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President Message
Before presentation of Interim Budget many people expected that as the last Budget of the incumbent government there would be flurry of populist announcements. Many experts warned of runaway fiscal deficit also. No such thing happened. Interim Budget presented by Finance Minister was fiscally balanced and politically prudent. The allocation of Ministry of MSMEs remains at similar level and so was the case with most Ministries. Only exception, has been the 11.1 % increase for infrastructure which now stands at 3.4% GDP. The pump priming of economy through government expenditure is to continue. Focus on Housing sector- 2 crore more homes for poor and new scheme for homes for middle class would continue to create business opportunities for domestic industry. It was a confident Budget perhaps because of two factors: first, buoyancy in taxes which helped control fiscal deficit and secondly, politically the ruling party is confident of coming to power therefore avoiding reckless spending. But as KNN’s lead story in the current edition of FISME Factor captures, the Budget gives a subtle direction of future agenda of government. Addressing the critical needs of MSMEs on greening their processes and making structural changes in the financial sector for financing them are likely to be the focus areas for MSME development initiatives in next inning.
The meeting of the Central Executive Committee (CEC) was held on January 25, 2024, in a hybrid mode in New Delhi. The committee deliberated on important forthcoming programmes such as International Seminars on ‘Opportunities and Challenges in Green Regulations (like CBAM) and their impact on Indian MSMEs’ and ‘Business Opportunities with South Korea’. The Committee reviewed portals launched recently namely 'Friends of MSMEs in Parliament' and 'Banking Grievance Redressal Portal for MSMEs' designed to address bank-related grievances.
Small business owners know that every day brings a deluge of decisions about technology, finances, marketing, service providers, and overall business strategy. So where to begin? Well, you could ask leaders at large companies — because they're often seeing the macro trends that play out in micro ways for smaller entrepreneurs. That's especially true for the leaders at companies on our 50 Champions of Small Business list, where there are programs specifically designed to work with and help small businesses.
While retaining the allocation for the Ministry of MSME at the level of last year, Nirmala Sitharaman's Interim Budget succinctly posited the future direction of MSME support.
Elaborating on the Strategy for 'Amirt Kaal', the Finance Minister alluded to future policies to ensure timely and adequate finances and ''preparing the financial sector in terms of size, capacity, skills and regulatory framework' She also underscored the MSMEs' needs of Technology, Training and 'orienting regulatory environment to facilitate growth'. Welcoming the Interim Budget, President of Federation of Indian Micro and Small & Medium Enterprises (FISME) Prashant Patel said...
Finance Minister Nirmala Sitharaman has revealed a substantial increase in the capital expenditure outlay during her interim budget speech for the fiscal year 2024.
She stated, "Building on the massive tripling of the capital expenditure outlay in the past 4 years resulting in huge multiplier impact on economic growth and employment creation, the outlay for the next year is being increased by 11.1 per cent to Rs 11,11,111 crore." Building upon the remarkable tripling of the capital expenditure outlay over the past four years, the Finance Minister highlighted a substantial multiplier effect on both economic growth and employment generation.
The Union Cabinet has approved the extension of the Scheme for Rebate of State and Central Taxes and Levies (RoSCTL) for the export of Apparel/Garments and Made-ups until March 31, 2026.
Sudhir Sekhri, Chairman of the Apparel Export Promotion Council (AEPC), welcomed this decision, stating that the extension of RoSCTL will ensure the competitiveness of Ready-Made Garment (RMG) exports in overseas markets. Chairman Sekhri emphasised the positive impact of the scheme, stating, "This extension will immensely help the Apparel Industry to plan business consistently while remaining competitive, especially amidst the unprecedented recessionary trends in traditional markets like the USA and EU.
The Indian rupee is anticipated to experience a slight decline following stronger-than-expected employment figures in United States.
In the view Federal Reserve is unlikely to cut interest rate in March. Non-deliverable forwards suggest that the rupee will commence trading at approximately 83.12-83.14 against the dollar, compared to the previous session's 83.1050. Despite a narrow intraday range of 2 to 6 paisa over the last four sessions, forex traders remain cautious about any substantial movement.
The government is contemplating adjustments to the Production Linked Incentive (PLI) schemes in specific sectors such as textiles, food processing, and pharmaceuticals, as disclosed by a senior official on Tuesday.
