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President Message
The incumbent government is confident of its return to power with a good majority. In the past there used to be a lull in policy making circles during the period of election process. Not this time. All Ministries are sweating it out to prepare plans for the next 100 days and for the next 5 years for growth and development. Recently Secretaries of Department of Financial Services (DFS) and of MSME convened a meeting with select associations to find new ways to enhance MSMEs' access to finance. FISME submitted a detailed presentation. While highlighting the need to urgently review the SMA framework for MSMEs, it demanded a restructuring scheme for MSMEs to address post Covid/ global turmoil & financial stresses. FISME's Memo also underlined the need for an institution / a mechanism for helping MSMEs raise equity for manufacturing for green field projects as well as for expansion without requiring Collateral security. It also stressed the need for a credible Grievance redressal system through which the borrower's problems could be addressed. The Memo also mentioned issues related to BLR rating, Foreclosure charges, Insolvency and Bankruptcy issues among others. Last but not the least, it asked for a National MSME bank- full commercial bank with one branch in all districts, to lend directly to MSMEs. We do hope when the new government is sworn in June, it will have its agenda chalked out.
Every business has a shared purpose of making money. But for many business owners, it's about more than revenue and profits; it's about making a real difference in the world by introducing a product or service that will improve people's daily lives. At its core, a purpose-driven business operates on the principle that its existence serves a larger cause. This could range from addressing social issues, like poverty and education, to environmental concerns, such as sustainability and conservation.
The Union government is looking at ways to increase equity investments in micro, small and medium enterprises (MSME) and raise financing opportunities for such small businesses, particularly in the informal sector. In a meeting on Monday, the Union ministry of MSMEs, the department of financial services under the finance ministry and industry bodies representing MSMEs discussed these issues. "The meeting discussed on deepening the equity financing of MSMEs through the SRI Fund (Self Reliant India) and increasing the financing of businesses in unorganized sectors," said an official aware of the developments, adding...
The country's cotton yarn, fabrics/made-ups, and handlooms exports registered a 6.71 per cent year-on-year growth in fiscal year 2023-24, reaching USD 11.7 billion.
According to data from the Ministry of Commerce, these exports grew by 6.78 per cent to USD 1 billion in March alone, indicating sustained momentum. In the previous fiscal year 2022-23, these exports stood at USD 10.95 billion, making it one of the key product categories closely monitored by the ministry.
The Indian government has permitted the export of 99,150 metric tons of onions to six neighbouring countries - Bangladesh, UAE, Bhutan, Bahrain, Mauritius, and Sri Lanka.
This move comes amid an estimated lower production of onion crops during the Kharif and Rabi seasons of 2023-24 compared to the previous year, as well as increased demand in the international market. The National Cooperative Exports Limited (NCEL), the designated agency for onion exports to these countries, will source domestic onions through an e-platform at L1 prices and supply them to the agencies nominated by the respective governments on a 100% advance payment basis.
India is embarking on a major initiative to upgrade its export infrastructure in order to achieve an ambitious target of USD 1 trillion in merchandise exports by 2030.
The commerce ministry, in collaboration with the Asian Development Bank (ADB), has kickstarted an exercise to identify and estimate the investments required across various modes of transportation, The key areas targeted for infrastructure augmentation include railways, roads, ports, and airports to facilitate the seamless movement of goods meant for exports.
Google has opened applications for Indian start-ups to participate in its 'Start-ups Accelerator: AI First' programme, on Thursday.
The accelerator programme aims to provide three months of equity-free support to start-ups leveraging artificial intelligence (AI) and machine learning (ML) to solve problems across various industries and use cases. This AI-focused accelerator is one of several such programmes offered by Google for Start-ups globally, designed to assist early-stage start-ups that incorporate AI, ML, and Cloud technologies into their solutions to address pressing global challenges.
The Indian government is set to release guidelines for its new electric vehicle (EV) policy in the coming weeks, paving the way for the policy to become fully operational in the next few months.
Highly-placed sources indicate that some EV manufacturers have urged the government to include investments in existing facilities or "brownfield" projects under the policy's definition of eligible investments. Currently, the policy only considers new "greenfield" plants,
The Indian government is working on rolling out a fresh multi-billion-dollar incentive package for semiconductor companies, sources reveal.
This move comes after nearly exhausting the USD 9.3 billion production-linked incentive scheme launched in December 2021 to attract investments in the sector, reported TOI. According to top sources familiar with the development, preliminary work on the new package, which is likely to be 'much bigger than the previous one', has already begun.
The Indian government is working on a policy boost to promote domestic manufacturing of aircraft, ships, and railway components under its 'Make in India' initiative.
The goal is to attract investments and accelerate job creation in these strategic sectors, Officials are currently laying the groundwork for proposals that could be implemented after the ongoing national elections. For the ruling party, this is a central part of its 100-day agenda if re-elected.
