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| President Message |
 India imports a large share of its oil and gas requirements. As a result, whenever global energy prices rise due to conflicts, supply disruptions, or market uncertainties, Indian businesses feel the impact. MSMEs are particularly vulnerable because higher fuel and energy costs directly affect production, transportation, and profitability. This is why it is important for both industry and government to work towards reducing dependence on fossil fuels and exploring alternative energy sources. Today, MSMEs have several practical options such as rooftop solar systems, biomass-based energy, energy-efficient machinery, electric vehicles for local transport, and better energy management practices. The good news is that the Government has already introduced a number of initiatives to encourage renewable energy and energy efficiency. Various schemes, incentives, and financing options are becoming available to help MSMEs adopt cleaner and more cost-effective energy solutions. Moving towards cleaner energy is not only good for the environment—it also makes good business sense. It can help reduce operating costs, improve energy security, and protect enterprises from future price shocks. There is another important reason to act. Many countries are introducing climate-related regulations and carbon-related trade measures. Large buyers and global supply chains are increasingly looking for suppliers with lower carbon footprints. MSMEs that begin their green transition now will be better placed to access domestic and international markets in the future. The shift to cleaner energy should therefore be seen as an investment in competitiveness and long-term growth. FISME encourages MSMEs to explore available technologies and government support programmes and take gradual but meaningful steps towards a more sustainable future. I have personally led the initiative to install solar roof-tops in Rai Industrial Area which great success. What is even more interesting is that 100% loan is available from SIDBI for setting up solar roof-tops and the monthly installment that you pay is equivalent to savings on energy bill per month. Within few years, the loan is paid from savings and the equipment keeps working for you without any additional cost. It is simple, makes business sense and strategically critical to stay in the game.
Rakesh Chhabra
President, FISME
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| Vol XV, Issue 349: June 1, 2026 |
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| Activities |
 FISME and the Portuguese Industrial Association – Chamber of Commerce and Industry (AIP-CCI) signed a Memorandum of Understanding (MoU) on 19 May 2026, establishing a framework for bilateral business cooperation, investment facilitation, and micro, small and medium enterprise (MSME) knowledge exchange between India and Portugal. The agreement was signed by Anil Bhardwaj, Secretary General, FISME, and Filomena Pina Pires, Director of Internationalisation, Entrepreneurship, and Business Cooperation, AIP-CCI. Under the MoU, AIP-CCI and FISME will mutually refer investors and businesses to each other’s markets.
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 FISME has urged the Society of Indian Automobile Manufacturers (SIAM) to ensure equitable sharing of the rising input costs being borne by MSME auto component suppliers amid sharp increases in wages, energy prices, and raw material costs triggered by the West Asia crisis. In a representation addressed to SIAM President Shailesh Chandra, FISME Secretary General Anil Bhardwaj called on automakers and their member original equipment manufacturers (OEMs) to introduce temporary cost-sharing arrangements to absorb part of the exceptional rise in wages and energy costs faced by MSME suppliers.
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 On 23 May 2026, FISME President Rakesh Chhabra participated in an emergency meeting convened by Haryana Chief Minister Nayab Singh Saini to discuss the impact of the West Asia and Middle East crisis on industry. During the meeting, FISME advocated urgent support measures for MSMEs, including invoking force majeure provisions, ensuring 30-day payment compliance, expanding TReDS adoption, establishing an MSME support cell, promoting energy self-sufficiency, reducing industrial cost pressures, and strengthening industry-government consultations through regular sectoral reviews.
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 On 27 May 2026, a joint delegation of Friends of MSME in Parliament, led by Convener Rajendra Agrawal and FISME office bearers, including Mr. Anil Bhardwaj and Mr. Dinesh Singhal, met Lok Sabha member Bansuri Swaraj from New Delhi. The delegation highlighted ongoing initiatives by Parliamentarians aimed at promoting MSME development and fostering a supportive policy environment for small and medium enterprises.
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| Business Banter: Lessons from Entrepreneurs |
 In an environment where global uncertainty, rising crude oil prices, and fluctuating interest rate expectations are driving sharp market swings, the importance of trading psychology has never been greater. While investors often focus on data, valuations, and news flows, real success in markets increasingly depends on mastering one’s own mindset.
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| Writing on the Wall |
India’s economy seems to have begun the financial year 2026-27 on a decidedly tepid note, going by the data released so far for April 2026. The latest of these, the Index of Eight Core Industries (ICI), shows that growth in these key sectors stood at a modest 1.7% in April. It would be easy to attribute this to the ongoing crisis in West Asia, and that is certainly a factor, but the slowdown started well before the war broke out. Growth in the ICI averaged just 2.8% in the entire financial year 2025-26, down from the 4.5% average for 2024-25 and significantly slower than the growth in the previous three years, each of which was above 7% This suggests a more systemic domestic issue rather than an externally driven transient phase. Of the eight sectors, only three — steel, cement, and electricity — grew at all in April 2026. The rest contracted. The crude oil and natural gas sectors have, in fact, contracted for 16 and 22 consecutive months, respectively. This should be of particular concern. Energy output cannot be ramped up overnight, but falling output for such long stretches should have raised some policy alarm bells even before the current energy crisis began. Separate data...
