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President Message
Never before have MSMEs been challenged on so many fronts, simultaneously. We have seen rise of global competition at our doors since 1991. We have seen disruptions in global supply chains since the Covid pandemic which have continued thereafter due to serious geo-political conflicts. We have also seen increased infusion of Information technology in all business processes since 1990s. Further, the most formidable of IT advancements to-date, that is making unprecedented strides - Artificial Intelligence. In the recent past, we have the tariffs being forced on imports by the US on India. Both MSME's exporting directly to the US or supplying to OEMs who are exporting, are adversely affected. What is dramatic is all of these are operating now at the same time. The global business environment is gasping for clarity. Amidst this, the bottom of pyramid of Indian economy- the MSMEs, must also transform themselves to stay afloat and thrive. Prime Minister Modi himself is keen to discern what needs to change. A massive exercise is being undertaken by Ministry of MSME to collect feedback systematically from 60 clusters. It would be followed by regional consultation. MSME associations are made integral part of the exercise. FISME has been specifically tasked for such consultations at J&K, Himachal and Kerala. There is a need and there is intent. Now the ball is in MSMEs’ court. We must come forward and articulate our concerns well. If we know the remedial steps better all the more.
FISME participated in a seminar titled “Decoding India’s Quality Control Orders”, held on Tuesday, October 14, 2025, at the CSEP Auditorium. Anil Bhardwaj, Secretary General of FISME, joined a panel discussion alongside Shaunak Rungta and Arun Goyal to explore the implications of QCOs for MSMEs. The seminar featured a presentation by Prerna Prabhakar, Fellow at CSEP, and began with opening remarks by Laveesh Bhandari, President of CSEP. Sanjeet Singh, Senior Advisor at NITI Aayog, delivered special remarks. The event concluded with an engaging Q&A session with the audience.
FISME and the Mongolian Association of Small and Medium Manufacturing and Services (MASMMS) signed a Memorandum of Understanding (MoU) to strengthen cooperation between Indian and Mongolian MSMEs. The signing took place during the State visit of Mongolian President Ukhnaagiin Khürelsükh to India. The MoU was signed by Rakesh Chhabra, Vice President of FISME, and Dr. Davaabayar Chultemsuren, Chairman of the Board of MASMMS.
Your company's business strategy is a set of actions to ensure its growth. Once you have determined this strategy, you will need to write it to clarify and synthesize your ideas, and to be able to present it. To generate growth in your business, you will certainly be forced to take economic risks. Establishing your business strategy will not allow you to eliminate them, but you can control them better and decrease them.
India needs a comprehensive strategy to infuse technology and R&D across industry and services, with particular emphasis on micro, small, and medium enterprises (MSMEs). A multidimensional thrust—including increased investment, testing and capacity building, regulatory reforms, cluster-driven innovation, and state-level competition—is essential for India’s economic transformation. MSMEs are the backbone of India’s growth, contributing about 30% to GDP and half the exports, employing millions...
Indian textile exporters are actively diversifying into European markets as steep U.S. tariffs—reaching up to 50 per cent—hit their shipments.
Industry executives said many exporters are now focusing on meeting the European Union’s tougher standards on chemicals, labeling, and ethical sourcing while offering discounts to retain American buyers. The United States, which accounted for nearly 29 per cent of India’s USD 38 billion textile and apparel exports in the fiscal year ending March 2025, recently doubled tariffs on several Indian products.
Targeted incentives can play a key role in driving growth and sustainable development in India’s deep-sea and offshore fishing industry, according to a new NITI Aayog report titled “India’s Blue Economy: Strategy for Harnessing Deep-Sea and Offshore Fisheries. Released on Monday by NITI Aayog member Ramesh Chand, the report stresses that subsidies should be minimal, time-bound, and phased out as soon as possible to promote efficiency and long-term sustainability.
India’s coal exports increased 23.4 percent year-on-year to 1.908 million tonnes in the financial year 2024-25, according to provisional government data. This marks a rise from 1.546 million tonnes exported in FY2023-24. In value terms, coal exports were Rs 1,643.4 crore in FY2024-25, compared with Rs 1,828.2 crore in FY2023-24. Key export destinations include Nepal, Bangladesh, and Bhutan, with potential for further growth. A study suggests India could export up to 15 million tonnes of coal to neighbouring countries, including 8 MT to Bangladesh, 3 MT to Myanmar, and 2 MT each to Nepal and other nations, reported PTI.
