If you are unable to view this mailer, click here.
President Message
In the run up to the Budget, I had the privilege to lead a delegation to our Chief Economic Advisor recently. One of the critical issues we flagged was on the impact of Protectionist Measures on MSMEs. A combination of non-tariff barriers such as Quality Control Orders - QCOs and tariff barriers such as higher import duties, anti-dumping duties, safeguard duties on critical raw materials like steel, copper, aluminum, and polymers et al are creating an uncompetitive environment for Indian industries, particularly MSMEs. These measures, while seemingly aimed at protecting domestic producers, have unintended and detrimental consequences. The protections approach has resulted increased production costs, reduced efficiency and profitability. MSMEs using such raw material have become uncompetitive in global markets, limiting their export potential and hindering their growth and development. We emphasized to the Government that a less competitive and dynamic MSME sector will have limited capacity for job creation, hindering India's employment growth. Therefore, we stressed the need to institutionalize policy formulation like imposing safeguard duties. Secondly, the impact of proposed measures must be analyzed by institutions of repute like IIMs or IIFT before imposition of any new tariff and non-tariff barrier especially on raw material. Thirdly, MSMEs and user industry must be consulted and their views factored in the final response. Finally, a Group of Ministers should approve it so that bar is raised for such decisions. Let’s hope that the government would take steps to stall misuse of such measures.
In the run up to the union budget 2025-26 FISME delegation met Chief Economic Advisor Mr V. Anantha Nageswaran in North Block and held detailed discussions on key issues raised by FISME. The delegation was led by President Sh Sandeep K Jain and accompanied by Past Presidents Sh Dinesh Singhal and Neeraj Kedia and Secretary General Anil Bhardwaj.
A Strategy Meeting was convened the Federation of Indian Micro and Small & Medium Enterprises (FISME), the Korean SME Association in India (KOSMA), and the Korea SMEs and Startups Agency (KOSME) to explore Joint Ventures, B2B collaboration, and manpower exchange. The discussions aimed to strengthen India-Korea SME ties. FISME emphasized its commitment to supporting Korean SMEs operating in India, fostering a strong partnership for mutual growth and success in the SME sector. A set of initiatives were identified during the meeting. The Korean delegation included Mr. J.K. Lee, Director of KOSME; Mr. S.H. Park, Chairman of KOSMA; Mr. D.S. Park, Vice-Chairman of KOSMA; and other esteemed representatives such as Mr. Richard Sohn, Secretary General of KOSMA, and Directors Mr. Y.M. Park, Mr. James Hong, Ms. Inhee Ji, and Mr. S.J. Kang. The Indian delegation comprised of Mr. S.K. Jain, President of FISME. Representing FISME were Dr. Animesh Saxena, Past President; Mr. Anil Bhardwaj, Secretary General; Mr. Mayank Gaur, Joint Secretary; and Mr. Archit Tripathi, Deputy Director.
Astaggering 90% of organizations fail to execute their strategies successfully. Let that sink in — nine out of ten businesses struggle to turn their big plans into tangible results. Why does this happen? Imagine this scenario: you've crafted a bold vision, set ambitious goals and rallied your team around a common purpose. Yet, somewhere along the way, things go off track. Deadlines are missed, priorities shift, and the outcomes you envisioned feel increasingly out of reach.
In the middle of India’s growing although debatable economic influence, the micro, small and medium enterprises (MSME) sector has long been hailed as the engine of the economy, contributing approximately 30 per cent to gross domestic product (GDP) and employing millions in a nation where unemployment crisis reaching to new heights. Yet, as the world enters 2025, this crucial sector finds itself navigating a perfect storm of challenges— delayed payments, mounting debt, lack of access to credit and rising costs of raw materials.
In a significant move to ensure greater accountability, the Central Board of Indirect Taxes and Customs (CBIC) has issued new guidelines requiring GST officials to provide a clear and written basis for arrests under the GST Act.
