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President Message
Professor Bibek Debroy is no more. Bharat has lost an illustrious economist, a reformist and a Sanskrit scholar par excellence. In two millennia he has only been the second person to have translated the entire Mahabharat and Ramayana, in the unabridged form. Epithets like polymath have been used in his obituary. But for MSMEs and FISME his contribution has been profound. He has been the only economist who did not preach from the top and condescend. He would roll up his sleeves and jump to clean up the stuff himself, intellectually. When approached on difficulties in the life of an entrepreneur, he dug-up the genesis of insolvency and bankruptcy laws in India, networked with global insolvency professionals, put a team to research evidence, tied-up funding all by himself and came out with an unprecedented book: ‘Small Scale Industries, Large Scale Exit Problems’. It proved to be seminal and led to a new debate on exit issues. This eventually culminated in Insolvency and Bankruptcy Code in India. FISME’s access to him and eventually to top echelons of policy making in India has been invaluable for larger interests of MSMEs. His exit from the theater of economic life in India leaves a vacuum that will be hard to fill. With great sincerity and gratitude we say Thank You for being the voice for the voiceless
On Thursday, 7th November 2024, FISME organised a roundtable in New Delhi to address the significant challenges facing Indian exporters, notably due to geopolitical disruptions. With rising operational costs and declining government support policies, exporters are struggling to sustain growth. The roundtable sought to gather inputs for the Government's pre-budget and Board of Trade meetings.
The event featured Mr. Ajay Shrivastava, a former Indian Trade Service officer with expertise in trade policy, WTO, and FTA negotiations, as the special invitee. His insights, along with contributions from key stakeholders in the export sector, facilitated an in-depth dialogue focused on actionable solutions to bolster India’s export growth amidst these evolving challenges.
Starting a business is not just about having a brilliant idea; it's about finding purpose, solving real problems and building the right team. As an entrepreneur in healthcare and biotechnology who built and led my company to a successful exit, my journey has been shaped by a strong mission, adaptability and the support of a diverse team. If you’re exploring how to launch a successful business, these five key lessons I've learned can guide you toward turning your passion into a thriving venture.
Prof. Bibek Debroy, Chairman of Prime Minister’s Economic Advisory Council, passed away on the morning of November 1, 2024, in New Delhi, following Diwali night.
Debroy has been a polymath-a distinguished economist, scholar of law, history, and Indian mythology.
The MSME community of India has lost a friend of the tallest stature. He was perhaps the only economist and legal expert who empathised with MSME issues that no one cared about before and made interventions for profound impact. With the Federation of Indian Micro and Small & Medium Enterprises (FISME), Prof. Debroy picked up the issue of an entrepreneur’s life after failure in India.
India's merchandise exports recorded their strongest growth in 28 months during October, surging 17.3 percent year-on-year to reach USD 39.2 billion, primarily driven by pre-Christmas inventory stockpiling in Western markets.
The growth trajectory was notably supported by significant increases across various sectors, with engineering goods rising by 39.4 percent, electronic goods by 45.7 percent, and readymade garments by 35.1 percent.
India is preparing to implement graduated restrictions on the import of laptops, tablets, and personal computers beginning next year, as part of a strategic move to boost domestic manufacturing.
According to a report by Moneycontrol, the government plans to initially cap imports at 5 percent, with further reductions anticipated in subsequent years. The proposed policy marks a significant shift from India's current unrestricted import regime for IT hardware.
India has imposed an anti-dumping duty of up to USD 557 per tonne on the chemical Epichlorohydrin, primarily used in the adhesive industry, in a bid to protect domestic manufacturers from cheap imports.
The duty will apply to imports of the chemical from China, Korea, and Thailand for the next five years, as per a notification issued by the Department of Revenue. The imposition follows an investigation by the Directorate General of Trade Remedies (DGTR), which found that Epichlorohydrin was being sold at below-normal prices in the Indian market, causing harm to local producers.
India is taking a significant step to reduce its reliance on pharmaceutical imports, particularly from China, by inaugurating two greenfield plants under the Production Linked Incentive (PLI) scheme.
These facilities aim to produce key starting materials (KSM) and active pharmaceutical ingredients (API) domestically, marking a major push toward self-sufficiency in critical drug manufacturing. The two plants, launched last month, will focus on manufacturing Penicillin G, 6-APA (6-Aminopenicillanic acid), and Clavulanic Acid.
