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President Message
The Union Budget 2025-26 presented by Hon’ble Finance Minister on 1st Feb 2025 creates a balance and a push necessary for sustaining economic growth. At the outset, as pointed out by FISME’s official communiqué post budget (see ‘Writing on the wall’), her giving relief in Income Tax to middle class is a definitive step to induce economy wide demand. Therefore, the fears of slow down, are largely laid to rest. On MSMEs specifically, we are thankful for acceding to our request on MSME definition (even accepting the thresholds we suggested). She has tried to improve access to finance for all segments of MSMEs: Micro units by giving them Credit Card with Rs. 5 lac limit and Small and Medium segment by doubling collateral free loan size cover from Rs. 5 crore to Rs. 10 crore under CGTMSE. While continuing with large social welfare schemes and capital expenditure in infrastructure and housing, the budget is remarkably balanced and not inflationary. Such fiscal discipline is credit worthy. However, FM’s not acknowledging the impact of protectionist policies and addressing them has been a dampener. What FISME particularly appreciates is the intent for executing pending reforms. The three initiatives announced viz. National Manufacturing Mission, Export Mission, and High level Committee for Regulatory Reforms will cover wide areas needing reforms, especially in the States. In fact, this is the agenda for Second generation Reforms that industry is awaiting. For MSMEs and their associations this is the best opportunity to raise issues that are hindering in their growth.
The Federation of Indian Micro and Small & Medium Enterprises (FISME) took part in the program ‘Insight into the Practical Perspective of Intellectual Property Rights and Commercialization,’ organized by the Danida Fellowship Centre and Copenhagen Business School from January 20 to February 1, 2025. Representing FISME, Mr. Mayank Gaur, Joint Secretary and Mr. R.P. Singh, Director (Policy) attended the two-week training program in Copenhagen, Denmark.
Start-ups are the biggest force behind the world's economy and founders are the base. The more agile founders become, the more relevant they stay to the real conditions and the situation—start-ups become fundamentally strong. With every passing day, new businesses are emerging in every sector and each striving to make a mark in the industry.
The Union Budget presented by Finance Minister Nirmala Sitharaman has provided a booster dose of consumption through relief in personal income tax.
The new income tax threshold will leave over one lakh crore in the hands of the middle class for discretionary spending. In spite of record allocation of capital investment in infrastructure during the last budget, the economic growth was seen spluttering in 2023-24. Therefore, a demand to boost consumption has been growing from all quarters. Besides social welfare measures, the key Budget provisions focus on the following areas: Agriculture, MSMEs, Investments, Manufacturing and Exports and Innovation & Technology.
Finance Minister Nirmala Sitharaman announced significant trade policy reforms during her Union Budget 2025 presentation, introducing measures to increase exports across handicrafts, leather, marine products, and railway maintenance sectors.
The comprehensive package aims to enhance India's global competitiveness and strengthen domestic value addition capabilities. In a notable development for the handicraft industry, the government has extended the export time period from six months to one year, with an additional three-month extension available if necessary.
In the Union Budget 2025-26, Finance Minister Nirmala Sitharaman announced several measures aimed at simplifying the customs process and promoting ease of doing business.
Currently, the Customs Act of 1962 does not specify a time limit for finalizing provisional assessments, which has led to uncertainty and increased costs for trade. To address this, the Finance Minister proposed the introduction of a time limit of two years for finalizing provisional assessments, with the option of extending it by one additional year.
In the Union Budget 2025-26, Finance Minister Nirmala Sitharaman announced a significant policy change for the insurance sector.
The foreign direct investment (FDI) limit for insurance companies will be increased from 74 percent to 100 percent. This enhanced limit will be applicable to companies that commit to investing the entire premium within India.
Additionally, the government plans to review and simplify the existing guardrails and conditionalities related to foreign investment in the sector, aiming to further ease investment processes and foster growth in the industry.
Finance Minister Nirmala Sitharaman has announced a series of strategic initiatives aimed at bolstering India's export capabilities and manufacturing sector during the presentation of the first comprehensive budget under Prime Minister Narendra Modi's third term.
The centerpiece of these measures is the establishment of an Export Promotion Mission, which will be jointly managed by the Ministries of Commerce, MSME, and Finance, designed to streamline export processes and enhance international trade competitiveness.