The official mentioned that a finalised Cabinet note is being prepared to seek approval for these modifications from the top authorities, with the intention of fostering increased participation in these sectors. Introduced in 2021 for 14 sectors, including telecommunications, white goods, textiles, medical devices manufacturing, automobiles, speciality steel, food products, high-efficiency solar PV modules, advanced chemistry cell battery, drones, and pharmaceuticals, the PLI scheme carried a substantial outlay of Rs 1.97 lakh crore.
The Finance Minister, Nirmala Sitharaman highlighted the significant strides made in the empowerment of women through entrepreneurship during the Budget 2024 address today.
Over the past decade, there has been a notable increase in the focus on empowering women, with a specific emphasis on entrepreneurship, ease of living and dignity. One noteworthy achievement mentioned is the distribution of 30 crore MUDRA Yojana loans to woman entrepreneurs, showcasing the government's commitment to supporting women in business.
Finance Minister Nirmala Sitharaman has announced a series of measures in the Interim Budget 2024-25 to promote sustainable and eco-friendly practices.
In a bid to align with the global commitment of achieving 'net-zero' emissions by 2070, the Finance Minister emphasised the government's dedication to renewable energy by allocating viability gap funding for the development of offshore wind energy. A significant step towards this is the provision of funding for the initial capacity of one gigawatt. To further reduce dependency on imports of natural gas, methanol, and ammonia, the government aims to establish coal gasification and liquefaction capacity of 100 metric tonnes by 2030.
In a move aimed at promoting transparency and fair pricing in the fertilizer sector, the Indian government has introduced a price capping formula for phosphatic and potassic (P&K) fertilizers.
The guidelines, issued under the Essential Commodity Act, come into effect retrospectively from April 1, 2023. The Director-General of the Fertiliser Association of India (FAI) has been tasked with communicating this decision to all P&K fertilizer manufacturers.
NABARD Chief General Manager, T Ramesh, disclosed that the priority sector lending potential in Karnataka for the financial year 2024-25 is poised to reach an impressive Rs 3.97 lakh crore, during the State Credit Seminar.
This projection reflects a substantial 10.67 percent increase compared to the previous year. The credit potential encompasses three key sectors: agriculture, micro, small, and medium enterprises (MSME), and other priority sectors.
In a significant development for India's micro, small, and medium enterprises (MSMEs), about 170 units have registered with the Nashik Defence Innovation Centre (NDIC) under the Centre's Atma Nirbhar in defence production program.
Established in 2019, the NDIC faced delays due to the Covid-19 pandemic, but it is now fully operational, according to NDIC Director Yuvraj Vadaje.
D. Sridhar Babu, Minister for IT and Industries, Telangana Government, has announced that the state government is set to introduce a new Micro, Small, and Medium Enterprises (MSMEs) policy with a special emphasis on integrating the growth of social entrepreneurship.
The aim is to position Telangana as the capital of social entrepreneurship in the coming years. The minister inaugurated the Social Start-up Expo organised by the Bala Vikasa Center for Social and Responsible Business (CSRB) at the Keesara campus, on Sunday.
The State Government of Odisha has introduced the Odisha Public Procurement Preference Policy 2023, to support and propel the growth of Odisha Small Manufacturing Enterprises (OSMEs).
The Odisha Public Procurement Preference Policy entails several salient features aimed at fostering the local manufacturing sector. The primary focus is to procure all goods manufactured by the state's Small Manufacturing Enterprises. Goods produced by Odisha State Manufacturing Enterprises covered under the rate contract rule of 2014 are mandated to be procured from the rate contract holding units.
The Union Cabinet has granted approval for the signing and ratification of a Bilateral Investment Treaty between the Government of the Republic of India and the Government of the United Arab Emirates.
The approval of this treaty is anticipated to enhance investor confidence, particularly among large investors, thereby catalysing an increase in Foreign Investments and creating new opportunities for Overseas Direct Investment (ODI). The positive impact on employment generation is also expected to follow.
The Union Cabinet, under the leadership of Prime Minister Narendra Modi, has given its approval for a Memorandum of Understanding (MoU) between India and Kenya, aimed at advancing global digital solutions for population-scale transformation.