In a strategic move to bolster energy-efficient practices in the micro, small, and medium enterprise (MSME) sector, the Union Power Ministry is preparing to launch a new interest subvention scheme aimed at promoting advanced, eco-friendly technologies in smaller businesses.
According to insider sources, the initiative will provide a 5 per cent interest subsidy for small enterprises and a 10 per cent subsidy for medium enterprises under the Assistance in Deploying Energy Efficient Technologies in Industries & Establishment (ADEETIE) Scheme.
On October 29, 2024, the National Company Law Tribunal (NCLT) Mumbai upheld the initiation of the Corporate Insolvency Resolution Process (CIRP) against Perfect Infraengineers Limited ("Corporate Debtor").
The Tribunal dismissed the Corporate Debtor’s challenge to the July 15, 2024 order, ruling that the Insolvency and Bankruptcy Code (IBC) supersedes the provisions of the Micro, Small, and Medium Enterprises Development Act (MSMED Act) in cases of financial default, even for MSMEs.
In a significant move to enhance India's technical textiles capabilities, the government approved 12 new research projects worth Rs 13.3 crore under the National Technical Textiles Mission on Tuesday.
The approval came during the 10th Mission Steering Group meeting chaired by Union Textiles Minister Giriraj Singh. The newly approved projects focus on strategic areas including geotextiles, sustainable textiles, smart textiles, and composites. Leading research institutions, including IITs, NITs, and the Central Road Research Institute (CRRI), will spearhead these initiatives.
Karnataka has emerged as the leading state in India’s start-up ecosystem, recording a remarkable 18.2 per cent growth in start-ups over the past year.
The number of start-ups in the state rose from 2,568 in 2022 to 3,036 in 2023, according to a statement from M.B. Patil, Karnataka’s Minister for Large and Medium Industries and Infrastructure Development. This surge places Karnataka at the forefront nationally, now accounting for 8.7 per cent of the country’s start-ups — the highest share of any Indian state.
The Punjab government is set to implement a transformative Information Technology (IT) policy aimed at making Mohali the premier IT hub of North India, potentially creating around 55,000 new job opportunities.
Punjab Minister for Industry and Commerce, Tarunpreet Singh Sond, announced this ambitious plan during the 'Industry in Punjab: Challenges in Growth' session at the 'Vision Punjab 2047' event. Sond emphasised that the state’s business-friendly industrial policy and modern infrastructure have sparked significant interest from IT companies and delegations.
A comprehensive two-week induction programme for newly appointed Udyami Mitras (entrepreneur facilitators) launched on Monday at the Panchayati Raj Training Institute, marking a significant step in Uttar Pradesh's economic development strategy.
Chief Secretary Manoj Kumar Singh, addressing the inductees, highlighted UP's substantial economic potential, noting the state's 9.2 per cent contribution to India's GDP. He emphasised Chief Minister Yogi Adityanath's vision to advance the state's economy toward a USD 1 trillion benchmark, leveraging UP's position as India's most populous state.
Andhra Pradesh Finance Minister Payyavula Keshav presented the state's annual budget of Rs 2,94,427.25 crore for the fiscal year 2024-25 in the Assembly on Monday.
The budget outlines a revenue expenditure of Rs 2,35,916.99 crore and capital expenditure of Rs 32,712.84 crore. The state's financial blueprint projects a revenue deficit of Rs 34,743.38 crore, accounting for 2.12 percent of the Gross State Domestic Product (GSDP).
The fiscal deficit is estimated at Rs 68,742.65 crore, representing 4.19 percent of the GSDP.
At the second edition of the India-Japan Business Summit (IJBS) held in Bengaluru on November 14, Nakane Tsutomu, Consul General of Japan, announced that the Japanese government would invest a substantial 5 trillion yen (approximately USD 33 billion) in India through investments and loans over the next five years. This commitment marks a significant step in the deepening economic partnership between the two countries, which have mutually benefited from their collaboration over the last decade. The relationship between India and Japan has flourished in various sectors, ranging from infrastructure development to technology and industrial cooperation.
India and Kazakhstan convened a major business conference focused on electronics equipment and engineering goods at the Astana International Financial Centre on November 11.