In a significant milestone for India's vibrant textile heritage, the traditional Ajrakh textile artisans of Kutch, Gujarat have been granted the prestigious Geographical Indication (GI) certification by the national patent office.
This coveted recognition affirms the exceptional artistry and cultural significance of the centuries-old Ajrakh craft practiced by skilled artisans in the region. The GI tag, a legal mark of authenticity and origin, safeguards the unique traditional knowledge and techniques of Ajrakh textiles from misappropriation.
The Visakhapatnam Special Economic Zone (VSEZ) recorded a stellar performance in exports during the 2023-24 financial year, according to Srinivas Muppala, the Zonal Development Commissioner.
The total exports from VSEZ stood at Rs 2,24,631 crore, registering an impressive 24 per cent increase compared to the previous fiscal year. This includes service exports worth Rs 1,54,707 crore, growing at 18 per cent, and merchandise exports valued at Rs 69,924 crore, surging by 43 per cent.
A recent ruling in Gujarat could pave the way for units operating in Special Economic Zones (SEZs) to be exempt from paying Integrated Goods and Services Tax (IGST) on specified services procured from the Domestic Tariff Area (DTA).
This exemption hinges on these units furnishing a Letter of Undertaking (LUT) or a bond, as ruled by Gujarat-based Authority for Advance Rulings (AAR).
In a bid to propel Uttar Pradesh towards a trillion-dollar economy by 2027, the state government has assembled an industrial land bank spanning 25,000 acres across 75 districts.
This strategic land acquisition drive, spearheaded by the UP State Industrial Development Authority (UPSIDA), aims to facilitate prompt allotment to industries and accelerate the state's economic transformation. According to UPSIDA Chief Executive Officer Mayur Maheshwari, land acquisitions have been undertaken in strategic locations such as Hathras, Hardoi, Prayagraj, Lucknow, Pratapgarh, Rae Bareli, Barabanki, and Chitrakoot.
An agribusiness trade mission from the United States has proposed that India import ethanol and corn to use as feedstock for meeting its target of 20 per cent ethanol-blended petrol by 2025.
This comes after India limited the use of sugar for ethanol production. "We believe there's a great opportunity to support India's advancement in increasing ethanol production," said Alexis Taylor, United States Undersecretary for the Department of Agriculture, who is leading the trade mission to New Delhi, reported ET.
Germany has granted a license to India to purchase small arms from German companies, officials say.
This marks a major relaxation of Germany's longstanding policy restricting the sale of small arms to only European Union members, NATO countries, and a few others.
"Beginning of April, Germany granted a small arms license to India, which is a huge exception," a source stated, reported hindu. The license will allow India to procure spare parts and accessories for the MP5 submachine guns used extensively by its National Security Guard forces.
Job sharing, where two or more employees split a full-time position, is a growing trend in workplaces seeking to offer work-life balance and attract talent. But does it translate to higher productivity? The answer, like many things in management, is nuanced. Proponents hail job sharing's potential to bring fresh perspectives and innovative approaches to tasks.
Credit to Micro and Small Enterprises - Need for Innovation
Recently, I had an opportunity to address a comity of field officers of a public sector bank at the IDBI Staff College on the subject "Understanding SMEs and their financial needs". It was a 3-hour session. It was an eye-opener for me that 90 per cent of them spent only one and half hours with the entrepreneur and 80 per cent of them did not extend a term loan.
Small Business Marketing in 2024: The Ultimate Guide
Small business marketing today typically focuses on establishing a strong online presence, but your options aren't limited to just the web. Figuring out how to best reach new customers, connect with former ones and maintain long-term relationships with buyers will look different for every small business, depending on their goals, budget, target audience and product. Optimizing your marketing strategy, even if you are just starting out, is one of the keys to success.
Small Exporters Urge Extension Of Amnesty Scheme For Default Settlement
Small exporters in India have requested the government to extend the amnesty scheme for one-time settlement of default in export obligations until September 2024.
The appeal comes from a Ludhiana based Hand Tools Association where its President, S.C. Ralhan stated that many small exporters were unable to take advantage of the scheme due to their obligations to make payments to Micro, Small, and Medium Enterprises (MSMEs) within 45 days.
Chennai-Startup The ePlane Eyes Electric Air Taxi Prototype By March 2025
A Chennai-based startup, The ePlane Company, is making significant strides towards introducing flying electric taxis in India's congested cities.
Incubated at Indian Institute of Technology (IIT) Madras, the company aims to unveil a certifiable prototype of its three or four-seater electric Vertical Takeoff and Landing (eVTOL) aircraft by March 2025.
