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President Message
The Micro and Small Enterprises face enormous challenges on multiple fronts owing to their small size. One major area of their concern remains access to finance. Over the years a slew of measures have been taken by the Government to facilitate lending to MSMEs. The Priority Sector Lending targets and Credit Guarantees under CGTMSE, enabled MSMEs acquire loans without collateral securities. RBI facilitated a Code for MSEs to be adopted by Banks, promising a standard in service to MSE borrowers, including a clause that Pre-payment charges may not be levied on loans to MSEs on floating rate. However, in practice, most banks continued to levy foreclosure or pre-payment charges to the tune of 4% of loan amount. The threat, bound MSME borrowers with the existing bank and made them bear their shoddy services.
The practice has been both anti-competitive as well as unfair. Hundreds of cases were reported to FISME, where banks- private and public alike, pressed for foreclosure charges. FISME raised these issues vociferously at all platforms. We raised them to RBI, DFS and even to Parliamentary Standing Committee on Finance. I myself pleaded the cases before officials in DFS.
Eventually, RBI issued a circular forbidding these charges. Howeveras in bureaucratic jargon, the text is still left ambiguous. So we are getting it examined, and if found open to interpretation, will continue our struggle to completely do away with pre-payment charges on MSME loans.
FISME organized an expert workshop in New Delhi on 9th July, addressing key challenges in digital advertising for MSMEs. The event focused on enhancing transparency, data reliability, and ROI. It brought together MSMEs, advertising professionals and industry leaders to deliberate on the growing challenges faced by small businesses in the rapidly evolving digital advertising space. The workshop concluded with a unified call for greater industry collaboration, transparent market practices, and focused capacity-building efforts to enable MSMEs to harness the full potential of digital advertising in India’s expanding digital economy.
FISME signed an MoU with the Bureau of Energy Efficiency (BEE) on July 15 2025. The agreement aims to implement the ADEETIE scheme, promoting energy-efficient technologies among MSMEs. The MoU was signed by R P Singh, Policy Director, FISME and Akash Tripathi, Additional Secretary & Director General, BEE. As a technical partner, FISME will conduct awareness drives, support capacity-building, and facilitate energy audits. The scheme offers interest subvention, technical assistance, and detailed project support to enhance competitiveness, sustainability, and energy savings across MSME clusters. The collaboration aims to boost energy efficiency, improve competitiveness, and support sustainable growth in India's MSME sector.
There’s a lot of thought that goes into creating a brand. Branding isn’t just your logo or a catchy name; it’s the backbone of any successful business. It’s the identity of your business and how it’s presented to the world. A strong brand builds recognition, nurtures relationships and fosters trust, ultimately leading to sustainable growth and profitability.
In a significant move aimed at enhancing credit accessibility for micro and small enterprises (MSEs), the Reserve Bank of India (RBI) has directed all banks and non-banking financial companies (NBFCs) to refrain from levying prepayment penalties on floating rate loans sanctioned or renewed from January 1, 2026.
Federation of Indian Micro and Small & Medium Enterprises (FISME) has welcomed the move. “It has been a long battle to convince RBI and policy makers how pre-payment charges are being used as a coercive tool by banks to dissuade MSME clients against changing banks.
India's retail inflation declined to a 77-month low in June, driven by a significant moderation in food prices, according to data released by the National Statistics Office on Monday.
The development has led some economists to suggest that the Reserve Bank of India's monetary policy committee may consider a rate cut during its August meeting. Consumer price index inflation registered 2.1 percent year-on-year in June, down from 2.8 percent in May, marking a decline of 72 basis points.
Union Minister of Commerce and Industry Piyush Goyal on Tuesday stated that the country’s agriculture and fisheries exports have touched Rs 4.5 lakh crore, with the potential to scale up to Rs 20 lakh crore.
Addressing the ICC: Krishi Vikram Thematic Session in New Delhi, he underscored the need to bolster food processing, branding, and packaging to achieve this ambitious target. Highlighting the expanding diversity of India’s agri-export basket, the Minister noted that non-traditional products such as litchi, pineapple, bottle gourd, and jamun are increasingly entering global markets.
The BRICS nations have formally rejected the European Union's proposed carbon border adjustment mechanism (CBAM), denouncing it as "unilateral, punitive and discriminatory protectionist measures" in a declaration adopted Monday in Rio de Janeiro, Brazil. The group argued that the measure undermines their capacity to invest in energy transitions and development priorities while being implemented "under the pretext of environmental concerns."
