If you are unable to view this mailer, click here.
President Message
At the outset let me wish the readers of FISME Factor a very happy new year ahead. For India's intrepid Micro, Small, and Medium Enterprises (MSMEs), 2024 promises a brisk economic tailwind. The nation's projected 6.5% growth, buoyed by rising consumer confidence and government investments, creates fertile ground for your entrepreneurial dreams to blossom. Opportunities bloom across sectors like food processing, apparel, and consumer durables, driven by increasing domestic demand. Government initiatives like "Make in India" and PLI schemes further sweeten the pot, especially for manufacturing MSMEs in priority sectors like electronics and automobiles. However, clouds of inflation and global uncertainties linger. To navigate these headwinds, embrace digitization, prioritize innovation, build financial reserves, and tap into government support. The general elections are to knock in next few months. Let's hope whoever wins will continue to tread the path of fiscal discipline and economic growth. We have our hands full this year: Center for Excellence for Medium Enterprises, series of international conferences on SDGS and greening of businesses, Studies and research for pushing Ease of Doing Business. So, for 2024, let's set our sails, adapt to changing currents, and seize the opportunities ahead. This year, the winds of growth can propel MSMEs to new heights – just like the unwavering spirit of Indian entrepreneurship.
A Dialogue was held on 21st December at Constitutional Club of India, New Delhi, between FISME office bearers and delegation from Public Policy Club, IIT Madras (IITM) comprising 80 students and research scholars. The dialogue covered a range of issues from challenges and opportunities for business in India, Start-up-MSME collaboration, joint activities.
The issues discussed included measures required to promote growth of textile garments industry, scope of international collaboration among MSMEs, technology adoption by MSMEs, Intellectual Property in context of MSMEs, steps to enhance export competitiveness of MSMEs, Strategies to deal with foreclosure charges and other unethical practices of Banks, burden of cost of compliances and how it prevents formalization of economy, relevance of classification and definition of MSME sector.
In today's rapidly evolving world, being a sustainable business is a fundamental aspect of modern entrepreneurship. Some key factors exist, like reducing our environmental footprint, creating future opportunities in our organizations, and driving innovation. In this article, I'll share valuable insights and strategies to help fellow business leaders integrate ethical practices into their core business models. These strategies have proven to work and are essential for achieving success in a complex world.
For economic data, such as GDP and its growth, we follow a fiscal year system, from April 1 to March 31 of the succeeding year. Many countries follow a calendar year system. That fiscal year is a legacy. With the Union Budget having moved to February 1, there is a case for recalibrating our statistical systems to the calendar year. That will make international comparisons easier too. Adjusting for calendar year versus fiscal year, real growth in 2023 will be of the order of 7 per cent or thereabouts. Implicit in this is an assumption about growth being slower in the second half of 2023-24, compared to the first. But let's remember, growth in the first half was better than what many had expected it to be. As we end 2023 and look forward towards 2024 ...
The government unequivocally stated that there are absolutely no intentions to enforce a Minimum Export Price (MEP) on all agricultural products, on Friday.
Rajesh Agrawal, Additional Secretary, Department of Commerce, emphasised that the government has no plans to scrutinise exports of all agricultural products. Agrawal stated, "Just want to clarify that the government has no intention to put in MEP on all agri products or review all agri products from the export perspective. There is no such decision. The government has strictly no such plans," during a press briefing.
The Finance Ministry, in its half-yearly economic review report released on Friday, anticipates that India's economy will comfortably exceed the government's growth projection of 6.5 per cent for the fiscal year 2023-24 (FY24).
According to the report, the momentum gained by the Indian economy in the second quarter of FY24 is expected to endure through the subsequent December quarter, with sustained growth in consumption demand. The half-yearly economic review for 2023-24 highlights a significant real Gross Domestic Product (GDP) growth of 7.7 per cent in the first half of FY24, following a 7.6 per cent expansion in the second quarter (Q2).
India's balance of payments (BOP) during the second quarter (July-September) of 2023-24 has shown a current account deficit of USD 8.3 billion, equivalent to 1.0 per cent of the Gross Domestic Product (GDP), as per data released by Reserve Bank of India (RBI) on Tuesday. The current account deficit marks a decrease from USD 9.2 billion (1.1 per cent of GDP) in the first quarter of 2023-24 and a substantial decline from USD 30.9 billion (3.8 per cent of GDP) in the same quarter a year ago. The lower current account deficit is attributed to the narrowing of the merchandise trade deficit, which decreased to USD 61 billion from USD 78.3 billion in the second quarter of 2022-23.