These directives were issued on Monday in compliance with a Delhi High Court order in the case of Khritij Chhiliar v. GST Directorate General of Intelligence, Delhi. According to the revised guidelines, officials are now obligated to inform the accused about the specific grounds of arrest and issue a written arrest memo.
India's Commerce Ministry has launched a comprehensive update to its export policy framework, marking a significant shift in how trade conditions are documented and communicated.
The Directorate General of Foreign Trade (DGFT) announced on Monday that the new policy now explicitly details conditions for all export items, streamlining the process for businesses engaged in international trade. The revised framework, officially titled 'Schedule-II (Export Policy)' and aligned with the Finance Act 2024, represents a departure from previous practices where specific conditions were only outlined for restricted goods or those under special regulations.
India's industrial production recorded its strongest performance in six months this November, with manufacturing leading the expansion amid favorable base effects.
According to data released by the National Statistical Office on Friday, the Index of Industrial Production grew by 5.2 percent, surpassing October's upwardly revised 3.7 percent and the previous November's 2.5 percent. The manufacturing sector demonstrated remarkable resilience, posting a 5.8 percent increase in November, significantly higher than both the 1.3 percent recorded in the same month last year and October's 4.4 percent growth.
The government is poised to introduce a new credit guarantee scheme for Micro, Small, and Medium Enterprises (MSMEs) in the upcoming Budget, focusing specifically on boosting capital investments in the manufacturing sector.
The initiative, first announced in July, will be modeled after the successful Emergency Credit Line Guarantee Scheme (ECLGS) but with expanded coverage allowing guarantees of up to Rs 100 crore per beneficiary.
In a significant move to streamline operations for Micro, Small, and Medium Enterprises (MSMEs), the Government of India has officially recognised Udyam Registration Certificates (URCs) accessed through DigiLocker as legally valid.
This initiative, detailed in a circular from the Ministry of Micro, Small, and Medium Enterprises dated January 1, 2025, aims to enhance the ease of doing business for MSMEs while promoting digital integration. The decision follows numerous requests from various stakeholders seeking clarity on the acceptance of digital URCs.
The government is developing a new framework for revival and rehabilitation of struggling micro, small, and medium enterprises (MSMEs), aimed at simplifying the loan restructuring process.
The updated framework, dubbed FRR 2.0, will replace the existing 2015-16 guidelines that cover MSMEs with debt up to Rs 25 crore. The initiative comes as MSMEs continue to face challenges in securing and repaying loans, despite their significant contribution to the economy.
The Reserve Bank of India announced on Friday that banks must offer fixed interest rate options for all personal loans that are based on equated installments, introducing a significant change in lending practices.
This requirement applies to all equated installment-based personal loans, regardless of whether the interest rate is tied to external or internal benchmarks. The central bank has outlined comprehensive disclosure requirements, mandating that banks must clearly communicate the annualised interest rate and annual percentage rate at the time of loan sanction through both the Key Fact Statement and loan agreement.
The Mahakumbh 2025 in Prayagraj, Uttar Pradesh, is not just a spiritual spectacle but also an economic powerhouse.
With an investment of Rs 7,500 crore by the government, the 45-day mega event is projected to generate a staggering Rs 2 lakh crore in revenue, underscoring its transformative economic impact. Prime Minister Narendra Modi, addressing a gathering in Prayagraj on December 13, hailed the Mahakumbh as a ‘mahayagya of unity’, emphasizing its dual role in fostering social cohesion and economic empowerment.
In a landmark move towards making India a global semiconductor hub, Indichip Semiconductors Limited, in collaboration with Japan-based Yitoa Micro Technology Limited (YMTL), has signed a Memorandum of Understanding (MoU) with the Andhra Pradesh government to establish India’s first private semiconductor manufacturing facility.
The ambitious project, with an investment of over Rs 14,000 crores, marks a significant leap in the country’s technological journey.
The Kerala state government has invested Rs 21,838 crore in enterprises established under its Year of Enterprises programme, Industries Minister P Rajeeve announced during the recent Mission 1,000 conference.
The minister highlighted that the state's new industrial policy initiatives have strengthened Kerala's global standing, with 340,202 enterprises launched since 2022-23, creating 721,000 jobs.
