If you are unable to view this mailer, click here.
President Message
India has become a USD 4 Tn economy. It is set to supersede Japan in due course with only Germany, China and America ahead. It has maintained a 6 percent plus growth for the last 30 years. This stupendous growth has transformed India from a shortage driven poor country to a middle-income one. Millions have come out of the scourge of poverty. However, to be a developed country it requires annual per capital income to reach the levels of at least USD 20,000. On this parameter India was at 136th position in 2024. The recent Goldman Sachs report mentions World’s biggest economies in 2075. As expected China, India and USA lead. But in the top 10 economies there is Indonesia at 4th position, Nigeria 5th, Pakistan 6th and Egypt at 7th. Therefore size of the economy is largely a function of population. While we celebrate reaching the milestone of USD 4 Tn or 4th largest economy in the world, we should not lose sight of the fact that to be a developed nation we need to increase our per capita income ten times. There are several studies- including one by FISME, that establish for achieving the goal by 2047, we need to grow at 10% and Industry’s contribution to national GDP must reach 35% including 25% from Manufacturing. It calls for deep reforms. In MSME space itself there is crying need to address Technology obsolescence, Setting flawed public procurement right and incentivizing vertical growth of enterprises. Therefore, the road towards a developed country will require strategies for far higher growth than the current growth level.
Project ‘Deep Decarbonisation of Industrial Clusters’ Funded by the Mitigation Action Facility was lunched on May 15, 2025, at the India Habitat Centre, New Delhi. The project aims to foster rapid and cost-effective decarbonisation of India’s manufacturing sector, with a focus on small and medium enterprises (SMEs) across six industrial clusters. FISME is industry partner to the project which is being implemented by sequa (Germany), STENUM Asia (India), and aimplifin (Germany), and is formally endorsed by the Ministry of Micro, Small and Medium Enterprises and the Ministry of Environment, Forest and Climate Change of India.
Building the confidence to scale effectively comes from translating signals into a concrete plan. Most entrepreneurs work 60 to 70 hours a week, yet still can't scale their business to the next level. What might be missing? This key moment often means it's time to invest in a structured growth program that's designed to help you scale faster and smarter. The questions that follow are usually, "when and how exactly can I tell that I'm ready for that leap?" My team and I have coached thousands of business leaders in the past decade, and below are some of the clear signs it's time to expand, as well as the essential elements for building a solid strategy and what you can do for more guided success.
India will become the world’s fourth largest economy by the end of 2025 (FY 2025-26), according to the International Monetary Fund (IMF’s) World Economic Outlook report for April 2025. The IMF measures the size of an economy in nominal GDP terms. A few years ago, India overtook the United Kingdom to become the fifth largest, and is now well on its way to rise to the fourth spot in the list of the top 10 largest economies in the world by overtaking Japan. Recently a statement by NITI Aayog CEO BVR Subrahmanyam sugg ..
In a strategic move to curb food inflation and bolster domestic refining, the Indian government announced a 10 percentage point reduction in the basic customs duty on crude edible oils.
Effective immediately, the duty on crude palm oil, crude soybean oil, and crude sunflower oil has been halved from 20% to 10%. This policy adjustment aims to lower the landed cost of essential cooking oils, thereby reducing retail prices and easing inflationary pressures. The decision is also expected to enhance domestic refining capacities by increasing the duty differential between crude and refined oils to 19.25%, promoting the "Make in India" initiative.
India's industrial sector demonstrated steady but measured expansion in April 2025, with the Index of Industrial Production (IIP) registering a 2.7 percent year-on-year increase, according to official data released by the Ministry of Statistics and Programme Implementation. The growth rate represented a deceleration from the 3.94 percent expansion recorded in March 2025 and remained below the performance levels achieved in the corresponding period of the previous year.
India's paper and paperboard industry is navigating a complex landscape marked by rising imports, environmental activism, and strategic investments.
According to the Indian Paper Manufacturers Association (IPMA), imports of paper and paperboard surged by 20% to 1.76 million tonnes between April and December 2024, reaching a value of ₹11,196 crore. This increase is largely attributed to a 36% rise in imports from China and a 23% uptick from ASEAN countries. The influx of cheaper imports, often priced below domestic production costs, has strained local manufacturers, leading to underutilised capacities and financial pressures.
