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President Message
Quality Control Orders (QCOs) are in vogue these days. While the world is in turmoil due to Trump tariffs, the fact is that tariffs long ceased to be the policy instrument of choice - to restrict imports. With emergence of WTO and tariff rates being bound, it has been non-tariff barriers in the form of standards that was used as a preferred policy by countries to control trade. Such standards could be related to environment, health, quality or sustainability. The list kept expanding and in a few markets it included issues such as fair wages, labour standards etc. India’s using QCOs has been described as a strategy to restrict ‘cheap imports’ meaning products having cheap price and poor quality. QCO requires a product to conform to a BIS standard. In theory both domestic and imported products are subjected to the same Standards as discrimination between foreign and domestic goods is not allowed under WTO’s National Treatment Principle. In practice, given paucity of staff at BIS, the flood of QCOs has become a classic licensing instrument -: time consuming, opaque and discretionary. Looking at QCOs as a powerful instrument to restrict imports, many monopoly producers have started misusing them. Once a QCO is imposed they could increase prices of such products. What started as a policy instrument to safeguard consumers, has now become a tool to restrict trade operations. Close to 700 QCOs have been issued restricting imports. A few QCOs cover products not even manufactured in India, such as special fasteners. It’s about time that this policy is reviewed, its process is made more transparent and stake holders are involved in the process. Without affecting these reforms the QCO frenzy will choke supply chains and impact both manufacturing and exports.
This article outlines a practical, low-cost framework for entrepreneurs to build and execute strategy fast — focusing on clarity, focus and action.
Strategic planning has long been treated as something complex, expensive and exclusive to large corporations. But for smart entrepreneurs, especially those just starting or scaling on limited budgets, strategy must be lean, agile and actionable. In my book O Empreendedor Smart, I dedicate a full section to strategy because I believe it is one of the pillars of building a sustainable and intelligent business.
Quality control orders (QCOs) for inputs are a “malign intervention” to restrict imports and lead to high costs for MSMEs, NITI Aayog Vice Chairperson Suman Bery said Tuesday. Bery’s remarks followed the release of a report on boosting India’s power and hand tool exports, which called for easing QCOs on steel and polymers to give manufacturers greater access to cheaper raw materials and make exports more competitive. “My understanding is that we are, unlike certain countries, so keen to be WTO (World Trade Organization) compliant, that we are looking for other ways to keep certain inputs out, and these quality control orders are the mechanisms we have arrived at,” Bery said at a media briefing.
The Department for Promotion of Industry and Internal Trade (DPIIT) has issued a clarification stating that Indian companies operating in sectors where Foreign Direct Investment (FDI) is prohibited can issue bonus shares to their existing non-resident shareholders, provided there is no change in the shareholding pattern. According to the clarification now inserted in the FDI policy, "An Indian company engaged in a sector/activity prohibited for FDI is permitted to issue bonus shares to its pre-existing non-resident shareholders provided that the shareholding pattern of the non-resident shareholder does not change pursuant to the issuance of bonus shares."
The government announced on Wednesday a prohibition on imports of certain types of screws priced below Rs 129 per kilogram, a strategic move aimed at strengthening domestic manufacturing capabilities.
According to the notification issued by the Directorate General of Foreign Trade (DGFT), the import policy for these specific screws has been changed from "free" to "prohibited," though imports will remain unrestricted for products with a CIF (cost, insurance, freight) value of Rs 129 or above per kilogram.
The United States has suspended additional tariffs on Indian goods for a period of 90 days, until July 9, 2025, as per an executive order issued by President Donald Trump. The move temporarily halts a 26 per cent import duty imposed on Indian exports under the April 2 Executive Order 14257, which had introduced steep reciprocal tariffs aimed at reducing the US trade deficit. The temporary relief, however, excludes China, Hong Kong, and Macau. A baseline 10 per cent tariff will continue to apply to all countries, including India.
Admitting that existing incentive schemes for local industries have not generated the desired interest, the Directorate of Industries, Trade and Commerce announced it is in the process of revamping its umbrella scheme. The goal is to make it more attractive, especially for women-driven enterprises and self-help groups (SHGs). At a buyer-seller meet organised by the Confederation of Indian Industry (CII) under the RAMP scheme, Industries Secretary Suneel Anchipaka said the state government is working with industry associations to understand gaps and revise the scheme accordingly.
