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| President Message |
 India’s emergence as the world’s fourth-largest economy is more than a statistical milestone. It signals the growing weight of domestic demand, the resilience of Indian enterprise and the quiet but decisive contribution of millions of MSMEs that power value chains across manufacturing and services. For Indian MSMEs this moment affirms three realities. First, scale now matters: India’s large and expanding market offers unprecedented opportunities for local firms to grow, formalise, and integrate with national and global supply chains. Second, competitiveness is no longer optional. As India’s economic stature rises, being competitive in quality, productivity, sustainability, and compliance will be a significant factor. Third, inclusion must keep pace with growth. The benefits of becoming a top-three economy will be meaningful only if they translate into higher incomes, better jobs, and stronger enterprises across regions. What lies ahead is both promise and responsibility. Policy must now focus on lowering the cost of doing business, easing access to finance and technology, strengthening skilling, and ensuring fair procurement for MSMEs. Industry associations have a critical role in bridging information gaps, aggregating demand, and enabling collective upgrading. India’s ascent is a collective achievement. The next phase must ensure that MSMEs are not just participants in this growth story—but its principal drivers. With these thoughts, I wish you and your families a very happy new year 2026!
Sandeep K Jain
President, FISME
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| Vol XV, Issue 340: Jan 1, 2026 |
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| Activities |
 Friends of MSME in Parliament, in collaboration with FISME, hosted a delegation of 60 members from the Public Policy Group of IIT Madras on 18th December 2025 in New Delhi. As the secretariat of the forum, FISME organized the event and facilitated a meaningful dialogue between policymakers and academia. The programme was chaired by Shri Shankar Lalwani, Hon’ble Member of Parliament and Chairman of Friends of MSME in Parliament, and concluded with engaging discussions between the students and faculty members of IIT Madras and the leadership of Friends of MSME in Parliament. The event witnessed the participation of prominent leaders including Shri Rajendra Agrawal, Convenor of Friends of MSME in Parliament; Shri Sujeet Kumar, Member of Parliament (RS) and Shri S.K. Jain, President of FISME; Shri Rakesh Chhabra, Vice President of FISME; and Shri Dinesh Singhal, Past President of FISME.
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 FISME, in collaboration with legal experts from S.S. Rana & Co., organized a workshop on Prevention of Sexual Harassment (POSH) Compliance on 19 December 2025, in response to intensified government enforcement of the POSH Act, 2013. The session addressed the mandatory formation of Internal Complaints Committees (ICC) and highlighted statutory employer responsibilities, ICC constitution and functioning, and compliance requirements. Participants were also informed about penalties of up to ₹50,000 for non-compliance. With participation from more than 150 organisations, the workshop reinforced understanding, legal preparedness, and compliance practices.
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 FISME supported a SIDBI virtual workshop on “Strategies for Enhancing Revenue Streams of Industry Associations” on 29th December 2025. Secretary General FISME Anil Bhardwaj was the resource person. Industry associations often face sustainability challenges due to limited financial resources and a lack of awareness about revenue-generation opportunities. The workshop, provided cost-effective strategies tailored to associations at different stages, helping them build resilience, improve service delivery, and secure a sustainable future. Over 170 industry associations attended the session. Participants discussed real-time concerns and gained actionable insights to strengthen operational and financial sustainability in a competitive business environment.
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| Business Banter: Lessons from Entrepreneurs |
 When I was in high school, “zero hour” was a program offered to enterprising students who just wanted to get the heck out of there and move on to bigger and better things as soon as they could. The details were pretty basic: You sacrificed a couple of hours of sleep, arrived at school before the other kids and got a head start on the day. I’ll never forget driving my sister down misty Idaho roads one early morning as we sleepily anticipated another forced march in the hallowed halls of learning. Suddenly, out of the darkness ahead, all hell broke loose—a large black cow decided to loiter right where it shouldn’t, and an unstoppable force met an immovable object right when I was least expecting it.
