If you are unable to view this mailer, click here.
President Message
The Free Trade Agreement (FTA) between India and the United Kingdom is finally signed on May 6, 2025. Most of the FTAs signed by India so far have been with developing countries with whom we competed neck to neck especially in labour intensive products. These FTAs did not result into greater market access. But FTA with UK, like Australia, could be a game changer. We do not compete head-on but our trade is complimentary in nature. In fact in MSME product categories like Textiles and Apparels, we used to get outcompeted by countries such as Bangladesh and Sri Lanka. The FTA ensures duty free market access for 99% of Indian goods most notably the products dominated by MSMEs such as Textiles and Apparels, Leather, Gems and Jewelry, Light engineering goods and auto components, Pharma, Wood and wood products etc. The agreement includes provisions to facilitate digital trade, covering e-commerce and digital services which further opens up opportunities for Indian exports. The FTAs also opens up public procurement for each other’s companies. There has been a concern among some sections about fate of MSME set-aside of 25% in central government purchases. Our understanding is that 25% reservation for MSMEs shall remain unaffected. Overall, FTA with UK is an important development with a real chance of converting the agreement on greater market access for Indian exporters.
On May 8, 2025, Federation of Indian Micro and Small & Medium Enterprises (FISME) in collaboration with the Centre for Social and Economic Progress (CSEP) organized a focused discussion on the implications of Quality Control Orders (QCOs) for Indian industry, especially Micro, Small, and Medium Enterprises (MSMEs).
Key speakers at the event included Dr. Laveesh Bhandari, President and Senior Fellow, CSEP; Ms. Prerna Prabhakar, Associate Fellow, CSEP; Mr. Sandeep Kishore Jain, President, FISME; and Mr. Anil Bhardwaj, Secretary General, FISME. The session brought together policymakers, industry leaders and experts to deliberate on the challenges posed by QCOs, including compliance issues, licensing delays, and the need for supportive infrastructure for MSMEs.
The discussion emphasized the importance of a phased implementation of QCOs, greater transparency in BIS licensing, and the establishment of common testing facilities to support smaller manufacturers.
Growth isn't linear — each stage requires new strategies and leadership evolution. Over two decades ago, I learned one of the most valuable lessons of my career. As an investment banker, I advised a seasoned CEO to hold off on investing in a growing company. Shortly after, the company's stock price surged. Embarrassed, I called the CEO to deliver the news, expecting frustration. Instead, he calmly replied, "The increase isn't sustainable; the price will eventually drop and fill the gap." True to his prediction, the stock returned to its previous level.
The trade pact will provide enhanced market access for a wide range of Indian goods and services in the UK. Similarly, British firms will also enjoy comparable benefits in the Indian market.
India and the UK earlier this week announced that they have concluded the negotiations for a free trade agreement to boost economic ties between the two countries. The talks commenced in January 2022.
It is aimed at doubling the bilateral trade in goods and services from $60 billion at present to $120 billion by 2030. The trade pact will provide enhanced market access for a wide range of Indian goods and services in the UK. Similarly, British firms will also enjoy comparable benefits in the Indian market.
India's outward foreign direct investment (FDI) commitments surged to USD 6.8 billion in April 2025, representing a near doubling from the USD 3.58 billion recorded in the same month last year, according to data released by the Reserve Bank of India (RBI).
This also marks a sequential increase from March 2025's figure of USD 5.9 billion. The composition of India's outbound FDI, which is measured as financial commitment, consists of three key components: equity, loans, and guarantees.
Primus Partners, a leading Indian consulting firm, has unveiled a strategic roadmap aimed at boosting India's textile exports to USD 100 billion within the next five years.
This ambitious plan seeks to capitalise on India's existing strengths in the textile sector while addressing key challenges to enhance global competitiveness. The roadmap emphasises the need for increased investment in technology and innovation, aiming to modernise manufacturing processes and improve product quality.
India has imposed an anti-dumping duty of up to USD 664 per tonne on imports of certain types of solar glass from China and Vietnam for a five-year period.
The measure aims to protect domestic manufacturers from cheap imports from these two countries, according to a government notification.
The duty was implemented following a detailed investigation by the Directorate General of Trade Remedies (DGTR), the investigation arm of India's commerce ministry.