The Indian government has recently introduced greenhouse gas (GHG) emissions intensity targets for eight energy intensive industrial sectors—including steel, cement, aluminium, textiles, petrochemicals, oil refineries, paper & pulp, and chlor alkali—under its Carbon Credit Trading Scheme (CCTS). Launching in 2023 via the Energy Conservation (Amendment) Act, it aims to curb emissions and reward entities that outperform benchmarks by issuing tradable carbon credit certificates, while allowing laggards to buy credits or face penalties.
The Department for Promotion of Industry and Internal Trade (DPIIT) has announced the opening of applications for the fifth edition of the National Startup Awards, emphasising recognition beyond commercial success to include social impact, sustainability, and scalability metrics. The evaluation process involves multiple stages, beginning with eligibility screening and sectoral shortlisting, followed by assessment conducted by expert panels.
In a move aimed at broadening financial access for rural and small borrowers, the Reserve Bank of India (RBI) has issued a new directive permitting banks to accept voluntary pledges of gold and silver from applicants seeking agricultural and MSME loans, even within the threshold typically considered ‘collateral-free’ According to the circular released on July 11, banks may now accept household gold and silver—such as jewellery, ornaments, and coins—as collateral for loans under Rs 2 lakh, provided the pledge is made voluntarily by the borrower.
The Indian government announced on Friday a one-month extension for the implementation of quality control orders affecting certain steel products.
The decision provides additional time for importers to comply with new quality standards that were scheduled to take effect immediately. The quality control order, originally issued last month, establishes mandatory requirements for imported steel products to meet Indian standards established by the Bureau of Indian Standards.
The Bay of Bengal Initiative for Multi-Sectoral Technical and Economic Cooperation (BIMSTEC) will establish a Sustainable Maritime Transport Centre at the Maritime Training Institute in Powai, Mumbai.
The centre will operate under the Indian Ocean Centre of Excellence for Sustainable Maritime Transport (IOCE-SMarT) framework. Union Minister for Ports, Shipping and Waterways Sarbananda Sonowal announced the development during the inaugural session of the second BIMSTEC Ports Conclave in Visakhapatnam on Monday. The event was organised by the Visakhapatnam Port Authority (VPA).
In a significant push to strengthen Assam’s iconic Muga silk industry, the Lakhimpur district administration, in collaboration with the Sericulture Department, initiated a large-scale Som tree plantation drive in Phukanarhat village on Sunday. A total of 1,500 Som saplings were planted on a 10-bigha plot as part of the initiative’s first phase. The plantation aims to benefit local farmers involved in Muga silk production by ensuring a sustainable supply of leaves for silkworms.
West Bengal Chief Minister Mamata Banerjee inaugurated the 'Shilpanna' centre for leather and cottage industries in Alipore on Wednesday, emphasising the state's leading position in the Micro, Small and Medium Enterprises (MSME) sector and its contributions to employment generation and women empowerment. During the inauguration ceremony, Banerjee characterised the state's MSME performance as a ‘landmark achievement’ and called for moving beyond negative narratives to focus on creativity and self-reliance.
Hyundai Motor India, in partnership with IIT Madras and Guidance Tamil Nadu, on Tuesday revealed the design of the Hyundai HTWO Innovation Centre — a cutting-edge hydrogen research hub to be established in Chennai. The facility will be located at IIT Madras’ Discovery Satellite Campus in Thaiyur and was officially unveiled by Tamil Nadu’s Minister for Industries, Thiru TRB Rajaa.
India has secured a major deal with Saudi Arabia’s Ma'aden, ensuring a steady supply of DAP (di-ammonium phosphate) fertilisers for the next five years. This move comes as China continues to limit its fertiliser exports, impacting global supply chains. Under the agreement, Indian public sector companies like Indian Potash Ltd (IPL), Coromandel International, and Paradeep Phosphates will receive a guaranteed supply of DAP and other key fertilisers from Ma’aden. While the exact volume hasn’t been disclosed, the Ministry of Chemicals and Fertilisers stated that the deal provides long-term price stability and supply assurance, which is crucial for Indian farmers.
India and New Zealand on Monday began the second round of negotiations for a proposed Free Trade Agreement (FTA), with talks set to continue until July 25, according to Financial Express. This follows the first round of talks held in early May, after both countries agreed to re-launch FTA discussions during New Zealand Prime Minister Christopher Luxon’s visit to New Delhi in March. This marks the second attempt by the two nations to formalise a trade pact, with the earlier negotiations spanning from 2010 to 2015, during which ten rounds of talks were held without a final agreement.
