore through this public issue, with plans to list its shares on the National Stock Exchange (NSE) SME platform.
“ Money is like manure. It stinks when you pile it; it grows when you spread it ”