The Government of Karnataka, in collaboration with the Small Industries Development Bank of India (SIDBI) and the Karnataka Small Industries Association (Kasia), launched an initiative aimed at enabling micro and small-scale industries in the region, on Friday.
A dedicated program was organised in Doddballapur to raise awareness about the myriad benefits, financing options, and export opportunities available to businesses operating on a smaller scale.
Piyush Goyal, Union Minister of Commerce & Industry, launched the comprehensive "E-Commerce Exports Handbook for Micro, Small, and, Medium Enterprises (MSMEs)" prepared by the Directorate General of Foreign Trade (DGFT), on Thursday.
This handbook, aligned with the goals of Foreign Trade Policy 2023, is poised to become a definitive guide for MSMEs seeking to leverage e-commerce platforms for expanding their exports, stated the Union Minister. Emphasising its role as a one-stop repository, the handbook offers detailed insights into strategies for promoting exports through e-commerce, providing MSMEs with the tools to venture effectively into global markets.
The government will soon finalise the National Retail Trade Policy which has been in the pipeline for some time. According to a report by BusinessLine, the policy will act as a model policy providing a framework of guidelines for States and is currently in advanced stages of finalisation. Some of the areas that it will focus on include, ease of doing business, simplifying licencing process, reducing compliance burden as well as enabling women workforce to work for longer hours among others, sources told BusinessLine.
The Ministry of Micro, Small, and Medium Enterprises (MSME) has introduced three sub-schemes under the RAMP (Raising and Accelerating MSME Productivity) program on Wednesday, emphasising the adoption of sustainable technology, boosting the circular economy, and addressing delayed payments.
Launched by Union Minister for MSME Narayan Rane at the 2nd meeting of the National MSME Council, these schemes include the MSME Green Investment and Financing for Transformation Scheme (MSE GIFT Scheme), MSE Scheme for Promotion and Investment in Circular Economy (MSE SPICE Scheme), and MSE Scheme on Online Dispute Resolution (ODR) for Delayed Payments.
Karnataka Chief Minister Siddaramaiah on Tuesday launched the registration of candidates for the government's fifth guarantee Yuva Nidhi scheme.
He said that along with financial assistance, the unemployed youth will get free skill training. Every month the scheme runs under a self-declaration process by beneficiaries. "If a beneficiary gets a job or joins higher education, then they must update the same and the assistance will be discontinued for them. The registration is free of cost," he said.
Maharashtra, housing over 36 lakh Micro, Small, and Medium Enterprises (MSMEs), is experiencing regional economic disparities, as 41 per cent of the state's MSMEs, amounting to 14,97,959 units, are concentrated in the Mumbai and Pune regions. This concentration has led to an economic stagnation in the remaining areas of the state. According to recent data from the Centre, 36,69,345 MSMEs were registered on the Udyam Registration Portal in the first week of December.
Union Finance Minister Nirmala Sitharaman claimed on Friday that Rs 900 crore had already been released to Tamil Nadu.
State finance minister Thangam Thennarasu retorted that it was a fraction of aid sought after the recent floods in Chennai and south Tamil Nadu. Speaking to reporters in New Delhi, the FM said the centre had released Rs 900 crore in two installments towards the State Disaster Relief Fund, the second of which reached TN on December 12, well ahead of the rains in south TN.
Andhra Pradesh is going to inaugurate a chapter of the Women Entrepreneurship Platform (WEP) by Niti Aayog in the month of January. The Andhra Pradesh Innovation Society (APIS), overseeing the state's startup ecosystem, will act as the nodal agency for this WEP initiative. Established in 2017 by NITI Aayog, WEP is a pivotal initiative by the Government of India dedicated to cultivating a supportive environment for women entrepreneurs.
The trade agreement between India and Australia has proven highly advantageous for key sectors such as engineering goods, electronic products, and pharmaceuticals, experiencing a substantial increase in export volumes, highlighted Ministry of Commerce on Friday.
According to an official presentation, Indian exports to Australia along preferential lines recorded a substantial 17.8 per cent year-on-year increase, reaching USD 1.58 billion in the period of April-October 2023.
India is poised to commence trade negotiations with the Eurasian Economic Union (EEU) bloc in January for a potential free trade deal, announced External Affairs Minister S Jaishankar on Wednesday.