Hyderabad-Based Space Startup Dhruva Space Secures $9.6M Funding, Aims For Vertical Integration
In a significant move towards vertical integration in India's burgeoning space technology sector, Dhruva Space, a Hyderabad-based startup, has raised Rs 78 crore (USD 9.6 million) in a Series A2 funding round.
The investment was led by IAN Alpha Fund, with participation from existing investors such as Mumbai Angels, Indian Angel Network, Arvog, Primarc, BlueAshvaCapital, OswaalBooks, and KshamaCapital.
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.
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The incumbent government is confident of its return to power with a good majority. In the past there used to be a lull in policy making circles during the period of election process. Not this time. All Ministries are sweating it out to prepare plans for the next 100 days and for the next 5 years for growth and development. Recently Secretaries of Department of Financial Services (DFS) and of MSME convened a meeting with select associations to find new ways to enhance MSMEs' access to finance. FISME submitted a detailed presentation. While highlighting the need to urgently review the SMA framework for MSMEs, it demanded a restructuring scheme for MSMEs to address post Covid/ global turmoil & financial stresses. FISME's Memo also underlined the need for an institution / a mechanism for helping MSMEs raise equity for manufacturing for green field projects as well as for expansion without requiring Collateral security. It also stressed the need for a credible Grievance redressal system through which the borrower's problems could be addressed. The Memo also mentioned issues related to BLR rating, Foreclosure charges, Insolvency and Bankruptcy issues among others. Last but not the least, it asked for a National MSME bank- full commercial bank with one branch in all districts, to lend directly to MSMEs. We do hope when the new government is sworn in June, it will have its agenda chalked out.
Every business has a shared purpose of making money. But for many business owners, it's about more than revenue and profits; it's about making a real difference in the world by introducing a product or service that will improve people's daily lives. At its core, a purpose-driven business operates on the principle that its existence serves a larger cause. This could range from addressing social issues, like poverty and education, to environmental concerns, such as sustainability and conservation.
The country's cotton yarn, fabrics/made-ups, and handlooms exports registered a 6.71 per cent year-on-year growth in fiscal year 2023-24, reaching USD 11.7 billion.
According to data from the Ministry of Commerce, these exports grew by 6.78 per cent to USD 1 billion in March alone, indicating sustained momentum. In the previous fiscal year 2022-23, these exports stood at USD 10.95 billion, making it one of the key product categories closely monitored by the ministry.
The Indian government has permitted the export of 99,150 metric tons of onions to six neighbouring countries - Bangladesh, UAE, Bhutan, Bahrain, Mauritius, and Sri Lanka.
This move comes amid an estimated lower production of onion crops during the Kharif and Rabi seasons of 2023-24 compared to the previous year, as well as increased demand in the international market. The National Cooperative Exports Limited (NCEL), the designated agency for onion exports to these countries, will source domestic onions through an e-platform at L1 prices and supply them to the agencies nominated by the respective governments on a 100% advance payment basis.
India is embarking on a major initiative to upgrade its export infrastructure in order to achieve an ambitious target of USD 1 trillion in merchandise exports by 2030.
The commerce ministry, in collaboration with the Asian Development Bank (ADB), has kickstarted an exercise to identify and estimate the investments required across various modes of transportation, The key areas targeted for infrastructure augmentation include railways, roads, ports, and airports to facilitate the seamless movement of goods meant for exports.
Google has opened applications for Indian start-ups to participate in its 'Start-ups Accelerator: AI First' programme, on Thursday.
The accelerator programme aims to provide three months of equity-free support to start-ups leveraging artificial intelligence (AI) and machine learning (ML) to solve problems across various industries and use cases. This AI-focused accelerator is one of several such programmes offered by Google for Start-ups globally, designed to assist early-stage start-ups that incorporate AI, ML, and Cloud technologies into their solutions to address pressing global challenges.
The Indian government is set to release guidelines for its new electric vehicle (EV) policy in the coming weeks, paving the way for the policy to become fully operational in the next few months.
Highly-placed sources indicate that some EV manufacturers have urged the government to include investments in existing facilities or "brownfield" projects under the policy's definition of eligible investments. Currently, the policy only considers new "greenfield" plants,
The Indian government is working on rolling out a fresh multi-billion-dollar incentive package for semiconductor companies, sources reveal.
This move comes after nearly exhausting the USD 9.3 billion production-linked incentive scheme launched in December 2021 to attract investments in the sector, reported TOI. According to top sources familiar with the development, preliminary work on the new package, which is likely to be 'much bigger than the previous one', has already begun.
The Indian government is working on a policy boost to promote domestic manufacturing of aircraft, ships, and railway components under its 'Make in India' initiative.
The goal is to attract investments and accelerate job creation in these strategic sectors, Officials are currently laying the groundwork for proposals that could be implemented after the ongoing national elections. For the ruling party, this is a central part of its 100-day agenda if re-elected.