Finance Minister Nirmala Sitharaman announced a significant overhaul of India's regulatory framework during her budget speech, emphasising the government's commitment to enhancing the ease of doing business in both financial and non-financial sectors.
In a move aimed at modernising India's business environment, the Finance Minister revealed plans to establish a High-Level Committee for Regulatory Reforms. This committee will be tasked with conducting a comprehensive review of regulations across the non-financial sector, including certifications, licenses, and permissions.
The government has approved the Mutual Credit Guarantee Scheme (MCGS) for Micro, Small & Medium Enterprises (MSMEs). The announcement comes just days before the Union Budget 2025, fulfilling a commitment made in the previous fiscal year's budget presentation.
The scheme introduces substantial support for manufacturing MSMEs, offering 60 percent guarantee coverage on loans up to Rs 100 crore specifically designated for acquiring plant, machinery, and equipment.
The Union Cabinet, under Prime Minister Narendra Modi's chairmanship, has approved the National Critical Mineral Mission, a comprehensive initiative designed to establish India's self-reliance in critical minerals essential for the renewable energy sector.
The mission, announced with a combined investment of Rs 34,300 crore, including Rs 16,300 crore in government expenditure and Rs 18,000 crore from state-owned companies and private investors, aligns with the Critical Mineral Mission outlined in the Union Budget 2024-25.
In her 8th consecutive budget for the financial year 2025-26, Finance Minister Nirmala Sitharaman announced the establishment of a National Institute of Food Technology in Bihar.
The institute aims to support entrepreneurship, foster development, and enhance farmers' income through innovation in food processing technologies. The initiative will foster innovation in the food industry and contribute significantly to Bihar's economic growth.
In her speech, Sitharaman also stressed the need for additional infrastructure development at IITs that were established after 2014.
A century-old wooden toy-making tradition in Andhra Pradesh's Settigunta and Lakshmigaripalle villages is seeking government recognition and support to ensure its preservation.
The artisans, renowned for their intricate Raja-Rani dolls, are advocating for assistance similar to that provided to Etikoppaka toys, another celebrated cultural symbol of the state. The Andhra Pradesh MSME Development Corporation has taken a significant step by designating the region as a Raja-Rani Dolls Cluster.
The Karnataka state cabinet has approved a landmark ordinance that would make aggressive loan recovery practices by microfinance companies and non-banking financial institutions a non-bailable offense.
The measure comes in response to a wave of reported suicides and harassment incidents across the state, allegedly stemming from aggressive debt collection methods employed by these financial institutions. Chief Minister Siddaramaiah announced the measure following a cabinet meeting on Thursday, emphasising the government's commitment to protecting borrowers from predatory practices.
The Odisha state cabinet has approved a customised incentive package for RIR Power Electronics Limited to establish India's first silicon carbide (SiC) semiconductor manufacturing facility.
The project represents a significant investment of Rs 618.60 crore and will be located in the Electronic Manufacturing Cluster Park in Infovalley. Chief Minister Mohan Charan Majhi announced an increase in the incentive package from 30 to 50 percent, totaling Rs 110 crore to be paid in two phases.
Union Minister of Commerce and Industry, Piyush Goyal, completed a significant two-day diplomatic visit to the Sultanate of Oman on January 28, 2025, marking substantial progress in bilateral economic relations between the two nations.
The centrepiece of the visit was the 11th Session of the India-Oman Joint Commission Meeting (JCM), which Goyal co-chaired with Oman's Minister of Commerce, Industry, and Investment Promotion, H.E. Qais bin Mohammed Al Yousef, focusing on strengthening cooperation across various sectors including trade, investment, and renewable energy.
Indian Commerce and Industry Minister Piyush Goyal and Belgian Foreign Affairs Minister Bernard Quintin met in Brussels today for discussions centred on enhancing bilateral trade and investment relations.
The meeting built upon the two nations' established partnership, which is founded on shared democratic values, rule of law, and judicial independence. Bilateral trade between India and Belgium reached USD 15.07 billion in 2023-2024, with Belgian Foreign Direct Investment in India surpassing USD 3.94 billion.
What measures should the government prioritize to support MSMEs in 2025? *
According to the FISME Factor, 40% of MSMEs believe that the government should prioritize expanding credit guarantee schemes, while 40% support offering tax incentives for compliance. Meanwhile, 20% expect the government to ensure that inputs are available adequately and competitively.