What is the biggest challenge faced by MSMEs in India today?
According to the FISME factor, 60% of MSMEs believe that market access and competition are the biggest challenge faced by MSMEs in India today while 40% pointed to regulatory hurdles.
Why ‘Centres of Excellence’ can hollow out the very culture they’re meant to strengthen
In the grand corridors of modern enterprise, transformation has become the new currency of relevance. Among the latest fashions, the Centre of Excellence (CoE) model has emerged as a hallmark of progress, particularly in human resources. Designed to centralise expertise, streamline operations and drive strategic focus, these structures are celebrated as the backbone of organisational agility.
Smarter capital for startups: What founders get wrong about fundraising
As a founder, you are likely familiar with the drill. After months of adjusting your deck and persuading investors, you eventually secure a fundraising round. Then came the congratulations, the LinkedIn post, and the news headlines announcing yet another "game-changing" firm had raised millions of dollars. But here's a reality check: funding isn't the finish line—it's the start of a new set of problems.
Launching A Company In Uncertain Times? 17 Marketing Tips For Founders
Starting a business is never easy, and launching amid economic unpredictability adds an extra layer to the challenge. New founders must be both bold and adaptable in how they position and promote their brands, considering tightened consumer spending and fast-changing market signals.
Auto Parts Industry Seeks National Plan To Tackle Rare Earth Shortage
The Automotive Component Manufacturers Association (ACMA) has called for the development of a comprehensive national strategy on critical materials to protect India's electric vehicle and mobility manufacturing sector from potential supply chain disruptions. The appeal comes as the country's automotive industry confronts the possibility of production cuts once existing inventory supplies are depleted, following a complete halt in rare earth magnet imports since April.
H&H Aluminium Sets Up India’s Largest Solar Frame Manufacturing Plant in Rajkot
In a significant step toward boosting indigenous solar manufacturing, Gujarat-based H&H Aluminium Pvt Ltd has established India’s largest aluminium solar frame manufacturing plant in Rajkot, with an investment of Rs 150 crore.
The plant, located in Chibhda village and spread across 28,000 square meters, has a production capacity of 24,000 tonnes per annum.
Paras Defence Secures Rs 22 Crore French Order For Anti-Drone Technology
Paras Defence and Space Technologies Limited has received a letter of intent worth Rs 22.21 crore from French defence firm Cerbair for the supply of anti-drone technology systems. The order encompasses 30 units of CHIMERA 200, the company's proprietary anti-drone solution, according to an exchange filing.
The National Statistical Office (NSO), Ministry of Statistics and Programme Implementation (MoSPI) has released the Consumer Price Index Numbers on base 2012=100 for Rural, Urban and Combined for the month of June, 2025.
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 Micro and Small Enterprises face enormous challenges on multiple fronts owing to their small size. One major area of their concern remains access to finance. Over the years a slew of measures have been taken by the Government to facilitate lending to MSMEs. The Priority Sector Lending targets and Credit Guarantees under CGTMSE, enabled MSMEs acquire loans without collateral securities. RBI facilitated a Code for MSEs to be adopted by Banks, promising a standard in service to MSE borrowers, including a clause that Pre-payment charges may not be levied on loans to MSEs on floating rate. However, in practice, most banks continued to levy foreclosure or pre-payment charges to the tune of 4% of loan amount. The threat, bound MSME borrowers with the existing bank and made them bear their shoddy services.
The practice has been both anti-competitive as well as unfair. Hundreds of cases were reported to FISME, where banks- private and public alike, pressed for foreclosure charges. FISME raised these issues vociferously at all platforms. We raised them to RBI, DFS and even to Parliamentary Standing Committee on Finance. I myself pleaded the cases before officials in DFS.
Eventually, RBI issued a circular forbidding these charges. Howeveras in bureaucratic jargon, the text is still left ambiguous. So we are getting it examined, and if found open to interpretation, will continue our struggle to completely do away with pre-payment charges on MSME loans.
FISME organized an expert workshop in New Delhi on 9th July, addressing key challenges in digital advertising for MSMEs. The event focused on enhancing transparency, data reliability, and ROI. It brought together MSMEs, advertising professionals and industry leaders to deliberate on the growing challenges faced by small businesses in the rapidly evolving digital advertising space. The workshop concluded with a unified call for greater industry collaboration, transparent market practices, and focused capacity-building efforts to enable MSMEs to harness the full potential of digital advertising in India’s expanding digital economy.