Infrastructure to 16th Finance Commission
Goa’s private sector presented a forward-looking vision to the 16th Finance Commission, urging reforms that could boost the state’s economic landscape. Industry leaders and associations brought a wide array of recommendations, ranging from easing regulatory frameworks to bolstering critical infrastructure. “To attract investments and promote regulatory reforms, the Goa Chamber of Commerce and Industry (GCCI) recommends integrating ease of doing business as a key criterion for fund allocation,” stated GCCI President Shrinivas Dempo, reported TOI.
India and Oman commenced their fifth round of negotiations for a Comprehensive Economic Partnership Agreement (CEPA) on January 13, marking another step forward in their bilateral trade relations.
According to an official, The two-day discussions follow the formal initiation of trade agreement talks in November 2023, reflecting both nations' commitment to strengthening their economic ties. Oman holds a strategic position as India's third-largest export destination among Gulf Cooperation Council countries.
According to the Global Trade Research Institute (GTRI), the proposed agreement could substantially benefit Indian exports, particularly in sectors such as gasoline, iron and steel, electronics, and machinery, with potential gains estimated at USD 3.7 billion.
In a significant development for Indo-Nepali economic relations, the India-Nepal Inter-Governmental Committee (IGC) on Trade, Transit, and Cooperation to Combat Unauthorised Trade convened in Kathmandu on January 10-11, 2025.
The Indian delegation was led by Commerce Secretary Sunil Barthwal, while Nepal's Ministry of Industry, Commerce and Supplies Secretary Gobinda Bahadur Karkee headed the host nation's team. The high-level meeting conducted a thorough review of bilateral trade and economic relationships, addressing crucial aspects including market access, intellectual property rights, and duty-related matters.
What should the government prioritize for export-oriented MSMEs?
According to the FISME Factor, 100% of MSMEs believe that the government should prioritize enhanced export financing support, tax incentives for exporters and simplified procedures for export loans for export-oriented MSMEs.
The ‘big purpose’ trap: Why small wins matter more at work
The modern workplace has developed a peculiar obsession with purpose. Not content with merely earning a living, employees are increasingly expected to find profound meaning, create world-changing impact, and achieve something extraordinary in their careers. Corporate mission statements trumpet transformative ambitions, while job advertisements promise the chance to ‘make a difference’ or ‘change the world’.
20 Tips To Better Manage Business Finances In Unpredictable Times
Across industries, businesses continue to be impacted by high interest rates and inflation. These factors not only directly impact entrepreneurs by raising the cost of doing business at unpredictable rates but customers are also affected by increased costs across the board, causing them to become much more selective about where, how and when they spend their money.
Trying to Reach a Multi-Generational Audience? Here Are the 3 Elements Your Marketing Strategy Must Include.
Reaching multiple generations doesn't have to be a challenge. Learn how to craft a unified, data-driven marketing strategy that combines personalization, multi-channel reach and timeless techniques to connect with audiences spanning Boomers to Gen Z and beyond.
Crafting a successful marketing strategy can be quite challenging for a startup or entrepreneur.
MSMEs In Himachal Pradesh Hassled By Unrealistic Fire Regulations
Small and medium-scale industries in Himachal Pradesh's Baddi-Barotiwala-Nalagarh (BBN) industrial area are facing significant challenges in obtaining Fire Department clearances due to stringent safety requirements, highlighting a conflict between regulatory compliance and practical constraints.
The current regulations mandate the construction of large underground water tanks and installation of diesel-operated water motors, requirements that many existing units find difficult to implement.
Sunsure Energy Secures Rs 416 Cr For Maharashtra Solar Park Project
Sunsure Energy has obtained Rs 416.35 crore in long-term debt financing from Aseem Infrastructure Finance Limited to develop a 150 MWp open-access solar park in Solapur, Maharashtra.
The first phase of the facility is already operational, delivering clean energy to major industrial consumers in the state, with complete commissioning anticipated by March 2025.