The Indian government is set to broaden the scope of its MSME SPICE scheme by allowing greenfield units to join, following low participation from existing businesses. Launched in December 2023, MSME‑SPICE (Scheme for Promotion and Investment in Circular Economy) aims to help small and medium enterprises adopt circular economy practices—such as recycling, waste reduction, and resource efficiency—by providing subsidies for equipment and process upgrades. Initially, only existing (“brownfield”) units were eligible.
The government is set to introduce a new interest subvention scheme aimed exclusively at MSME exporters, providing a 3% interest rebate on export credit. This move is designed to help small and medium-sized exporters remain competitive amid rising global trade pressures, including recent U.S. tariffs on Indian goods. According to official sources, the proposal will soon be placed before the Union Cabinet for approval and may be implemented for a five-year period.
The Indian government has mandated legally binding emission intensity targets for 282 heavy polluting industrial units — including those in the cement, pulp & paper, aluminium, and chlor alkali sectors — beginning in financial year 2025 26. Under the new regulation, these units will need to lower their greenhouse gas emissions per unit of production (emission intensity) by 2026‑27, relative to a 2023‑24 baseline. Failure to comply — or failure to submit sufficient carbon credit certificates — may invite penalties in the form of “environmental compensation,” imposed by the Central Pollution Control Board (CPCB).
The Ministry of Textiles has announced key revisions to the Production Linked Incentive (PLI) Scheme for MMF (Man-Made Fibre) Apparel, MMF Fabrics, and Technical Textile products. The revised scheme introduces changes designed to address industry challenges, enhance ease of doing business, and promote investment in the sector. According to the ministry, the amendments are intended to enhance industry participation, accelerate project execution, and strengthen India’s position as a global textile manufacturing hub. The amended scheme guidelines have also been issued.
Home and Cooperation Minister Amit Shah announced that Rajasthan is witnessing strong investment and development momentum, with Rs 7 lakh crore worth of MoUs already implemented from the Rs 35 lakh crore signed during the Rising Rajasthan event. He added that ground-breaking ceremonies for additional investment projects worth Rs 4 lakh crore were held today, creating new opportunities for growth and employment in the state.
Minister of Electronics & Information Technology (MeitY) Ashwini Vaishnaw on Thursday highlighted Gujarat’s emerging role as a key driver of India’s development in semiconductors, electronics manufacturing, modern logistics, and clean energy. Gujarat is a hub of semiconductors, electronics and logistics, which will make India a leader in the direction of making it a developed nation by 2047, he said, according to a release by the Ministry of Railways.
The Delhi government has introduced a new scheme to provide collateral-free loans to small businesses and women entrepreneurs, aimed at bolstering the capital’s economic growth and promoting inclusive development. The initiative, announced by Chief Minister Rekha Gupta, is designed to improve credit access for micro, small, and medium enterprises (MSMEs) that often face challenges in securing financing due to a lack of collateral.
Tamil Nadu is preparing a comprehensive roadmap to position itself as India’s leading hub for the “low-altitude economy” (LAE), which covers aerial operations—both manned and unmanned—below 3,000 metres. The State Planning Commission is developing a detailed strategy to harness this emerging sector’s potential. The low-altitude economy includes drone operations, air mobility systems, and related services. Rapid advancements in drone and air mobility technologies have made this sector a global priority.
India and the United Kingdom have announced a strategic partnership aimed at advancing digital inclusion and shaping the future of secure, innovative communications. The collaboration marks the launch of the India–UK Connectivity and Innovation Centre, a joint initiative designed to harness the complementary strengths of both nations in advanced connectivity technologies. The Centre will bridge the gap between research and market deployment by linking academic expertise, laboratory testing, field trials, and commercial application.
Australia and India have agreed to deepen defence cooperation, with a new pact focusing on submarine rescue operations and greater collaboration between their defence industries. The agreement was signed during Defence Minister Rajnath Singh’s visit to Canberra — the first visit by an Indian defence minister to Australia in over a decade. At the inaugural Australia-India Defence Ministers’ Dialogue, both sides discussed enhancing defence technology partnerships, joint military exercises, and increasing logistical cooperation. As part of the agreement, India will now service and repair Royal Australian Navy ships at Indian shipyards when operating in the Indian Ocean, boosting regional maritime readiness.