The National Manufacturing Mission is set to be unveiled within the next month, according to NITI Aayog CEO BVR Subrahmanyam, who announced the initiative during a Confederation of Indian Industry event on Friday.
The mission will establish a dedicated oversight body with significant authority to address manufacturing challenges and advance India's industrial sector in a time-bound manner. The government announced the National Manufacturing Mission in the Union Budget for FY26 as part of the Make-in-India initiative, targeting support for small, medium, and large industries.
The Rs 1-trillion Research Development and Innovation (RDI) fund, announced in the July 2024 Union Budget, will become operational within the next two to three months, a senior government official confirmed. Of this, Rs 20,000 crore has already been allocated by Finance Minister Nirmala Sitharaman to the Department of Science and Technology (DST) in February. Unlike the Anusandhan National Research Foundation, which supports academic research, the RDI fund will focus exclusively on private sector R&D. The DST is preparing to launch Deep Tech Fund 1.0 under this initiative, targeting strategic sectors such as clean energy, electric vehicles (EVs), and advanced materials.
In a major step towards clean energy, the Indian government is preparing a policy that will mandate the use of only renewable energy sources for the manufacturing sector. This move is in line with global efforts to reduce carbon emissions and combat climate change. Countries around the world are increasingly shifting from coal-based energy to cleaner alternatives like solar, wind, and green hydrogen. The Ministry of Power and the Ministry of New and Renewable Energy have been directed to work on this policy. According to officials, necessary changes will be made to implement this plan effectively.
The Government of India has announced the restoration of benefits under the Remission of Duties and Taxes on Exported Products (RoDTEP) scheme for three key export categories: Advance Authorization (AA) holders, Export-Oriented Units (EOUs), and Special Economic Zone (SEZ) operators. The reinstatement will apply to all eligible exports made from June 1, 2025, onwards, following a temporary suspension that began February 5, 2025. The RoDTEP scheme, operational since January 1, 2021, serves as a mechanism to reimburse exporters for embedded duties, taxes, and levies that remain unrefunded under existing schemes.
Assam’s globally renowned tea industry is facing a serious threat due to new European Union (EU) regulations restricting the use of key chemical compounds in tea production. The Tea Research Association Tocklai (TRA Tocklai), the world’s oldest and largest tea research body, has warned that the move could disrupt exports of nearly 40 million kilograms of Assam tea annually to the EU and UK. The EU has lowered the Maximum Residue Level (MRL) for Thiamethoxam and Clothianidin to 0.05 ppm, effective March 2026. A similar restriction on Thiacloprid took effect in May. These chemicals are vital for pest control in Assam’s tea gardens.
The recently signed Free Trade Agreement (FTA) between India and the United Kingdom is being hailed as a major boost for Indian industry, with key benefits expected across multiple sectors. Amit Jain, Chairman of the Confederation of Indian Industry (CII), Punjab, described the FTA as a "win-win" for both nations. Highlighting the impact on Punjab’s industrial hubs, he said, "Ludhiana’s textile and manufacturing sectors will benefit significantly. The removal of tariffs gives our exporters a much-needed competitive edge."
The Uttar Pradesh government has launched a major initiative to upgrade 32 industrial areas across the state, including 10 in Ghaziabad.
These regions will undergo a transformation to provide world-class infrastructure and development facilities. The responsibility for this massive project has been handed over to the Uttar Pradesh State Industrial Development Authority (UPSIDA). The plan aims to improve cleanliness, waste management, and infrastructure in these industrial zones.
India’s decision to sever trade ties with Pakistan has brought unexpected relief to Jammu and Kashmir’s struggling walnut industry.
On May 2, the Central government imposed a blanket ban on imports from Pakistan, shutting down the Attari-Wagah trade route. This move halted the entry of Afghan dry fruits, including walnuts, which had been entering India via Pakistan. While the ban disrupted cross-border trade, it offered a silver lining for Kashmiri walnut farmers. “Earlier, the market was flooded with cheaper Afghan walnuts, which pulled down prices for local produce,” said Haji Bahadur Khan, president of the Kashmir Walnut Growers Association. “Now, demand for local walnuts has picked up, and prices have risen by 15 to 20 percent.”