In a significant milestone for India's vibrant textile heritage, the traditional Ajrakh textile artisans of Kutch, Gujarat have been granted the prestigious Geographical Indication (GI) certification by the national patent office.
This coveted recognition affirms the exceptional artistry and cultural significance of the centuries-old Ajrakh craft practiced by skilled artisans in the region. The GI tag, a legal mark of authenticity and origin, safeguards the unique traditional knowledge and techniques of Ajrakh textiles from misappropriation.
The Visakhapatnam Special Economic Zone (VSEZ) recorded a stellar performance in exports during the 2023-24 financial year, according to Srinivas Muppala, the Zonal Development Commissioner.
The total exports from VSEZ stood at Rs 2,24,631 crore, registering an impressive 24 per cent increase compared to the previous fiscal year. This includes service exports worth Rs 1,54,707 crore, growing at 18 per cent, and merchandise exports valued at Rs 69,924 crore, surging by 43 per cent.
A recent ruling in Gujarat could pave the way for units operating in Special Economic Zones (SEZs) to be exempt from paying Integrated Goods and Services Tax (IGST) on specified services procured from the Domestic Tariff Area (DTA).
This exemption hinges on these units furnishing a Letter of Undertaking (LUT) or a bond, as ruled by Gujarat-based Authority for Advance Rulings (AAR).
In a bid to propel Uttar Pradesh towards a trillion-dollar economy by 2027, the state government has assembled an industrial land bank spanning 25,000 acres across 75 districts.
This strategic land acquisition drive, spearheaded by the UP State Industrial Development Authority (UPSIDA), aims to facilitate prompt allotment to industries and accelerate the state's economic transformation. According to UPSIDA Chief Executive Officer Mayur Maheshwari, land acquisitions have been undertaken in strategic locations such as Hathras, Hardoi, Prayagraj, Lucknow, Pratapgarh, Rae Bareli, Barabanki, and Chitrakoot.
An agribusiness trade mission from the United States has proposed that India import ethanol and corn to use as feedstock for meeting its target of 20 per cent ethanol-blended petrol by 2025.
This comes after India limited the use of sugar for ethanol production. "We believe there's a great opportunity to support India's advancement in increasing ethanol production," said Alexis Taylor, United States Undersecretary for the Department of Agriculture, who is leading the trade mission to New Delhi, reported ET.
Germany has granted a license to India to purchase small arms from German companies, officials say.
This marks a major relaxation of Germany's longstanding policy restricting the sale of small arms to only European Union members, NATO countries, and a few others.
"Beginning of April, Germany granted a small arms license to India, which is a huge exception," a source stated, reported hindu. The license will allow India to procure spare parts and accessories for the MP5 submachine guns used extensively by its National Security Guard forces.
According to the FISME factor, 20% of MSMEs think that the RBI's directive will lead to fairer lending practices while 80% can't say.
Job sharing, where two or more employees split a full-time position, is a growing trend in workplaces seeking to offer work-life balance and attract talent. But does it translate to higher productivity? The answer, like many things in management, is nuanced. Proponents hail job sharing's potential to bring fresh perspectives and innovative approaches to tasks.
Recently, I had an opportunity to address a comity of field officers of a public sector bank at the IDBI Staff College on the subject "Understanding SMEs and their financial needs". It was a 3-hour session. It was an eye-opener for me that 90 per cent of them spent only one and half hours with the entrepreneur and 80 per cent of them did not extend a term loan.
Small business marketing today typically focuses on establishing a strong online presence, but your options aren't limited to just the web. Figuring out how to best reach new customers, connect with former ones and maintain long-term relationships with buyers will look different for every small business, depending on their goals, budget, target audience and product. Optimizing your marketing strategy, even if you are just starting out, is one of the keys to success.
Small exporters in India have requested the government to extend the amnesty scheme for one-time settlement of default in export obligations until September 2024.
The appeal comes from a Ludhiana based Hand Tools Association where its President, S.C. Ralhan stated that many small exporters were unable to take advantage of the scheme due to their obligations to make payments to Micro, Small, and Medium Enterprises (MSMEs) within 45 days.
A Chennai-based startup, The ePlane Company, is making significant strides towards introducing flying electric taxis in India's congested cities.
Incubated at Indian Institute of Technology (IIT) Madras, the company aims to unveil a certifiable prototype of its three or four-seater electric Vertical Takeoff and Landing (eVTOL) aircraft by March 2025.
In a significant move towards vertical integration in India's burgeoning space technology sector, Dhruva Space, a Hyderabad-based startup, has raised Rs 78 crore (USD 9.6 million) in a Series A2 funding round.
The investment was led by IAN Alpha Fund, with participation from existing investors such as Mumbai Angels, Indian Angel Network, Arvog, Primarc, BlueAshvaCapital, OswaalBooks, and KshamaCapital.