The hybrid-format event drew participation from approximately 50 companies from both nations, featuring thematic sessions and expert presentations on electronics and engineering sectors. Indian Ambassador Dr. T.V. Nagendra Prasad, who delivered the keynote address, highlighted Kazakhstan's position as India's largest Central Asian trading partner, with bilateral trade reaching approximately USD 1 billion in 2023.
Has Diwali season positively impacted your sales this year?
According to the FISME Factor, 30% of MSMEs think that the Diwali season has positively impacted their sales this year, while another 70% think it has not.
Strategic human resource management (SHRM) is a process that organizations use to manage their employees. It is a way to ensure that the organization’s HR are used in a way that supports the organization’s goals. Think of it as a bridge connecting human resources and the goals of the company.
20 Expert Accounting Tips Every Small Business Owner Should Know
Managing your small business's finances isn’t just about crunching numbers—it’s about making data-driven decisions that keep your business healthy and positioned for growth. The right accounting strategies can streamline cash flow management, optimize tax savings and bring a new level of efficiency to your daily operations.
Social media marketing has become a vital component to the market mix of many businesses–large and small. After all, there are 4.9 billion people who use social media platforms worldwide and so having a presence on social is a good way to connect with both current and potential customers alike. No matter your industry, social media is an effective way to reach your target audience, strengthen your brand, establish a loyal customer base and increase your revenue.
Tamil Nadu MSMEs Appeal To Chief Minister Over Rising Electricity Charges
Tamil Nadu's small-scale industrialists have appealed to the Chief Minister for intervention regarding escalating electricity costs, with particular emphasis on fixed power charges affecting industrial units.
According to J James, President, Tamil Nadu Association of Cottage and Micro Enterprises (TACT), the state government's revision of fixed power charges in September 2022 has significantly impacted MSMEs.
AI Startup Karya Receives $1 Million Google Grant To Empower Rural Communities
Google.org, the philanthropic arm of tech giant Google, has announced a USD 1 million grant to Karya, a non-profit AI startup dedicated to providing employment opportunities in rural areas.
The funding will help Karya expand its mission of enhancing local AI models through data annotation jobs, while also supporting the development of a multilingual AI chatbot aimed at assisting digital workers across the Global South.
Shiprocket Launches AI-Powered Copilot to Empower Over 100,000 Indian Sellers
Shiprocket, India’s leading eCommerce enablement platform, has announced the launch of Shiprocket Copilot, an innovative AI-powered assistant aimed at transforming the way over 100,000 small and medium-sized enterprises (MSMEs) manage and expand their eCommerce businesses.
This virtual assistant is designed to streamline a range of tasks crucial to eCommerce sellers, from processing orders to tracking shipments and providing assistance on international shipping and billing queries.
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 September 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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Professor Bibek Debroy is no more. Bharat has lost an illustrious economist, a reformist and a Sanskrit scholar par excellence. In two millennia he has only been the second person to have translated the entire Mahabharat and Ramayana, in the unabridged form. Epithets like polymath have been used in his obituary. But for MSMEs and FISME his contribution has been profound. He has been the only economist who did not preach from the top and condescend. He would roll up his sleeves and jump to clean up the stuff himself, intellectually. When approached on difficulties in the life of an entrepreneur, he dug-up the genesis of insolvency and bankruptcy laws in India, networked with global insolvency professionals, put a team to research evidence, tied-up funding all by himself and came out with an unprecedented book: ‘Small Scale Industries, Large Scale Exit Problems’. It proved to be seminal and led to a new debate on exit issues. This eventually culminated in Insolvency and Bankruptcy Code in India. FISME’s access to him and eventually to top echelons of policy making in India has been invaluable for larger interests of MSMEs. His exit from the theater of economic life in India leaves a vacuum that will be hard to fill. With great sincerity and gratitude we say Thank You for being the voice for the voiceless
On Thursday, 7th November 2024, FISME organised a roundtable in New Delhi to address the significant challenges facing Indian exporters, notably due to geopolitical disruptions. With rising operational costs and declining government support policies, exporters are struggling to sustain growth. The roundtable sought to gather inputs for the Government's pre-budget and Board of Trade meetings.
The event featured Mr. Ajay Shrivastava, a former Indian Trade Service officer with expertise in trade policy, WTO, and FTA negotiations, as the special invitee. His insights, along with contributions from key stakeholders in the export sector, facilitated an in-depth dialogue focused on actionable solutions to bolster India’s export growth amidst these evolving challenges.
