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President Message
In a growing economy despite impressive sales figures and on-paper profits, a significant number of MSMEs are struggling with liquidity. They are in a constant state of "financial firefighting." This cycle not only threatens daily operations but also stifles our ability to invest in new technologies, expand our businesses, and innovate. One area that certainly needs attention is sound cash flow management. Banks are keen to lend to MSMEs with consistent cash flow. They increasingly employ digital technologies and sophisticated algorithms to analyze cash flow needs and possible distress. We also need to exercise caution. Loans should be taken to seize genuine growth opportunities, not just to plug operational holes. Sustainable growth is built on the foundation of a strong cash flow. This is the hallmark of a successful business in the long term. Delay in payments for supplies made by MSMEs, chokes their operations. While government policies are making strides in ensuring timely payments, we must continue to advocate for stronger enforcement. Global Alliance for Mass Entrepreneurship (GAME) collaborated with FISME in studying the issue of delayed payments. The study is to be released soon.
Tough economic times are scary for businesses and consumers, but the solution isn’t to take your foot off the gas. I opened the first Roof Maxx dealership in 2019, just one year before the Covid-19 pandemic. Today, it’s a nationally recognized residential roof restoration brand with an annual revenue of nearly $200 million in 2025. Here are five key principles I used to guide my business decisions during those difficult years. A lot of founders focus on flashy, dramatic solutions that dominate headlines, like getting humanity to Mars or being the first to create AGI. But sometimes, those are solutions to problems that don’t really exist — or at least, that don’t exist urgently for everyday people.
“Turnover is vanity, profit is reality, but cash flow is clarity.” This adage captures the central financial dilemma facing India’s micro, small, and medium enterprises (MSMEs) today. Across the country, enterprises boast of rising sales and impressive profits, yet many struggle to meet basic obligations such as paying suppliers, staff salaries, and rent. The stark reality is that headline figures, however eye-catching, mean little if there is no liquidity to sustain daily operations. While turnover may...
Indian exporters of wood products and furniture are expected to gain stronger competitiveness in the US market following a sharp reduction in tariffs, which have been lowered from 50 per cent to a range of 10–25 per cent. According to policy think tank Global Trade Research Initiative (GTRI), the move is likely to make Indian furniture and cabinetry more cost-effective for American buyers and provide substantial relief to domestic exporters, ANI reported. US President Donald Trump, through a Section 232 Proclamation on September 29, 2025, imposed fresh tariffs on softwood lumber (HS 4407), upholstered furniture (HS 9401), and kitchen cabinets and vanities (HS 9403).
The Directorate General of Trade Remedies (DGTR) has launched two trade investigations concerning imports from China, Malaysia, and Indonesia, following complaints from domestic producers. In a notification issued on Monday, the authority said it has initiated an anti-dumping probe into the import of solar encapsulants (excluding EVA encapsulants) from China, as well as mobile covers.
The investigation follows applications filed by RenewSys India and the All India Mobile Cover Manufacturer Association, which alleged that cheap imports were adversely affecting domestic producers.
On Wednesday, the government launched the Goods and Services Tax Appellate Tribunal (GSTAT), creating a unified mechanism to adjudicate GST disputes across the country.
Finance Minister Nirmala Sitharaman described the tribunal as the ‘spine’ of the country’s indirect tax system, calling it a milestone reform that reinforces the principles of simplicity and ease of doing business. Speaking at the launch event in New Delhi, Sitharaman said GSTAT exemplifies “cooperative federalism in action,” providing a single appellate forum for disputes under the GST regime.
The Reserve Bank of India (RBI) has expanded the scope of lending against gold, permitting banks to extend need-based working capital loans to manufacturers that use gold as a raw material, a facility so far limited only to jewellers. In the Reserve Bank of India’s (Lending Against Gold and Silver Collateral) (1st Amendment) Directions, 2025, issued on September 29, the central bank stated that scheduled commercial banks (SCBs) and Tier 3 and 4 urban cooperative banks (UCBs) may now provide working capital finance to borrowers engaged in manufacturing or industrial processing activities involving gold or silver. These loans may also be secured by the underlying precious metal.
Banks and non-banking finance companies (NBFCs) are strengthening their underwriting models as early signs of stress surface in the micro, small and medium enterprise (MSME) sector.