The Haryana government has announced plans to develop eleven Micro, Small, and Medium Enterprise (MSME) clusters across the state with an investment of Rs 169.6 crore, supplemented by additional state subsidies of Rs 20 crore. The Haryana Cluster Development Scheme for MSMEs encompasses the establishment of shared facilities including testing centers, training centers, and research centers. These common facilities are designed to provide smaller enterprises with access to resources typically available only to larger organisations, thereby enhancing their competitive capabilities.
On Saturday, U.S. President Donald Trump announced a significant increase in tariffs on steel imports, raising them from 25% to 50%. The new tariff rate is set to take effect on June 4.
Speaking at U.S. Steel’s Mon Valley Works–Irvin Plant in West Mifflin, Pennsylvania, Trump emphasised that the move is intended to bolster the domestic steel industry by reducing reliance on foreign steel.
He stated, "We're going to bring it from 25 percent to 50 percent... which will even further secure the steel industry."
The announcement also touched upon the recent agreement involving Japan-based Nippon Steel's investment in U.S. Steel.
Trump assured that under the deal, U.S. Steel would remain an American company, highlighting the importance of domestic ownership in critical industries.
India and Chile have officially commenced negotiations for a Comprehensive Economic Partnership Agreement (CEPA), marking a significant step toward strengthening bilateral trade relations between the two nations.
The Terms of Reference for the agreement were signed on May 8, 2025, following commitments made during previous high-level diplomatic discussions. The first round of negotiations began on May 26, 2025, with an opening ceremony presided over by Commerce Secretary Sunil Barthwal.
Will India-UK FTA open up opportunities for MSMEs to exports to UK?
According to the FISME Factor, 40% of MSMEs believe that the India-UK FTA will open up opportunities for MSMEs to export to the UK, while 60% don't know.
The invisible divide: How power distance is crippling modern workplaces
The insidious nature of power is its ability to blind its wielders. As individuals rise to positions of authority, they become increasingly insulated, their empathy waning, and their perspectives narrowing. This self-imposed isolation leads to a disconnect with the realities faced by their teams, fostering a culture of fear and conformity.
These 5 banks offer easy business loans to MSMEs and entrepreneurs
MSMEs form the backbone of India's economy and may hold the key to its revival from the impact of the COVID-19 pandemic. Former MSME Union Minister Nitin Gadkari had said his mission is to raise the contribution of the MSME sector to the country's GDP to 40 percent from 29 percent. But to sustain operations and eventually expand, India's MSMEs require large amounts of capital.
5 tips to boost your small business using the power of social media
Social media is our go-to space for recommendations — where to eat, how to dress, what to do, or which movie to watch next. In this digital era, it is critical for a customer-facing business to get its social media strategy in place to take on the competition and make an indelible impression, keeping in mind your target audience’s fleeting attention span.
Industries In Noida-Ghaziabad Region Reeling Under Extended Power Cuts
Industrial operations across Ghaziabad and Noida have experienced significant disruption due to frequent power outages lasting between one and seven hours, with entrepreneurs reporting substantial financial losses amid soaring temperatures and recurring infrastructure failures. The situation has intensified following severe weather events, particularly affecting manufacturing sectors dependent on continuous power supply.
Getepay receives RBI approval to operate as online payment aggregator
Getepay, a digital payments and merchant enablement platform, has received final authorisation from the Reserve Bank of India (RBI) to operate as a Payment Aggregator (PA) online under the RBI’s payment regulatory framework. Since inception, Getepay has served over 1.5 million merchants across diverse categories, ranging from kirana stores, micro-retailers, Ecom Stores, education Institutes, service providers to small-scale manufacturers. Rooted in Bharat, Getepay aims to enable integrated payment solutions to different categories of merchants specially SMEs.
Saarathi Finance Raises Rs 475 Crore In Maiden Funding Round For MSMEs Credit Expansion
Saarathi Finance, a recently licensed non-banking financial company specialising in micro, small and medium enterprise lending, has successfully raised Rs 475 crore in its inaugural funding round. The Mumbai-based NBFC plans to utilise the capital to enhance credit accessibility for underserved MSMEs across six states, with particular focus on semi-urban and rural markets in Tamil Nadu, Telangana, Andhra Pradesh, Karnataka, Rajasthan and Uttar Pradesh.
