If you are unable to view this mailer, click here.
President Message
Finally the Govt has bitten the bullet. PM Modi's recent announcement on GST reforms, often referred to as "GST 2.0," has generated significant discussion, particularly regarding its potential impact on MSMEs. The most prominent feature of the "GST 2.0" announcement is the rationalization of tax slabs. The current four-tier structure of 5%, 12%, 18%, and 28% is proposed to be streamlined into a simpler two-tier system of 5% and 18%, with a special 40% rate for luxury and sin goods. This reform is expected to provide substantial relief to MSMEs in several ways. MSMEs, which faced difficulties in navigating four slabs have only two now. Having fewer tax rates will reduce classification disputes and the potential for errors in filing returns. However, the current GST regime has created an "inverted duty structure" for some MSMEs. That is the tax on raw materials (input) is higher than the tax on the finished product (output). This can lead to a build-up of Input Tax Credit (ITC) that cannot be fully utilized, locking up business's working capital. Another problem cited by MSMEs is credit locked in state wallets. This can lead to a situation where a business has unutilized credit in one state's ledger while having to pay tax in cash for another state, creating a blockage of working capital. Furthermore, CGST credit cannot be used to offset SGST liability, and vice versa. However, as Govt has brought down GST over 700 items (related to day to day consumption) in the exercise, it would leave more money in the hands of citizens. It is expected to give a boost to demand across sectors.
On 10th September 2025, Anil Bhardwaj, Secretary General of FISME, along with Shri Rajendra Agrawal, former MP from Meerut and Convenor of Friends of MSMEs in the UP Assembly, met Hon’ble Shobha Karandlaje, Minister of State for MSMEs. During the meeting, the FISME delegation extended a formal invitation to the Hon’ble Minister to release the upcoming GAME India – FISME joint study on Delayed Payments and Access to Finance for MSMEs. The study highlights persistent issues faced by small enterprises and offers data-backed insights and policy recommendations.
The Hon’ble Minister appreciated the initiative and reiterated the Government’s commitment to improving the MSME ecosystem.
The 1st Core Group Meeting of Friends of MSMEs in UP Assembly (FMUA) was held on 9th September 2025, with active support from FISME. The meeting focused on key issues related to empowering MSMEs in Uttar Pradesh. Topics such as policy reforms, financial inclusion, and the challenge of delayed payments were discussed in detail.
The Core Group is committed to working consistently towards strengthening the MSME ecosystem in the state by raising grassroots concerns at the legislative and policy-making levels. FISME continues to play an active role in facilitating this important initiative.
Diversified conglomerate ITC Ltd. which has proliferated into a major multinational corporation over the past two decades with its array of brands across sectors, is a prime example of an Indian company making big globally. Apart from its growing sales and successful expansion into multiple sectors - from fast-moving consumer goods and paperboard to luxury hotels and agri-commodities, ITC’s success is also rooted in its brand-building exercise.
The 56th meeting of the Goods and Services Tax (GST) Council set out to recalibrate India’s GST rate structure, lower the GST burden on the common man, and improve ease of doing business in India. The agenda of the meeting was the long-awaited rationalisation of rates, an exercise that has dominated the Council’s deliberations for years but had been protracted for a variety of reasons including political...
India’s smartphone exports have exceeded Rs 1 lakh crore in the first five months of the current financial year (FY26), marking a new record, according to industry estimates.
The figure reflects a 55 per cent rise compared to the Rs 64,500 crore recorded during the same period in FY25, despite ongoing tariff and trade frictions with the United States.
Industry sources indicated that Apple’s contract manufacturers, Tata Electronics and Foxconn, accounted for nearly three-fourths of outbound shipments, contributing over Rs 75,000 crore to the total, according to The Economic Times.
The Directorate General of Trade Remedies (DGTR) has recommended the imposition of an anti-dumping duty on imports of glass fibre from China, Bahrain, and Thailand for a period of five years. The duty, aimed at protecting domestic manufacturers from cheap inbound shipments, has been suggested in the range of USD 194–394 per tonne. In its final findings, the DGTR concluded that glass fibre, widely used across sectors including electricals, has been exported to India at prices below the normal value, resulting in dumping.