Rising delinquencies, especially in small-ticket loans, are pushing lenders to adopt more data-driven and nuanced credit assessment frameworks. Kotak Mahindra Bank sees rural India as a major growth driver over the next five to seven years. “We’re expanding our distribution and leveraging data analytics to improve credit assessment and risk management,” said Manish Kothari, group president & head – commercial banking.
India’s maritime sector achieved a major boost with the exchange of 27 Memoranda of Understanding (MoUs) on the eve of the ‘Samudra Se Samriddhi – Transforming India’s Maritime Sector’ event.
The agreements represent investments and development commitments exceeding Rs 66,000 crore. The MoUs span port development, shipbuilding, shipping, green mobility, heritage-linked projects, and financing frameworks. Together, they are expected to generate over 1.5 lakh direct and indirect jobs, reinforcing India’s ambition of emerging as a global maritime and shipbuilding hub.
The Bureau of Energy Efficiency (BEE) has released a revised draft of Corporate Average Fuel Efficiency (CAFE) norms for 2027, introducing a separate classification for small cars for the first time. Under the draft framework, small cars will be eligible for additional concessions: on top of certified carbon dioxide (CO₂) savings achieved through approved technologies, manufacturers can deduct an extra 3 gm/km from their declared emissions.
The Department of Biotechnology (DBT), Government of India has signed a Memorandum of Understanding (MoU) with the Government of Uttar Pradesh to significantly accelerate innovation, entrepreneurship, and investment across the state's pharmaceutical, biotech, and MedTech industries. The pact, facilitated by DBT’s Biotechnology Industry Research Assistance Council (BIRAC) and the Uttar Pradesh Promote Pharma Council (UPPPC), aims to position UP as a key hub for life sciences.
Telangana is seeking a bigger role in India’s semiconductor industry by moving from chip design to actual manufacturing, said Sridhar Babu Duddilla, the state’s IT Minister. Speaking at the T-CHIP (Technology Chip Innovation Program) Semicon Constitution Summit in Hyderabad, Duddilla highlighted the state’s growing talent pool in chip design and the need to develop local manufacturing capabilities. “The semiconductor industry must establish a strong presence here. We have the design talent, and the next step is manufacturing. We hope the central government will support Telangana in this effort,” he said.
UST, a global AI and technology transformation solutions firm, has announced a strategic investment in Kaynes Semicon, an Indian semiconductor manufacturer, to establish a Rs 3,330 crore semiconductor manufacturing facility in Gujarat. The project, scheduled to come up in Sanand, will function as an OSAT (Outsourced Semiconductor Assembly and Test) unit In a statement issued on Monday (September 29, 2026), UST highlighted the significance of the collaboration in strengthening India’s semiconductor ecosystem.
Development projects worth over Rs 5,100 crore were inaugurated by Prime Minister Modi in Itanagar, Arunachal Pradesh on Monday. The initiatives span power, connectivity, tourism, health, and infrastructure. Among the key projects, the Prime Minister laid the foundation stone for two hydropower ventures—the 240 MW Heo Hydroelectric Project and the 186 MW Tato-I Project—together valued at over Rs 3,700 crore. Both will be developed in the Siyom sub-basin, aimed at harnessing the state’s hydroelectric potential.
Foreign Secretary Vikram Misri on Monday held talks with his Bhutanese counterpart Aum Pema Choden in New Delhi, with both sides reaffirming their commitment to further strengthening the longstanding India–Bhutan partnership, the Ministry of External Affairs (MEA) said. The two Foreign Secretaries "reviewed the full spectrum of bilateral cooperation and reaffirmed the commitment of both sides to further strengthen the special India-Bhutan friendship," MEA spokesperson Randhir Jaiswal posted on X.
India and Australia have signed a Mutual Recognition Arrangement (MRA) for organic products, reflecting their shared commitment under the India–Australia Economic Cooperation and Trade Agreement (ECTA) and further strengthening the strategic partnership between the two nations. The agreement was signed on 24 September 2025 at Vanijya Bhavan, New Delhi, in the presence of Commerce Secretary Sunil Barthwal, APEDA Chairman Abhishek Dev, and Tom Black, First Assistant Secretary, Department of Agriculture, Fisheries and Forestry (DAFF), Government of Australia.