The National Statistical Office (NSO), Ministry of Statistics and Programme Implementation (MoSPI) has released the Provisional Estimates (PE) of Annual Gross Domestic Product (GDP) for the Financial Year (FY) 2024-25 and Quarterly Estimates of GDP for the January-March Quarter (Q4) of FY 2024-25 along with its Expenditure components both at Constant (2011-12) and Current Prices.
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.
India has become a USD 4 Tn economy. It is set to supersede Japan in due course with only Germany, China and America ahead. It has maintained a 6 percent plus growth for the last 30 years. This stupendous growth has transformed India from a shortage driven poor country to a middle-income one. Millions have come out of the scourge of poverty. However, to be a developed country it requires annual per capital income to reach the levels of at least USD 20,000. On this parameter India was at 136th position in 2024. The recent Goldman Sachs report mentions World’s biggest economies in 2075. As expected China, India and USA lead. But in the top 10 economies there is Indonesia at 4th position, Nigeria 5th, Pakistan 6th and Egypt at 7th. Therefore size of the economy is largely a function of population. While we celebrate reaching the milestone of USD 4 Tn or 4th largest economy in the world, we should not lose sight of the fact that to be a developed nation we need to increase our per capita income ten times. There are several studies- including one by FISME, that establish for achieving the goal by 2047, we need to grow at 10% and Industry’s contribution to national GDP must reach 35% including 25% from Manufacturing. It calls for deep reforms. In MSME space itself there is crying need to address Technology obsolescence, Setting flawed public procurement right and incentivizing vertical growth of enterprises. Therefore, the road towards a developed country will require strategies for far higher growth than the current growth level.
Project ‘Deep Decarbonisation of Industrial Clusters’ Funded by the Mitigation Action Facility was lunched on May 15, 2025, at the India Habitat Centre, New Delhi. The project aims to foster rapid and cost-effective decarbonisation of India’s manufacturing sector, with a focus on small and medium enterprises (SMEs) across six industrial clusters. FISME is industry partner to the project which is being implemented by sequa (Germany), STENUM Asia (India), and aimplifin (Germany), and is formally endorsed by the Ministry of Micro, Small and Medium Enterprises and the Ministry of Environment, Forest and Climate Change of India.
Building the confidence to scale effectively comes from translating signals into a concrete plan. Most entrepreneurs work 60 to 70 hours a week, yet still can't scale their business to the next level. What might be missing? This key moment often means it's time to invest in a structured growth program that's designed to help you scale faster and smarter. The questions that follow are usually, "when and how exactly can I tell that I'm ready for that leap?" My team and I have coached thousands of business leaders in the past decade, and below are some of the clear signs it's time to expand, as well as the essential elements for building a solid strategy and what you can do for more guided success.
In a strategic move to curb food inflation and bolster domestic refining, the Indian government announced a 10 percentage point reduction in the basic customs duty on crude edible oils.
Effective immediately, the duty on crude palm oil, crude soybean oil, and crude sunflower oil has been halved from 20% to 10%. This policy adjustment aims to lower the landed cost of essential cooking oils, thereby reducing retail prices and easing inflationary pressures. The decision is also expected to enhance domestic refining capacities by increasing the duty differential between crude and refined oils to 19.25%, promoting the "Make in India" initiative.
India's industrial sector demonstrated steady but measured expansion in April 2025, with the Index of Industrial Production (IIP) registering a 2.7 percent year-on-year increase, according to official data released by the Ministry of Statistics and Programme Implementation. The growth rate represented a deceleration from the 3.94 percent expansion recorded in March 2025 and remained below the performance levels achieved in the corresponding period of the previous year.
India's paper and paperboard industry is navigating a complex landscape marked by rising imports, environmental activism, and strategic investments.
