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President Message
The latest India Economic Outlook brings welcome news of the nation’s robust growth. However, it delivers an essential challenge to the Micro, Small, and Medium Enterprises (MSME) sector. MSMEs are not just a part of the economy; they are its engine. Accounting for nearly 30% of GDP and providing employment to over 240 million people, our sector is the foundation upon which India’s industrial and service sectors stand. We applaud the recent policy push toward formalization, which has seen a surge in registrations and helped firms scale up. Yet, a stark reality checks remains: Indian MSMEs operate at only about 18% of the productivity levels of large enterprises, a figure far below global peer. This gap is the single greatest constraint on our competitiveness. The message is: moment to maximize productivity is now. Of course there are structural issues that MSMEs confront. First there is huge credit gap: estimated at ₹30 lakh crore credit gap remains our most persistent challenge. Lack of collateral and credit history keeps countless firms reliant on informal sources, hindering modernization and growth. Second is uneven Technology adoption. We must shift the focus from merely accepting digital money to deeply integrating technology into every part of the business—from supply chain management to market access—especially in the burgeoning tier 2 and tier 3 cities where our sector is concentrated. Thirdly intense competition, particularly in sectors like readymade garments, forces smaller firms to accept projects with razor-thin margins making them vulnerable to external shocks. For every MSME owner, the message is clear: robust domestic demand gives us a strong footing, but sustaining growth demands a commitment to productivity. By tackling the finance gap, embracing deep digital adoption, and leveraging supportive state policies, we can not only close the productivity deficit but solidify our position as the true engine of India’s economic superpower status.
The Ministry of Micro, Small and Medium Enterprises (MSME) has launched a structured, nationwide consultative programme to address cost challenges and enhance the global competitiveness of India's MSME sector. FISME served as the Knowledge Partner for this initiative across multiple locations.
As part of this programme, FISME has organised events in Thrissur (24th Oct 2025), Kozhikode (29th Oct 2025), Srinagar (27th Oct 2025), Baddi (30th Oct 2025), and Paonta Sahib (3rd Nov 2025).
These discussions are expected to generate actionable recommendations based on local operational realities. Outputs from the cluster-level engagements will feed into zonal-level conferences involving state departments, financial institutions, industry bodies, and export promotion councils, before culminating in a national summit. Policy inputs emerging from the exercise will be considered for future schemes, regulatory refinements, and support programmes aimed at strengthening MSME growth and resilience. The initiative seeks to foster collaboration, identify cost-reduction opportunities, and position Indian MSMEs to compete more effectively in global markets.
Scaling a business isn’t about doing more — it’s about building the structure, boundaries and team that fuel growth without burning out. When I first started my agency, I thought success meant being busy all the time. Every client email felt urgent, every request was a top priority, and every day was a sprint I could never quite finish. worked around the clock because I believed that’s what scaling required. The reality was different: Growth without structure quickly turned into burnout. I eventually realized that scaling a business isn’t about saying yes to more — it’s about creating the systems and mindset to bring clarity. Without clarity, growth becomes chaos. With it, growth becomes sustainable. Here’s what I’ve learned about scaling while keeping your sanity intact.
Robust domestic demand and ongoing structural reforms are bolstering growth resilience. The next step is to empower micro, small, and medium enterprises to harness this momentum.
India’s strong GDP growth at the very start of fiscal year 2025 to 2026 underscores the resilience of its macroeconomic fundamentals and sets a positive tone for the months ahead. Deloitte projects baseline (optimistic) economic growth of 6.7% to 6.9% this fiscal year and 6.5% to 6.9% the following fiscal...
India’s power sector has achieved a historic landmark, surpassing 500 GW in total capacity, with renewable energy meeting over 50% of the country’s electricity demand.
According to a press release by the Ministry of Power on Wednesday, India’s total installed electricity capacity has crossed the 500 GW milestone, reaching 500.89 GW as of 30 September 2025. This achievement reflects years of robust policy support, sustained investments, and coordinated efforts across the nation’s energy ecosystem.