The Calcutta High Court, through Justice Shampa Sarkar, has held that the MSE Facilitation Council acted in violation of natural justice by rejecting the supplier’s claim without allowing an opportunity to present evidence. The court ruled that the Council, upon failure of mediation under Section 18 of the MSMED Act, must either adjudicate the dispute or refer it to arbitration, but cannot summarily dismiss arbitrable claims. In UMC Technologies Pvt Ltd vs Assistant Director of Postal Services (Recruitment) [AP-COM/39/2024], the supplier challenged the Council’s rejection of its claim for 10 per cent of the contractual payment.
India commemorated a milestone on Tuesday as the Pradhan Mantri Mudra Yojana (PMMY) completed ten years since its inception. Launched on April 8, 2015, this flagship credit support program was designed to provide institutional financing to non-corporate, non-farm micro and small enterprises that traditionally lacked access to formal credit channels. Official data reveals the substantial impact of the initiative, with more than 52 crore loans sanctioned totaling Rs 32.61 lakh crore over the decade.
Federal Bank, a leading private sector bank in India, has introduced Fed StarBiz, a new business credit card tailored to meet the financial needs of SME customers.
This innovative card has been launched in collaboration with NPCI and Visa, reinforcing the bank’s commitment to supporting India's growing business ecosystem. Fed StarBiz marks Federal Bank’s entry into the business and commercial credit card segment, providing SME customers with enhanced financial flexibility and security.
The Andhra Pradesh government has approved the release of Rs 12,939 crore in subsidies to power distribution companies for the fiscal year 2025-26, providing financial support to various sectors including agriculture. The government has already disbursed Rs 4,470 crore for the first quarter, with plans to release the remaining amount in installments throughout the year. According to the Energy Minister Gottipati Ravi Kumar, Chief Minister Chandrababu Naidu has instructed officials to ensure timely payment of energy subsidy dues to distribution companies, aiming to maintain uninterrupted power supply to beneficiaries, with focus on the agricultural sector.
Karnataka’s government’s recent draft notification to revise the minimum wages for workers has caused a stir in the state’s manufacturing sector.
The proposed change, which aims to raise wages from the current range of Rs 12,000-21,000 to Rs 25,000-31,000 per month, depending on skill level, has been met with fierce opposition from industry leaders. Manufacturers, particularly in small and medium-sized enterprises (SMEs), have voiced their concern that the wage hike will cripple operations.
Prime Minister Modi inaugurated and laid the foundation stone for various development projects worth over Rs 3,880 crore in Varanasi, Uttar Pradesh. "In the last 10 years, the development of Varanasi has gained a new momentum," he remarked, adding that Kashi is no longer merely ancient but has become progressive and now occupies a central position on Purvanchal's economic landscape.
The Kerala state cabinet is currently reviewing a draft policy aimed at revitalising the plantation sector, based on key recommendations from a study conducted by IIM Calicut, said State Industries Minister P Rajeev.
Speaking at the inauguration of the new office of the Plantation Directorate under the Department of Industries and Commerce, Rajeev emphasised the significance of plantations to the state’s economy. He noted that Kerala is the first state to establish an exclusive directorate for the sector.
India and Germany have reinforced their long-standing collaboration in science and technology during a diplomatic engagement between Dr. Jitendra Singh, Union Minister of State, Science & Technology, and Dr. Markus Söder, Minister-President, German State of Bavaria. Dr. Singh emphasised the enduring Indo-German partnership in Science, Technology and Innovation (STI), highlighting potential areas for enhanced collaboration including Artificial Intelligence, Quantum Technologies, Biotechnology, Clean Energy, Electric Mobility, Cyber-Physical Systems, and Green Hydrogen.
President Droupadi Murmu has arrived in Bratislava for the final portion of her State Visit to Portugal and the Slovak Republic, marking the first visit by an Indian President to Slovakia in 29 years.
The President's delegation includes Minister of State Nimuben Bambhaniya and Members of Parliament Dhaval Patel and Sandhya Ray. President Murmu's official engagements began at the Presidential Palace, where Slovak President Peter Pellegrini welcomed her with a traditional Slovak ceremony featuring bread and salt presented by individuals in folk attire, followed by a formal Guard of Honour.