The Indian government is planning to impose a 30% export duty on low-grade iron ore by October. The move aims to ensure affordable raw material supply for domestic steelmakers and boost the export of value-added steel products. Currently, low-grade fines and lumps are freely exported without duty, while high-grade lumps attract a 30% levy. By extending the duty to low-grade ore, the government seeks to encourage local processing and beneficiation. This aligns with India’s broader plan to increase finished steel exports to 50 million tonnes (MT) in the coming years.
In a major policy shift aimed at boosting self-reliance and accelerating defence modernisation, Defence Minister Rajnath Singh has approved the Defence Procurement Manual (DPM) 2025, the Ministry of Defence announced on Sunday. The revised manual, issued more than a decade after its previous version in 2009, is intended to streamline and rationalise revenue procurement across the Armed Forces. With procurement under the Revenue Head (Operations and Sustenance Segment) projected at Rs 1 lakh crore for FY 2025-26, the new framework opens significant opportunities for India’s private sector and startups.
The Government of India has increased the monthly stipend for apprentices to a range of Rs 6,800 to Rs 12,300, up from the earlier Rs 5,000 to Rs 9,000. The decision comes as part of recent amendments to the Apprenticeship Rules, 1992, aimed at enhancing skilling opportunities and making apprenticeships more attractive to youth. This hike will be applicable to apprentices registered under the National Apprenticeship Promotion Scheme (NAPS)and the National Apprenticeship Training Scheme (NATS).
The government has revised the Green Credit Programme to expand private sector participation and introduce minimum restoration commitments, aiming to boost financing for India’s clean energy transition.The updated guidelines were released on August 29, 2025. Speaking at the inaugural session of FICCI’s LEADS 2025 conference, Union Environment Minister Bhupender Yadav said green finance must be treated as a central pillar of economic competitiveness rather than a niche sector. He noted that while global green investments reached USD 1.8 trillion in 2023, emerging economies such as India received less than a quarter of these funds.
The Indian government is finalising a substantial incentive package worth Rs 14,000–16,000 crore aimed at strengthening the nation’s domestic manufacture of essential construction machinery. The move — currently under inter-ministerial review — is expected to be unveiled in the forthcoming financial year. Through this initiative, the government seeks to reduce reliance on imported machinery—currently accounting for nearly 50% of component value—from nations such as China, Japan, South Korea, and Germany.
The world’s first second-generation bamboo-based bioethanol plant was inaugurated by Prime Minister Modi on Sunday at Numaligarh Refinery Limited (NRL) in Assam’s Golaghat district. Built at a cost of Rs 5,000 crore, the Assam Bioethanol Plant is designed to reduce reliance on imported crude oil, promote green energy, and provide economic opportunities to farmers and tribal communities through bamboo cultivation. The inauguration was part of a wider package of projects worth about Rs 18,000 crore launched by the Prime Minister in Assam, including the foundation stone for a Rs 7,230 crore polypropylene plant at NRL.
The Yamuna Expressway Industrial Development Authority (YEIDA) has issued a letter of intent (LoI) to Integrated Batteries India (IB Solar) for the allotment of 25 acres in Sector 8 to set up a 4 GW cell manufacturing facility. The project, involving an investment of around ₹3,000 crore, is expected to strengthen Uttar Pradesh’s renewable energy ecosystem and attract large-scale investments along the Yamuna Expressway industrial corridor.
The Tamil Nadu government announced investment commitments worth Rs 24,307 crore at an investors’ meeting across sectors including energy, defence, aerospace, footwear, and electronics manufacturing. A total of 92 memoranda of understanding (MoUs) were signed at the TN Rising investment meet Business Standard reported. Of these, 53 MoUs valued at Rs 23,303 crore were finalised under the Industries Department, while 39 agreements worth around Rs 1,003 crore came under the MSME Department.