India is preparing a comprehensive roadmap to make its textile sector more competitive globally and regain its lost edge from rivals like Bangladesh, Vietnam, and China.
The Ministry of Textiles aims to increase exports from $40 billion to $100 billion by 2030 through targeted reforms and innovation. The government’s plan will unfold in three stages — short-term (up to 2 years), medium-term (around 5 years), and long-term beyond that.
The Directorate General of Foreign Trade (DGFT) on Tuesday amended procedural norms to allow domestic exporters to self-declare the Certificate of Origin (CoO) under the India-EFTA free trade agreement.
The free trade agreement between India and the European Free Trade Association—which includes Switzerland, Norway, Iceland, and Liechtenstein—officially took effect on October 1. A CoO is required to claim tariff concessions under free trade agreements, as it certifies the originating country of goods. Until now, Indian exporters could only obtain this document through authorised agencies.
The Defence Research and Development Organisation (DRDO) has handed over 12 licensing agreements for the transfer of technology (ToT) covering eight cutting-edge defence products to various industry partners. The announcement was made during the inaugural session of SAMANVAY-2025, a two-day industry synergy meet held in Bengaluru. Organised by DRDO’s Electronics and Communication Systems (ECS) cluster, the event aims to boost collaboration between DRDO and the private sector — including startups and MSMEs — under the government’s Aatmanirbhar Bharat initiative.
In a major relief for taxpayers, the Central Board of Direct Taxes (CBDT) has announced an extension of key deadlines for filing income tax returns and audit reports for the Assessment Year (AY) 2025–26.
The due date for furnishing the Return of Income under Section 139(1) of the Income-tax Act, 1961—originally 31st October 2025—has been extended to 10th December 2025, the CBDT stated in a notification issued on Wednesday.
Commerce and Industry Minister Piyush Goyal underscored the need for India to reduce reliance on foreign technologies and strengthen Make in India-driven innovation to achieve long-term technological sovereignty. Addressing the TiEcon Delhi-NCR conference on the theme ‘India’s Deeptech Moment: From Digital Leadership to Technological Sovereignty’, Goyal said that the spirit of Swadeshi represents resilience and self-reliance amid global uncertainties.
The Union Environment Ministry has eased the mandatory green cover requirement for industrial estates, reducing it from 33% to 10%, while introducing category-wise rules for individual industries based on their pollution levels. Officials said the change aims to balance land use efficiency with environmental protection. Under the new guidelines, industrial estates must now set aside at least 10% of their total area for common green zones, with dense plantations of around 2,500 trees per hectare.
The Ministry of Corporate Affairs (MCA) has notified the establishment of a new Registrar of Companies (ROC) office in Noida, set to become operational on January 1, 2026.
The office will cater to 17 districts in western Uttar Pradesh, easing administrative processes for companies in the region. Industry representatives have welcomed the move. Until now, Kanpur housed the only ROC office for the entire state, resulting in significant travel and procedural delays for businesses based in Noida, Ghaziabad and other western districts.
The Government e Marketplace (GeM) and the Government of Madhya Pradesh have agreed to enhance cooperation to accelerate the State’s adoption and utilization of the GeM platform for public procurement.
In Bhopal, GeM CEO Mihir Kumar and Chief Secretary Anurag Jain discussed ways to strengthen Madhya Pradesh’s procurement framework by enhancing transparency, inclusivity, and efficiency. Micro and Small Enterprises (MSEs) from Madhya Pradesh have received orders worth Rs 5,523 crore from State buyers, Rs 2,030 crore from other States, and Rs 20,298 crore from Central buyers, reflecting the State’s strong integration into the national procurement ecosystem.
The Kerala government has unveiled its ambitious “Vision 2031” plan aimed at transforming the state’s industrial landscape and attracting large-scale investments.
Announced by Industries Minister P. Rajeeve in Thiruvananthapuram, the plan outlines strategies to enhance ease of doing business, promote industrial innovation, and create employment opportunities across sectors. A major highlight of Vision 2031 is the proposal to establish a “Kerala University for Skill Development and Entrepreneurship” under a public-private partnership model.