Following extensive discussions with his Russian counterpart Sergey Lavrov as part of the annual India-Russia bilateral engagements, Jaishankar emphasised the significant focus on trade, investments, and logistics during their talks.
What should be the focus area of action for Govt to address economic challenges and strengthen struggling sectors?
According to the FISME factor, 60% of MSMEs believe that a lack of awareness is a major barrier faced by MSMEs in adopting Energy Efficient Technologies (EETs), 20% believe it is a lack of finance, while another 20% believe that the main barrier is difficulty in choosing the right technology.
3 Strategies to Optimize Your Hiring Process and Find the Best Employees
Simple tips to simplify the hiring process and identify the best talent in 2024.
It's hard to hire people in a world dominated by a virtual landscape where people are emboldened to be dishonest about their backgrounds. Hiring managers and company leaders should avoid hiring under pressure, rise to the challenge of hiring people remotely and eliminate possible unknowns.
7 Savings Strategies for Small Businesses in Uncertain Economic Climates
If you're running a small business, you might feel the pressure of uncertainty in our current economy. And because the range of possible outcomes can seem vast, is it even worth planning to manage your business differently during economic uncertainty? Or should we brace for impact and hope we're still standing when it blows over? While it may seem like an uphill battle to manage against the unknown, financial advisors recommend strategically managing your business during economic uncertainty to help conserve and protect your hard-earned money.
8 Pitfalls Small Businesses Must Avoid When It Comes to Marketing Themselves
Small business owners everywhere, take note: Navigating the digital world requires more than just posting content and waiting for magic to happen. Here are the top eight blunders that could be stifling your efforts to capitalize on your marketing technique.
Do you ever feel like, no matter how much effort you put in, your content marketing strategy always falls flat and fails to produce results?
The approaching quarter poses challenges for Micro, Small, and Medium Enterprises (MSMEs) as credit availability for these businesses is deteriorating as lenders are exercising caution due to increased risk weights on unsecured consumer loans. "MSMEs form a huge part of this unsecured funding and they will get affected to an extent directly or indirectly.
How Wakefit has Become Product of Chaitanya Ramalingegowda's Trust in Consumers
Brought up on ample lessons in trust and empathy, the entrepreneurial journey of Chaitanya Ramalingegowda has inadvertently been shaped by his childhood experiences. And what keeps him awake is ensuring a perfect-night sleep for Wakefit users. Suddenly, the young boy turned anxious. He started counting money again. Dejected with the outcome, he tried his luck for the third time. The result was the same. Seven 10-rupee notes were firmly clutched in his fist. Three were still missing.
Sweet Karam Coffee Wants to Pay a Delicious Homage to Grandma's Timeless Recipes
There's something about our grandmother's cooking that we all crave. We even continue to reminisce and try to emulate their recipes long after they are gone. Such was the story of Anand Bharadwaj, who thought of his grandmother Janaki's cherished recipes—the times when delicacies like Aval Pori Urundai, Nendran banana chips, and Kai Murukku filled their home during Diwali.
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.
send mail to: newsletter@fisme.org.in
You are receiving this Newsletter because you are included in our mailing list of recipients who are involved or interested in FISME or Indian MSMEs. You are welcome to partly or fully reproduce and disseminate the contents of this publication provided that you acknowledge the source.
At the outset let me wish the readers of FISME Factor a very happy new year ahead. For India's intrepid Micro, Small, and Medium Enterprises (MSMEs), 2024 promises a brisk economic tailwind. The nation's projected 6.5% growth, buoyed by rising consumer confidence and government investments, creates fertile ground for your entrepreneurial dreams to blossom. Opportunities bloom across sectors like food processing, apparel, and consumer durables, driven by increasing domestic demand. Government initiatives like "Make in India" and PLI schemes further sweeten the pot, especially for manufacturing MSMEs in priority sectors like electronics and automobiles. However, clouds of inflation and global uncertainties linger. To navigate these headwinds, embrace digitization, prioritize innovation, build financial reserves, and tap into government support. The general elections are to knock in next few months. Let's hope whoever wins will continue to tread the path of fiscal discipline and economic growth. We have our hands full this year: Center for Excellence for Medium Enterprises, series of international conferences on SDGS and greening of businesses, Studies and research for pushing Ease of Doing Business. So, for 2024, let's set our sails, adapt to changing currents, and seize the opportunities ahead. This year, the winds of growth can propel MSMEs to new heights – just like the unwavering spirit of Indian entrepreneurship.