Avax Apparels Debuts On Stock Market With 90 pc Premium On BSE SME
Avax Apparels and Ornaments Ltd, a Delhi-based wholesaler of knitted fabric and silver ornaments, made a remarkable stock market debut on January 14.
The shares were listed at Rs 133 on the BSE SME platform, representing a 90 percent premium over its initial public offering (IPO) price of Rs 70. The successful listing has propelled the company's market valuation to Rs 14.51 crore.
The Ministry of Statistics and Programme Implementation (MoSPI) has released the Quick Estimates of Index of Industrial Production (IIP) are released on 12th of every month (or previous working day if 12th is a holiday) with a six weeks lag and compiled with data received from source agencies, which in turn receive the data from the producing factories/ establishments
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.
send mail to: newsletter@fisme.org.in
You are receiving this Newsletter because you are included in our mailing list of recipients who are involved or interested in FISME or Indian MSMEs. You are welcome to partly or fully reproduce and disseminate the contents of this publication provided that you acknowledge the source.
In the run up to the Budget, I had the privilege to lead a delegation to our Chief Economic Advisor recently. One of the critical issues we flagged was on the impact of Protectionist Measures on MSMEs. A combination of non-tariff barriers such as Quality Control Orders - QCOs and tariff barriers such as higher import duties, anti-dumping duties, safeguard duties on critical raw materials like steel, copper, aluminum, and polymers et al are creating an uncompetitive environment for Indian industries, particularly MSMEs. These measures, while seemingly aimed at protecting domestic producers, have unintended and detrimental consequences. The protections approach has resulted increased production costs, reduced efficiency and profitability. MSMEs using such raw material have become uncompetitive in global markets, limiting their export potential and hindering their growth and development. We emphasized to the Government that a less competitive and dynamic MSME sector will have limited capacity for job creation, hindering India's employment growth. Therefore, we stressed the need to institutionalize policy formulation like imposing safeguard duties. Secondly, the impact of proposed measures must be analyzed by institutions of repute like IIMs or IIFT before imposition of any new tariff and non-tariff barrier especially on raw material. Thirdly, MSMEs and user industry must be consulted and their views factored in the final response. Finally, a Group of Ministers should approve it so that bar is raised for such decisions. Let’s hope that the government would take steps to stall misuse of such measures.
In the run up to the union budget 2025-26 FISME delegation met Chief Economic Advisor Mr V. Anantha Nageswaran in North Block and held detailed discussions on key issues raised by FISME. The delegation was led by President Sh Sandeep K Jain and accompanied by Past Presidents Sh Dinesh Singhal and Neeraj Kedia and Secretary General Anil Bhardwaj.
A Strategy Meeting was convened the Federation of Indian Micro and Small & Medium Enterprises (FISME), the Korean SME Association in India (KOSMA), and the Korea SMEs and Startups Agency (KOSME) to explore Joint Ventures, B2B collaboration, and manpower exchange. The discussions aimed to strengthen India-Korea SME ties. FISME emphasized its commitment to supporting Korean SMEs operating in India, fostering a strong partnership for mutual growth and success in the SME sector. A set of initiatives were identified during the meeting. The Korean delegation included Mr. J.K. Lee, Director of KOSME; Mr. S.H. Park, Chairman of KOSMA; Mr. D.S. Park, Vice-Chairman of KOSMA; and other esteemed representatives such as Mr. Richard Sohn, Secretary General of KOSMA, and Directors Mr. Y.M. Park, Mr. James Hong, Ms. Inhee Ji, and Mr. S.J. Kang. The Indian delegation comprised of Mr. S.K. Jain, President of FISME. Representing FISME were Dr. Animesh Saxena, Past President; Mr. Anil Bhardwaj, Secretary General; Mr. Mayank Gaur, Joint Secretary; and Mr. Archit Tripathi, Deputy Director.
In a significant move to ensure greater accountability, the Central Board of Indirect Taxes and Customs (CBIC) has issued new guidelines requiring GST officials to provide a clear and written basis for arrests under the GST Act.