FISME signed an MoU with the Bureau of Energy Efficiency (BEE) on July 15 2025. The agreement aims to implement the ADEETIE scheme, promoting energy-efficient technologies among MSMEs. The MoU was signed by R P Singh, Policy Director, FISME and Akash Tripathi, Additional Secretary & Director General, BEE. As a technical partner, FISME will conduct awareness drives, support capacity-building, and facilitate energy audits. The scheme offers interest subvention, technical assistance, and detailed project support to enhance competitiveness, sustainability, and energy savings across MSME clusters. The collaboration aims to boost energy efficiency, improve competitiveness, and support sustainable growth in India's MSME sector.
There’s a lot of thought that goes into creating a brand. Branding isn’t just your logo or a catchy name; it’s the backbone of any successful business. It’s the identity of your business and how it’s presented to the world. A strong brand builds recognition, nurtures relationships and fosters trust, ultimately leading to sustainable growth and profitability.
India's retail inflation declined to a 77-month low in June, driven by a significant moderation in food prices, according to data released by the National Statistics Office on Monday.
The development has led some economists to suggest that the Reserve Bank of India's monetary policy committee may consider a rate cut during its August meeting. Consumer price index inflation registered 2.1 percent year-on-year in June, down from 2.8 percent in May, marking a decline of 72 basis points.
Union Minister of Commerce and Industry Piyush Goyal on Tuesday stated that the country’s agriculture and fisheries exports have touched Rs 4.5 lakh crore, with the potential to scale up to Rs 20 lakh crore.
Addressing the ICC: Krishi Vikram Thematic Session in New Delhi, he underscored the need to bolster food processing, branding, and packaging to achieve this ambitious target. Highlighting the expanding diversity of India’s agri-export basket, the Minister noted that non-traditional products such as litchi, pineapple, bottle gourd, and jamun are increasingly entering global markets.
The BRICS nations have formally rejected the European Union's proposed carbon border adjustment mechanism (CBAM), denouncing it as "unilateral, punitive and discriminatory protectionist measures" in a declaration adopted Monday in Rio de Janeiro, Brazil. The group argued that the measure undermines their capacity to invest in energy transitions and development priorities while being implemented "under the pretext of environmental concerns."
The Indian government has recently introduced greenhouse gas (GHG) emissions intensity targets for eight energy intensive industrial sectors—including steel, cement, aluminium, textiles, petrochemicals, oil refineries, paper & pulp, and chlor alkali—under its Carbon Credit Trading Scheme (CCTS). Launching in 2023 via the Energy Conservation (Amendment) Act, it aims to curb emissions and reward entities that outperform benchmarks by issuing tradable carbon credit certificates, while allowing laggards to buy credits or face penalties.
The Department for Promotion of Industry and Internal Trade (DPIIT) has announced the opening of applications for the fifth edition of the National Startup Awards, emphasising recognition beyond commercial success to include social impact, sustainability, and scalability metrics. The evaluation process involves multiple stages, beginning with eligibility screening and sectoral shortlisting, followed by assessment conducted by expert panels.
In a move aimed at broadening financial access for rural and small borrowers, the Reserve Bank of India (RBI) has issued a new directive permitting banks to accept voluntary pledges of gold and silver from applicants seeking agricultural and MSME loans, even within the threshold typically considered ‘collateral-free’ According to the circular released on July 11, banks may now accept household gold and silver—such as jewellery, ornaments, and coins—as collateral for loans under Rs 2 lakh, provided the pledge is made voluntarily by the borrower.
The Indian government announced on Friday a one-month extension for the implementation of quality control orders affecting certain steel products.
The decision provides additional time for importers to comply with new quality standards that were scheduled to take effect immediately. The quality control order, originally issued last month, establishes mandatory requirements for imported steel products to meet Indian standards established by the Bureau of Indian Standards.
The Bay of Bengal Initiative for Multi-Sectoral Technical and Economic Cooperation (BIMSTEC) will establish a Sustainable Maritime Transport Centre at the Maritime Training Institute in Powai, Mumbai.
The centre will operate under the Indian Ocean Centre of Excellence for Sustainable Maritime Transport (IOCE-SMarT) framework. Union Minister for Ports, Shipping and Waterways Sarbananda Sonowal announced the development during the inaugural session of the second BIMSTEC Ports Conclave in Visakhapatnam on Monday. The event was organised by the Visakhapatnam Port Authority (VPA).