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| Writing on the Wall |
India’s emergence as the world’s fourth-largest economy marks a significant shift in the global economic order. According to the Press Information Bureau’s release titled “2025: A Defining Year for India’s Growth”, India’s nominal GDP has reached USD 4.18 trillion, enabling it to overtake Japan and rank behind only the United States, China and Germany. India moving past Japan is best understood by contrasting their economic paths. Japan has struggled with prolonged low growth due to demographic ageing, weak domestic demand and persistent deflationary pressures. India has benefited from favourable demographics, rising urbanisation ,..
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| Media Monitor |
Macro Metre |
 A series of wide-ranging policy reforms were undertaken in 2025 in order to modernise India’s mining ecosystem and strengthen the country’s mineral security, Ministry of Mines said in a release. Central to these efforts was the enactment of the Mines and Minerals (Development and Regulation) Amendment Act, 2025, alongside the expansion and renaming of the National Mineral Exploration Trust (NMET) as the National Mineral Exploration and Development Trust (NMEDT), supported by enhanced funding provisions.
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 As all Indian exports to Australia become zero-duty starting new year, exporters are optimistic about pick-up in shipments but remain concerned about aggressive pricing by Chinese firms in the key market. "Many countries such as Vietnam, Bangladesh, and Pakistan have been enjoying duty-free access in Australia. Now with zero-duty access for Indian exports we will have advantage to that extent. Definitely there is going to be an increase in market share but it all depends on how we deliver our goods and service our customers," Mecca Rafeeque Ahmed, Chairman of Farida Group told KNN India over phone.
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 India’s Index of Industrial Production (IIP) recorded a 6.7 per cent year-on-year growth in November 2025, driven primarily by strong performance in the manufacturing sector, according to the latest Quick Estimates released on December 28. This marks a sharp recovery from the 0.4 per cent growth reported in October 2025. Sectoral Performance Manufacturing, the largest contributor to industrial output, grew 8.0 per cent, led by basic metals, pharmaceuticals, and motor vehicles.The mining sector rebounded with 5.4 per cent growth, supported by the end of the monsoon season and strong output of metallic minerals like iron ore.
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 The Government on Wednesday launched the Market Access Support (MAS) Intervention under the Export Promotion Mission (EPM), a flagship initiative approved by the Union Cabinet on November 12, 2025. The intervention is being implemented under the NIRYAT DISHA sub-scheme and is aimed at strengthening international market access for Indian exporters, with a focus on micro, small and medium enterprises (MSMEs), first-time exporters and firms in priority sectors.
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 The National Company Law Tribunal (NCLT), Guwahati, has held that a lender’s failure to adhere to RBI circulars on restructuring stressed MSME accounts does not automatically render an insolvency petition under the Insolvency and Bankruptcy Code (IBC) non-maintainable. The December 4, 2025 order arose from a petition filed by Eduvanz Financing Pvt Ltd against Abutani Mercantile Pvt Ltd, an Assam-based MSME. Eduvanz had extended a Rs 3 crore loan in January 2023, repayable in 91 days, but the borrower defaulted, leading to its classification as a non-performing asset in August 2023.
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 The year 2025 marked a phase of sustained policy expansion and programme consolidation for the Ministry of Micro, Small and Medium Enterprises (MSME), reinforcing the sector’s role in employment generation, rural industrialisation and balanced economic growth. Through reforms in classification, credit delivery, digital governance and international cooperation, the Ministry sought to strengthen the resilience and competitiveness of MSMEs across the country.
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 The government is considering granting a one-year extension to thousands of small pharmaceutical manufacturers struggling to comply with stricter quality norms, according to two government officials familiar with the matter. The deliberations come ahead of the January 1, 2026 rollout of the revised Schedule M good manufacturing practices (GMP), aligned with World Health Organization standards. The Union health and family welfare ministry is scheduled to begin consultations with state governments on the issue from Monday, one of the officials said, reported HT.