The Karnataka government has approved the allocation of 6.17 acres of land at Hessarghatta for the establishment of a ‘Quantum City’ (Q-City), Science and Technology Minister N.S. Boseraju announced on Sunday. The initiative aims to foster research, startups, and academic–industry collaboration in quantum technologies, with the state targeting a USD 20 billion quantum economy by 2035, he said, according to the Times of India.
India and the European Union (EU) are intensifying efforts to finalise their Free Trade Agreement (FTA) by the end of this year, EU Trade Commissioner Maros Sefcovic said Friday, following the conclusion of the 13th round of negotiations. “We will not agree on everything, but as major democracies in an increasingly uncertain world, there are many areas where we can work together. I am confident we will achieve a very good agreement,” Sefcovic said at the annual session of the Automotive Component Manufacturers’ Association (ACMA).
Prime Minister Modi and his Mauritian counterpart Navinchandra Ramgoolam on Thursday held wide-ranging discussions in Varanasi, focusing on strengthening bilateral cooperation in education, health, energy, maritime security, and infrastructure. The meeting resulted in the signing of seven memoranda of understanding (MoUs) across diverse sectors. He added that a new special economic package has been finalised, aimed at bolstering infrastructure, generating employment, and enhancing healthcare facilities in the island nation. Several key agreements were signed to strengthen cooperation between India and Mauritius across multiple sectors.
Can the reform agenda proposed by PM Modi take India on higher economic growth?
According to the FISME factor, 40% of MSMEs believe that the reform agenda proposed by PM Modi will lead India to higher economic growth, while 60% are unsure.
Too good to hire: Why ‘overqualification’ is a myth and a missed opportunity
In today’s hypercompetitive job market, the phrase ‘overqualified’ has taken on a sinister connotation. It’s a scarlet letter that brands candidates as too good, too experienced, too much of a risk. This fear-driven mindset is a disservice to both companies and individuals, perpetuating a cycle of underutilised talent and missed opportunities
Top Business Finance Strategies – Improve Your Success
Planning a new business can be a great idea. Perhaps, in the process of planning your venture you at some point while trying to understand how you can have the money to start your venture, may have several questions like – How to grow a company successfully? What is business finance? Why is it so important? Yet securing ample capital is equally pivotal. Crafting a comprehensive business plan that outlines financial requirements and
Why do small businesses struggle with digital marketing?
You could have the greatest startup idea in the world, but it’s not enough to grow without the right marketing strategy. According to IBM Institute for Business Value, 80% of small businesses in India fail within the first five years. Most small businesses fail at digital marketing because either they do not understand its importance or they make mistakes while implementing marketing strategies across various channels.
EEPC India Urges Govt To Reinstate IES, Support Engineering Exports Amid US Tariffs
The Engineering Export Promotion Council (EEPC), India, has urged the government to reinstate the Interest Equalisation Scheme (IES), ensure affordable export financing, and provide support to offset the impact of punitive US tariffs on Indian engineering exports.
In a meeting with Reserve Bank of India (RBI) Governor Sanjay Malhotra, EEPC India Chairman Pankaj Chadha highlighted the sector’s vulnerability, noting that India’s engineering exports to the US average around USD 20 billion, accounting for roughly 45 percent of total exports exposed to US tariffs.
KisanKraft is powering rural India with affordable modern tools
In the mid-2000s, Indian agriculture faced a pressing challenge: small farmers were caught in a cycle of low productivity, high labour costs, and minimal access to mechanisation. Traditional equipment was expensive, fragmented landholdings made large machines impractical, and rural credit was hard to secure. These challenges inspired Ravindra Agrawal to start KisanKraft in 2005. He wanted to democratise farm mechanisation for India’s 120 million small and marginal farmers.
How Freedom Tree became a Rs 15 Cr design-first brand without VC backing
Founded in 2010 by Latika Khosla, Freedom Tree offers a full lifestyle range—furniture, textiles, décor, and apparel—designed in-house and crafted in India.