What is the most common cause of a cash flow bottleneck (liquidity struggle) in a growing MSME?
According to ISME factor, 100% of MSMEs believe that the most common cause of cash flow bottleneck (liquidity struggle) in a growing MSME is cash being trapped in the business cycle.
The future of HR is intelligent: Enhancing employee experience with AI
We live in an era defined by speed and technological sophistication. From instant meal delivery to immediate answers to even the most obscure questions, everything is available at the touch of a button. While limitations remain, technology, especially artificial intelligence (AI), is transforming every aspect of how we live and work.
How to avoid costly mistakes to grow your business venture? Here are some lessons
Many business ventures struggle not because they lack ideas, but because they repeat avoidable mistakes. From poor planning to weak financial control, these errors can slow down or even end promising startups. Entrepreneurs who learn from others’ experiences and pay attention to basics can reduce risks and improve their chances of success.
New era of branding: Future trends setting a stage for branding boom
Branding is the art of creating a distinctive identity for a business through a unique logo, tagline, visual presence, products, and services. It helps businesses to create long-lasting relationships with their customers and recall their value with just one extraordinary feature. Earlier, branding was more focused on directly selling the products to the consumers, and now it has moved on to providing engaging information to create a human connection with consumers, which propels them to explore and buy the products.
MSME Industry Bodies Urge RBI To Extend ECLGS, Introduce Standardised Lending Framework
Industry bodies representing micro, small, and medium enterprises (MSMEs) have appealed to the Reserve Bank of India (RBI) to consider extending the Emergency Credit Line Guarantee Scheme (ECLGS) and introducing a more transparent and standardised lending framework to strengthen the resilience of small businesses.
Two Brothers Organic Farms raises Rs 110 Cr to expand manufacturing, tech
The Pune-based Two Brothers Organic Farms will use the funds to scale its in-house manufacturing, strengthen farmer engagement, and deepen presence into international markets. Founded by brothers Ajinkya and Satyajit Hange, the regenerative agriculture-led food brand plans to use the proceeds to expand its 60,000 sq ft in-house manufacturing facility into a larger food park, strengthen farmer engagement programmes, and enhance digital infrastructure.
How a small Ghaziabad business grew into a Rs 190 Cr appliance brand
Started as a business to manufacture affordable air coolers for the masses, Thermocool Home is now investing heavily in R&D for smart and solar-friendly appliances, while also eyeing global expansion. In the 1990s, when air conditioners were a luxury and limited to only a few Indian households, two brothers from Ghaziabad, Uttar Pradesh, decided to change that.
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 September, 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.
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Never before have MSMEs been challenged on so many fronts, simultaneously. We have seen rise of global competition at our doors since 1991. We have seen disruptions in global supply chains since the Covid pandemic which have continued thereafter due to serious geo-political conflicts. We have also seen increased infusion of Information technology in all business processes since 1990s. Further, the most formidable of IT advancements to-date, that is making unprecedented strides - Artificial Intelligence. In the recent past, we have the tariffs being forced on imports by the US on India. Both MSME's exporting directly to the US or supplying to OEMs who are exporting, are adversely affected. What is dramatic is all of these are operating now at the same time. The global business environment is gasping for clarity. Amidst this, the bottom of pyramid of Indian economy- the MSMEs, must also transform themselves to stay afloat and thrive. Prime Minister Modi himself is keen to discern what needs to change. A massive exercise is being undertaken by Ministry of MSME to collect feedback systematically from 60 clusters. It would be followed by regional consultation. MSME associations are made integral part of the exercise. FISME has been specifically tasked for such consultations at J&K, Himachal and Kerala. There is a need and there is intent. Now the ball is in MSMEs’ court. We must come forward and articulate our concerns well. If we know the remedial steps better all the more.
FISME participated in a seminar titled “Decoding India’s Quality Control Orders”, held on Tuesday, October 14, 2025, at the CSEP Auditorium. Anil Bhardwaj, Secretary General of FISME, joined a panel discussion alongside Shaunak Rungta and Arun Goyal to explore the implications of QCOs for MSMEs. The seminar featured a presentation by Prerna Prabhakar, Fellow at CSEP, and began with opening remarks by Laveesh Bhandari, President of CSEP. Sanjeet Singh, Senior Advisor at NITI Aayog, delivered special remarks. The event concluded with an engaging Q&A session with the audience.