The workforce of tomorrow demands a radical departure from yesterday’s talent management strategies. As organisations grapple with rapid change, skill gaps, and the relentless pursuit of innovation, the solution may lie in a surprising place: employee exchange. Gone are the days of insular talent development. Today, the most forward-thinking organisations are recognising the power of swapping employees.
Strategies for enhancing financial sustainability of MSMEs in India
Financial sustainability is crucial for micro, small, and medium enterprises (MSMEs). In an increasingly competitive business landscape, MSMEs must adopt effective financial management practices to ensure longevity and growth. This article explores strategies that can empower MSMEs to achieve financial sustainability.
Why Your Old Marketing Tactics Are Killing Your Growth in 2025
Let’s cut to the chase: If you’re still clinging to marketing strategies from two years ago, you’re not just behind — you’re invisible. Welcome to 2025. Algorithms have shifted, audiences have evolved and that old playbook? It’s a liability. After 25 years in the marketing trenches — leading campaigns that have scaled brands across industries — I can confidently say this: If your current strategy feels “safe,” it’s probably killing your growth.
FISME Calls For Automatic GST Refunds, Proposes 8% Concessional Rates To Aid MSMEs
The Federation of Indian Micro, Small, and Medium Enterprises (FISME) has called on the government to implement an automatic refund mechanism for input tax credit (ITC) under the Goods and Services Tax (GST) and to consider concessional rates for inputs that attract higher GST than the final product.
This Delhi-based startup is converting India’s waste into sustainable solutions
CEF Group converts municipal and agricultural waste into compressed biogas, organic fertilisers, and bio-agri inputs. It focuses on waste-to-energy, sustainable agriculture, and urban farming solutions, while reducing import dependence.. India is among the world's top 10 countries generating municipal solid waste. According to a report by The Energy and Resources Institute (TERI), India generates over 62 million tonnes (MT) of waste annually.
Founded in 2019 by Pulkit Khurana and Siddharth Sikka, Battery Smart has expanded to over 1,600 swapping stations across more than 50 cities, facilitating around 90 million cumulative swaps for around 90,000 drivers. Battery swapping enables two- and three-wheeler fleets to handle last-mile deliveries without worrying about range limitations or downtime for charging. This has resulted in wide adoption of battery swapping technology among fleets in India, benefitting companies like Battery Smart.
The National Statistical Office (NSO), Ministry of Statistics and Programme Implementation (MoSPI) has released the Quick Estimate of Index of Industrial Production (IIP) and Use-Based Index for the month of August 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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In a growing economy despite impressive sales figures and on-paper profits, a significant number of MSMEs are struggling with liquidity. They are in a constant state of "financial firefighting." This cycle not only threatens daily operations but also stifles our ability to invest in new technologies, expand our businesses, and innovate. One area that certainly needs attention is sound cash flow management. Banks are keen to lend to MSMEs with consistent cash flow. They increasingly employ digital technologies and sophisticated algorithms to analyze cash flow needs and possible distress. We also need to exercise caution. Loans should be taken to seize genuine growth opportunities, not just to plug operational holes. Sustainable growth is built on the foundation of a strong cash flow. This is the hallmark of a successful business in the long term. Delay in payments for supplies made by MSMEs, chokes their operations. While government policies are making strides in ensuring timely payments, we must continue to advocate for stronger enforcement. Global Alliance for Mass Entrepreneurship (GAME) collaborated with FISME in studying the issue of delayed payments. The study is to be released soon.
Tough economic times are scary for businesses and consumers, but the solution isn’t to take your foot off the gas. I opened the first Roof Maxx dealership in 2019, just one year before the Covid-19 pandemic. Today, it’s a nationally recognized residential roof restoration brand with an annual revenue of nearly $200 million in 2025. Here are five key principles I used to guide my business decisions during those difficult years. A lot of founders focus on flashy, dramatic solutions that dominate headlines, like getting humanity to Mars or being the first to create AGI. But sometimes, those are solutions to problems that don’t really exist — or at least, that don’t exist urgently for everyday people.