A Dialogue was held on 21st December at Constitutional Club of India, New Delhi, between FISME office bearers and delegation from Public Policy Club, IIT Madras (IITM) comprising 80 students and research scholars. The dialogue covered a range of issues from challenges and opportunities for business in India, Start-up-MSME collaboration, joint activities.
The issues discussed included measures required to promote growth of textile garments industry, scope of international collaboration among MSMEs, technology adoption by MSMEs, Intellectual Property in context of MSMEs, steps to enhance export competitiveness of MSMEs, Strategies to deal with foreclosure charges and other unethical practices of Banks, burden of cost of compliances and how it prevents formalization of economy, relevance of classification and definition of MSME sector.
The government unequivocally stated that there are absolutely no intentions to enforce a Minimum Export Price (MEP) on all agricultural products, on Friday.
Rajesh Agrawal, Additional Secretary, Department of Commerce, emphasised that the government has no plans to scrutinise exports of all agricultural products. Agrawal stated, "Just want to clarify that the government has no intention to put in MEP on all agri products or review all agri products from the export perspective. There is no such decision. The government has strictly no such plans," during a press briefing.
The Finance Ministry, in its half-yearly economic review report released on Friday, anticipates that India's economy will comfortably exceed the government's growth projection of 6.5 per cent for the fiscal year 2023-24 (FY24).
According to the report, the momentum gained by the Indian economy in the second quarter of FY24 is expected to endure through the subsequent December quarter, with sustained growth in consumption demand. The half-yearly economic review for 2023-24 highlights a significant real Gross Domestic Product (GDP) growth of 7.7 per cent in the first half of FY24, following a 7.6 per cent expansion in the second quarter (Q2).
India's balance of payments (BOP) during the second quarter (July-September) of 2023-24 has shown a current account deficit of USD 8.3 billion, equivalent to 1.0 per cent of the Gross Domestic Product (GDP), as per data released by Reserve Bank of India (RBI) on Tuesday. The current account deficit marks a decrease from USD 9.2 billion (1.1 per cent of GDP) in the first quarter of 2023-24 and a substantial decline from USD 30.9 billion (3.8 per cent of GDP) in the same quarter a year ago. The lower current account deficit is attributed to the narrowing of the merchandise trade deficit, which decreased to USD 61 billion from USD 78.3 billion in the second quarter of 2022-23.
The Government of Karnataka, in collaboration with the Small Industries Development Bank of India (SIDBI) and the Karnataka Small Industries Association (Kasia), launched an initiative aimed at enabling micro and small-scale industries in the region, on Friday.
A dedicated program was organised in Doddballapur to raise awareness about the myriad benefits, financing options, and export opportunities available to businesses operating on a smaller scale.
Piyush Goyal, Union Minister of Commerce & Industry, launched the comprehensive "E-Commerce Exports Handbook for Micro, Small, and, Medium Enterprises (MSMEs)" prepared by the Directorate General of Foreign Trade (DGFT), on Thursday.
This handbook, aligned with the goals of Foreign Trade Policy 2023, is poised to become a definitive guide for MSMEs seeking to leverage e-commerce platforms for expanding their exports, stated the Union Minister. Emphasising its role as a one-stop repository, the handbook offers detailed insights into strategies for promoting exports through e-commerce, providing MSMEs with the tools to venture effectively into global markets.
The government will soon finalise the National Retail Trade Policy which has been in the pipeline for some time. According to a report by BusinessLine, the policy will act as a model policy providing a framework of guidelines for States and is currently in advanced stages of finalisation. Some of the areas that it will focus on include, ease of doing business, simplifying licencing process, reducing compliance burden as well as enabling women workforce to work for longer hours among others, sources told BusinessLine.
The Ministry of Micro, Small, and Medium Enterprises (MSME) has introduced three sub-schemes under the RAMP (Raising and Accelerating MSME Productivity) program on Wednesday, emphasising the adoption of sustainable technology, boosting the circular economy, and addressing delayed payments.
Launched by Union Minister for MSME Narayan Rane at the 2nd meeting of the National MSME Council, these schemes include the MSME Green Investment and Financing for Transformation Scheme (MSE GIFT Scheme), MSE Scheme for Promotion and Investment in Circular Economy (MSE SPICE Scheme), and MSE Scheme on Online Dispute Resolution (ODR) for Delayed Payments.