The Department for Promotion of Industry and Internal Trade (DPIIT), has announced expansions to the Credit Guarantee Scheme for Startups (CGSS), enhancing financial support available to India's innovation ecosystem. The CGSS scheme provides guarantees for credit instruments extended to startups by Scheduled Commercial Banks, All India Financial Institutions, Non-Banking Financial Companies, and SEBI-registered Alternative Investment Funds.
India has emerged as the global frontrunner in both manufacturing and services activity, according to the latest Purchasing Managers' Index (PMI) data released by J.P. Morgan. The report highlights that for April 2025, India's manufacturing PMI stood at 58.2, while the services PMI reached 58.7—marking the highest levels among developed and emerging economies alike. The PMI is a widely tracked economic indicator that measures business activity in the manufacturing and services sectors. A PMI reading above 50 indicates expansion, whereas a figure below 50 reflects contraction.
Uttar Pradesh and Gujarat are developing specialised incentive programs to attract large-scale electronics component manufacturers, joining several states competing for investments following the Central Government's Rs 23,000 crore Electronics Component Manufacturing Scheme (ECMS). Gujarat, which has emerged as a hub for electronics and semiconductor manufacturing with projects from Micron, CG Power, and Tata Electronics in various stages of development, has advanced in its policy formulation efforts.
CaptainBiz, a fintech-SaaS platform serving MSMEs, has unveiled Bill2Pay, a new feature that integrates invoice generation, digital payment collection, and real-time cash flow tracking into a unified invoice-linked payment system. This innovation allows businesses to attach unique digital payment links directly to their invoices, enabling customers to make immediate payments through various methods including UPI, debit cards, credit cards, net banking, or digital wallets.
The Union Cabinet on Wednesday approved the establishment of a Rs 3,706 crore semiconductor manufacturing facility in Jewar, Uttar Pradesh. The project will be developed through a joint venture between HCL and Foxconn, marking India's sixth semiconductor plant under the government's initiative to build domestic semiconductor capabilities. The facility will be situated on a 48-acre plot in Sector 28 under the Yamuna Expressway Industrial Development Authority (YEIDA) and is projected to create employment opportunities for approximately 2,000 individuals.
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.
The High Court of Karnataka has ruled that benefits of loan restructuring or revival schemes for non-performing assets (NPAs) are legally available only to functioning micro, small and medium enterprises (MSMEs). This determination came as Justice M. Nagaprasanna rejected a petition from M/s Metro Steel Section challenging recovery proceedings initiated by the State Bank of India for approximately Rs 18.5 crore in outstanding loans.
M1xchange, an invoice discounting platform, announced a strategic partnership with the Gujarat government on Friday to provide collateral-free working capital access to MSMEs based in Gujarat. The partnership will benefit small businesses supplying to state government departments, public sector undertakings (PSUs), and private enterprises. Under the memorandum of understanding (MoU), M1xchange and the Gujarat government will collaborate to enable early payment solutions for MSMEs at competitive rates.
India and the United Kingdom have successfully concluded negotiations on a comprehensive Free Trade Agreement (FTA), as announced by Prime Minister Modi and UK Prime Minister Sir Keir Starmer. The agreement, described as mutually beneficial, aligns with India's Viksit Bharat 2047 vision and supports both nations' economic growth objectives. Commerce and Industry Minister Piyush Goyal described the agreement as establishing "a new benchmark for equitable and ambitious trade between two large economies," noting it would benefit multiple segments of the Indian economy including farmers, fishermen, workers, MSMEs, startups, and innovators.
China's Ministry of Commerce has announced anti-dumping duties on cypermethrin imports from India for five years, effective immediately. The decision follows a year-long investigation, which concluded that Indian exporters were dumping the pesticide at unfairly low prices, causing material injury to China's domestic industry, according to a report by the Global Times. According to the Chinese commerce ministry, the anti-dumping duties range from 48.4 per cent to 166.2 per cent, with Tagros Chemicals India facing the lowest margin at 48.4 per cent, and UPL Ltd, along with other unspecified Indian firms, being subjected to the steepest duty of 166.2 per cent.