The corporate hiring trap: Why good candidates keep slipping away
Modern recruitment remains stubbornly antiquated, costing firms their best prospects.
Picture an art gallery hiring painters based solely on their ability to follow a paint-by-numbers template, or an athletics team selecting sprinters through written examinations. Absurd as these scenarios sound, they mirror how many corporations assess talent today. The result? A recruiting process that systematically drives away the very people companies most wish to hire.
4 Financial Strategies To Maximize Small Business Value
If you're thinking about selling your small business, preparation is key to maximizing its value. Just like preparing a house for sale, your business needs to be in its best financial shape to attract potential buyers and command the highest possible price. This article outlines 4 financial strategies to maximize small business value before putting it on the market. These practical strategies will not only make your business more attractive to buyers but also increase its selling price significantly.
How to Build a Strong Brand Identity for Your Early-Stage Startup
Working on your big startup idea, securing finance and finding those first core team members are all time-consuming tasks. Branding and marketing may not be the first things on your mind, but neglecting them could be devastating for a new company. On the other hand, building a strong brand identity for your early-stage startup could lay the foundations of a successful marketing strategy.
High Import Duties On Cotton Dragging Textile Sector Growth; Need Export Incentives & PLI
The textile sector, a key pillar of India’s economy, faces critical challenges, including high customs duties on cotton imports, rampant under-invoicing of knitted fabric imports, and the need for extended export incentives and broader PLI (Production-Linked Incentive) coverage.
The industry, which contributes approximately 4 per cent to the nation’s GDP, 13 per cent to industrial production, and 8 per cent to merchandise exports, also employs around 4.5 crore people directly.
How Cusmat's immersive skilling platform is driving productivity and efficiency among blue-collared workers
As the manufacturing sector in India and globally continues to grow, the need for a skilled workforce has become more crucial than ever. A well-trained workforce ensures operational reliability, thus minimising errors and downtime in critical processes. Bengaluru-based skilling startup Cusmat is trying to ensure this by helping the industrial workforce—especially blue-collared workers—understand their jobs better and upskill themselves through cutting-edge technologies.
CLN Energy’s IPO Sees Strong Demand, Lists At 2.4 pc Premium On BSE SME
CLN Energy, a lithium ion battery manufacturer, made its market debut on the BSE SME platform today, with shares listing at Rs 256, reflecting a 2.4 percent premium over the initial public offering price of Rs 250.
The stock demonstrated immediate strength, surging to its upper circuit limit of Rs 268.80, marking a 5 percent increase from its listing price.
The Ministry of Statistics and Programme Implementation (MoSPI) has released the
Annual Survey of Unincorporated Sector Enterprises (ASUSE) Results for 2023-24 (Reference & Survey period: October 2023 to September 2024)
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 Union Budget 2025-26 presented by Hon’ble Finance Minister on 1st Feb 2025 creates a balance and a push necessary for sustaining economic growth. At the outset, as pointed out by FISME’s official communiqué post budget (see ‘Writing on the wall’), her giving relief in Income Tax to middle class is a definitive step to induce economy wide demand. Therefore, the fears of slow down, are largely laid to rest. On MSMEs specifically, we are thankful for acceding to our request on MSME definition (even accepting the thresholds we suggested). She has tried to improve access to finance for all segments of MSMEs: Micro units by giving them Credit Card with Rs. 5 lac limit and Small and Medium segment by doubling collateral free loan size cover from Rs. 5 crore to Rs. 10 crore under CGTMSE. While continuing with large social welfare schemes and capital expenditure in infrastructure and housing, the budget is remarkably balanced and not inflationary. Such fiscal discipline is credit worthy. However, FM’s not acknowledging the impact of protectionist policies and addressing them has been a dampener. What FISME particularly appreciates is the intent for executing pending reforms. The three initiatives announced viz. National Manufacturing Mission, Export Mission, and High level Committee for Regulatory Reforms will cover wide areas needing reforms, especially in the States. In fact, this is the agenda for Second generation Reforms that industry is awaiting. For MSMEs and their associations this is the best opportunity to raise issues that are hindering in their growth.