In a consumer landscape dominated by D2C brands chasing celebrity endorsements, VC rounds, and aggressive ad spends, Mumbai-based Freedom Tree has quietly built a Rs 15+ crore lifestyle brand by sticking to its core—design, experience, and loyalty.
The National Statistical Office (NSO), Ministry of Statistics and Programme Implementation (MoSPI) has released the First Quarterly Estimates of the Unincorporated Non-Agricultural Sector for the quarters January to March 2025 and April to June 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.
Finally the Govt has bitten the bullet. PM Modi's recent announcement on GST reforms, often referred to as "GST 2.0," has generated significant discussion, particularly regarding its potential impact on MSMEs. The most prominent feature of the "GST 2.0" announcement is the rationalization of tax slabs. The current four-tier structure of 5%, 12%, 18%, and 28% is proposed to be streamlined into a simpler two-tier system of 5% and 18%, with a special 40% rate for luxury and sin goods. This reform is expected to provide substantial relief to MSMEs in several ways. MSMEs, which faced difficulties in navigating four slabs have only two now. Having fewer tax rates will reduce classification disputes and the potential for errors in filing returns. However, the current GST regime has created an "inverted duty structure" for some MSMEs. That is the tax on raw materials (input) is higher than the tax on the finished product (output). This can lead to a build-up of Input Tax Credit (ITC) that cannot be fully utilized, locking up business's working capital. Another problem cited by MSMEs is credit locked in state wallets. This can lead to a situation where a business has unutilized credit in one state's ledger while having to pay tax in cash for another state, creating a blockage of working capital. Furthermore, CGST credit cannot be used to offset SGST liability, and vice versa. However, as Govt has brought down GST over 700 items (related to day to day consumption) in the exercise, it would leave more money in the hands of citizens. It is expected to give a boost to demand across sectors.
On 10th September 2025, Anil Bhardwaj, Secretary General of FISME, along with Shri Rajendra Agrawal, former MP from Meerut and Convenor of Friends of MSMEs in the UP Assembly, met Hon’ble Shobha Karandlaje, Minister of State for MSMEs. During the meeting, the FISME delegation extended a formal invitation to the Hon’ble Minister to release the upcoming GAME India – FISME joint study on Delayed Payments and Access to Finance for MSMEs. The study highlights persistent issues faced by small enterprises and offers data-backed insights and policy recommendations.
The Hon’ble Minister appreciated the initiative and reiterated the Government’s commitment to improving the MSME ecosystem.
The 1st Core Group Meeting of Friends of MSMEs in UP Assembly (FMUA) was held on 9th September 2025, with active support from FISME. The meeting focused on key issues related to empowering MSMEs in Uttar Pradesh. Topics such as policy reforms, financial inclusion, and the challenge of delayed payments were discussed in detail.
The Core Group is committed to working consistently towards strengthening the MSME ecosystem in the state by raising grassroots concerns at the legislative and policy-making levels. FISME continues to play an active role in facilitating this important initiative.
Diversified conglomerate ITC Ltd. which has proliferated into a major multinational corporation over the past two decades with its array of brands across sectors, is a prime example of an Indian company making big globally. Apart from its growing sales and successful expansion into multiple sectors - from fast-moving consumer goods and paperboard to luxury hotels and agri-commodities, ITC’s success is also rooted in its brand-building exercise.
India’s smartphone exports have exceeded Rs 1 lakh crore in the first five months of the current financial year (FY26), marking a new record, according to industry estimates.
The figure reflects a 55 per cent rise compared to the Rs 64,500 crore recorded during the same period in FY25, despite ongoing tariff and trade frictions with the United States.
Industry sources indicated that Apple’s contract manufacturers, Tata Electronics and Foxconn, accounted for nearly three-fourths of outbound shipments, contributing over Rs 75,000 crore to the total, according to The Economic Times.