FISME and the Mongolian Association of Small and Medium Manufacturing and Services (MASMMS) signed a Memorandum of Understanding (MoU) to strengthen cooperation between Indian and Mongolian MSMEs. The signing took place during the State visit of Mongolian President Ukhnaagiin Khürelsükh to India. The MoU was signed by Rakesh Chhabra, Vice President of FISME, and Dr. Davaabayar Chultemsuren, Chairman of the Board of MASMMS.
Your company's business strategy is a set of actions to ensure its growth. Once you have determined this strategy, you will need to write it to clarify and synthesize your ideas, and to be able to present it. To generate growth in your business, you will certainly be forced to take economic risks. Establishing your business strategy will not allow you to eliminate them, but you can control them better and decrease them.
Indian textile exporters are actively diversifying into European markets as steep U.S. tariffs—reaching up to 50 per cent—hit their shipments.
Industry executives said many exporters are now focusing on meeting the European Union’s tougher standards on chemicals, labeling, and ethical sourcing while offering discounts to retain American buyers. The United States, which accounted for nearly 29 per cent of India’s USD 38 billion textile and apparel exports in the fiscal year ending March 2025, recently doubled tariffs on several Indian products.
Targeted incentives can play a key role in driving growth and sustainable development in India’s deep-sea and offshore fishing industry, according to a new NITI Aayog report titled “India’s Blue Economy: Strategy for Harnessing Deep-Sea and Offshore Fisheries. Released on Monday by NITI Aayog member Ramesh Chand, the report stresses that subsidies should be minimal, time-bound, and phased out as soon as possible to promote efficiency and long-term sustainability.
India’s coal exports increased 23.4 percent year-on-year to 1.908 million tonnes in the financial year 2024-25, according to provisional government data. This marks a rise from 1.546 million tonnes exported in FY2023-24. In value terms, coal exports were Rs 1,643.4 crore in FY2024-25, compared with Rs 1,828.2 crore in FY2023-24. Key export destinations include Nepal, Bangladesh, and Bhutan, with potential for further growth. A study suggests India could export up to 15 million tonnes of coal to neighbouring countries, including 8 MT to Bangladesh, 3 MT to Myanmar, and 2 MT each to Nepal and other nations, reported PTI.
The Indian government is set to broaden the scope of its MSME SPICE scheme by allowing greenfield units to join, following low participation from existing businesses. Launched in December 2023, MSME‑SPICE (Scheme for Promotion and Investment in Circular Economy) aims to help small and medium enterprises adopt circular economy practices—such as recycling, waste reduction, and resource efficiency—by providing subsidies for equipment and process upgrades. Initially, only existing (“brownfield”) units were eligible.
The government is set to introduce a new interest subvention scheme aimed exclusively at MSME exporters, providing a 3% interest rebate on export credit. This move is designed to help small and medium-sized exporters remain competitive amid rising global trade pressures, including recent U.S. tariffs on Indian goods. According to official sources, the proposal will soon be placed before the Union Cabinet for approval and may be implemented for a five-year period.
The Indian government has mandated legally binding emission intensity targets for 282 heavy polluting industrial units — including those in the cement, pulp & paper, aluminium, and chlor alkali sectors — beginning in financial year 2025 26. Under the new regulation, these units will need to lower their greenhouse gas emissions per unit of production (emission intensity) by 2026‑27, relative to a 2023‑24 baseline. Failure to comply — or failure to submit sufficient carbon credit certificates — may invite penalties in the form of “environmental compensation,” imposed by the Central Pollution Control Board (CPCB).
The Ministry of Textiles has announced key revisions to the Production Linked Incentive (PLI) Scheme for MMF (Man-Made Fibre) Apparel, MMF Fabrics, and Technical Textile products. The revised scheme introduces changes designed to address industry challenges, enhance ease of doing business, and promote investment in the sector. According to the ministry, the amendments are intended to enhance industry participation, accelerate project execution, and strengthen India’s position as a global textile manufacturing hub. The amended scheme guidelines have also been issued.
Home and Cooperation Minister Amit Shah announced that Rajasthan is witnessing strong investment and development momentum, with Rs 7 lakh crore worth of MoUs already implemented from the Rs 35 lakh crore signed during the Rising Rajasthan event. He added that ground-breaking ceremonies for additional investment projects worth Rs 4 lakh crore were held today, creating new opportunities for growth and employment in the state.