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| Media Monitor |
Macro Metre |
 India's manufacturing sector recorded stronger growth in May, supported by higher domestic demand, rising output and increased purchasing activity, according to the latest HSBC India Manufacturing Purchasing Managers' Index (PMI) by S&P Global. The seasonally adjusted manufacturing PMI rose to 55.0 in May from 54.7 in April and exceeded the earlier flash estimate of 54.3, indicating the strongest improvement in operating conditions in three months.
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 The Central Government over the weekend announced a revised set of export levies on petrol, diesel, and aviation turbine fuel (ATF), alongside a temporary waiver of customs duties on cotton imports — two measures aimed at ensuring domestic supply stability and supporting key industrial sectors. Export levies in the form of Special Additional Excise Duty (SAED) and Road and Infrastructure Cess (RIC) on petrol, diesel, and ATF were introduced on 27th March 2026 to curb exports and ensure sufficient domestic availability of petroleum products amid the ongoing West Asia crisis, with the rates being reviewed every fortnight based on prevailing international crude oil and fuel prices.
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 India's engineering goods shipments maintained their growth momentum at the start of the new fiscal year, even as regional conflict weighed on exports to key West Asian markets. India’s engineering goods exports grew 8.78 per cent year-on-year (YoY) to USD 10.35 billion in April 2026, up from USD 9.52 billion in April 2025, according to data released by EEPC India.Engineering goods accounted for 23.8 per cent of total merchandise exports in April 2026, marginally lower than the 24.9 per cent share recorded in April 2025.
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 Union Minister for Agriculture and Farmers Welfare and Rural Development Shivraj Singh Chouhan on Monday launched the nationwide ‘Khet Bachao Abhiyan’ from Ramasiya village in Madhya Pradesh’s Raisen district. The month-long campaign, which will run until June 30, aims to promote soil conservation and sustainable agricultural practices through soil testing, balanced fertilizer use, Soil Health Cards, natural farming and water conservation.
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 The Cabinet Committee on Economic Affairs chaired by Prime Minister Narendra Modi has approved the continuation of the ‘Scheme for Assistance in Ration Transport and Handling-Income with Automation in PDS’ (SARTHAK-PDS) as an umbrella scheme during the 16th Finance Commission award period with a central outlay of Rs 25,530 crore. The Cabinet has also approved revised norms for central assistance to states and Union Territories towards expenditure incurred on intra-state movement and handling of foodgrains as well as fair price shop (FPS) dealer margins, while continuing the existing funding pattern for central support.
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 Government think tank NITI Aayog's NITI Frontier Tech Hub has unveiled India’s first comprehensive 10-year semiconductor strategy roadmap titled ‘Future of India’s Semiconductor Industry’, outlining a vision to build a USD 120–150 billion semiconductor value chain by 2035. The roadmap was launched by Union Finance Minister Nirmala Sitharaman and Electronics & IT Minister Ashwini Vaishnaw, in the presence of senior officials and industry leaders.
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 The Department of Fertilizers has withdrawn a recent advisory on surplus ammonia utilisation by urea manufacturers, reverting to the existing policy framework following a clarification from the Ministry of Petroleum and Natural Gas (MoPNG). The advisory, dated April 18, 2026, had governed the sale and utilisation of surplus ammonia by urea manufacturing units. Its withdrawal follows a clarification issued by the Ministry on May 12, 2026, stating that while pooled natural gas must be used exclusively for urea production, surplus ammonia generated in the process may be handled under the existing policy framework for surplus ammonia from urea plants.
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| State Scan |
Andhra Pradesh
 Andhra Pradesh has taken a step towards sustainable industrial development with Energy Efficiency Services Limited (EESL), under the Union Ministry of Power, finalising a comprehensive action plan to promote energy and water efficiency across the state's MSME ecosystem. The initiative follows the AP MSME Growth Summit 2026 organised by the Andhra Pradesh Industries Department and aims to accelerate the adoption of advanced global technologies in industrial clusters, reported the Times of India.
Uttar Pradesh
 The Uttar Pradesh government has moved to significantly ease industrial land acquisition procedures, re-approving an ordinance that eliminates the mandatory requirement to formally convert agricultural land to non-agricultural use before it can be utilised for industrial or commercial purposes.The decision was taken at a Cabinet meeting held on Monday under the chairmanship of Chief Minister Yogi Adityanath. Under Section 80 of the Uttar Pradesh Revenue Code, 2006, it was previously mandatory to obtain a Change of Land Use (CLU) certificate — converting agricultural land to non-agricultural status — before any building plan could be approved for industrial or commercial development.