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| State Scan |
Andhra Pradesh
 The National Biodiversity Authority (NBA) has released Rs 14.88 crore (USD 1.65 million) to the Andhra Pradesh Forest Department as part of its Access and Benefit Sharing (ABS) mechanism. The funds will support protection, conservation, regeneration, research and development, awareness creation, and capacity-building activities related to Red Sanders, arising from benefit-sharing obligations linked to 29 Form-I applications. With the latest disbursement, cumulative ABS payouts across the country have exceeded Rs 143 crore (USD 15.8 million).
Uttar Pradesh
 Minister of State for Micro, Small and Medium Enterprises (MSME) Shobha Karandlaje in a written reply to a question in the Lok Sabha said that the Centre supplements the efforts of states and union territories through various schemes aimed at promoting and developing MSMEs. In response to the question on financial support extended to Uttar Pradesh in 2024–25, the Minister said that funds were allocated to the state under key Central schemes, including the Khadi Gramodyog Vikas Yojana (KGVY) and the Prime Minister’s Employment Generation Programme (PMEGP).
Maharashtra
 The government has proposed the development of a Multi-Modal Logistics Park (MMLP) in Nashik, Maharashtra, aimed at improving supply chain efficiency and reducing logistics costs under the PM GatiShakti National Master Plan, Union Commerce Minister Piyush Goyal said in Lok Sabha. Multi-Modal Logistics Parks (MMLPs) are large, integrated freight hubs that connect road, rail, air, and sea transport, providing storage, material handling, and distribution facilities while enabling value-added services such as sorting, grading, packaging, labeling, and assembling.
Karnataka
 India has expanded the global footprint of its GI-tagged agricultural produce with the export of 3 metric tonnes (MTs) of Indi Lime from Vijayapura district of Karnataka to Oman on December 19, 2025. The consignment to Oman follows the maiden export of 3 MTs of GI-tagged Indi Lime to Dubai in August 2025. The fruit reportedly received a positive market response in the UAE, leading to subsequent exports of nearly 12 MTs to Dubai—about four times the initial shipment. In addition, as part of efforts to diversify export destinations, a separate consignment of 350 kg was flagged off to the United Kingdom. Cumulatively, nearly 12.35 MTs of Indi Lime have been exported from Vijayapura district so far.
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FISME’s official Twitter handle @fisme |
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KNN India’s official Twitter handle @knnindia |
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| Other Events |
India International Mega Trade Fair 2026 (IIMTF)
Date: 02 - 12 Jan 2026
Venue: Gyan Bhawan, Patna
See Details
AUTO SHOW EXPO 2026
Date: 03 - 05 Jan 2026
Venue: Gujarat University Convention and Exhibition Centre, Ahmedabad
See Details
Battery Bharat 2026
Date: 06 - 07 Jan 2026
Venue: Fairfield by Marriott Bengaluru Rajajinagar, Bengaluru
See Details
South India Ice Cream Tech Fair 2026 (SIITF)
Date: 07 - 09 Jan 2026
Venue: CODISSiA, Coimbatore
See Details
Indusfood 2026
Date: 08 - 10 Jan 2026
Venue: INDIA EXPO CENTRE & MART, Greater Noida
See Details
EFY Expo Pune 2026
Date: 08 - 10 Jan 2026
Venue: Messe global exhibition and convention centre, Pune
See Details
IIJS Signature Show 2026
Date: 08 - 11 Jan 2026
Venue: Jio World Convention Centre, Mumbai
See Details
Constro International Construction Exhibition 2026
Date: 08 - 11 Jan 2026
Venue: Pune International Exhibition and Convention Center, Pimpri-Chinchwad
See Details
Fashionista Mumbai 2026
Date: 09 - 10 Jan 2026
Venue: Kishanchand Valecha Sabhagruha, Mumba
See Details
Grain Industry Expo 2026
Surat International Textile & Machinery Expo 2026 (SITME)
Date: 09 - 12 Jan 2026
Venue: Surat International Exhibition and Convention Centre, Surat
See Details
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| Your Views |
What is the biggest structural bottleneck for Indian manufacturing today? 