Starting a business is not just about having a brilliant idea; it's about finding purpose, solving real problems and building the right team. As an entrepreneur in healthcare and biotechnology who built and led my company to a successful exit, my journey has been shaped by a strong mission, adaptability and the support of a diverse team. If you’re exploring how to launch a successful business, these five key lessons I've learned can guide you toward turning your passion into a thriving venture.
India's merchandise exports recorded their strongest growth in 28 months during October, surging 17.3 percent year-on-year to reach USD 39.2 billion, primarily driven by pre-Christmas inventory stockpiling in Western markets.
The growth trajectory was notably supported by significant increases across various sectors, with engineering goods rising by 39.4 percent, electronic goods by 45.7 percent, and readymade garments by 35.1 percent.
India is preparing to implement graduated restrictions on the import of laptops, tablets, and personal computers beginning next year, as part of a strategic move to boost domestic manufacturing.
According to a report by Moneycontrol, the government plans to initially cap imports at 5 percent, with further reductions anticipated in subsequent years. The proposed policy marks a significant shift from India's current unrestricted import regime for IT hardware.
India has imposed an anti-dumping duty of up to USD 557 per tonne on the chemical Epichlorohydrin, primarily used in the adhesive industry, in a bid to protect domestic manufacturers from cheap imports.
The duty will apply to imports of the chemical from China, Korea, and Thailand for the next five years, as per a notification issued by the Department of Revenue. The imposition follows an investigation by the Directorate General of Trade Remedies (DGTR), which found that Epichlorohydrin was being sold at below-normal prices in the Indian market, causing harm to local producers.
India is taking a significant step to reduce its reliance on pharmaceutical imports, particularly from China, by inaugurating two greenfield plants under the Production Linked Incentive (PLI) scheme.
These facilities aim to produce key starting materials (KSM) and active pharmaceutical ingredients (API) domestically, marking a major push toward self-sufficiency in critical drug manufacturing. The two plants, launched last month, will focus on manufacturing Penicillin G, 6-APA (6-Aminopenicillanic acid), and Clavulanic Acid.
In a strategic move to bolster energy-efficient practices in the micro, small, and medium enterprise (MSME) sector, the Union Power Ministry is preparing to launch a new interest subvention scheme aimed at promoting advanced, eco-friendly technologies in smaller businesses.
According to insider sources, the initiative will provide a 5 per cent interest subsidy for small enterprises and a 10 per cent subsidy for medium enterprises under the Assistance in Deploying Energy Efficient Technologies in Industries & Establishment (ADEETIE) Scheme.
On October 29, 2024, the National Company Law Tribunal (NCLT) Mumbai upheld the initiation of the Corporate Insolvency Resolution Process (CIRP) against Perfect Infraengineers Limited ("Corporate Debtor").
The Tribunal dismissed the Corporate Debtor’s challenge to the July 15, 2024 order, ruling that the Insolvency and Bankruptcy Code (IBC) supersedes the provisions of the Micro, Small, and Medium Enterprises Development Act (MSMED Act) in cases of financial default, even for MSMEs.
In a significant move to enhance India's technical textiles capabilities, the government approved 12 new research projects worth Rs 13.3 crore under the National Technical Textiles Mission on Tuesday.
The approval came during the 10th Mission Steering Group meeting chaired by Union Textiles Minister Giriraj Singh. The newly approved projects focus on strategic areas including geotextiles, sustainable textiles, smart textiles, and composites. Leading research institutions, including IITs, NITs, and the Central Road Research Institute (CRRI), will spearhead these initiatives.
Karnataka has emerged as the leading state in India’s start-up ecosystem, recording a remarkable 18.2 per cent growth in start-ups over the past year.
The number of start-ups in the state rose from 2,568 in 2022 to 3,036 in 2023, according to a statement from M.B. Patil, Karnataka’s Minister for Large and Medium Industries and Infrastructure Development. This surge places Karnataka at the forefront nationally, now accounting for 8.7 per cent of the country’s start-ups — the highest share of any Indian state.
The Punjab government is set to implement a transformative Information Technology (IT) policy aimed at making Mohali the premier IT hub of North India, potentially creating around 55,000 new job opportunities.