The primary objective of this MoU is to foster closer collaboration and the sharing of experiences and digital technologies-based solutions for the implementation of digital transformation initiatives in both countries.
Do you think the temple economy can create a positive impact on the overall economic landscape of India?
According to the FISME factor, 60% of MSMEs think that the temple economy can create a positive impact on the overall economic landscape of India, while 40% are uncertain.
Bridging the gap: 5 ways to empower your middle managers
With whispers of economic uncertainty and Bloomberg reporting middle managers as being at most risk for job cuts in 2024, it's easy to fall into a reactive, cost-cutting mentality. But amidst the noise, a critical truth emerges: investing in your middle managers isn't a luxury, it's a strategic imperative. Middle managers, the unsung heroes of any organisation, bridge the gap between ambitious executive visions and the daily realities of frontline employees. Yet, despite their pivotal role, they often face limited autonomy, unclear expectations, and insufficient support.
20 'First Steps' For Financial Planning Startup Success
The success of a startup often hinges on meticulous financial planning and management. For many entrepreneurs, this can be a source of stress and an overwhelming part of their journey. However, it's an essential part of the path to sustainability and growth.
When you're a business development leader, it's important to develop specific strategies that will move your business forward via the types of products and services it has to offer current and potential customers. Strengthening your marketing communications is a step in the right direction.
Textile Associations Urge Intervention On CCI Cotton Trading Policies
The Confederation of Indian Textile Industry (CITI) has sought government intervention to tackle the challenges confronting the trading policies of the Cotton Corporation of India (CCI).
CITI, and allied textile associations, jointly presented a memorandum to Piyush Goyal, Minister of Textiles, to address concerns related to CCI's Minimum Support Price (MSP) cotton procurement practices, proposing revisions to ensure price stability and a seamless supply to downstream sectors.
Entrepreneur Expands Family Trucking Business Through Amazon Partnership
Amarnath Banik, a 38-year-old entrepreneur from Guwahati, significantly expanded his family trucking business by partnering with Amazon.
Starting with a fleet of 50 trucks and 60 drivers, his collaboration with Amazon's trucking partner program propelled the business to 200 trucks and 250 drivers.
From Local Shop To Garment Hub: Maharashtra Entrepreneur's Success Tale
The Ministry of Micro, Small and Medium Enterprises (MSMEs) shared a success story of a Maharashtra based entrepreneur, Dhyaneshwar Dhage who upturned his shop into a garment cluster, on Friday.
Dhage started his shop by the name 'Jilla Vish Mukt Shetkari Utpadak Bachat Gath'. His journey began with a visit to Mahatma Gandhi Institute of Rural Industrialisation (MGIRI), Wardha, in 2009, where he delved into experimental work from cotton ginning to fabric creation in the Khadi and Textile Department.
The National Statistical Office (NSO), Ministry of Statistics and Programme Implementation (MoSPI) has released 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, namely the Employees' Provident Fund (EPF) Scheme, the Employees' State Insurance (ESI) Scheme and the National Pension Scheme (NPS).
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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Before presentation of Interim Budget many people expected that as the last Budget of the incumbent government there would be flurry of populist announcements. Many experts warned of runaway fiscal deficit also. No such thing happened. Interim Budget presented by Finance Minister was fiscally balanced and politically prudent. The allocation of Ministry of MSMEs remains at similar level and so was the case with most Ministries. Only exception, has been the 11.1 % increase for infrastructure which now stands at 3.4% GDP. The pump priming of economy through government expenditure is to continue. Focus on Housing sector- 2 crore more homes for poor and new scheme for homes for middle class would continue to create business opportunities for domestic industry. It was a confident Budget perhaps because of two factors: first, buoyancy in taxes which helped control fiscal deficit and secondly, politically the ruling party is confident of coming to power therefore avoiding reckless spending. But as KNN’s lead story in the current edition of FISME Factor captures, the Budget gives a subtle direction of future agenda of government. Addressing the critical needs of MSMEs on greening their processes and making structural changes in the financial sector for financing them are likely to be the focus areas for MSME development initiatives in next inning.
The meeting of the Central Executive Committee (CEC) was held on January 25, 2024, in a hybrid mode in New Delhi. The committee deliberated on important forthcoming programmes such as International Seminars on ‘Opportunities and Challenges in Green Regulations (like CBAM) and their impact on Indian MSMEs’ and ‘Business Opportunities with South Korea’. The Committee reviewed portals launched recently namely 'Friends of MSMEs in Parliament' and 'Banking Grievance Redressal Portal for MSMEs' designed to address bank-related grievances.
