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President Message
The issue of charges and penalties imposed by banks on prepayment of loans by MSMEs has been a contentious issue for long. In 2022, FISME had taken up the issue as a top agenda for reforms. We had carried out a series of campaigns against erring banks. We objected to the prevalent practice stance on two counts: firstly, Banks have been denouncing their own commitment made under Bank’s Code For MSMEs which stipulated exclusion of Micro and Small Enterprises (MSEs) from pre-payment charges. Secondly, we highlighted that banks used it as a coercive tool to not let dissatisfied MSME customers move to other banks. Due to fear of the charges, MSMEs were forced to put up with the shoddy banking and financial services. We flagged that the practice was unethical and anti-competitive. Over the next three years, we held meetings and made representations to almost all the people in decision making ladder: Finance Minister and Secretary, Department of Financial Services, Ministry of Finance; RBI; Friends of MSMEs in Parliament, Parliamentary Standing Committees and of course senior officials of Ministry of MSME. We held consultations with legal eagles too for a writ petition. Finally, RBI has yielded and come out with a draft circular which proposes to waive the charges from MSMEs. The proposal is not without caveat and has mentioned a threshold upto Rs. 7.5 crore. We have won the battle for 90% of MSMEs but we want the proposals without caveat and its applicability to all MSMEs.
It's always best to start at the end!
Why start at the beginning as grandma told you to do when you can start at the end doing things backward and better? In making bold moves toward sweet financial freedom that comes with entrepreneurial success, you'll undoubtedly hear from good-intentioned advisors saying entrepreneurs should just get started taking one step at a time. As a U.S. Army veteran, I'd encourage you to do an "about face" soldier and head in the opposite direction. While it is certainly important to begin — to bring the dream to fruition — the most brilliant business owners intentionally start at the end, strategically establishing a clear path to make their big vision a reality.
RBI plan to waive foreclosure charges will help MSMEs, but NBFCs may find the going tough.
The Reserve Bank of India (RBI)’s proposal to ask lenders — banks as well as shadow banks — to refrain from imposing a pre-payment penalty should make life easier for micro and small enterprises. This would be essentially for floating rate loans of up to Rs 7.5 crore typically taken by small enterprises to run their businesses and to individuals for products such as loans against property. In fact, the central bank doesn’t want even a minimum lock-in period before the pre-payment penalty kicks in. The RBI’s stance on foreclosure penalties for floating rate home loans to individuals was similar and it had barred lenders from imposing such charges.
India’s eight core infrastructure sectors recorded a 4.6 per cent growth in January, slightly lower than December’s revised 4.8 per cent but still the second-highest increase in six months. On a sequential basis, the Index of Core Industries (ICI) rose 2.4 per cent from December, reaching a 10-month high of 173, marking the highest output level in 2024-25 so far. The growth was primarily driven by a 14.5 per cent surge in cement production, reflecting strong demand from the real estate and infrastructure sectors, and an 8.3 per cent rise in refinery products, both registering their sharpest expansion in over a year. Coal production grew at 4.6 per cent, the slowest increase in four months.
The Indian government has extended its mandate requiring imported coal-fired power plants to operate at full capacity until the end of April, pushing back an earlier deadline set for February. The decision, outlined in a government order seen by Reuters, comes in response to rising electricity demand across the country. India's power ministry anticipates peak electricity demand could reach 270 gigawatts (GW) in the upcoming summer season, up from 250 GW last year.
The country often experiences extreme heatwaves during this period, significantly increasing energy consumption.
The India Meteorological Department has forecast above-average temperatures for March across most regions, following an unusually warm February.
The Indian Pharmaceutical Alliance (IPA), representing major Indian drug manufacturers, has suggested that the government consider reducing tariffs on US drug imports to zero.
This proposal comes as a countermeasure to the Trump administration’s consideration of a 25 per cent import tariff on Indian pharmaceutical products. According to IPA Secretary General Sudarshan Jain, the move would not significantly impact India’s economy and could potentially persuade the US government to reconsider its tariff policies.
India currently exports pharmaceutical products worth USD 9 billion to the US, while US pharmaceutical exports to India stand at approximately USD 800 million.