According to the Indian Paper Manufacturers Association (IPMA), imports of paper and paperboard surged by 20% to 1.76 million tonnes between April and December 2024, reaching a value of ₹11,196 crore. This increase is largely attributed to a 36% rise in imports from China and a 23% uptick from ASEAN countries. The influx of cheaper imports, often priced below domestic production costs, has strained local manufacturers, leading to underutilised capacities and financial pressures.
The National Manufacturing Mission is set to be unveiled within the next month, according to NITI Aayog CEO BVR Subrahmanyam, who announced the initiative during a Confederation of Indian Industry event on Friday.
The mission will establish a dedicated oversight body with significant authority to address manufacturing challenges and advance India's industrial sector in a time-bound manner. The government announced the National Manufacturing Mission in the Union Budget for FY26 as part of the Make-in-India initiative, targeting support for small, medium, and large industries.
The Rs 1-trillion Research Development and Innovation (RDI) fund, announced in the July 2024 Union Budget, will become operational within the next two to three months, a senior government official confirmed. Of this, Rs 20,000 crore has already been allocated by Finance Minister Nirmala Sitharaman to the Department of Science and Technology (DST) in February. Unlike the Anusandhan National Research Foundation, which supports academic research, the RDI fund will focus exclusively on private sector R&D. The DST is preparing to launch Deep Tech Fund 1.0 under this initiative, targeting strategic sectors such as clean energy, electric vehicles (EVs), and advanced materials.
In a major step towards clean energy, the Indian government is preparing a policy that will mandate the use of only renewable energy sources for the manufacturing sector. This move is in line with global efforts to reduce carbon emissions and combat climate change. Countries around the world are increasingly shifting from coal-based energy to cleaner alternatives like solar, wind, and green hydrogen. The Ministry of Power and the Ministry of New and Renewable Energy have been directed to work on this policy. According to officials, necessary changes will be made to implement this plan effectively.
The Government of India has announced the restoration of benefits under the Remission of Duties and Taxes on Exported Products (RoDTEP) scheme for three key export categories: Advance Authorization (AA) holders, Export-Oriented Units (EOUs), and Special Economic Zone (SEZ) operators. The reinstatement will apply to all eligible exports made from June 1, 2025, onwards, following a temporary suspension that began February 5, 2025. The RoDTEP scheme, operational since January 1, 2021, serves as a mechanism to reimburse exporters for embedded duties, taxes, and levies that remain unrefunded under existing schemes.
Assam’s globally renowned tea industry is facing a serious threat due to new European Union (EU) regulations restricting the use of key chemical compounds in tea production. The Tea Research Association Tocklai (TRA Tocklai), the world’s oldest and largest tea research body, has warned that the move could disrupt exports of nearly 40 million kilograms of Assam tea annually to the EU and UK. The EU has lowered the Maximum Residue Level (MRL) for Thiamethoxam and Clothianidin to 0.05 ppm, effective March 2026. A similar restriction on Thiacloprid took effect in May. These chemicals are vital for pest control in Assam’s tea gardens.
The recently signed Free Trade Agreement (FTA) between India and the United Kingdom is being hailed as a major boost for Indian industry, with key benefits expected across multiple sectors. Amit Jain, Chairman of the Confederation of Indian Industry (CII), Punjab, described the FTA as a "win-win" for both nations. Highlighting the impact on Punjab’s industrial hubs, he said, "Ludhiana’s textile and manufacturing sectors will benefit significantly. The removal of tariffs gives our exporters a much-needed competitive edge."
The Uttar Pradesh government has launched a major initiative to upgrade 32 industrial areas across the state, including 10 in Ghaziabad.
These regions will undergo a transformation to provide world-class infrastructure and development facilities. The responsibility for this massive project has been handed over to the Uttar Pradesh State Industrial Development Authority (UPSIDA). The plan aims to improve cleanliness, waste management, and infrastructure in these industrial zones.
India’s decision to sever trade ties with Pakistan has brought unexpected relief to Jammu and Kashmir’s struggling walnut industry.
On May 2, the Central government imposed a blanket ban on imports from Pakistan, shutting down the Attari-Wagah trade route. This move halted the entry of Afghan dry fruits, including walnuts, which had been entering India via Pakistan. While the ban disrupted cross-border trade, it offered a silver lining for Kashmiri walnut farmers. “Earlier, the market was flooded with cheaper Afghan walnuts, which pulled down prices for local produce,” said Haji Bahadur Khan, president of the Kashmir Walnut Growers Association. “Now, demand for local walnuts has picked up, and prices have risen by 15 to 20 percent.”