These directives were issued on Monday in compliance with a Delhi High Court order in the case of Khritij Chhiliar v. GST Directorate General of Intelligence, Delhi. According to the revised guidelines, officials are now obligated to inform the accused about the specific grounds of arrest and issue a written arrest memo.
India's Commerce Ministry has launched a comprehensive update to its export policy framework, marking a significant shift in how trade conditions are documented and communicated.
The Directorate General of Foreign Trade (DGFT) announced on Monday that the new policy now explicitly details conditions for all export items, streamlining the process for businesses engaged in international trade. The revised framework, officially titled 'Schedule-II (Export Policy)' and aligned with the Finance Act 2024, represents a departure from previous practices where specific conditions were only outlined for restricted goods or those under special regulations.
India's industrial production recorded its strongest performance in six months this November, with manufacturing leading the expansion amid favorable base effects.
According to data released by the National Statistical Office on Friday, the Index of Industrial Production grew by 5.2 percent, surpassing October's upwardly revised 3.7 percent and the previous November's 2.5 percent. The manufacturing sector demonstrated remarkable resilience, posting a 5.8 percent increase in November, significantly higher than both the 1.3 percent recorded in the same month last year and October's 4.4 percent growth.
The government is poised to introduce a new credit guarantee scheme for Micro, Small, and Medium Enterprises (MSMEs) in the upcoming Budget, focusing specifically on boosting capital investments in the manufacturing sector.
The initiative, first announced in July, will be modeled after the successful Emergency Credit Line Guarantee Scheme (ECLGS) but with expanded coverage allowing guarantees of up to Rs 100 crore per beneficiary.
In a significant move to streamline operations for Micro, Small, and Medium Enterprises (MSMEs), the Government of India has officially recognised Udyam Registration Certificates (URCs) accessed through DigiLocker as legally valid.
This initiative, detailed in a circular from the Ministry of Micro, Small, and Medium Enterprises dated January 1, 2025, aims to enhance the ease of doing business for MSMEs while promoting digital integration. The decision follows numerous requests from various stakeholders seeking clarity on the acceptance of digital URCs.
The government is developing a new framework for revival and rehabilitation of struggling micro, small, and medium enterprises (MSMEs), aimed at simplifying the loan restructuring process.
The updated framework, dubbed FRR 2.0, will replace the existing 2015-16 guidelines that cover MSMEs with debt up to Rs 25 crore. The initiative comes as MSMEs continue to face challenges in securing and repaying loans, despite their significant contribution to the economy.
The Reserve Bank of India announced on Friday that banks must offer fixed interest rate options for all personal loans that are based on equated installments, introducing a significant change in lending practices.
This requirement applies to all equated installment-based personal loans, regardless of whether the interest rate is tied to external or internal benchmarks. The central bank has outlined comprehensive disclosure requirements, mandating that banks must clearly communicate the annualised interest rate and annual percentage rate at the time of loan sanction through both the Key Fact Statement and loan agreement.
The Mahakumbh 2025 in Prayagraj, Uttar Pradesh, is not just a spiritual spectacle but also an economic powerhouse.
With an investment of Rs 7,500 crore by the government, the 45-day mega event is projected to generate a staggering Rs 2 lakh crore in revenue, underscoring its transformative economic impact. Prime Minister Narendra Modi, addressing a gathering in Prayagraj on December 13, hailed the Mahakumbh as a ‘mahayagya of unity’, emphasizing its dual role in fostering social cohesion and economic empowerment.
In a landmark move towards making India a global semiconductor hub, Indichip Semiconductors Limited, in collaboration with Japan-based Yitoa Micro Technology Limited (YMTL), has signed a Memorandum of Understanding (MoU) with the Andhra Pradesh government to establish India’s first private semiconductor manufacturing facility.
The ambitious project, with an investment of over Rs 14,000 crores, marks a significant leap in the country’s technological journey.
The Kerala state government has invested Rs 21,838 crore in enterprises established under its Year of Enterprises programme, Industries Minister P Rajeeve announced during the recent Mission 1,000 conference.