The Department for Promotion of Industry and Internal Trade (DPIIT) has launched the Startup Maha Rathi challenge as part of the second edition of Startup Mahakumbh. This flagship initiative is a collaborative effort with Avaana Capital, LetsVenture, Karnataka Digital Economy Mission (KDEM), IVCA, HDFC, and other partners, aimed at providing Indian startups with funding, mentorship, and strategic guidance. The program aligns with India's long-term vision of becoming a developed economy (Viksit Bharat) by 2047.
In a landmark ruling, the Supreme Court has held that the rights of accused persons under the Code of Criminal Procedure (now Bharatiya Nagarik Suraksha Sanhita) apply equally to arrests made under the Goods and Services Tax (GST) Act and the Customs Act. The Court emphasised that arresting authorities must adhere strictly to legal safeguards, preventing arbitrary detentions. Applying the principles from the Arvind Kejriwal case, the Court stated that an arrest under GST and Customs laws must be based on "reasons to believe" rather than mere suspicion.
New Delhi is exploring significant tariff reductions on a range of imports, including automobiles, chemicals, and electronics, in a bid to avoid US President Donald Trump’s proposed reciprocal tariffs, sources familiar with the matter revealed.Officials are discussing lowering duties on key US exports such as agricultural products, pharmaceuticals, and medical devices.
This move would go beyond the recent tariff cuts on high-end motorcycles and bourbon whiskey, which were primarily symbolic gestures toward Trump’s administration.
The Indian government has unveiled a comprehensive strategy to recover critical minerals from mining waste, with a substantial investment of Rs 34,300 crore under the National Critical Minerals Mission.
This initiative, detailed in a joint report by FICCI and Deloitte, aims to strengthen domestic supply chains crucial for India's clean energy and high-tech industrial sectors.
The strategic importance of this initiative is underscored by India's ambitious targets: 500 GW of renewable energy by 2030, 30 percent electric vehicle adoption, and achieving net-zero emissions by 2070.
Madhya Pradesh has secured Rs 31,851 crore in foreign investments during the recently concluded Global Investor Summit (GIS) 2025 in Bhopal, demonstrating growing international confidence in the state's economic potential. The investment commitments span multiple districts, with Bhopal, Dhar, Indore, and Narmadapuram emerging as key beneficiaries. Bhopal attracted significant proposals primarily in the information technology and renewable energy sectors, while Dhar received substantial interest in engineering and auto components manufacturing.
Union Minister of Ports, Shipping and Waterways, Shri Sarbananda Sonowal, has announced a substantial investment exceeding Rs 4,800 crore aimed at transforming Assam's inland waterways sector. The announcement was made during the Advantage Assam 2.0 summit in Guwahati, highlighting the strategic importance of the state's complex waterway network in advancing regional development and supporting the Prime Minister's Viksit Bharat vision.
The micro, small, and medium enterprises (MSME) sector, the backbone of Chandigarh’s industrial growth, has witnessed a steady rise in new registrations over the past three financial years, signalling resilience after the Covid-19-induced economic slump. According to data from the Union Ministry of MSMEs, 4,564 new MSMEs were registered in FY 2021-22, which increased to 4,764 in FY 2022-23, and further to 5,198 in FY 2023-24.
By January 2025, an additional 3,342 MSMEs had been registered, reflecting consistent entrepreneurial activity in the city.
Karnataka has once again positioned itself at the forefront of India’s clean mobility revolution with the launch of its ambitious Clean Mobility Policy during the Global Investors Meet earlier this month. Building on its legacy as the first Indian state to introduce an Electric Vehicle (EV) policy, Karnataka now aims to set a national benchmark by expanding its focus beyond EVs to a holistic clean mobility ecosystem. The policy’s announcement comes on the heels of the Union Budget’s exemption of basic customs duties on lithium-ion battery components, a move expected to lower production costs and stimulate sectoral growth.
India and the European Union (EU) have reached an agreement to address challenges arising fr0m the implementation of the Carbon Border Adjustment Mechanism (CBAM), with particular focus on small and medium enterprises.
This consensus emerged during the second meeting of the India-EU Trade and Technology Council (TTC) held on Friday. "Both sides discussed the challenges arising out of CBAM implementation, in particular for the small and medium enterprises and agreed to continue addressing them," stated a joint statement released after the TTC meeting.
Australia has launched an ambitious roadmap to enhance trade and investment ties with India, identifying four key "superhighways of growth": clean energy, education and skills, agribusiness, and tourism.
The initiative aims to expand economic cooperation and increase two-way investment between the two nations. "India is an essential partner as we diversify our trade links to boost prosperity for all Australians," said Prime Minister Anthony Albanese.