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The Federation of Indian Micro and Small & Medium Enterprises (FISME) took part in the program ‘Insight into the Practical Perspective of Intellectual Property Rights and Commercialization,’ organized by the Danida Fellowship Centre and Copenhagen Business School from January 20 to February 1, 2025. Representing FISME, Mr. Mayank Gaur, Joint Secretary and Mr. R.P. Singh, Director (Policy) attended the two-week training program in Copenhagen, Denmark.
Start-ups are the biggest force behind the world's economy and founders are the base. The more agile founders become, the more relevant they stay to the real conditions and the situation—start-ups become fundamentally strong. With every passing day, new businesses are emerging in every sector and each striving to make a mark in the industry.
Finance Minister Nirmala Sitharaman announced significant trade policy reforms during her Union Budget 2025 presentation, introducing measures to increase exports across handicrafts, leather, marine products, and railway maintenance sectors.
The comprehensive package aims to enhance India's global competitiveness and strengthen domestic value addition capabilities. In a notable development for the handicraft industry, the government has extended the export time period from six months to one year, with an additional three-month extension available if necessary.
In the Union Budget 2025-26, Finance Minister Nirmala Sitharaman announced several measures aimed at simplifying the customs process and promoting ease of doing business.
Currently, the Customs Act of 1962 does not specify a time limit for finalizing provisional assessments, which has led to uncertainty and increased costs for trade. To address this, the Finance Minister proposed the introduction of a time limit of two years for finalizing provisional assessments, with the option of extending it by one additional year.
In the Union Budget 2025-26, Finance Minister Nirmala Sitharaman announced a significant policy change for the insurance sector.
The foreign direct investment (FDI) limit for insurance companies will be increased from 74 percent to 100 percent. This enhanced limit will be applicable to companies that commit to investing the entire premium within India.
Additionally, the government plans to review and simplify the existing guardrails and conditionalities related to foreign investment in the sector, aiming to further ease investment processes and foster growth in the industry.
Finance Minister Nirmala Sitharaman has announced a series of strategic initiatives aimed at bolstering India's export capabilities and manufacturing sector during the presentation of the first comprehensive budget under Prime Minister Narendra Modi's third term.
The centerpiece of these measures is the establishment of an Export Promotion Mission, which will be jointly managed by the Ministries of Commerce, MSME, and Finance, designed to streamline export processes and enhance international trade competitiveness.
Finance Minister Nirmala Sitharaman announced a significant overhaul of India's regulatory framework during her budget speech, emphasising the government's commitment to enhancing the ease of doing business in both financial and non-financial sectors.
In a move aimed at modernising India's business environment, the Finance Minister revealed plans to establish a High-Level Committee for Regulatory Reforms. This committee will be tasked with conducting a comprehensive review of regulations across the non-financial sector, including certifications, licenses, and permissions.
The government has approved the Mutual Credit Guarantee Scheme (MCGS) for Micro, Small & Medium Enterprises (MSMEs). The announcement comes just days before the Union Budget 2025, fulfilling a commitment made in the previous fiscal year's budget presentation.
The scheme introduces substantial support for manufacturing MSMEs, offering 60 percent guarantee coverage on loans up to Rs 100 crore specifically designated for acquiring plant, machinery, and equipment.
The Union Cabinet, under Prime Minister Narendra Modi's chairmanship, has approved the National Critical Mineral Mission, a comprehensive initiative designed to establish India's self-reliance in critical minerals essential for the renewable energy sector.
The mission, announced with a combined investment of Rs 34,300 crore, including Rs 16,300 crore in government expenditure and Rs 18,000 crore from state-owned companies and private investors, aligns with the Critical Mineral Mission outlined in the Union Budget 2024-25.
In her 8th consecutive budget for the financial year 2025-26, Finance Minister Nirmala Sitharaman announced the establishment of a National Institute of Food Technology in Bihar.
The institute aims to support entrepreneurship, foster development, and enhance farmers' income through innovation in food processing technologies. The initiative will foster innovation in the food industry and contribute significantly to Bihar's economic growth.
In her speech, Sitharaman also stressed the need for additional infrastructure development at IITs that were established after 2014.
A century-old wooden toy-making tradition in Andhra Pradesh's Settigunta and Lakshmigaripalle villages is seeking government recognition and support to ensure its preservation.
The artisans, renowned for their intricate Raja-Rani dolls, are advocating for assistance similar to that provided to Etikoppaka toys, another celebrated cultural symbol of the state. The Andhra Pradesh MSME Development Corporation has taken a significant step by designating the region as a Raja-Rani Dolls Cluster.