In a significant push to strengthen Assam’s iconic Muga silk industry, the Lakhimpur district administration, in collaboration with the Sericulture Department, initiated a large-scale Som tree plantation drive in Phukanarhat village on Sunday. A total of 1,500 Som saplings were planted on a 10-bigha plot as part of the initiative’s first phase. The plantation aims to benefit local farmers involved in Muga silk production by ensuring a sustainable supply of leaves for silkworms.
West Bengal Chief Minister Mamata Banerjee inaugurated the 'Shilpanna' centre for leather and cottage industries in Alipore on Wednesday, emphasising the state's leading position in the Micro, Small and Medium Enterprises (MSME) sector and its contributions to employment generation and women empowerment. During the inauguration ceremony, Banerjee characterised the state's MSME performance as a ‘landmark achievement’ and called for moving beyond negative narratives to focus on creativity and self-reliance.
Hyundai Motor India, in partnership with IIT Madras and Guidance Tamil Nadu, on Tuesday revealed the design of the Hyundai HTWO Innovation Centre — a cutting-edge hydrogen research hub to be established in Chennai. The facility will be located at IIT Madras’ Discovery Satellite Campus in Thaiyur and was officially unveiled by Tamil Nadu’s Minister for Industries, Thiru TRB Rajaa.
India has secured a major deal with Saudi Arabia’s Ma'aden, ensuring a steady supply of DAP (di-ammonium phosphate) fertilisers for the next five years. This move comes as China continues to limit its fertiliser exports, impacting global supply chains. Under the agreement, Indian public sector companies like Indian Potash Ltd (IPL), Coromandel International, and Paradeep Phosphates will receive a guaranteed supply of DAP and other key fertilisers from Ma’aden. While the exact volume hasn’t been disclosed, the Ministry of Chemicals and Fertilisers stated that the deal provides long-term price stability and supply assurance, which is crucial for Indian farmers.
India and New Zealand on Monday began the second round of negotiations for a proposed Free Trade Agreement (FTA), with talks set to continue until July 25, according to Financial Express. This follows the first round of talks held in early May, after both countries agreed to re-launch FTA discussions during New Zealand Prime Minister Christopher Luxon’s visit to New Delhi in March. This marks the second attempt by the two nations to formalise a trade pact, with the earlier negotiations spanning from 2010 to 2015, during which ten rounds of talks were held without a final agreement.
According to the FISME factor, 60% of MSMEs believe that market access and competition are the biggest challenge faced by MSMEs in India today while 40% pointed to regulatory hurdles.
In the grand corridors of modern enterprise, transformation has become the new currency of relevance. Among the latest fashions, the Centre of Excellence (CoE) model has emerged as a hallmark of progress, particularly in human resources. Designed to centralise expertise, streamline operations and drive strategic focus, these structures are celebrated as the backbone of organisational agility.
As a founder, you are likely familiar with the drill. After months of adjusting your deck and persuading investors, you eventually secure a fundraising round. Then came the congratulations, the LinkedIn post, and the news headlines announcing yet another "game-changing" firm had raised millions of dollars. But here's a reality check: funding isn't the finish line—it's the start of a new set of problems.
Starting a business is never easy, and launching amid economic unpredictability adds an extra layer to the challenge. New founders must be both bold and adaptable in how they position and promote their brands, considering tightened consumer spending and fast-changing market signals.
The Automotive Component Manufacturers Association (ACMA) has called for the development of a comprehensive national strategy on critical materials to protect India's electric vehicle and mobility manufacturing sector from potential supply chain disruptions. The appeal comes as the country's automotive industry confronts the possibility of production cuts once existing inventory supplies are depleted, following a complete halt in rare earth magnet imports since April.
In a significant step toward boosting indigenous solar manufacturing, Gujarat-based H&H Aluminium Pvt Ltd has established India’s largest aluminium solar frame manufacturing plant in Rajkot, with an investment of Rs 150 crore.
The plant, located in Chibhda village and spread across 28,000 square meters, has a production capacity of 24,000 tonnes per annum.
Paras Defence and Space Technologies Limited has received a letter of intent worth Rs 22.21 crore from French defence firm Cerbair for the supply of anti-drone technology systems. The order encompasses 30 units of CHIMERA 200, the company's proprietary anti-drone solution, according to an exchange filing.
“ Money is like manure. It stinks when you pile it; it grows when you spread it. ”