The Haryana government has announced plans to develop eleven Micro, Small, and Medium Enterprise (MSME) clusters across the state with an investment of Rs 169.6 crore, supplemented by additional state subsidies of Rs 20 crore. The Haryana Cluster Development Scheme for MSMEs encompasses the establishment of shared facilities including testing centers, training centers, and research centers. These common facilities are designed to provide smaller enterprises with access to resources typically available only to larger organisations, thereby enhancing their competitive capabilities.
On Saturday, U.S. President Donald Trump announced a significant increase in tariffs on steel imports, raising them from 25% to 50%. The new tariff rate is set to take effect on June 4.
Speaking at U.S. Steel’s Mon Valley Works–Irvin Plant in West Mifflin, Pennsylvania, Trump emphasised that the move is intended to bolster the domestic steel industry by reducing reliance on foreign steel.
He stated, "We're going to bring it from 25 percent to 50 percent... which will even further secure the steel industry."
The announcement also touched upon the recent agreement involving Japan-based Nippon Steel's investment in U.S. Steel.
Trump assured that under the deal, U.S. Steel would remain an American company, highlighting the importance of domestic ownership in critical industries.
India and Chile have officially commenced negotiations for a Comprehensive Economic Partnership Agreement (CEPA), marking a significant step toward strengthening bilateral trade relations between the two nations.
The Terms of Reference for the agreement were signed on May 8, 2025, following commitments made during previous high-level diplomatic discussions. The first round of negotiations began on May 26, 2025, with an opening ceremony presided over by Commerce Secretary Sunil Barthwal.
According to the FISME Factor, 40% of MSMEs believe that the India-UK FTA will open up opportunities for MSMEs to export to the UK, while 60% don't know.
The insidious nature of power is its ability to blind its wielders. As individuals rise to positions of authority, they become increasingly insulated, their empathy waning, and their perspectives narrowing. This self-imposed isolation leads to a disconnect with the realities faced by their teams, fostering a culture of fear and conformity.
MSMEs form the backbone of India's economy and may hold the key to its revival from the impact of the COVID-19 pandemic. Former MSME Union Minister Nitin Gadkari had said his mission is to raise the contribution of the MSME sector to the country's GDP to 40 percent from 29 percent. But to sustain operations and eventually expand, India's MSMEs require large amounts of capital.
Social media is our go-to space for recommendations — where to eat, how to dress, what to do, or which movie to watch next. In this digital era, it is critical for a customer-facing business to get its social media strategy in place to take on the competition and make an indelible impression, keeping in mind your target audience’s fleeting attention span.
Industrial operations across Ghaziabad and Noida have experienced significant disruption due to frequent power outages lasting between one and seven hours, with entrepreneurs reporting substantial financial losses amid soaring temperatures and recurring infrastructure failures. The situation has intensified following severe weather events, particularly affecting manufacturing sectors dependent on continuous power supply.
Getepay, a digital payments and merchant enablement platform, has received final authorisation from the Reserve Bank of India (RBI) to operate as a Payment Aggregator (PA) online under the RBI’s payment regulatory framework. Since inception, Getepay has served over 1.5 million merchants across diverse categories, ranging from kirana stores, micro-retailers, Ecom Stores, education Institutes, service providers to small-scale manufacturers. Rooted in Bharat, Getepay aims to enable integrated payment solutions to different categories of merchants specially SMEs.
Saarathi Finance, a recently licensed non-banking financial company specialising in micro, small and medium enterprise lending, has successfully raised Rs 475 crore in its inaugural funding round. The Mumbai-based NBFC plans to utilise the capital to enhance credit accessibility for underserved MSMEs across six states, with particular focus on semi-urban and rural markets in Tamil Nadu, Telangana, Andhra Pradesh, Karnataka, Rajasthan and Uttar Pradesh.
“ Smart people learn from everything and everyone. Average people from their experiences. Stupid people already have all the answers. ”