Indian exporters of wood products and furniture are expected to gain stronger competitiveness in the US market following a sharp reduction in tariffs, which have been lowered from 50 per cent to a range of 10–25 per cent. According to policy think tank Global Trade Research Initiative (GTRI), the move is likely to make Indian furniture and cabinetry more cost-effective for American buyers and provide substantial relief to domestic exporters, ANI reported. US President Donald Trump, through a Section 232 Proclamation on September 29, 2025, imposed fresh tariffs on softwood lumber (HS 4407), upholstered furniture (HS 9401), and kitchen cabinets and vanities (HS 9403).
The Directorate General of Trade Remedies (DGTR) has launched two trade investigations concerning imports from China, Malaysia, and Indonesia, following complaints from domestic producers. In a notification issued on Monday, the authority said it has initiated an anti-dumping probe into the import of solar encapsulants (excluding EVA encapsulants) from China, as well as mobile covers.
The investigation follows applications filed by RenewSys India and the All India Mobile Cover Manufacturer Association, which alleged that cheap imports were adversely affecting domestic producers.
On Wednesday, the government launched the Goods and Services Tax Appellate Tribunal (GSTAT), creating a unified mechanism to adjudicate GST disputes across the country.
Finance Minister Nirmala Sitharaman described the tribunal as the ‘spine’ of the country’s indirect tax system, calling it a milestone reform that reinforces the principles of simplicity and ease of doing business. Speaking at the launch event in New Delhi, Sitharaman said GSTAT exemplifies “cooperative federalism in action,” providing a single appellate forum for disputes under the GST regime.
The Reserve Bank of India (RBI) has expanded the scope of lending against gold, permitting banks to extend need-based working capital loans to manufacturers that use gold as a raw material, a facility so far limited only to jewellers. In the Reserve Bank of India’s (Lending Against Gold and Silver Collateral) (1st Amendment) Directions, 2025, issued on September 29, the central bank stated that scheduled commercial banks (SCBs) and Tier 3 and 4 urban cooperative banks (UCBs) may now provide working capital finance to borrowers engaged in manufacturing or industrial processing activities involving gold or silver. These loans may also be secured by the underlying precious metal.
Banks and non-banking finance companies (NBFCs) are strengthening their underwriting models as early signs of stress surface in the micro, small and medium enterprise (MSME) sector.
Rising delinquencies, especially in small-ticket loans, are pushing lenders to adopt more data-driven and nuanced credit assessment frameworks. Kotak Mahindra Bank sees rural India as a major growth driver over the next five to seven years. “We’re expanding our distribution and leveraging data analytics to improve credit assessment and risk management,” said Manish Kothari, group president & head – commercial banking.
India’s maritime sector achieved a major boost with the exchange of 27 Memoranda of Understanding (MoUs) on the eve of the ‘Samudra Se Samriddhi – Transforming India’s Maritime Sector’ event.
The agreements represent investments and development commitments exceeding Rs 66,000 crore. The MoUs span port development, shipbuilding, shipping, green mobility, heritage-linked projects, and financing frameworks. Together, they are expected to generate over 1.5 lakh direct and indirect jobs, reinforcing India’s ambition of emerging as a global maritime and shipbuilding hub.
The Bureau of Energy Efficiency (BEE) has released a revised draft of Corporate Average Fuel Efficiency (CAFE) norms for 2027, introducing a separate classification for small cars for the first time. Under the draft framework, small cars will be eligible for additional concessions: on top of certified carbon dioxide (CO₂) savings achieved through approved technologies, manufacturers can deduct an extra 3 gm/km from their declared emissions.
The Department of Biotechnology (DBT), Government of India has signed a Memorandum of Understanding (MoU) with the Government of Uttar Pradesh to significantly accelerate innovation, entrepreneurship, and investment across the state's pharmaceutical, biotech, and MedTech industries. The pact, facilitated by DBT’s Biotechnology Industry Research Assistance Council (BIRAC) and the Uttar Pradesh Promote Pharma Council (UPPPC), aims to position UP as a key hub for life sciences.
Telangana is seeking a bigger role in India’s semiconductor industry by moving from chip design to actual manufacturing, said Sridhar Babu Duddilla, the state’s IT Minister. Speaking at the T-CHIP (Technology Chip Innovation Program) Semicon Constitution Summit in Hyderabad, Duddilla highlighted the state’s growing talent pool in chip design and the need to develop local manufacturing capabilities. “The semiconductor industry must establish a strong presence here. We have the design talent, and the next step is manufacturing. We hope the central government will support Telangana in this effort,” he said.