Finance Minister Nirmala Sitharaman has revealed a substantial increase in the capital expenditure outlay during her interim budget speech for the fiscal year 2024.
She stated, "Building on the massive tripling of the capital expenditure outlay in the past 4 years resulting in huge multiplier impact on economic growth and employment creation, the outlay for the next year is being increased by 11.1 per cent to Rs 11,11,111 crore." Building upon the remarkable tripling of the capital expenditure outlay over the past four years, the Finance Minister highlighted a substantial multiplier effect on both economic growth and employment generation.
The Union Cabinet has approved the extension of the Scheme for Rebate of State and Central Taxes and Levies (RoSCTL) for the export of Apparel/Garments and Made-ups until March 31, 2026.
Sudhir Sekhri, Chairman of the Apparel Export Promotion Council (AEPC), welcomed this decision, stating that the extension of RoSCTL will ensure the competitiveness of Ready-Made Garment (RMG) exports in overseas markets. Chairman Sekhri emphasised the positive impact of the scheme, stating, "This extension will immensely help the Apparel Industry to plan business consistently while remaining competitive, especially amidst the unprecedented recessionary trends in traditional markets like the USA and EU.
The Indian rupee is anticipated to experience a slight decline following stronger-than-expected employment figures in United States.
In the view Federal Reserve is unlikely to cut interest rate in March. Non-deliverable forwards suggest that the rupee will commence trading at approximately 83.12-83.14 against the dollar, compared to the previous session's 83.1050. Despite a narrow intraday range of 2 to 6 paisa over the last four sessions, forex traders remain cautious about any substantial movement.
The government is contemplating adjustments to the Production Linked Incentive (PLI) schemes in specific sectors such as textiles, food processing, and pharmaceuticals, as disclosed by a senior official on Tuesday.
The official mentioned that a finalised Cabinet note is being prepared to seek approval for these modifications from the top authorities, with the intention of fostering increased participation in these sectors. Introduced in 2021 for 14 sectors, including telecommunications, white goods, textiles, medical devices manufacturing, automobiles, speciality steel, food products, high-efficiency solar PV modules, advanced chemistry cell battery, drones, and pharmaceuticals, the PLI scheme carried a substantial outlay of Rs 1.97 lakh crore.
The Finance Minister, Nirmala Sitharaman highlighted the significant strides made in the empowerment of women through entrepreneurship during the Budget 2024 address today.
Over the past decade, there has been a notable increase in the focus on empowering women, with a specific emphasis on entrepreneurship, ease of living and dignity. One noteworthy achievement mentioned is the distribution of 30 crore MUDRA Yojana loans to woman entrepreneurs, showcasing the government's commitment to supporting women in business.
Finance Minister Nirmala Sitharaman has announced a series of measures in the Interim Budget 2024-25 to promote sustainable and eco-friendly practices.
In a bid to align with the global commitment of achieving 'net-zero' emissions by 2070, the Finance Minister emphasised the government's dedication to renewable energy by allocating viability gap funding for the development of offshore wind energy. A significant step towards this is the provision of funding for the initial capacity of one gigawatt. To further reduce dependency on imports of natural gas, methanol, and ammonia, the government aims to establish coal gasification and liquefaction capacity of 100 metric tonnes by 2030.
In a move aimed at promoting transparency and fair pricing in the fertilizer sector, the Indian government has introduced a price capping formula for phosphatic and potassic (P&K) fertilizers.
The guidelines, issued under the Essential Commodity Act, come into effect retrospectively from April 1, 2023. The Director-General of the Fertiliser Association of India (FAI) has been tasked with communicating this decision to all P&K fertilizer manufacturers.
NABARD Chief General Manager, T Ramesh, disclosed that the priority sector lending potential in Karnataka for the financial year 2024-25 is poised to reach an impressive Rs 3.97 lakh crore, during the State Credit Seminar.
This projection reflects a substantial 10.67 percent increase compared to the previous year. The credit potential encompasses three key sectors: agriculture, micro, small, and medium enterprises (MSME), and other priority sectors.