Tata Power, through its skilling arm Tata Power Skill Development Institute (TPSDI), has inaugurated two Solar Skill Centres of Excellence (SCoE) in Tirunelveli and Virudhunagar, Tamil Nadu, to develop a certified workforce for the state’s expanding renewable energy sector. Established in partnership with the Directorate of Employment & Training (DET), Government of Tamil Nadu, the centres will offer practical, industry-aligned training in solar installation and maintenance, energy efficiency, and electrical safety.
India is exploring partnerships with Singapore and other Southeast Asian nations to accelerate the regional energy transition and enhance energy security.
According to Central Electricity Authority (CEA) Chair Ghanshyam Prasad, India is focusing on interconnecting power grids to share renewable energy efficiently across the region. A major proposal involves a direct power link between India and Singapore under the “One Sun, One World, One Grid” initiative, which aims to create a unified global renewable energy network.
India’s automobile industry is expanding its presence in South Africa, with several automakers planning to upgrade existing assembly lines into full-scale manufacturing units and set up new plants.
This move is part of a broader effort to boost local production and exports. According to News South Africa, the initiative aligns with South Africa’s renewed push to attract global automakers and revive its automobile sector. Minister of Trade, Industry and Competition Parks Tau confirmed that both Indian and Chinese automakers have shown keen interest in expanding their investments in the country.
Which are the biggest challenges your industry faces today? *
According to the FISME Factor, 60% of MSMEs believe that difficulty in raising funds is the biggest challenge their industry faces today, while 40% identify disruptions in global supply chains as the main concern.
Is upskilling the employer’s or the employee’s responsibility?
The most effective model is a partnership—where organisations invest in a learning culture and employees take ownership of their growth. When both align, upskilling transforms from a strategy into a shared path to progress. Upskilling is no longer a one-time effort; it’s an ongoing commitment to remain relevant and competitive. With technological changes happening overnight, job roles blurring, and industries reinventing themselves, the need for continuous learning has never been greater.
You’re Growing Fast — But Is Your Money Keeping Up? Here’s the Capital Strategy You Need.
Growth often comes faster than expected, and many businesses struggle to keep pace with the rate of demand. A common challenge many fast-growing companies face isn’t a lack of opportunity but capital misalignment. Let’s look at why capital often lags behind growth, the risks it creates and how companies can close the gap by calibrating their capital stack.
How does sustainability affect your brand strategy, and how do you communicate it?
Sustainability has evolved from a niche concern to a defining force in brand strategy. It’s no longer enough for businesses to give mere attention to environmental and social responsibility; they must demonstrate a genuine commitment to creating a more sustainable future. This shift has profound implications for how brands operate, innovate, and engage with their stakeholders. The influence of sustainability on brand strategy is pervasive.
J&K Industrial Units Raise Concerns As GST Cuts Remove Reimbursement Benefits
The Bari Brahmana Industries Association (BBIA) has raised concerns that recent GST rate reductions on food products and corrugated packaging goods under GST Reforms 2.0 may lead to the closure of existing manufacturing units in Jammu & Kashmir (J&K). At a meeting chaired by BBIA President Lalit Mahajan, association members said the cut in GST on finished goods — to 5 percent from earlier slabs of 12 percent and 18 percent — effective September 22, 2025, has eliminated reimbursement benefits available to units established before April 1, 2021 under the J&K Industrial Policy 2021–30.
From Rs 200 to a global empire: The Dosa Plaza story
In 1992, a 19-year-old from Tamil Nadu stepped off a train in Mumbai with just ₹200 in his pocket and a dream that would later feed millions. Prem Ganapathy didn’t arrive chasing fame or fortune; he simply wanted a job. But after being cheated by a recruiter and stranded in a strange city, he washed dishes to survive. What he built from there Dosa Plaza, a global South Indian food brand is now part of India’s favourite entrepreneurial folklore.