The shifts transforming HR leadership in 2025 and how you can adapt
As technology continues to transform every facet of the business landscape, the HR function is no longer simply about hiring, compliance, or employee relations. It is now a strategic pillar that determines whether organisations can keep up with disruption or risk falling behind. HR professionals need to develop new skills that go beyond traditional people management to stay ahead of these changes.
Section 37 of Income Tax Act: List of Expenses Allowed & Disallowed as Deduction from Business Income
In India, the government provides several tax deductions to companies in order to boost business growth. However, they are applicable for a specific list of expenses which are stated under Section 37 of Income Tax Act.
Thus, in order to accurately file returns and benefit from the available deductions, companies must have a clear idea of the allowed list of expenses.
Why Business Growth Today Demands More Than Just Traditional Marketing
Today's CMOs are growth architects focused on creating coherence and driving business success from within. Early in my career, I was a key contributor on a global product launch for a client. On paper, everything looked tight. The positioning was sharp, the creative was compelling and the media plan was thorough. But something didn't sit right. Our pricing felt arbitrary. Our dealers weren't prepped.
Indian Stainless Steel Industry Seeks Anti-Dumping Probe On Chinese, Vietnamese Imports
India's stainless steel producers are preparing to request government intervention through an anti-dumping investigation targeting imports fr0m China, Vietnam, Malaysia, and other select countries. The Indian Stainless Steel Development Association (ISSDA), which represents the nation's stainless steel manufacturers, plans to approach the Directorate General of Trade Remedies in the near future.
Arunaya Organics Makes Tepid Debut On NSE SME Platform With 48% Discount
Shares of dyes manufacturer Arunaya Organics made a tepid market debut on the NSE SME platform today, May 7. The company's shares listed at Rs 30.10 per share, representing a significant discount of Rs 28.90 or 48 percent against the issue price of Rs 58 per share. The listing performance fell considerably short of grey market expectations, where the unlisted shares were trading flat at the upper band price of Rs 58 per share prior to the official debut, according to sources monitoring unofficial market activity.
Kenrik Industries Shares Hit Upper Circuit After Flat Listing on BSE SME
Shares of Kenrik Industries reached the 5 per cent upper circuit at Rs 26.26 per share on the BSE SME on Friday, May 9, following a flat listing at Rs 25.01 per share against its issue price of Rs 24.5. Trading was subsequently halted on the exchange. The company saw approximately 0.2 million equity shares worth around Rs 0.52 crore change hands on the BSE SME today. The listing performance aligned with grey market expectations, where shares were trading at approximately Rs 25 apiece prior to the debut.
The National Statistical Office (NSO), Ministry of Statistics and Programme Implementation (MoSPI) has released the Consumer Price Index (CPI) numbers on base 2012=100 for Rural, Urban and Combined for the month of April, 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.
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.
The Free Trade Agreement (FTA) between India and the United Kingdom is finally signed on May 6, 2025. Most of the FTAs signed by India so far have been with developing countries with whom we competed neck to neck especially in labour intensive products. These FTAs did not result into greater market access. But FTA with UK, like Australia, could be a game changer. We do not compete head-on but our trade is complimentary in nature. In fact in MSME product categories like Textiles and Apparels, we used to get outcompeted by countries such as Bangladesh and Sri Lanka. The FTA ensures duty free market access for 99% of Indian goods most notably the products dominated by MSMEs such as Textiles and Apparels, Leather, Gems and Jewelry, Light engineering goods and auto components, Pharma, Wood and wood products etc. The agreement includes provisions to facilitate digital trade, covering e-commerce and digital services which further opens up opportunities for Indian exports. The FTAs also opens up public procurement for each other’s companies. There has been a concern among some sections about fate of MSME set-aside of 25% in central government purchases. Our understanding is that 25% reservation for MSMEs shall remain unaffected. Overall, FTA with UK is an important development with a real chance of converting the agreement on greater market access for Indian exporters.
On May 8, 2025, Federation of Indian Micro and Small & Medium Enterprises (FISME) in collaboration with the Centre for Social and Economic Progress (CSEP) organized a focused discussion on the implications of Quality Control Orders (QCOs) for Indian industry, especially Micro, Small, and Medium Enterprises (MSMEs).