The roadmap, released by Albanese’s office, outlines nearly 50 specific opportunities to accelerate engagement in sectors such as defence industries, sports, culture, space, and technology.
The ‘butterfly effect’ in business: How small changes drive big transformations
In 1961, meteorologist Edward Lorenz proposed that the flutter of a butterfly’s wings in Brazil might ultimately trigger a tornado in Texas. Six decades later, this concept—the “butterfly effect”—offers a powerful lens through which to understand organisational transformation. The theory suggests that small, seemingly inconsequential actions can cascade into profound outcomes—a principle that forward-thinking companies are now deliberately harnessing.
Financial literacy is a critical skill for small business owners. It lays the foundation for informed decision-making and effective financial management. Whether you’re just starting your business or looking to grow, understanding key financial concepts is essential. In this article, we’ll explore the importance of financial literacy and provide practical strategies to enhance it.
Reaching the right customers could be the difference between a thriving business and a failed venture – and it all starts with a business marketing plan.
An effective marketing plan is a blueprint for how a business presents itself to the public. It identifies target audiences, outlines advertising plans and social media strategies and establishes budgets and metrics for success.
Textile Sector Needs Enhanced Banking Support To Reach USD 350 Bn Market Size: Textile Commissioner
In a statement during the Export Conclave jointly organised by World Trade Centre Mumbai and YES Bank, Textile Commissioner Roop Rashi emphasised the critical role banks should play in supporting India's textile industry, which currently employs 5.4 crore people and aims to expand its market size from USD 172 billion to USD 350 billion by 2030.
How Bizongo’s vendor digitisation is reshaping supply chain operations for enterprises, MSMEs
Bizongo, a tech-enabled B2B platform, is revolutionising supply chain operations for MSMEs in India. Through AI and technology, Bizongo facilitates seamless communication between large enterprises and their extensive network of MSME vendors. Bizongo, founded in 2015 by Sachin, Aniket Deb and Ankit Tomar, began its journey by connecting buyers and sellers in the packaging industry to make the system more efficient.
Swasth Foodtech Debuts Flat On BSE SME At IPO Price Of Rs 94
Swasth Foodtech share price opened flat on the BSE SME today, trading at the exact IPO price of Rs 94 per share. The company's initial public offering ran from February 20 to February 24.
The IPO saw moderate demand, achieving an overall subscription of 7.83 times by the final day of bidding. Investors were required to bid for a minimum of 1,200 shares or in multiples thereof.
The Ministry of Statistics and Programme Implementation (MoSPI) has released the
Second Advance Estimates of Annual Gross Domestic Product for 2024-25 Quarterly Estimates of Gross Domestic Product for the Third Quarter (October-December) Of 2024-25 and First Revised & Final Estimates of Gross Domestic Product, National Income, Consumption Expenditure, Saving and Capital Formation for 2023-24 & 2022-23 Respectively.
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 issue of charges and penalties imposed by banks on prepayment of loans by MSMEs has been a contentious issue for long. In 2022, FISME had taken up the issue as a top agenda for reforms. We had carried out a series of campaigns against erring banks. We objected to the prevalent practice stance on two counts: firstly, Banks have been denouncing their own commitment made under Bank’s Code For MSMEs which stipulated exclusion of Micro and Small Enterprises (MSEs) from pre-payment charges. Secondly, we highlighted that banks used it as a coercive tool to not let dissatisfied MSME customers move to other banks. Due to fear of the charges, MSMEs were forced to put up with the shoddy banking and financial services. We flagged that the practice was unethical and anti-competitive. Over the next three years, we held meetings and made representations to almost all the people in decision making ladder: Finance Minister and Secretary, Department of Financial Services, Ministry of Finance; RBI; Friends of MSMEs in Parliament, Parliamentary Standing Committees and of course senior officials of Ministry of MSME. We held consultations with legal eagles too for a writ petition. Finally, RBI has yielded and come out with a draft circular which proposes to waive the charges from MSMEs. The proposal is not without caveat and has mentioned a threshold upto Rs. 7.5 crore. We have won the battle for 90% of MSMEs but we want the proposals without caveat and its applicability to all MSMEs.
It's always best to start at the end!