According to the FISME factor, 50% of MSMEs believe that logistics and supply chain inefficiencies are the biggest structural bottleneck for Indian manufacturing today, 30% identify labour laws and workforce flexibility, while 20% point to land acquisition and zoning issues.
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| Knowledge Store |
HR Heuristics
Manual vs AI recruitment: When tech wins and when humans must lead
 For all the progress companies have made in automating recruitment, one truth continues to confront the hiring teams that careers cannot be reduced to data sets. Behind every CV is a person with ambitions, anxieties, motivations, and contradictions, none of which can be fully captured by an algorithm. Yet, in an era where organisations feel pressure to hire faster and at scale, AI often becomes the first filter, sometimes even the first judge.
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Finance Fundamentals
SIDBI EDGE Offers Up To 100% Financing For MSMEs To Upgrade DG Sets
 Empowering MSMEs to power smarter and grow stronger, SIDBI EDGE offers a seamless financing solution to help enterprises upgrade to Diesal Generator (DG) sets through a simplified and supportive lending experience designed to meet their operational needs at every stage. Under SIDBI EDGE, MSMEs can avail up to 100 percent financing with minimal collateral requirements. The scheme offers term loans of up to Rs 3 crore with flexible repayment options extending up to five years, ensuring affordability and ease of repayment for growing enterprises.
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Marketing Mantras
Marketing in the age of AI: Disruption, opportunity, and dilemmas
 Marketing has long been the heartbeat of every successful company, shaping perception, building trust, and connecting brands with the people they serve. But over the last few years, no function has transformed as dramatically as marketing itself. Once viewed as a “support function,” marketing is now a strategic engine that drives demand, accelerates brand momentum, and creates both emotional and commercial value.
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Policy Polemic
Industry Seeks Urgent Clarifications On Labour Codes, Costs
 Industry bodies have sought urgent clarifications from the government on several compliance and cost-related issues under the new labour codes.
Concerns Over Timing and Retrospective Application
One of the key concerns for employers is the timing of enactment of provisions such as wages constituting at least 50 percent of an employee’s total remuneration, reported TOI.
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SME Special
Sahaspur to store shelves: Farmer turns founder with namkeen microenterprise
 Gargi Verma, a farmer from Sahaspur in Pratapgarh, Uttar Pradesh, has turned himself into an entrepreneur by building a homegrown namkeen venture, which now supplies local shops across nearby gram panchayats.
But her journey began with a rejection at the bank. Thanks to her persistence, proper paperwork, and phone calls, and finally, a sanctioned loan under the Chief Minister’s Yuva Udyami Vikas Abhiyan (CM YUVA) scheme helped set the enterprise in motion.
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Success Story
Maharajganj Youth Builds a Sustainable Nursery Business from Family Land in Nichlaul
 In Bedwali Gram Sabha near the town of Nichlaul (Maharajganj, Uttar Pradesh), a young nursery founder is turning a simple village plot into a steady pipeline of saplings for farmers and local institutions.
Sonu, who introduces himself plainly as a nursery worker and entrepreneur, says his team grows plants from seed to sale, supplying hardy saplings that can anchor orchards, kitchen gardens and roadside plantations.
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Stockpile
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 November, 2025
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Quotable Quotes
 “ The butterfly counts not months but moments, and has time enough. ”
– - Rabindranath Tagore - Indian poet, writer, composer, social reformer and painter
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| Country Chronicles |
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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:
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| Reader Reactions |
Write and Win prize!
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
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| Editorial Team: |
Hon. Editor: Anil Bhardwaj
Asstt. Editor: Kalpana Sharma
Types setting & websdesigning: Sanjay Sachan
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This Newsletter is edited by the FISME Secretariat. We welcome contributions as well as comments and suggestions. Please write to info@fisme.org.in |
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