Key speakers at the event included Dr. Laveesh Bhandari, President and Senior Fellow, CSEP; Ms. Prerna Prabhakar, Associate Fellow, CSEP; Mr. Sandeep Kishore Jain, President, FISME; and Mr. Anil Bhardwaj, Secretary General, FISME. The session brought together policymakers, industry leaders and experts to deliberate on the challenges posed by QCOs, including compliance issues, licensing delays, and the need for supportive infrastructure for MSMEs.
The discussion emphasized the importance of a phased implementation of QCOs, greater transparency in BIS licensing, and the establishment of common testing facilities to support smaller manufacturers.
Growth isn't linear — each stage requires new strategies and leadership evolution. Over two decades ago, I learned one of the most valuable lessons of my career. As an investment banker, I advised a seasoned CEO to hold off on investing in a growing company. Shortly after, the company's stock price surged. Embarrassed, I called the CEO to deliver the news, expecting frustration. Instead, he calmly replied, "The increase isn't sustainable; the price will eventually drop and fill the gap." True to his prediction, the stock returned to its previous level.
India's outward foreign direct investment (FDI) commitments surged to USD 6.8 billion in April 2025, representing a near doubling from the USD 3.58 billion recorded in the same month last year, according to data released by the Reserve Bank of India (RBI).
This also marks a sequential increase from March 2025's figure of USD 5.9 billion. The composition of India's outbound FDI, which is measured as financial commitment, consists of three key components: equity, loans, and guarantees.
Primus Partners, a leading Indian consulting firm, has unveiled a strategic roadmap aimed at boosting India's textile exports to USD 100 billion within the next five years.
This ambitious plan seeks to capitalise on India's existing strengths in the textile sector while addressing key challenges to enhance global competitiveness. The roadmap emphasises the need for increased investment in technology and innovation, aiming to modernise manufacturing processes and improve product quality.
India has imposed an anti-dumping duty of up to USD 664 per tonne on imports of certain types of solar glass from China and Vietnam for a five-year period.
The measure aims to protect domestic manufacturers from cheap imports from these two countries, according to a government notification.
The duty was implemented following a detailed investigation by the Directorate General of Trade Remedies (DGTR), the investigation arm of India's commerce ministry.
The Department for Promotion of Industry and Internal Trade (DPIIT), has announced expansions to the Credit Guarantee Scheme for Startups (CGSS), enhancing financial support available to India's innovation ecosystem. The CGSS scheme provides guarantees for credit instruments extended to startups by Scheduled Commercial Banks, All India Financial Institutions, Non-Banking Financial Companies, and SEBI-registered Alternative Investment Funds.
India has emerged as the global frontrunner in both manufacturing and services activity, according to the latest Purchasing Managers' Index (PMI) data released by J.P. Morgan. The report highlights that for April 2025, India's manufacturing PMI stood at 58.2, while the services PMI reached 58.7—marking the highest levels among developed and emerging economies alike. The PMI is a widely tracked economic indicator that measures business activity in the manufacturing and services sectors. A PMI reading above 50 indicates expansion, whereas a figure below 50 reflects contraction.
Uttar Pradesh and Gujarat are developing specialised incentive programs to attract large-scale electronics component manufacturers, joining several states competing for investments following the Central Government's Rs 23,000 crore Electronics Component Manufacturing Scheme (ECMS). Gujarat, which has emerged as a hub for electronics and semiconductor manufacturing with projects from Micron, CG Power, and Tata Electronics in various stages of development, has advanced in its policy formulation efforts.
CaptainBiz, a fintech-SaaS platform serving MSMEs, has unveiled Bill2Pay, a new feature that integrates invoice generation, digital payment collection, and real-time cash flow tracking into a unified invoice-linked payment system. This innovation allows businesses to attach unique digital payment links directly to their invoices, enabling customers to make immediate payments through various methods including UPI, debit cards, credit cards, net banking, or digital wallets.
The Union Cabinet on Wednesday approved the establishment of a Rs 3,706 crore semiconductor manufacturing facility in Jewar, Uttar Pradesh. The project will be developed through a joint venture between HCL and Foxconn, marking India's sixth semiconductor plant under the government's initiative to build domestic semiconductor capabilities. The facility will be situated on a 48-acre plot in Sector 28 under the Yamuna Expressway Industrial Development Authority (YEIDA) and is projected to create employment opportunities for approximately 2,000 individuals.