What in your opinion best serve the interests of MSMEs:
According to the FISME Factor, 100% of MSMEs believe that both a comprehensive bilateral trade agreement and a tariff deal with the US would best serve their interests.
As GenAI frees up time, organisations must rethink roles, skills, and the meaning of productivity. An analyst arrives at work to discover that overnight, artificial intelligence has completed her morning routine: dashboards updated, insights generated, weekly report drafted and polished. Tasks that once consumed half a day now require mere minutes.
How Businesses Can Lead the Fight Against Financial Instability
Financial systems are failing, and the global savings gap is growing. Here's how employers can make a difference. Picture this: A young couple working tirelessly to support their family, only to find themselves one unexpected medical bill away from financial ruin. Across the globe, stories like theirs are becoming alarmingly common as financial systems fail to keep pace with today's economic realities...
Brands, You're Using Marketing Agencies and Freelancers Wrong. Do This Instead.
Making these common mistakes with your marketing agencies and freelancers is costing your brand time and money. This is what to avoid and what to do instead. Your brand likely uses agencies and freelancers for things like Amazon, Shopify, graphic design, PPC, SEO, social media and conversion rate optimization. This is typically because you don't have the internal bandwidth or resources to bring these in-house.
FISME Flays Imposition Of Countervailing Duties Upto 10% On Copper Wire
The Directorate General of Trade Remedies (DGTR) has recommended countervailing duties ranging from 3.46 per cent to 10.27 per cent on copper wire imports from Vietnam, Thailand, Malaysia, and Indonesia.
If imposed by the Finance Ministry, these duties would impact the profit margins of electrical wire manufacturers who are the primary importers of this commodity.
Fixit Secures Government Investment to Bring AI to India’s Small Businesses
In a significant boost for grassroots tech innovation, Fixit, an agentic AI platform focused on micro, small, and medium enterprises (MSMEs), has received strategic funding from the Government of India. The investment, facilitated through iHub Anubhuti at IIIT-Delhi, marks a pivotal step toward accelerating AI adoption among India’s 65 million MSMEs.
Identixweb Shares Make Modest Gains In BSE SME Debut
Shares of web solutions company Identixweb made their market debut on the BSE SME platform Thursday, April 3, 2025, listing at Rs 55 per share, representing a gain of 1.8 percent over the issue price of Rs 54. The listing performance fell short of grey market expectations, where the company's shares had been trading at a premium of Rs 4 or 7.1 percent, reaching Rs 58 per share in unofficial markets prior to the official debut, according to sources tracking pre-listing activity.
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 February 2025 (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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Quality Control Orders (QCOs) are in vogue these days. While the world is in turmoil due to Trump tariffs, the fact is that tariffs long ceased to be the policy instrument of choice - to restrict imports. With emergence of WTO and tariff rates being bound, it has been non-tariff barriers in the form of standards that was used as a preferred policy by countries to control trade. Such standards could be related to environment, health, quality or sustainability. The list kept expanding and in a few markets it included issues such as fair wages, labour standards etc. India’s using QCOs has been described as a strategy to restrict ‘cheap imports’ meaning products having cheap price and poor quality. QCO requires a product to conform to a BIS standard. In theory both domestic and imported products are subjected to the same Standards as discrimination between foreign and domestic goods is not allowed under WTO’s National Treatment Principle. In practice, given paucity of staff at BIS, the flood of QCOs has become a classic licensing instrument -: time consuming, opaque and discretionary. Looking at QCOs as a powerful instrument to restrict imports, many monopoly producers have started misusing them. Once a QCO is imposed they could increase prices of such products. What started as a policy instrument to safeguard consumers, has now become a tool to restrict trade operations. Close to 700 QCOs have been issued restricting imports. A few QCOs cover products not even manufactured in India, such as special fasteners. It’s about time that this policy is reviewed, its process is made more transparent and stake holders are involved in the process. Without affecting these reforms the QCO frenzy will choke supply chains and impact both manufacturing and exports.
This article outlines a practical, low-cost framework for entrepreneurs to build and execute strategy fast — focusing on clarity, focus and action.