In a significant development for India's micro, small, and medium enterprises (MSMEs), about 170 units have registered with the Nashik Defence Innovation Centre (NDIC) under the Centre's Atma Nirbhar in defence production program.
Established in 2019, the NDIC faced delays due to the Covid-19 pandemic, but it is now fully operational, according to NDIC Director Yuvraj Vadaje.
D. Sridhar Babu, Minister for IT and Industries, Telangana Government, has announced that the state government is set to introduce a new Micro, Small, and Medium Enterprises (MSMEs) policy with a special emphasis on integrating the growth of social entrepreneurship.
The aim is to position Telangana as the capital of social entrepreneurship in the coming years. The minister inaugurated the Social Start-up Expo organised by the Bala Vikasa Center for Social and Responsible Business (CSRB) at the Keesara campus, on Sunday.
The State Government of Odisha has introduced the Odisha Public Procurement Preference Policy 2023, to support and propel the growth of Odisha Small Manufacturing Enterprises (OSMEs).
The Odisha Public Procurement Preference Policy entails several salient features aimed at fostering the local manufacturing sector. The primary focus is to procure all goods manufactured by the state's Small Manufacturing Enterprises. Goods produced by Odisha State Manufacturing Enterprises covered under the rate contract rule of 2014 are mandated to be procured from the rate contract holding units.
The Union Cabinet has granted approval for the signing and ratification of a Bilateral Investment Treaty between the Government of the Republic of India and the Government of the United Arab Emirates.
The approval of this treaty is anticipated to enhance investor confidence, particularly among large investors, thereby catalysing an increase in Foreign Investments and creating new opportunities for Overseas Direct Investment (ODI). The positive impact on employment generation is also expected to follow.
The Union Cabinet, under the leadership of Prime Minister Narendra Modi, has given its approval for a Memorandum of Understanding (MoU) between India and Kenya, aimed at advancing global digital solutions for population-scale transformation.
The primary objective of this MoU is to foster closer collaboration and the sharing of experiences and digital technologies-based solutions for the implementation of digital transformation initiatives in both countries.
According to the FISME factor, 60% of MSMEs think that the temple economy can create a positive impact on the overall economic landscape of India, while 40% are uncertain.
With whispers of economic uncertainty and Bloomberg reporting middle managers as being at most risk for job cuts in 2024, it's easy to fall into a reactive, cost-cutting mentality. But amidst the noise, a critical truth emerges: investing in your middle managers isn't a luxury, it's a strategic imperative. Middle managers, the unsung heroes of any organisation, bridge the gap between ambitious executive visions and the daily realities of frontline employees. Yet, despite their pivotal role, they often face limited autonomy, unclear expectations, and insufficient support.
The success of a startup often hinges on meticulous financial planning and management. For many entrepreneurs, this can be a source of stress and an overwhelming part of their journey. However, it's an essential part of the path to sustainability and growth.
When you're a business development leader, it's important to develop specific strategies that will move your business forward via the types of products and services it has to offer current and potential customers. Strengthening your marketing communications is a step in the right direction.
The Confederation of Indian Textile Industry (CITI) has sought government intervention to tackle the challenges confronting the trading policies of the Cotton Corporation of India (CCI).
CITI, and allied textile associations, jointly presented a memorandum to Piyush Goyal, Minister of Textiles, to address concerns related to CCI's Minimum Support Price (MSP) cotton procurement practices, proposing revisions to ensure price stability and a seamless supply to downstream sectors.
Amarnath Banik, a 38-year-old entrepreneur from Guwahati, significantly expanded his family trucking business by partnering with Amazon.
Starting with a fleet of 50 trucks and 60 drivers, his collaboration with Amazon's trucking partner program propelled the business to 200 trucks and 250 drivers.
The Ministry of Micro, Small and Medium Enterprises (MSMEs) shared a success story of a Maharashtra based entrepreneur, Dhyaneshwar Dhage who upturned his shop into a garment cluster, on Friday.
Dhage started his shop by the name 'Jilla Vish Mukt Shetkari Utpadak Bachat Gath'. His journey began with a visit to Mahatma Gandhi Institute of Rural Industrialisation (MGIRI), Wardha, in 2009, where he delved into experimental work from cotton ginning to fabric creation in the Khadi and Textile Department.