The Karnataka state cabinet has approved a landmark ordinance that would make aggressive loan recovery practices by microfinance companies and non-banking financial institutions a non-bailable offense.
The measure comes in response to a wave of reported suicides and harassment incidents across the state, allegedly stemming from aggressive debt collection methods employed by these financial institutions. Chief Minister Siddaramaiah announced the measure following a cabinet meeting on Thursday, emphasising the government's commitment to protecting borrowers from predatory practices.
The Odisha state cabinet has approved a customised incentive package for RIR Power Electronics Limited to establish India's first silicon carbide (SiC) semiconductor manufacturing facility.
The project represents a significant investment of Rs 618.60 crore and will be located in the Electronic Manufacturing Cluster Park in Infovalley. Chief Minister Mohan Charan Majhi announced an increase in the incentive package from 30 to 50 percent, totaling Rs 110 crore to be paid in two phases.
Union Minister of Commerce and Industry, Piyush Goyal, completed a significant two-day diplomatic visit to the Sultanate of Oman on January 28, 2025, marking substantial progress in bilateral economic relations between the two nations.
The centrepiece of the visit was the 11th Session of the India-Oman Joint Commission Meeting (JCM), which Goyal co-chaired with Oman's Minister of Commerce, Industry, and Investment Promotion, H.E. Qais bin Mohammed Al Yousef, focusing on strengthening cooperation across various sectors including trade, investment, and renewable energy.
Indian Commerce and Industry Minister Piyush Goyal and Belgian Foreign Affairs Minister Bernard Quintin met in Brussels today for discussions centred on enhancing bilateral trade and investment relations.
The meeting built upon the two nations' established partnership, which is founded on shared democratic values, rule of law, and judicial independence. Bilateral trade between India and Belgium reached USD 15.07 billion in 2023-2024, with Belgian Foreign Direct Investment in India surpassing USD 3.94 billion.
According to the FISME Factor, 40% of MSMEs believe that the government should prioritize expanding credit guarantee schemes, while 40% support offering tax incentives for compliance. Meanwhile, 20% expect the government to ensure that inputs are available adequately and competitively.
Modern recruitment remains stubbornly antiquated, costing firms their best prospects.
Picture an art gallery hiring painters based solely on their ability to follow a paint-by-numbers template, or an athletics team selecting sprinters through written examinations. Absurd as these scenarios sound, they mirror how many corporations assess talent today. The result? A recruiting process that systematically drives away the very people companies most wish to hire.
If you're thinking about selling your small business, preparation is key to maximizing its value. Just like preparing a house for sale, your business needs to be in its best financial shape to attract potential buyers and command the highest possible price. This article outlines 4 financial strategies to maximize small business value before putting it on the market. These practical strategies will not only make your business more attractive to buyers but also increase its selling price significantly.
Working on your big startup idea, securing finance and finding those first core team members are all time-consuming tasks. Branding and marketing may not be the first things on your mind, but neglecting them could be devastating for a new company. On the other hand, building a strong brand identity for your early-stage startup could lay the foundations of a successful marketing strategy.
The textile sector, a key pillar of India’s economy, faces critical challenges, including high customs duties on cotton imports, rampant under-invoicing of knitted fabric imports, and the need for extended export incentives and broader PLI (Production-Linked Incentive) coverage.
The industry, which contributes approximately 4 per cent to the nation’s GDP, 13 per cent to industrial production, and 8 per cent to merchandise exports, also employs around 4.5 crore people directly.
As the manufacturing sector in India and globally continues to grow, the need for a skilled workforce has become more crucial than ever. A well-trained workforce ensures operational reliability, thus minimising errors and downtime in critical processes. Bengaluru-based skilling startup Cusmat is trying to ensure this by helping the industrial workforce—especially blue-collared workers—understand their jobs better and upskill themselves through cutting-edge technologies.
CLN Energy, a lithium ion battery manufacturer, made its market debut on the BSE SME platform today, with shares listing at Rs 256, reflecting a 2.4 percent premium over the initial public offering price of Rs 250.
The stock demonstrated immediate strength, surging to its upper circuit limit of Rs 268.80, marking a 5 percent increase from its listing price.
“ Life is like riding a bicycle. To keep your balance, you must keep moving. ”