Strategic planning has long been treated as something complex, expensive and exclusive to large corporations. But for smart entrepreneurs, especially those just starting or scaling on limited budgets, strategy must be lean, agile and actionable. In my book O Empreendedor Smart, I dedicate a full section to strategy because I believe it is one of the pillars of building a sustainable and intelligent business.
The Department for Promotion of Industry and Internal Trade (DPIIT) has issued a clarification stating that Indian companies operating in sectors where Foreign Direct Investment (FDI) is prohibited can issue bonus shares to their existing non-resident shareholders, provided there is no change in the shareholding pattern. According to the clarification now inserted in the FDI policy, "An Indian company engaged in a sector/activity prohibited for FDI is permitted to issue bonus shares to its pre-existing non-resident shareholders provided that the shareholding pattern of the non-resident shareholder does not change pursuant to the issuance of bonus shares."
The government announced on Wednesday a prohibition on imports of certain types of screws priced below Rs 129 per kilogram, a strategic move aimed at strengthening domestic manufacturing capabilities.
According to the notification issued by the Directorate General of Foreign Trade (DGFT), the import policy for these specific screws has been changed from "free" to "prohibited," though imports will remain unrestricted for products with a CIF (cost, insurance, freight) value of Rs 129 or above per kilogram.
The United States has suspended additional tariffs on Indian goods for a period of 90 days, until July 9, 2025, as per an executive order issued by President Donald Trump. The move temporarily halts a 26 per cent import duty imposed on Indian exports under the April 2 Executive Order 14257, which had introduced steep reciprocal tariffs aimed at reducing the US trade deficit. The temporary relief, however, excludes China, Hong Kong, and Macau. A baseline 10 per cent tariff will continue to apply to all countries, including India.
Admitting that existing incentive schemes for local industries have not generated the desired interest, the Directorate of Industries, Trade and Commerce announced it is in the process of revamping its umbrella scheme. The goal is to make it more attractive, especially for women-driven enterprises and self-help groups (SHGs). At a buyer-seller meet organised by the Confederation of Indian Industry (CII) under the RAMP scheme, Industries Secretary Suneel Anchipaka said the state government is working with industry associations to understand gaps and revise the scheme accordingly.
The Calcutta High Court, through Justice Shampa Sarkar, has held that the MSE Facilitation Council acted in violation of natural justice by rejecting the supplier’s claim without allowing an opportunity to present evidence. The court ruled that the Council, upon failure of mediation under Section 18 of the MSMED Act, must either adjudicate the dispute or refer it to arbitration, but cannot summarily dismiss arbitrable claims. In UMC Technologies Pvt Ltd vs Assistant Director of Postal Services (Recruitment) [AP-COM/39/2024], the supplier challenged the Council’s rejection of its claim for 10 per cent of the contractual payment.
India commemorated a milestone on Tuesday as the Pradhan Mantri Mudra Yojana (PMMY) completed ten years since its inception. Launched on April 8, 2015, this flagship credit support program was designed to provide institutional financing to non-corporate, non-farm micro and small enterprises that traditionally lacked access to formal credit channels. Official data reveals the substantial impact of the initiative, with more than 52 crore loans sanctioned totaling Rs 32.61 lakh crore over the decade.
Federal Bank, a leading private sector bank in India, has introduced Fed StarBiz, a new business credit card tailored to meet the financial needs of SME customers.
This innovative card has been launched in collaboration with NPCI and Visa, reinforcing the bank’s commitment to supporting India's growing business ecosystem. Fed StarBiz marks Federal Bank’s entry into the business and commercial credit card segment, providing SME customers with enhanced financial flexibility and security.
The Andhra Pradesh government has approved the release of Rs 12,939 crore in subsidies to power distribution companies for the fiscal year 2025-26, providing financial support to various sectors including agriculture. The government has already disbursed Rs 4,470 crore for the first quarter, with plans to release the remaining amount in installments throughout the year. According to the Energy Minister Gottipati Ravi Kumar, Chief Minister Chandrababu Naidu has instructed officials to ensure timely payment of energy subsidy dues to distribution companies, aiming to maintain uninterrupted power supply to beneficiaries, with focus on the agricultural sector.
Karnataka’s government’s recent draft notification to revise the minimum wages for workers has caused a stir in the state’s manufacturing sector.