Silver jewellery brand Goyaz raises Rs 130 Cr from Norwest
Silver jewellery brand Goyaz has raised Rs 130 crore in a Series A funding round led by Norwest. This round marks Goyaz’s first institutional investment. Founded in 2023, Goyaz focuses on affordable occasion-wear jewellery. The brand said, in a statement, that it creates pieces from high-quality silver plated with gold, combining durability with premium aesthetics to offer an alternative to conventional gold jewellery. In the last few years, it has grown to 18 stores across several states.
The National Statistical Office (NSO), Ministry of Statistics and Programme Implementation (MoSPI) has released the Quick Estimate of Index of Industrial Production and Use-Based Index for the month of September 2025 (Base 2011-12=100).
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 latest India Economic Outlook brings welcome news of the nation’s robust growth. However, it delivers an essential challenge to the Micro, Small, and Medium Enterprises (MSME) sector. MSMEs are not just a part of the economy; they are its engine. Accounting for nearly 30% of GDP and providing employment to over 240 million people, our sector is the foundation upon which India’s industrial and service sectors stand. We applaud the recent policy push toward formalization, which has seen a surge in registrations and helped firms scale up. Yet, a stark reality checks remains: Indian MSMEs operate at only about 18% of the productivity levels of large enterprises, a figure far below global peer. This gap is the single greatest constraint on our competitiveness. The message is: moment to maximize productivity is now. Of course there are structural issues that MSMEs confront. First there is huge credit gap: estimated at ₹30 lakh crore credit gap remains our most persistent challenge. Lack of collateral and credit history keeps countless firms reliant on informal sources, hindering modernization and growth. Second is uneven Technology adoption. We must shift the focus from merely accepting digital money to deeply integrating technology into every part of the business—from supply chain management to market access—especially in the burgeoning tier 2 and tier 3 cities where our sector is concentrated. Thirdly intense competition, particularly in sectors like readymade garments, forces smaller firms to accept projects with razor-thin margins making them vulnerable to external shocks. For every MSME owner, the message is clear: robust domestic demand gives us a strong footing, but sustaining growth demands a commitment to productivity. By tackling the finance gap, embracing deep digital adoption, and leveraging supportive state policies, we can not only close the productivity deficit but solidify our position as the true engine of India’s economic superpower status.
The Ministry of Micro, Small and Medium Enterprises (MSME) has launched a structured, nationwide consultative programme to address cost challenges and enhance the global competitiveness of India's MSME sector. FISME served as the Knowledge Partner for this initiative across multiple locations.
As part of this programme, FISME has organised events in Thrissur (24th Oct 2025), Kozhikode (29th Oct 2025), Srinagar (27th Oct 2025), Baddi (30th Oct 2025), and Paonta Sahib (3rd Nov 2025).
These discussions are expected to generate actionable recommendations based on local operational realities. Outputs from the cluster-level engagements will feed into zonal-level conferences involving state departments, financial institutions, industry bodies, and export promotion councils, before culminating in a national summit. Policy inputs emerging from the exercise will be considered for future schemes, regulatory refinements, and support programmes aimed at strengthening MSME growth and resilience. The initiative seeks to foster collaboration, identify cost-reduction opportunities, and position Indian MSMEs to compete more effectively in global markets.
Scaling a business isn’t about doing more — it’s about building the structure, boundaries and team that fuel growth without burning out. When I first started my agency, I thought success meant being busy all the time. Every client email felt urgent, every request was a top priority, and every day was a sprint I could never quite finish. worked around the clock because I believed that’s what scaling required. The reality was different: Growth without structure quickly turned into burnout. I eventually realized that scaling a business isn’t about saying yes to more — it’s about creating the systems and mindset to bring clarity. Without clarity, growth becomes chaos. With it, growth becomes sustainable. Here’s what I’ve learned about scaling while keeping your sanity intact.
India’s power sector has achieved a historic landmark, surpassing 500 GW in total capacity, with renewable energy meeting over 50% of the country’s electricity demand.
According to a press release by the Ministry of Power on Wednesday, India’s total installed electricity capacity has crossed the 500 GW milestone, reaching 500.89 GW as of 30 September 2025. This achievement reflects years of robust policy support, sustained investments, and coordinated efforts across the nation’s energy ecosystem.
