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  The FISME Factor  

 

President Message
Sandeep K JainMSMEs often face significant challenges in accessing formal credit due to lengthy approval processes and reliance on traditional collateral. These barriers limit their growth potential and financial inclusion. As MSME representatives we have been concerned and have voiced them at various fora Frictionless credit by Unified Lending Interface (ULI) announced by RBI offers a solution by streamlining the lending process through consent-based digital information sharing. This enables faster credit appraisals and cash flow-based lending. It allows MSMEs to secure financing more efficiently. This is especially important for those in distant rural areas, helping them thrive and compete with their urban cousins. For larger SMEs, I am pleased to share that our Centre of Excellence for Aspiring SMEs in collaboration with IFCI, has expanded its services to include advanced financial tools and strategic partnerships. The centre will strengthen SMEs’ access to capital via external public equity (SME IPO) and open doors for both domestic & global partnerships, ensuring their sustainable growth. “Friends of MSME in Parliament” a group of members of the parliament have also extended their full support to this center I hope these initiatives will significantly empower MSMEs by improving access to essential capital and supporting their sustainable growth and success.
Sandeep K Jain
President, FISME
Vol XIII, Issue 308: Sep 1, 2024
Activities
Centre of Excellence for SMEs Expands Services with New Financial Tools and Global Partnerships
NASSCOM & FISME Kickstart Campaign For AI Awareness Among MSMEs
Business Banter: Lessons from Entrepreneurs
Why culture is the mediator for all things business
Macro Metre
India's Electronics Sector Emerges as Fifth Largest Export Commodity
India Recommends Anti-Dumping Duty on Chinese Aluminum Foil
Domestic Digest
Ethanol Manufacturers Face New Rice Procurement Rules With Lifting Of Ban On Sugarcane-Based Production Knowledge and News Network (KNN)
Cabinet Approves 12 New Cities With Plug & Play Infrastructure Across Multiple States
Vehicle Manufacturers Announce Discounts to Promote Scrapping Ahead of Festive Season
State Scan
Odisha CM Launches Initiative To Transform State Into Economic Powerhouse Knowledge and News Network (KNN)
UP Govt Expands ODOP Scheme with New Flipkart Warehouses in Unnao and Varanasi
Telangana Govt Launches Initiative To Support Youth Employment And MSME Growth
World Watch
India-Oman FTA Nears Completion: Indian Ambassador
Digitalisation, Skills, Sustainability & Healthcare Dominate 2nd India-Singapore Ministerial
Knowledge Store
Forcas Studio Shares Surge 90% On NSE SME Debut
...And A Lot More

Activities

Centre of Excellence for SMEs Expands Services with New Financial Tools and Global Partnerships

IFCI Limited (IFCI) and the Federation of Indian Micro and Small & Medium Enterprises (FISME) have expanded their initiative to support the growth of Small and Medium Enterprises (SMEs) in India with the newly enhanced Centre of Excellence for Aspiring SMEs. Launched in February, this Centre is now introducing additional resources to aid SMEs in their growth journey. The event, which featured distinguished speakers including Rahul Bhave, SK Jain, Anil Bhardwaj, Sumit Saxena, Sachin Sharma (CEO of GEM Enviro Management), Rajendra Agrawal, Priyanka Chaturvedi, Dong Sung Pak, and Sanjeev Ahuja, marked a significant milestone in the Centre’s mission to support and grow India's SME sector.

NASSCOM & FISME Kickstart Campaign For AI Awareness Among MSMEs

In a landmark event, National Seminar on Artificial Intelligence (AI) for Micro, Small, and Medium Enterprises (MSMEs) was held on Tuesday in New Delhi. This seminar, jointly organised by the Federation of Indian Micro and Small & Medium Enterprises (FISME) and the National Association of Software and Service Companies (NASSCOM), marked a significant step towards empowering MSMEs with AI technologies. This seminar aimed to bridge that gap, highlighting how MSMEs can leverage AI to boost performance and innovation across various areas of their businesses—from financial management to sales, marketing, human capital management, and product development.