The proposed change, which aims to raise wages from the current range of Rs 12,000-21,000 to Rs 25,000-31,000 per month, depending on skill level, has been met with fierce opposition from industry leaders. Manufacturers, particularly in small and medium-sized enterprises (SMEs), have voiced their concern that the wage hike will cripple operations.
Prime Minister Modi inaugurated and laid the foundation stone for various development projects worth over Rs 3,880 crore in Varanasi, Uttar Pradesh. "In the last 10 years, the development of Varanasi has gained a new momentum," he remarked, adding that Kashi is no longer merely ancient but has become progressive and now occupies a central position on Purvanchal's economic landscape.
The Kerala state cabinet is currently reviewing a draft policy aimed at revitalising the plantation sector, based on key recommendations from a study conducted by IIM Calicut, said State Industries Minister P Rajeev.
Speaking at the inauguration of the new office of the Plantation Directorate under the Department of Industries and Commerce, Rajeev emphasised the significance of plantations to the state’s economy. He noted that Kerala is the first state to establish an exclusive directorate for the sector.
India and Germany have reinforced their long-standing collaboration in science and technology during a diplomatic engagement between Dr. Jitendra Singh, Union Minister of State, Science & Technology, and Dr. Markus Söder, Minister-President, German State of Bavaria. Dr. Singh emphasised the enduring Indo-German partnership in Science, Technology and Innovation (STI), highlighting potential areas for enhanced collaboration including Artificial Intelligence, Quantum Technologies, Biotechnology, Clean Energy, Electric Mobility, Cyber-Physical Systems, and Green Hydrogen.
President Droupadi Murmu has arrived in Bratislava for the final portion of her State Visit to Portugal and the Slovak Republic, marking the first visit by an Indian President to Slovakia in 29 years.
The President's delegation includes Minister of State Nimuben Bambhaniya and Members of Parliament Dhaval Patel and Sandhya Ray. President Murmu's official engagements began at the Presidential Palace, where Slovak President Peter Pellegrini welcomed her with a traditional Slovak ceremony featuring bread and salt presented by individuals in folk attire, followed by a formal Guard of Honour.
According to the FISME Factor, 100% of MSMEs believe that both a comprehensive bilateral trade agreement and a tariff deal with the US would best serve their interests.
As GenAI frees up time, organisations must rethink roles, skills, and the meaning of productivity. An analyst arrives at work to discover that overnight, artificial intelligence has completed her morning routine: dashboards updated, insights generated, weekly report drafted and polished. Tasks that once consumed half a day now require mere minutes.
Financial systems are failing, and the global savings gap is growing. Here's how employers can make a difference. Picture this: A young couple working tirelessly to support their family, only to find themselves one unexpected medical bill away from financial ruin. Across the globe, stories like theirs are becoming alarmingly common as financial systems fail to keep pace with today's economic realities...
Making these common mistakes with your marketing agencies and freelancers is costing your brand time and money. This is what to avoid and what to do instead. Your brand likely uses agencies and freelancers for things like Amazon, Shopify, graphic design, PPC, SEO, social media and conversion rate optimization. This is typically because you don't have the internal bandwidth or resources to bring these in-house.
The Directorate General of Trade Remedies (DGTR) has recommended countervailing duties ranging from 3.46 per cent to 10.27 per cent on copper wire imports from Vietnam, Thailand, Malaysia, and Indonesia.
If imposed by the Finance Ministry, these duties would impact the profit margins of electrical wire manufacturers who are the primary importers of this commodity.
In a significant boost for grassroots tech innovation, Fixit, an agentic AI platform focused on micro, small, and medium enterprises (MSMEs), has received strategic funding from the Government of India. The investment, facilitated through iHub Anubhuti at IIIT-Delhi, marks a pivotal step toward accelerating AI adoption among India’s 65 million MSMEs.
Shares of web solutions company Identixweb made their market debut on the BSE SME platform Thursday, April 3, 2025, listing at Rs 55 per share, representing a gain of 1.8 percent over the issue price of Rs 54. The listing performance fell short of grey market expectations, where the company's shares had been trading at a premium of Rs 4 or 7.1 percent, reaching Rs 58 per share in unofficial markets prior to the official debut, according to sources tracking pre-listing activity.