India is preparing a comprehensive roadmap to make its textile sector more competitive globally and regain its lost edge from rivals like Bangladesh, Vietnam, and China.
The Ministry of Textiles aims to increase exports from $40 billion to $100 billion by 2030 through targeted reforms and innovation. The government’s plan will unfold in three stages — short-term (up to 2 years), medium-term (around 5 years), and long-term beyond that.
The Directorate General of Foreign Trade (DGFT) on Tuesday amended procedural norms to allow domestic exporters to self-declare the Certificate of Origin (CoO) under the India-EFTA free trade agreement.
The free trade agreement between India and the European Free Trade Association—which includes Switzerland, Norway, Iceland, and Liechtenstein—officially took effect on October 1. A CoO is required to claim tariff concessions under free trade agreements, as it certifies the originating country of goods. Until now, Indian exporters could only obtain this document through authorised agencies.
The Defence Research and Development Organisation (DRDO) has handed over 12 licensing agreements for the transfer of technology (ToT) covering eight cutting-edge defence products to various industry partners. The announcement was made during the inaugural session of SAMANVAY-2025, a two-day industry synergy meet held in Bengaluru. Organised by DRDO’s Electronics and Communication Systems (ECS) cluster, the event aims to boost collaboration between DRDO and the private sector — including startups and MSMEs — under the government’s Aatmanirbhar Bharat initiative.
In a major relief for taxpayers, the Central Board of Direct Taxes (CBDT) has announced an extension of key deadlines for filing income tax returns and audit reports for the Assessment Year (AY) 2025–26.
The due date for furnishing the Return of Income under Section 139(1) of the Income-tax Act, 1961—originally 31st October 2025—has been extended to 10th December 2025, the CBDT stated in a notification issued on Wednesday.
Commerce and Industry Minister Piyush Goyal underscored the need for India to reduce reliance on foreign technologies and strengthen Make in India-driven innovation to achieve long-term technological sovereignty. Addressing the TiEcon Delhi-NCR conference on the theme ‘India’s Deeptech Moment: From Digital Leadership to Technological Sovereignty’, Goyal said that the spirit of Swadeshi represents resilience and self-reliance amid global uncertainties.
The Union Environment Ministry has eased the mandatory green cover requirement for industrial estates, reducing it from 33% to 10%, while introducing category-wise rules for individual industries based on their pollution levels. Officials said the change aims to balance land use efficiency with environmental protection. Under the new guidelines, industrial estates must now set aside at least 10% of their total area for common green zones, with dense plantations of around 2,500 trees per hectare.
The Ministry of Corporate Affairs (MCA) has notified the establishment of a new Registrar of Companies (ROC) office in Noida, set to become operational on January 1, 2026.
The office will cater to 17 districts in western Uttar Pradesh, easing administrative processes for companies in the region. Industry representatives have welcomed the move. Until now, Kanpur housed the only ROC office for the entire state, resulting in significant travel and procedural delays for businesses based in Noida, Ghaziabad and other western districts.
The Government e Marketplace (GeM) and the Government of Madhya Pradesh have agreed to enhance cooperation to accelerate the State’s adoption and utilization of the GeM platform for public procurement.
In Bhopal, GeM CEO Mihir Kumar and Chief Secretary Anurag Jain discussed ways to strengthen Madhya Pradesh’s procurement framework by enhancing transparency, inclusivity, and efficiency. Micro and Small Enterprises (MSEs) from Madhya Pradesh have received orders worth Rs 5,523 crore from State buyers, Rs 2,030 crore from other States, and Rs 20,298 crore from Central buyers, reflecting the State’s strong integration into the national procurement ecosystem.
The Kerala government has unveiled its ambitious “Vision 2031” plan aimed at transforming the state’s industrial landscape and attracting large-scale investments.
Announced by Industries Minister P. Rajeeve in Thiruvananthapuram, the plan outlines strategies to enhance ease of doing business, promote industrial innovation, and create employment opportunities across sectors. A major highlight of Vision 2031 is the proposal to establish a “Kerala University for Skill Development and Entrepreneurship” under a public-private partnership model.