The Directorate General of Trade Remedies (DGTR) has recommended the imposition of an anti-dumping duty on imports of glass fibre from China, Bahrain, and Thailand for a period of five years. The duty, aimed at protecting domestic manufacturers from cheap inbound shipments, has been suggested in the range of USD 194–394 per tonne. In its final findings, the DGTR concluded that glass fibre, widely used across sectors including electricals, has been exported to India at prices below the normal value, resulting in dumping.
The Indian government is planning to impose a 30% export duty on low-grade iron ore by October. The move aims to ensure affordable raw material supply for domestic steelmakers and boost the export of value-added steel products. Currently, low-grade fines and lumps are freely exported without duty, while high-grade lumps attract a 30% levy. By extending the duty to low-grade ore, the government seeks to encourage local processing and beneficiation. This aligns with India’s broader plan to increase finished steel exports to 50 million tonnes (MT) in the coming years.
In a major policy shift aimed at boosting self-reliance and accelerating defence modernisation, Defence Minister Rajnath Singh has approved the Defence Procurement Manual (DPM) 2025, the Ministry of Defence announced on Sunday. The revised manual, issued more than a decade after its previous version in 2009, is intended to streamline and rationalise revenue procurement across the Armed Forces. With procurement under the Revenue Head (Operations and Sustenance Segment) projected at Rs 1 lakh crore for FY 2025-26, the new framework opens significant opportunities for India’s private sector and startups.
The Government of India has increased the monthly stipend for apprentices to a range of Rs 6,800 to Rs 12,300, up from the earlier Rs 5,000 to Rs 9,000. The decision comes as part of recent amendments to the Apprenticeship Rules, 1992, aimed at enhancing skilling opportunities and making apprenticeships more attractive to youth. This hike will be applicable to apprentices registered under the National Apprenticeship Promotion Scheme (NAPS)and the National Apprenticeship Training Scheme (NATS).
The government has revised the Green Credit Programme to expand private sector participation and introduce minimum restoration commitments, aiming to boost financing for India’s clean energy transition.The updated guidelines were released on August 29, 2025. Speaking at the inaugural session of FICCI’s LEADS 2025 conference, Union Environment Minister Bhupender Yadav said green finance must be treated as a central pillar of economic competitiveness rather than a niche sector. He noted that while global green investments reached USD 1.8 trillion in 2023, emerging economies such as India received less than a quarter of these funds.
The Indian government is finalising a substantial incentive package worth Rs 14,000–16,000 crore aimed at strengthening the nation’s domestic manufacture of essential construction machinery. The move — currently under inter-ministerial review — is expected to be unveiled in the forthcoming financial year. Through this initiative, the government seeks to reduce reliance on imported machinery—currently accounting for nearly 50% of component value—from nations such as China, Japan, South Korea, and Germany.
The world’s first second-generation bamboo-based bioethanol plant was inaugurated by Prime Minister Modi on Sunday at Numaligarh Refinery Limited (NRL) in Assam’s Golaghat district. Built at a cost of Rs 5,000 crore, the Assam Bioethanol Plant is designed to reduce reliance on imported crude oil, promote green energy, and provide economic opportunities to farmers and tribal communities through bamboo cultivation. The inauguration was part of a wider package of projects worth about Rs 18,000 crore launched by the Prime Minister in Assam, including the foundation stone for a Rs 7,230 crore polypropylene plant at NRL.
The Yamuna Expressway Industrial Development Authority (YEIDA) has issued a letter of intent (LoI) to Integrated Batteries India (IB Solar) for the allotment of 25 acres in Sector 8 to set up a 4 GW cell manufacturing facility. The project, involving an investment of around ₹3,000 crore, is expected to strengthen Uttar Pradesh’s renewable energy ecosystem and attract large-scale investments along the Yamuna Expressway industrial corridor.
The Tamil Nadu government announced investment commitments worth Rs 24,307 crore at an investors’ meeting across sectors including energy, defence, aerospace, footwear, and electronics manufacturing. A total of 92 memoranda of understanding (MoUs) were signed at the TN Rising investment meet Business Standard reported. Of these, 53 MoUs valued at Rs 23,303 crore were finalised under the Industries Department, while 39 agreements worth around Rs 1,003 crore came under the MSME Department.