Business Banter: Lessons from Entrepreneurs

Why culture is the mediator for all things business

It is important to recognise that strategy, staffing, execution, systems, and innovation can all fail within a poor culture. Conversely, a great culture systematically resolves issues and drives growth. A paradigm shift occurs when our understanding of a phenomenon changes radically, often by altering some fundamental assumption. This shift can lead to significant advancements in the field, as seen when Copernicus proposed that the Earth revolves around the sun.
Writing on the Wall

Frictionless credit, next big bet

According to World Bank, a staggering 92% of SMEs lack access to formal lines of credit. It estimates this credit gap at around $300 bn. The AA framework was made possible after the rollout of Aadhaar in 2009. Together with another layer of payments and personal data, this led to the 'India Stack' - a DPI pioneered by India that allows private or public entities to build innovations on top of these public digital rails. Last week, Shaktikanta Das announced that RBI is poised to roll out its next major financial innovation, a technology platform that enables 'frictionless credit'....

Media Monitor

Macro Metre

India's Electronics Sector Emerges as Fifth Largest Export Commodity

In a significant development for India's technology sector, electronics has become the country's fifth largest export commodity, according to a senior official from the Ministry of Electronics and Information Technology (MeitY). The sector has been experiencing robust growth, with exports increasing at an annual rate of 23 percent. Bhuvnesh Kumar, Additional Secretary at MeitY, revealed that the electronics manufacturing industry in India surpassed the USD 100 billion market threshold in March 2024, more than doubling from USD 49 billion in 2017.

India Recommends Anti-Dumping Duty on Chinese Aluminum Foil

In a move aimed at protecting domestic industry, India's Directorate General of Trade Remedies (DGTR) has recommended imposing anti-dumping duties on aluminum foil imports from China. This decision comes after an investigation revealed that Chinese imports had captured a significant 30% of the Indian market, despite sufficient domestic production capacity. The inquiry was initiated following a request from Hindalco, one of India's leading aluminum manufacturers, along with other domestic producers including Shyam Sel & Power Ltd, Venkateshwara Electrocast Pvt. Ltd, and Ravi Raj Foils Ltd.

Record-Breaking Growth In India's Rooftop Solar Capacity Surges, 26% Year-Over-Year Rise In H1 2024

In a significant milestone for India's renewable energy sector, the country has achieved its highest-ever rooftop solar installations in the first half of 2024, according to the latest Q2 2024 India Rooftop Solar Market Report by Mercom India. The report reveals a surge in installations, driven largely by government initiatives and growing consumer interest. India added 1.1 gigawatts (GW) of rooftop solar capacity in H1 2024, marking a 26 per cent year-over-year increase from 873 MW in H1 2023. This record-breaking performance underscores the rapidly growing adoption of solar energy in the country's residential and commercial sectors.

Domestic Digest

Ethanol Manufacturers Face New Rice Procurement Rules With Lifting Of Ban On Sugarcane-Based Production

In a significant policy overhaul, the Government of India has announced the discontinuation of the subsidized rice supply to ethanol manufacturers at Rs 20 per kilogram. Instead, ethanol producers will now purchase rice at rates determined through weekly auctions. This shift comes with a cap on the quantity of rice allocated from the Food Corporation of India (FCI) for ethanol production, set at 23 lakh tonnes (lt) until October 31. This new directive also includes a policy reversal regarding ethanol production from sugarcane.

Cabinet Approves 12 New Cities With Plug & Play Infrastructure Across Multiple States

In a significant move to boost India's industrial landscape, the Cabinet Committee on Economic Affairs has given the green light for the development of 12 new industrial cities across multiple states. This ambitious project, with a total investment of Rs 28,600 crore, is set to transform the country's manufacturing sector and create substantial employment opportunities. The initiative, aimed at providing plug-and-play infrastructure for industries, will see the largest development near Dighi port in Maharashtra, spanning an impressive 6,000 acres. This timing is particularly noteworthy as Maharashtra heads into election season.

Vehicle Manufacturers Announce Discounts to Promote Scrapping Ahead of Festive Season

In a move aimed at advancing fleet modernisation and fostering a circular economy, several leading passenger and commercial vehicle manufacturers have agreed to offer substantial discounts on new vehicle purchases when old vehicles are scrapped. This announcement follows a significant meeting led by Union Road Transport and Highways Minister Nitin Gadkari at Bharat Mandapam. The new discount scheme is designed to incentivise vehicle owners to dispose of their outdated vehicles and opt for newer, more efficient models.