The minister highlighted that the state's new industrial policy initiatives have strengthened Kerala's global standing, with 340,202 enterprises launched since 2022-23, creating 721,000 jobs.
Infrastructure to 16th Finance Commission
Goa’s private sector presented a forward-looking vision to the 16th Finance Commission, urging reforms that could boost the state’s economic landscape. Industry leaders and associations brought a wide array of recommendations, ranging from easing regulatory frameworks to bolstering critical infrastructure. “To attract investments and promote regulatory reforms, the Goa Chamber of Commerce and Industry (GCCI) recommends integrating ease of doing business as a key criterion for fund allocation,” stated GCCI President Shrinivas Dempo, reported TOI.
India and Oman commenced their fifth round of negotiations for a Comprehensive Economic Partnership Agreement (CEPA) on January 13, marking another step forward in their bilateral trade relations.
According to an official, The two-day discussions follow the formal initiation of trade agreement talks in November 2023, reflecting both nations' commitment to strengthening their economic ties. Oman holds a strategic position as India's third-largest export destination among Gulf Cooperation Council countries.
According to the Global Trade Research Institute (GTRI), the proposed agreement could substantially benefit Indian exports, particularly in sectors such as gasoline, iron and steel, electronics, and machinery, with potential gains estimated at USD 3.7 billion.
In a significant development for Indo-Nepali economic relations, the India-Nepal Inter-Governmental Committee (IGC) on Trade, Transit, and Cooperation to Combat Unauthorised Trade convened in Kathmandu on January 10-11, 2025.
The Indian delegation was led by Commerce Secretary Sunil Barthwal, while Nepal's Ministry of Industry, Commerce and Supplies Secretary Gobinda Bahadur Karkee headed the host nation's team. The high-level meeting conducted a thorough review of bilateral trade and economic relationships, addressing crucial aspects including market access, intellectual property rights, and duty-related matters.
According to the FISME Factor, 100% of MSMEs believe that the government should prioritize enhanced export financing support, tax incentives for exporters and simplified procedures for export loans for export-oriented MSMEs.
The modern workplace has developed a peculiar obsession with purpose. Not content with merely earning a living, employees are increasingly expected to find profound meaning, create world-changing impact, and achieve something extraordinary in their careers. Corporate mission statements trumpet transformative ambitions, while job advertisements promise the chance to ‘make a difference’ or ‘change the world’.
Across industries, businesses continue to be impacted by high interest rates and inflation. These factors not only directly impact entrepreneurs by raising the cost of doing business at unpredictable rates but customers are also affected by increased costs across the board, causing them to become much more selective about where, how and when they spend their money.
Reaching multiple generations doesn't have to be a challenge. Learn how to craft a unified, data-driven marketing strategy that combines personalization, multi-channel reach and timeless techniques to connect with audiences spanning Boomers to Gen Z and beyond.
Crafting a successful marketing strategy can be quite challenging for a startup or entrepreneur.
Small and medium-scale industries in Himachal Pradesh's Baddi-Barotiwala-Nalagarh (BBN) industrial area are facing significant challenges in obtaining Fire Department clearances due to stringent safety requirements, highlighting a conflict between regulatory compliance and practical constraints.
The current regulations mandate the construction of large underground water tanks and installation of diesel-operated water motors, requirements that many existing units find difficult to implement.
.jpg)
Sunsure Energy has obtained Rs 416.35 crore in long-term debt financing from Aseem Infrastructure Finance Limited to develop a 150 MWp open-access solar park in Solapur, Maharashtra.
The first phase of the facility is already operational, delivering clean energy to major industrial consumers in the state, with complete commissioning anticipated by March 2025.
Avax Apparels and Ornaments Ltd, a Delhi-based wholesaler of knitted fabric and silver ornaments, made a remarkable stock market debut on January 14.
The shares were listed at Rs 133 on the BSE SME platform, representing a 90 percent premium over its initial public offering (IPO) price of Rs 70. The successful listing has propelled the company's market valuation to Rs 14.51 crore.