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.
The High Court of Karnataka has ruled that benefits of loan restructuring or revival schemes for non-performing assets (NPAs) are legally available only to functioning micro, small and medium enterprises (MSMEs). This determination came as Justice M. Nagaprasanna rejected a petition from M/s Metro Steel Section challenging recovery proceedings initiated by the State Bank of India for approximately Rs 18.5 crore in outstanding loans.
M1xchange, an invoice discounting platform, announced a strategic partnership with the Gujarat government on Friday to provide collateral-free working capital access to MSMEs based in Gujarat. The partnership will benefit small businesses supplying to state government departments, public sector undertakings (PSUs), and private enterprises. Under the memorandum of understanding (MoU), M1xchange and the Gujarat government will collaborate to enable early payment solutions for MSMEs at competitive rates.
India and the United Kingdom have successfully concluded negotiations on a comprehensive Free Trade Agreement (FTA), as announced by Prime Minister Modi and UK Prime Minister Sir Keir Starmer. The agreement, described as mutually beneficial, aligns with India's Viksit Bharat 2047 vision and supports both nations' economic growth objectives. Commerce and Industry Minister Piyush Goyal described the agreement as establishing "a new benchmark for equitable and ambitious trade between two large economies," noting it would benefit multiple segments of the Indian economy including farmers, fishermen, workers, MSMEs, startups, and innovators.
China's Ministry of Commerce has announced anti-dumping duties on cypermethrin imports from India for five years, effective immediately. The decision follows a year-long investigation, which concluded that Indian exporters were dumping the pesticide at unfairly low prices, causing material injury to China's domestic industry, according to a report by the Global Times. According to the Chinese commerce ministry, the anti-dumping duties range from 48.4 per cent to 166.2 per cent, with Tagros Chemicals India facing the lowest margin at 48.4 per cent, and UPL Ltd, along with other unspecified Indian firms, being subjected to the steepest duty of 166.2 per cent.
According to the FISME factor, 100 percent of MSMEs believe that the government should prioritize access to affordable finance to boost manufacturing.
As technology continues to transform every facet of the business landscape, the HR function is no longer simply about hiring, compliance, or employee relations. It is now a strategic pillar that determines whether organisations can keep up with disruption or risk falling behind. HR professionals need to develop new skills that go beyond traditional people management to stay ahead of these changes.
In India, the government provides several tax deductions to companies in order to boost business growth. However, they are applicable for a specific list of expenses which are stated under Section 37 of Income Tax Act.
Thus, in order to accurately file returns and benefit from the available deductions, companies must have a clear idea of the allowed list of expenses.
Today's CMOs are growth architects focused on creating coherence and driving business success from within. Early in my career, I was a key contributor on a global product launch for a client. On paper, everything looked tight. The positioning was sharp, the creative was compelling and the media plan was thorough. But something didn't sit right. Our pricing felt arbitrary. Our dealers weren't prepped.
India's stainless steel producers are preparing to request government intervention through an anti-dumping investigation targeting imports fr0m China, Vietnam, Malaysia, and other select countries. The Indian Stainless Steel Development Association (ISSDA), which represents the nation's stainless steel manufacturers, plans to approach the Directorate General of Trade Remedies in the near future.
Shares of dyes manufacturer Arunaya Organics made a tepid market debut on the NSE SME platform today, May 7. The company's shares listed at Rs 30.10 per share, representing a significant discount of Rs 28.90 or 48 percent against the issue price of Rs 58 per share. The listing performance fell considerably short of grey market expectations, where the unlisted shares were trading flat at the upper band price of Rs 58 per share prior to the official debut, according to sources monitoring unofficial market activity.
Shares of Kenrik Industries reached the 5 per cent upper circuit at Rs 26.26 per share on the BSE SME on Friday, May 9, following a flat listing at Rs 25.01 per share against its issue price of Rs 24.5. Trading was subsequently halted on the exchange. The company saw approximately 0.2 million equity shares worth around Rs 0.52 crore change hands on the BSE SME today. The listing performance aligned with grey market expectations, where shares were trading at approximately Rs 25 apiece prior to the debut.
“ Look at the sky. We are not alone. The whole universe is friendly to us and conspires only to give the best to those who dream and work. ”