UST, a global AI and technology transformation solutions firm, has announced a strategic investment in Kaynes Semicon, an Indian semiconductor manufacturer, to establish a Rs 3,330 crore semiconductor manufacturing facility in Gujarat. The project, scheduled to come up in Sanand, will function as an OSAT (Outsourced Semiconductor Assembly and Test) unit In a statement issued on Monday (September 29, 2026), UST highlighted the significance of the collaboration in strengthening India’s semiconductor ecosystem.
Development projects worth over Rs 5,100 crore were inaugurated by Prime Minister Modi in Itanagar, Arunachal Pradesh on Monday. The initiatives span power, connectivity, tourism, health, and infrastructure. Among the key projects, the Prime Minister laid the foundation stone for two hydropower ventures—the 240 MW Heo Hydroelectric Project and the 186 MW Tato-I Project—together valued at over Rs 3,700 crore. Both will be developed in the Siyom sub-basin, aimed at harnessing the state’s hydroelectric potential.
Foreign Secretary Vikram Misri on Monday held talks with his Bhutanese counterpart Aum Pema Choden in New Delhi, with both sides reaffirming their commitment to further strengthening the longstanding India–Bhutan partnership, the Ministry of External Affairs (MEA) said. The two Foreign Secretaries "reviewed the full spectrum of bilateral cooperation and reaffirmed the commitment of both sides to further strengthen the special India-Bhutan friendship," MEA spokesperson Randhir Jaiswal posted on X.
India and Australia have signed a Mutual Recognition Arrangement (MRA) for organic products, reflecting their shared commitment under the India–Australia Economic Cooperation and Trade Agreement (ECTA) and further strengthening the strategic partnership between the two nations. The agreement was signed on 24 September 2025 at Vanijya Bhavan, New Delhi, in the presence of Commerce Secretary Sunil Barthwal, APEDA Chairman Abhishek Dev, and Tom Black, First Assistant Secretary, Department of Agriculture, Fisheries and Forestry (DAFF), Government of Australia.
According to the FISME factor, 100% of MSMEs believe that the GST reforms announced by the Govt will increase demand and reduce the compliance burden. 
The workforce of tomorrow demands a radical departure from yesterday’s talent management strategies. As organisations grapple with rapid change, skill gaps, and the relentless pursuit of innovation, the solution may lie in a surprising place: employee exchange. Gone are the days of insular talent development. Today, the most forward-thinking organisations are recognising the power of swapping employees.
Financial sustainability is crucial for micro, small, and medium enterprises (MSMEs). In an increasingly competitive business landscape, MSMEs must adopt effective financial management practices to ensure longevity and growth. This article explores strategies that can empower MSMEs to achieve financial sustainability.
Let’s cut to the chase: If you’re still clinging to marketing strategies from two years ago, you’re not just behind — you’re invisible. Welcome to 2025. Algorithms have shifted, audiences have evolved and that old playbook? It’s a liability. After 25 years in the marketing trenches — leading campaigns that have scaled brands across industries — I can confidently say this: If your current strategy feels “safe,” it’s probably killing your growth.
The Federation of Indian Micro, Small, and Medium Enterprises (FISME) has called on the government to implement an automatic refund mechanism for input tax credit (ITC) under the Goods and Services Tax (GST) and to consider concessional rates for inputs that attract higher GST than the final product.
CEF Group converts municipal and agricultural waste into compressed biogas, organic fertilisers, and bio-agri inputs. It focuses on waste-to-energy, sustainable agriculture, and urban farming solutions, while reducing import dependence.. India is among the world's top 10 countries generating municipal solid waste. According to a report by The Energy and Resources Institute (TERI), India generates over 62 million tonnes (MT) of waste annually.
Founded in 2019 by Pulkit Khurana and Siddharth Sikka, Battery Smart has expanded to over 1,600 swapping stations across more than 50 cities, facilitating around 90 million cumulative swaps for around 90,000 drivers. Battery swapping enables two- and three-wheeler fleets to handle last-mile deliveries without worrying about range limitations or downtime for charging. This has resulted in wide adoption of battery swapping technology among fleets in India, benefitting companies like Battery Smart.