Why start at the beginning as grandma told you to do when you can start at the end doing things backward and better? In making bold moves toward sweet financial freedom that comes with entrepreneurial success, you'll undoubtedly hear from good-intentioned advisors saying entrepreneurs should just get started taking one step at a time. As a U.S. Army veteran, I'd encourage you to do an "about face" soldier and head in the opposite direction. While it is certainly important to begin — to bring the dream to fruition — the most brilliant business owners intentionally start at the end, strategically establishing a clear path to make their big vision a reality.
India’s eight core infrastructure sectors recorded a 4.6 per cent growth in January, slightly lower than December’s revised 4.8 per cent but still the second-highest increase in six months. On a sequential basis, the Index of Core Industries (ICI) rose 2.4 per cent from December, reaching a 10-month high of 173, marking the highest output level in 2024-25 so far. The growth was primarily driven by a 14.5 per cent surge in cement production, reflecting strong demand from the real estate and infrastructure sectors, and an 8.3 per cent rise in refinery products, both registering their sharpest expansion in over a year. Coal production grew at 4.6 per cent, the slowest increase in four months.
The Indian government has extended its mandate requiring imported coal-fired power plants to operate at full capacity until the end of April, pushing back an earlier deadline set for February. The decision, outlined in a government order seen by Reuters, comes in response to rising electricity demand across the country. India's power ministry anticipates peak electricity demand could reach 270 gigawatts (GW) in the upcoming summer season, up from 250 GW last year.
The country often experiences extreme heatwaves during this period, significantly increasing energy consumption.
The India Meteorological Department has forecast above-average temperatures for March across most regions, following an unusually warm February.
The Indian Pharmaceutical Alliance (IPA), representing major Indian drug manufacturers, has suggested that the government consider reducing tariffs on US drug imports to zero.
This proposal comes as a countermeasure to the Trump administration’s consideration of a 25 per cent import tariff on Indian pharmaceutical products. According to IPA Secretary General Sudarshan Jain, the move would not significantly impact India’s economy and could potentially persuade the US government to reconsider its tariff policies.
India currently exports pharmaceutical products worth USD 9 billion to the US, while US pharmaceutical exports to India stand at approximately USD 800 million.
The Department for Promotion of Industry and Internal Trade (DPIIT) has launched the Startup Maha Rathi challenge as part of the second edition of Startup Mahakumbh. This flagship initiative is a collaborative effort with Avaana Capital, LetsVenture, Karnataka Digital Economy Mission (KDEM), IVCA, HDFC, and other partners, aimed at providing Indian startups with funding, mentorship, and strategic guidance. The program aligns with India's long-term vision of becoming a developed economy (Viksit Bharat) by 2047.
In a landmark ruling, the Supreme Court has held that the rights of accused persons under the Code of Criminal Procedure (now Bharatiya Nagarik Suraksha Sanhita) apply equally to arrests made under the Goods and Services Tax (GST) Act and the Customs Act. The Court emphasised that arresting authorities must adhere strictly to legal safeguards, preventing arbitrary detentions. Applying the principles from the Arvind Kejriwal case, the Court stated that an arrest under GST and Customs laws must be based on "reasons to believe" rather than mere suspicion.
New Delhi is exploring significant tariff reductions on a range of imports, including automobiles, chemicals, and electronics, in a bid to avoid US President Donald Trump’s proposed reciprocal tariffs, sources familiar with the matter revealed.Officials are discussing lowering duties on key US exports such as agricultural products, pharmaceuticals, and medical devices.
This move would go beyond the recent tariff cuts on high-end motorcycles and bourbon whiskey, which were primarily symbolic gestures toward Trump’s administration.
The Indian government has unveiled a comprehensive strategy to recover critical minerals from mining waste, with a substantial investment of Rs 34,300 crore under the National Critical Minerals Mission.
This initiative, detailed in a joint report by FICCI and Deloitte, aims to strengthen domestic supply chains crucial for India's clean energy and high-tech industrial sectors.
The strategic importance of this initiative is underscored by India's ambitious targets: 500 GW of renewable energy by 2030, 30 percent electric vehicle adoption, and achieving net-zero emissions by 2070.
Madhya Pradesh has secured Rs 31,851 crore in foreign investments during the recently concluded Global Investor Summit (GIS) 2025 in Bhopal, demonstrating growing international confidence in the state's economic potential. The investment commitments span multiple districts, with Bhopal, Dhar, Indore, and Narmadapuram emerging as key beneficiaries. Bhopal attracted significant proposals primarily in the information technology and renewable energy sectors, while Dhar received substantial interest in engineering and auto components manufacturing.