Punjab Minister for Industry and Commerce, Tarunpreet Singh Sond, announced this ambitious plan during the 'Industry in Punjab: Challenges in Growth' session at the 'Vision Punjab 2047' event. Sond emphasised that the state’s business-friendly industrial policy and modern infrastructure have sparked significant interest from IT companies and delegations.
A comprehensive two-week induction programme for newly appointed Udyami Mitras (entrepreneur facilitators) launched on Monday at the Panchayati Raj Training Institute, marking a significant step in Uttar Pradesh's economic development strategy.
Chief Secretary Manoj Kumar Singh, addressing the inductees, highlighted UP's substantial economic potential, noting the state's 9.2 per cent contribution to India's GDP. He emphasised Chief Minister Yogi Adityanath's vision to advance the state's economy toward a USD 1 trillion benchmark, leveraging UP's position as India's most populous state.
Andhra Pradesh Finance Minister Payyavula Keshav presented the state's annual budget of Rs 2,94,427.25 crore for the fiscal year 2024-25 in the Assembly on Monday.
The budget outlines a revenue expenditure of Rs 2,35,916.99 crore and capital expenditure of Rs 32,712.84 crore. The state's financial blueprint projects a revenue deficit of Rs 34,743.38 crore, accounting for 2.12 percent of the Gross State Domestic Product (GSDP).
The fiscal deficit is estimated at Rs 68,742.65 crore, representing 4.19 percent of the GSDP.
At the second edition of the India-Japan Business Summit (IJBS) held in Bengaluru on November 14, Nakane Tsutomu, Consul General of Japan, announced that the Japanese government would invest a substantial 5 trillion yen (approximately USD 33 billion) in India through investments and loans over the next five years. This commitment marks a significant step in the deepening economic partnership between the two countries, which have mutually benefited from their collaboration over the last decade. The relationship between India and Japan has flourished in various sectors, ranging from infrastructure development to technology and industrial cooperation.
India and Kazakhstan convened a major business conference focused on electronics equipment and engineering goods at the Astana International Financial Centre on November 11.
The hybrid-format event drew participation from approximately 50 companies from both nations, featuring thematic sessions and expert presentations on electronics and engineering sectors. Indian Ambassador Dr. T.V. Nagendra Prasad, who delivered the keynote address, highlighted Kazakhstan's position as India's largest Central Asian trading partner, with bilateral trade reaching approximately USD 1 billion in 2023.
According to the FISME Factor, 30% of MSMEs think that the Diwali season has positively impacted their sales this year, while another 70% think it has not.
Strategic human resource management (SHRM) is a process that organizations use to manage their employees. It is a way to ensure that the organization’s HR are used in a way that supports the organization’s goals. Think of it as a bridge connecting human resources and the goals of the company.
Managing your small business's finances isn’t just about crunching numbers—it’s about making data-driven decisions that keep your business healthy and positioned for growth. The right accounting strategies can streamline cash flow management, optimize tax savings and bring a new level of efficiency to your daily operations.
Social media marketing has become a vital component to the market mix of many businesses–large and small. After all, there are 4.9 billion people who use social media platforms worldwide and so having a presence on social is a good way to connect with both current and potential customers alike. No matter your industry, social media is an effective way to reach your target audience, strengthen your brand, establish a loyal customer base and increase your revenue.
Tamil Nadu's small-scale industrialists have appealed to the Chief Minister for intervention regarding escalating electricity costs, with particular emphasis on fixed power charges affecting industrial units.
According to J James, President, Tamil Nadu Association of Cottage and Micro Enterprises (TACT), the state government's revision of fixed power charges in September 2022 has significantly impacted MSMEs.
Google.org, the philanthropic arm of tech giant Google, has announced a USD 1 million grant to Karya, a non-profit AI startup dedicated to providing employment opportunities in rural areas.
The funding will help Karya expand its mission of enhancing local AI models through data annotation jobs, while also supporting the development of a multilingual AI chatbot aimed at assisting digital workers across the Global South.
Shiprocket, India’s leading eCommerce enablement platform, has announced the launch of Shiprocket Copilot, an innovative AI-powered assistant aimed at transforming the way over 100,000 small and medium-sized enterprises (MSMEs) manage and expand their eCommerce businesses.
This virtual assistant is designed to streamline a range of tasks crucial to eCommerce sellers, from processing orders to tracking shipments and providing assistance on international shipping and billing queries.