Tata Power, through its skilling arm Tata Power Skill Development Institute (TPSDI), has inaugurated two Solar Skill Centres of Excellence (SCoE) in Tirunelveli and Virudhunagar, Tamil Nadu, to develop a certified workforce for the state’s expanding renewable energy sector. Established in partnership with the Directorate of Employment & Training (DET), Government of Tamil Nadu, the centres will offer practical, industry-aligned training in solar installation and maintenance, energy efficiency, and electrical safety.
India is exploring partnerships with Singapore and other Southeast Asian nations to accelerate the regional energy transition and enhance energy security.
According to Central Electricity Authority (CEA) Chair Ghanshyam Prasad, India is focusing on interconnecting power grids to share renewable energy efficiently across the region. A major proposal involves a direct power link between India and Singapore under the “One Sun, One World, One Grid” initiative, which aims to create a unified global renewable energy network.
India’s automobile industry is expanding its presence in South Africa, with several automakers planning to upgrade existing assembly lines into full-scale manufacturing units and set up new plants.
This move is part of a broader effort to boost local production and exports. According to News South Africa, the initiative aligns with South Africa’s renewed push to attract global automakers and revive its automobile sector. Minister of Trade, Industry and Competition Parks Tau confirmed that both Indian and Chinese automakers have shown keen interest in expanding their investments in the country.
According to the FISME Factor, 60% of MSMEs believe that difficulty in raising funds is the biggest challenge their industry faces today, while 40% identify disruptions in global supply chains as the main concern. 
The most effective model is a partnership—where organisations invest in a learning culture and employees take ownership of their growth. When both align, upskilling transforms from a strategy into a shared path to progress. Upskilling is no longer a one-time effort; it’s an ongoing commitment to remain relevant and competitive. With technological changes happening overnight, job roles blurring, and industries reinventing themselves, the need for continuous learning has never been greater.
Growth often comes faster than expected, and many businesses struggle to keep pace with the rate of demand. A common challenge many fast-growing companies face isn’t a lack of opportunity but capital misalignment. Let’s look at why capital often lags behind growth, the risks it creates and how companies can close the gap by calibrating their capital stack.
Sustainability has evolved from a niche concern to a defining force in brand strategy. It’s no longer enough for businesses to give mere attention to environmental and social responsibility; they must demonstrate a genuine commitment to creating a more sustainable future. This shift has profound implications for how brands operate, innovate, and engage with their stakeholders. The influence of sustainability on brand strategy is pervasive.
The Bari Brahmana Industries Association (BBIA) has raised concerns that recent GST rate reductions on food products and corrugated packaging goods under GST Reforms 2.0 may lead to the closure of existing manufacturing units in Jammu & Kashmir (J&K). At a meeting chaired by BBIA President Lalit Mahajan, association members said the cut in GST on finished goods — to 5 percent from earlier slabs of 12 percent and 18 percent — effective September 22, 2025, has eliminated reimbursement benefits available to units established before April 1, 2021 under the J&K Industrial Policy 2021–30.
In 1992, a 19-year-old from Tamil Nadu stepped off a train in Mumbai with just ₹200 in his pocket and a dream that would later feed millions. Prem Ganapathy didn’t arrive chasing fame or fortune; he simply wanted a job. But after being cheated by a recruiter and stranded in a strange city, he washed dishes to survive. What he built from there Dosa Plaza, a global South Indian food brand is now part of India’s favourite entrepreneurial folklore.
Silver jewellery brand Goyaz has raised Rs 130 crore in a Series A funding round led by Norwest. This round marks Goyaz’s first institutional investment. Founded in 2023, Goyaz focuses on affordable occasion-wear jewellery. The brand said, in a statement, that it creates pieces from high-quality silver plated with gold, combining durability with premium aesthetics to offer an alternative to conventional gold jewellery. In the last few years, it has grown to 18 stores across several states.
“ The power of concentration is the only key to the treasure-house of knowledge. ”