IBBI Proposes Amendment to Boost MSME Participation in Insolvency Resolution

The Insolvency and Bankruptcy Board of India (IBBI) has put forward a significant amendment to corporate insolvency regulations, specifically targeting support for micro, small, and medium enterprises (MSMEs). This move comes as part of ongoing efforts to streamline the insolvency resolution process and create a more inclusive environment for smaller businesses. The proposed change would require corporate debtors to disclose their MSME status at the outset of the resolution process. This disclosure is expected to have far-reaching implications for the insolvency landscape in India.
State Scan

Odisha    

Odisha CM Launches Initiative To Transform State Into Economic Powerhouse

In a significant move towards economic development, Odisha's Chief Minister Mohan Charan Majhi announced on Friday the commencement of a process to transform the state into a developed region and a key driver of India's growth. This initiative aligns with Prime Minister Narendra Modi's vision of 'Purvodaya' or the rise of eastern India. Speaking at the inauguration of Resurgent Odisha-2024, a three-day global trade show organized by the Utkal Chamber of Commerce and Industry Limited (UCCIL), Chief Minister Majhi emphasized the crucial role of small-scale industries and MSMEs in Odisha's economy.

Uttar Pradesh    

UP Govt Expands ODOP Scheme with New Flipkart Warehouses in Unnao and Varanasi

Uttar Pradesh Chief Minister Yogi Adityanath virtually inaugurated two new Flipkart warehouses in Unnao and Varanasi on Friday, marking a significant step in the state's e-commerce expansion and promotion of the Centre's One District One Product (ODOP) scheme. During the event at Lok Bhavan, Adityanath emphasised the crucial role of e-commerce platforms in enhancing the state's packaging and export capabilities.

Telangana    

Telangana Govt Launches Initiative To Support Youth Employment And MSME Growth

Industries Minister D Sridhar Babu announced a comprehensive plan to equip approximately 50,000 young individuals with skills aimed at securing employment opportunities globally and fostering entrepreneurship, on Wednesday. The minister emphasised the government's commitment to youth employment, stating that efforts are being made to align skill development with market demands. This initiative is designed to enable youth to seize opportunities not only within Telangana but across India, as well as to establish their own enterprises.

Nagaland    

Chief Minister Rio Launches RAMP Initiative In Nagaland To Strengthen MSME Growth

Chief Minister Neiphiu Rio inaugurated the Raising and Accelerating MSME Performance (RAMP) scheme, a World Bank-supported central sector initiative of the Government of India, at the Nagaland Legislative Assembly Secretariat in Kohima, on Tuesday. The launch ceremony was attended by all legislators of the 14th Nagaland Legislative Assembly. The RAMP scheme aims to address critical areas essential for strengthening the Micro, Small, and Medium Enterprises (MSME) sector in the state
World Watch

Oman    

India-Oman FTA Nears Completion: Indian Ambassador

Negotiations for the Comprehensive Economic Partnership Agreement (CEPA) between India and Oman have reached an advanced stage, according to Indian Ambassador to Oman Amit Narang. In a statement on Tuesday, Ambassador Narang expressed optimism about the early conclusion of the proposed free trade agreement. The CEPA is anticipated to significantly enhance bilateral trade and investment relations between the two nations. Once implemented, the agreement is expected to eliminate duties on various Indian exports to Oman, potentially benefiting several key sectors.
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Singapore    

Digitalisation, Skills, Sustainability & Healthcare Dominate 2nd India-Singapore Ministerial

The 2nd India-Singapore Ministerial Roundtable (ISMR) held on August 26, 2024, in Singapore, marked a significant milestone in the bilateral relationship between the two nations. This high-level meeting reviewed progress since their inaugural roundtable in September 2022 and explored new avenues for collaboration. The roundtable focused on assessing advancements in key areas: Digitalisation, Skills Development, Sustainability, and Healthcare & Medicine.
Read More    Back to Top
FISME’s official Twitter handle
@fisme
Knowledge and News Network (KNN)
KNN India’s official Twitter handle
@knnindia
Anil Bhardwaj, Secretary General
@abhardwaj_fisme
Other Events

Kolkata Handloom Haat 2024

Date: 05 - 09 Sep 2024
Venue: Haldiram Banquet, Kolkata
See Details

electronica India 2024

Date: 11 - 13 Sep 2024
Venue: Expo Mart Greater Noida, Greater Noida
See Details

Everything About Water Expo 2024

Date: 10 - 12 Sep 2024
Venue: Yashobhoomi, New Delhi
See Details

Media Expo Delhi - International Exhibition on Indoor & Outdoor Advertising and Signage Solutions 2024