Minister of Electronics & Information Technology (MeitY) Ashwini Vaishnaw on Thursday highlighted Gujarat’s emerging role as a key driver of India’s development in semiconductors, electronics manufacturing, modern logistics, and clean energy. Gujarat is a hub of semiconductors, electronics and logistics, which will make India a leader in the direction of making it a developed nation by 2047, he said, according to a release by the Ministry of Railways.
The Delhi government has introduced a new scheme to provide collateral-free loans to small businesses and women entrepreneurs, aimed at bolstering the capital’s economic growth and promoting inclusive development. The initiative, announced by Chief Minister Rekha Gupta, is designed to improve credit access for micro, small, and medium enterprises (MSMEs) that often face challenges in securing financing due to a lack of collateral.
Tamil Nadu is preparing a comprehensive roadmap to position itself as India’s leading hub for the “low-altitude economy” (LAE), which covers aerial operations—both manned and unmanned—below 3,000 metres. The State Planning Commission is developing a detailed strategy to harness this emerging sector’s potential. The low-altitude economy includes drone operations, air mobility systems, and related services. Rapid advancements in drone and air mobility technologies have made this sector a global priority.
India and the United Kingdom have announced a strategic partnership aimed at advancing digital inclusion and shaping the future of secure, innovative communications. The collaboration marks the launch of the India–UK Connectivity and Innovation Centre, a joint initiative designed to harness the complementary strengths of both nations in advanced connectivity technologies. The Centre will bridge the gap between research and market deployment by linking academic expertise, laboratory testing, field trials, and commercial application.
Australia and India have agreed to deepen defence cooperation, with a new pact focusing on submarine rescue operations and greater collaboration between their defence industries. The agreement was signed during Defence Minister Rajnath Singh’s visit to Canberra — the first visit by an Indian defence minister to Australia in over a decade. At the inaugural Australia-India Defence Ministers’ Dialogue, both sides discussed enhancing defence technology partnerships, joint military exercises, and increasing logistical cooperation. As part of the agreement, India will now service and repair Royal Australian Navy ships at Indian shipyards when operating in the Indian Ocean, boosting regional maritime readiness.
According to ISME factor, 100% of MSMEs believe that the most common cause of cash flow bottleneck (liquidity struggle) in a growing MSME is cash being trapped in the business cycle. 
We live in an era defined by speed and technological sophistication. From instant meal delivery to immediate answers to even the most obscure questions, everything is available at the touch of a button. While limitations remain, technology, especially artificial intelligence (AI), is transforming every aspect of how we live and work.
Many business ventures struggle not because they lack ideas, but because they repeat avoidable mistakes. From poor planning to weak financial control, these errors can slow down or even end promising startups. Entrepreneurs who learn from others’ experiences and pay attention to basics can reduce risks and improve their chances of success.
Branding is the art of creating a distinctive identity for a business through a unique logo, tagline, visual presence, products, and services. It helps businesses to create long-lasting relationships with their customers and recall their value with just one extraordinary feature. Earlier, branding was more focused on directly selling the products to the consumers, and now it has moved on to providing engaging information to create a human connection with consumers, which propels them to explore and buy the products.
Industry bodies representing micro, small, and medium enterprises (MSMEs) have appealed to the Reserve Bank of India (RBI) to consider extending the Emergency Credit Line Guarantee Scheme (ECLGS) and introducing a more transparent and standardised lending framework to strengthen the resilience of small businesses.
The Pune-based Two Brothers Organic Farms will use the funds to scale its in-house manufacturing, strengthen farmer engagement, and deepen presence into international markets. Founded by brothers Ajinkya and Satyajit Hange, the regenerative agriculture-led food brand plans to use the proceeds to expand its 60,000 sq ft in-house manufacturing facility into a larger food park, strengthen farmer engagement programmes, and enhance digital infrastructure.
Started as a business to manufacture affordable air coolers for the masses, Thermocool Home is now investing heavily in R&D for smart and solar-friendly appliances, while also eyeing global expansion. In the 1990s, when air conditioners were a luxury and limited to only a few Indian households, two brothers from Ghaziabad, Uttar Pradesh, decided to change that.
“ The power of concentration is the only key to the treasure-house of knowledge. ”