Karnataka Chief Minister Siddaramaiah on Tuesday launched the registration of candidates for the government's fifth guarantee Yuva Nidhi scheme.
He said that along with financial assistance, the unemployed youth will get free skill training. Every month the scheme runs under a self-declaration process by beneficiaries. "If a beneficiary gets a job or joins higher education, then they must update the same and the assistance will be discontinued for them. The registration is free of cost," he said.
Maharashtra, housing over 36 lakh Micro, Small, and Medium Enterprises (MSMEs), is experiencing regional economic disparities, as 41 per cent of the state's MSMEs, amounting to 14,97,959 units, are concentrated in the Mumbai and Pune regions. This concentration has led to an economic stagnation in the remaining areas of the state. According to recent data from the Centre, 36,69,345 MSMEs were registered on the Udyam Registration Portal in the first week of December.
Union Finance Minister Nirmala Sitharaman claimed on Friday that Rs 900 crore had already been released to Tamil Nadu.
State finance minister Thangam Thennarasu retorted that it was a fraction of aid sought after the recent floods in Chennai and south Tamil Nadu. Speaking to reporters in New Delhi, the FM said the centre had released Rs 900 crore in two installments towards the State Disaster Relief Fund, the second of which reached TN on December 12, well ahead of the rains in south TN.
Andhra Pradesh is going to inaugurate a chapter of the Women Entrepreneurship Platform (WEP) by Niti Aayog in the month of January. The Andhra Pradesh Innovation Society (APIS), overseeing the state's startup ecosystem, will act as the nodal agency for this WEP initiative. Established in 2017 by NITI Aayog, WEP is a pivotal initiative by the Government of India dedicated to cultivating a supportive environment for women entrepreneurs.
The trade agreement between India and Australia has proven highly advantageous for key sectors such as engineering goods, electronic products, and pharmaceuticals, experiencing a substantial increase in export volumes, highlighted Ministry of Commerce on Friday.
According to an official presentation, Indian exports to Australia along preferential lines recorded a substantial 17.8 per cent year-on-year increase, reaching USD 1.58 billion in the period of April-October 2023.
India is poised to commence trade negotiations with the Eurasian Economic Union (EEU) bloc in January for a potential free trade deal, announced External Affairs Minister S Jaishankar on Wednesday.
Following extensive discussions with his Russian counterpart Sergey Lavrov as part of the annual India-Russia bilateral engagements, Jaishankar emphasised the significant focus on trade, investments, and logistics during their talks.
According to the FISME factor, 60% of MSMEs believe that a lack of awareness is a major barrier faced by MSMEs in adopting Energy Efficient Technologies (EETs), 20% believe it is a lack of finance, while another 20% believe that the main barrier is difficulty in choosing the right technology.
If you're running a small business, you might feel the pressure of uncertainty in our current economy. And because the range of possible outcomes can seem vast, is it even worth planning to manage your business differently during economic uncertainty? Or should we brace for impact and hope we're still standing when it blows over? While it may seem like an uphill battle to manage against the unknown, financial advisors recommend strategically managing your business during economic uncertainty to help conserve and protect your hard-earned money.
Small business owners everywhere, take note: Navigating the digital world requires more than just posting content and waiting for magic to happen. Here are the top eight blunders that could be stifling your efforts to capitalize on your marketing technique.
Do you ever feel like, no matter how much effort you put in, your content marketing strategy always falls flat and fails to produce results?
The approaching quarter poses challenges for Micro, Small, and Medium Enterprises (MSMEs) as credit availability for these businesses is deteriorating as lenders are exercising caution due to increased risk weights on unsecured consumer loans. "MSMEs form a huge part of this unsecured funding and they will get affected to an extent directly or indirectly.
Brought up on ample lessons in trust and empathy, the entrepreneurial journey of Chaitanya Ramalingegowda has inadvertently been shaped by his childhood experiences. And what keeps him awake is ensuring a perfect-night sleep for Wakefit users. Suddenly, the young boy turned anxious. He started counting money again. Dejected with the outcome, he tried his luck for the third time. The result was the same. Seven 10-rupee notes were firmly clutched in his fist. Three were still missing.
There's something about our grandmother's cooking that we all crave. We even continue to reminisce and try to emulate their recipes long after they are gone. Such was the story of Anand Bharadwaj, who thought of his grandmother Janaki's cherished recipes—the times when delicacies like Aval Pori Urundai, Nendran banana chips, and Kai Murukku filled their home during Diwali.