Date: 12 - 14 Sep 2024
Venue: Pragati Maidan, New Delhi
See Details

TexIndia 2024

Date: 12 - 14 Sep 2024
Venue: India Knit Fair Complex, Tiruppur
See Details

Garfab - TX Surat 2024

Date: 13 - 15 Sep 2024
Venue: Surat International Exhibition and Convention Centre, Surat
See Details

IndExpo Hyderabad 2024

Date: 13 - 15 Sep 2024
Venue: Hitex Exhibition Center, Hyderabad
See Details

Sutraa - The Indian Fashion Exhibition 2024

Date: 14 - 15 Sep 2024
Venue: Sayaji Hotel indore, Indore
See Details
Your Views

In India's march towards Viksit Bharat (Developed India), from MSME perspective, in which areas reforms are needed the most:

According to the FISME factor, 66.7% of MSMEs think that financial sector reforms are needed the most in India’s march towards Viksit Bharat, while 33.3% think governance reforms are needed.
Knowledge Store

HR Heuristics

Building a skills-first culture: A strategic imperative for future-ready organisations

Companies today are increasingly recognising the need to adopt a skills-first culture to stay competitive and adaptable. Why? Because this approach prioritises the acquisition and development of specific skills over traditional qualifications and rigid job roles. By focusing on practical skills, organisations not only broaden their talent pool but also enhance their flexibility, allowing employees to engage in diverse tasks and projects.

Finance Fundamentals

Financial Literacy for Small Business Owners: Key Strategy for Success

Financial literacy is a critical skill for skill for small business owners. It lays the foundation for informed decision-making and effective financial management. Whether you’re just starting your business or looking to grow, understanding key financial concepts is essential. In this article, we’ll explore the importance of financial literacy and provide practical strategies to enhance.

Marketing Mantras

How To Start Marketing A Small Business

Several months ago, we discussed a report from Constant Contact, Small Business Now: The Current State of SMB Marketing, showing that small business owners were struggling to market their products and services and how 73% of them weren’t confident their current marketing strategies were helping them grow their companies. While that initial article highlighted the marketing challenges business owners were facing, it didn’t offer many solutions.

Policy Polemic

Gujarat's Chemical Exports Decline Due to Strict Pollution Rules

Gujarat, India's leading chemicals manufacturer and exporter, is facing a significant challenge as compliance with hazardous waste regulations has led to an 8.20 per cent decline in exports for 2023-24. The state's chemicals sector, which accounts for 58 per cent of India's chemical exports, saw its export value drop by USD 2.9 billion, contributing to the country's overall decline of USD 3.3 billion.

SME Special

Finarkein Secures USD 4.75 Mn In Pre-Series A Funding Round

In a significant development for India's financial technology sector, Finarkein, a business-to-business software as a service company, has announced the successful completion of a USD 4.75 million pre-series A funding round. The investment was led by Nexus Venture Partners, with participation from existing investors IIFL's Fintech Fund and Eximius Ventures, as well as individual investors including Nitin Gupta of Uni and Chirag Jain of Ashika Group.

Success Story

Forcas Studio Shares Surge 90% On NSE SME Debut

Forcas Studio, a prominent menswear manufacturer, made a strong debut on the National Stock Exchange's Small and Medium Enterprise (NSE SME) platform on Monday. The company's shares opened at Rs 152, marking a significant 90 per cent premium over the initial public offering (IPO) price of Rs 80 per share. The IPO, consisting of a fresh equity issue of 46.8 lakh shares, garnered substantial investor interest, with overall subscription reaching over 400 times at the close of the offering.

Stockpile

The National Statistical Office (NSO), Ministry of Statistics and Programme Implementation (MoSPI) has released the Periodic Labour Force Survey (PLFS) – Quarterly Bulletin [April – June 2024].

Quotable Quotes

“The two most powerful warriors are patience and time. ”
– - Lev Tolstoy-Russian Author
 
Country Chronicles
 
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:
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Editorial Team:
Hon. Editor: Anil Bhardwaj
Asstt. Editor: Kalpana Sharma
Types setting & websdesigning: Sanjay Sachan  

 

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