The Karnataka government has approved the allocation of 6.17 acres of land at Hessarghatta for the establishment of a ‘Quantum City’ (Q-City), Science and Technology Minister N.S. Boseraju announced on Sunday. The initiative aims to foster research, startups, and academic–industry collaboration in quantum technologies, with the state targeting a USD 20 billion quantum economy by 2035, he said, according to the Times of India.
India and the European Union (EU) are intensifying efforts to finalise their Free Trade Agreement (FTA) by the end of this year, EU Trade Commissioner Maros Sefcovic said Friday, following the conclusion of the 13th round of negotiations. “We will not agree on everything, but as major democracies in an increasingly uncertain world, there are many areas where we can work together. I am confident we will achieve a very good agreement,” Sefcovic said at the annual session of the Automotive Component Manufacturers’ Association (ACMA).
Prime Minister Modi and his Mauritian counterpart Navinchandra Ramgoolam on Thursday held wide-ranging discussions in Varanasi, focusing on strengthening bilateral cooperation in education, health, energy, maritime security, and infrastructure. The meeting resulted in the signing of seven memoranda of understanding (MoUs) across diverse sectors. He added that a new special economic package has been finalised, aimed at bolstering infrastructure, generating employment, and enhancing healthcare facilities in the island nation. Several key agreements were signed to strengthen cooperation between India and Mauritius across multiple sectors.
According to the FISME factor, 40% of MSMEs believe that the reform agenda proposed by PM Modi will lead India to higher economic growth, while 60% are unsure. 
In today’s hypercompetitive job market, the phrase ‘overqualified’ has taken on a sinister connotation. It’s a scarlet letter that brands candidates as too good, too experienced, too much of a risk. This fear-driven mindset is a disservice to both companies and individuals, perpetuating a cycle of underutilised talent and missed opportunities
Planning a new business can be a great idea. Perhaps, in the process of planning your venture you at some point while trying to understand how you can have the money to start your venture, may have several questions like – How to grow a company successfully? What is business finance? Why is it so important? Yet securing ample capital is equally pivotal. Crafting a comprehensive business plan that outlines financial requirements and
You could have the greatest startup idea in the world, but it’s not enough to grow without the right marketing strategy. According to IBM Institute for Business Value, 80% of small businesses in India fail within the first five years. Most small businesses fail at digital marketing because either they do not understand its importance or they make mistakes while implementing marketing strategies across various channels.
The Engineering Export Promotion Council (EEPC), India, has urged the government to reinstate the Interest Equalisation Scheme (IES), ensure affordable export financing, and provide support to offset the impact of punitive US tariffs on Indian engineering exports.
In a meeting with Reserve Bank of India (RBI) Governor Sanjay Malhotra, EEPC India Chairman Pankaj Chadha highlighted the sector’s vulnerability, noting that India’s engineering exports to the US average around USD 20 billion, accounting for roughly 45 percent of total exports exposed to US tariffs.
In the mid-2000s, Indian agriculture faced a pressing challenge: small farmers were caught in a cycle of low productivity, high labour costs, and minimal access to mechanisation. Traditional equipment was expensive, fragmented landholdings made large machines impractical, and rural credit was hard to secure. These challenges inspired Ravindra Agrawal to start KisanKraft in 2005. He wanted to democratise farm mechanisation for India’s 120 million small and marginal farmers.
Founded in 2010 by Latika Khosla, Freedom Tree offers a full lifestyle range—furniture, textiles, décor, and apparel—designed in-house and crafted in India.
In a consumer landscape dominated by D2C brands chasing celebrity endorsements, VC rounds, and aggressive ad spends, Mumbai-based Freedom Tree has quietly built a Rs 15+ crore lifestyle brand by sticking to its core—design, experience, and loyalty.
“ A winner is a dreamer who never gives up. ”