Union Minister of Ports, Shipping and Waterways, Shri Sarbananda Sonowal, has announced a substantial investment exceeding Rs 4,800 crore aimed at transforming Assam's inland waterways sector. The announcement was made during the Advantage Assam 2.0 summit in Guwahati, highlighting the strategic importance of the state's complex waterway network in advancing regional development and supporting the Prime Minister's Viksit Bharat vision.
The micro, small, and medium enterprises (MSME) sector, the backbone of Chandigarh’s industrial growth, has witnessed a steady rise in new registrations over the past three financial years, signalling resilience after the Covid-19-induced economic slump. According to data from the Union Ministry of MSMEs, 4,564 new MSMEs were registered in FY 2021-22, which increased to 4,764 in FY 2022-23, and further to 5,198 in FY 2023-24.
By January 2025, an additional 3,342 MSMEs had been registered, reflecting consistent entrepreneurial activity in the city.
Karnataka has once again positioned itself at the forefront of India’s clean mobility revolution with the launch of its ambitious Clean Mobility Policy during the Global Investors Meet earlier this month. Building on its legacy as the first Indian state to introduce an Electric Vehicle (EV) policy, Karnataka now aims to set a national benchmark by expanding its focus beyond EVs to a holistic clean mobility ecosystem. The policy’s announcement comes on the heels of the Union Budget’s exemption of basic customs duties on lithium-ion battery components, a move expected to lower production costs and stimulate sectoral growth.
India and the European Union (EU) have reached an agreement to address challenges arising fr0m the implementation of the Carbon Border Adjustment Mechanism (CBAM), with particular focus on small and medium enterprises.
This consensus emerged during the second meeting of the India-EU Trade and Technology Council (TTC) held on Friday. "Both sides discussed the challenges arising out of CBAM implementation, in particular for the small and medium enterprises and agreed to continue addressing them," stated a joint statement released after the TTC meeting.
Australia has launched an ambitious roadmap to enhance trade and investment ties with India, identifying four key "superhighways of growth": clean energy, education and skills, agribusiness, and tourism.
The initiative aims to expand economic cooperation and increase two-way investment between the two nations. "India is an essential partner as we diversify our trade links to boost prosperity for all Australians," said Prime Minister Anthony Albanese.
The roadmap, released by Albanese’s office, outlines nearly 50 specific opportunities to accelerate engagement in sectors such as defence industries, sports, culture, space, and technology.
According to the FISME factor, 100% of MSMEs think that the US tariffs will impact their business's competitiveness.
In 1961, meteorologist Edward Lorenz proposed that the flutter of a butterfly’s wings in Brazil might ultimately trigger a tornado in Texas. Six decades later, this concept—the “butterfly effect”—offers a powerful lens through which to understand organisational transformation. The theory suggests that small, seemingly inconsequential actions can cascade into profound outcomes—a principle that forward-thinking companies are now deliberately harnessing.
Financial literacy is a critical skill for small business owners. It lays the foundation for informed decision-making and effective financial management. Whether you’re just starting your business or looking to grow, understanding key financial concepts is essential. In this article, we’ll explore the importance of financial literacy and provide practical strategies to enhance it.
In a statement during the Export Conclave jointly organised by World Trade Centre Mumbai and YES Bank, Textile Commissioner Roop Rashi emphasised the critical role banks should play in supporting India's textile industry, which currently employs 5.4 crore people and aims to expand its market size from USD 172 billion to USD 350 billion by 2030.
Bizongo, a tech-enabled B2B platform, is revolutionising supply chain operations for MSMEs in India. Through AI and technology, Bizongo facilitates seamless communication between large enterprises and their extensive network of MSME vendors. Bizongo, founded in 2015 by Sachin, Aniket Deb and Ankit Tomar, began its journey by connecting buyers and sellers in the packaging industry to make the system more efficient.
Swasth Foodtech share price opened flat on the BSE SME today, trading at the exact IPO price of Rs 94 per share. The company's initial public offering ran from February 20 to February 24.
The IPO saw moderate demand, achieving an overall subscription of 7.83 times by the final day of bidding. Investors were required to bid for a minimum of 1,200 shares or in multiples thereof.
“ Ups and downs in life are very important to keep us going, because a straight line even in an ECG means we are not alive. ”