Telangana
 Telangana IT and Industries Minister D. Sridhar Babu launched the Telangana MSME Greening Portal and MSME Assessment Toolkit aimed at supporting sustainable industrial transformation among micro, small and medium enterprises in the state. The portal and toolkit form part of the Raising and Accelerating MSME Performance (RAMP) initiative of the Ministry of Micro, Small and Medium Enterprises, implemented with financial assistance from the World Bank.
Gujarat
 Union Finance Minister Nirmala Sitharaman on Friday chaired a high-level review meeting on GIFT City (Gujarat International Finance Tec-City) and its evolving international financial services ecosystem, describing India's first operational smart city and International Financial Services Centre (IFSC) as an important pillar of the country's international financial architecture.
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| World Watch |
U.S.
 A high-level United States delegation led by Chief Negotiator Brendan Lynch arrived in the capital today to advance negotiations on the proposed India–US Bilateral Trade Agreement (BTA) and finalise details of an interim trade pact. The visiting delegation will hold discussions with an Indian team led by Darpan Jain, India's chief negotiator for the trade talks.
The meetings, scheduled from June 1 to June 4 in New Delhi, will focus on issues including market access, non-tariff measures, customs and trade facilitation, investment promotion and economic security cooperation, According to ANI.
The current round of negotiations follows discussions held in Washington, from April 20 to 23, when an Indian delegation led by Jain met US officials as part of the ongoing trade negotiations.
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Australia
 Defence Minister Rajnath Singh and Australia’s Deputy Prime Minister and Defence Minister Richard Marles co-chaired the second India-Australia Defence Ministers’ Dialogue in New Delhi on Monday. During the high-level meeting, the two countries agreed to begin developing a Memorandum of Understanding (MoU) on the provision of defence articles and defence services, a step aimed at deepening bilateral defence industrial collaboration. The discussions also focused on maritime security, military interoperability, defence technology cooperation and Indo-Pacific security.
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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 |
Biofuel Expo
Date: 04 - 06 Jun 2026
Venue: Greater Noida
See Details
The Food & Beverage Expo
International Machine Tools & Industrial Trade Fairs (Intec)
Indian Fharma Fair Lucknow (IFF)
Valve World Expo India
Bakery Business Trade Show (BB Trade Show, South)
International Fishery Tech Expo (IFT)
International Health, Sports, Fitness & Wellness Trade Show (IHFF)
Famdent Show Mumbai
Home Decor Show
Industrial & Engineering Expo (Indexpo)
Garfab - TX Surat
CCTV Expo Delhi
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| Your Views |
What government support would best help your business navigate today's economic challenges? 
According to the FISME factor, 100% of MSMEs believe that government support which would best help businesses navigate today's economic challenges includes loans with flexible collateral, subsidies and emergency funds, as well as relaxed compliance, taxes, and licensing.
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| Knowledge Store |
HR Heuristics
How Employee Recognition Is Creating a Steady Demand Engine for Indian MSMEs
 As Indian workplaces evolve, so does the way organisations recognise and engage their people. What was once limited to annual appraisals or festive gifting has expanded into something more continuous, intentional, and culturally grounded. Employee recognition today is no longer an occasional gesture; it is becoming a strategic lever for engagement, retention, and culture-building. And in this shift, India’s Micro, Small, and Medium Enterprises (MSMEs)
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Finance Fundamentals
5 key investment lessons from Raamdeo Agarwal's wealth creation strategy
 Raamdeo Agarwal, co-founder of Motilal Oswal Financial Services (MOFSL), is famous for his risk free and balanced investment strategy of wealth creation. He has a real time net worth of $1.6 billion according to Forbes. With more than four decades of experience in the business and investing, investors can learn a lot from Agarwal’s experience. This can not only help them in becoming better investors but even better human beings. The following are five crucial takeaways from his investment philosophy.
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Marketing Mantras
Marketing the Invisible: Why B2B Marketing has become a Strategic Growth Function in the AI Era.
 Think your logo is enough? Most startups get branding wrong without realising it. Learn the 3 common mistakes that make your brand forgettable and how to fix them fast. In intricate sectors, B2B marketing plays a pivotal role in establishing credibility and influencing purchasing choices well before a transaction occurs. As buyers conduct extensive research on their own, effective marketing strategies are essential for portraying a trustworthy image. This calculated method is indispensable for achieving success in the contemporary marketplace and serves as a commitment to sustained reputation.
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Policy Polemic
MSMEs Demand Rationalisation Of Import Duty On Primary Aluminium
 Facing mounting pressure due to rising raw material prices, supply-chain disruptions and elevated energy costs amid the ongoing West Asia conflict, India’s downstream aluminium industry, particularly MSMEs, has demanded rationalisation of import tariffs on primary aluminium.
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SME Special
Graamya is taking indigenous spices from Kerala’s remote villages to the world
 Annu Sunny grew up in Nedumkandam panchayat, in the high ranges of Kerala’s Idukki district, amidst a tea factory and spice farm her parents owned. After completing her graduate degree in science, Sunny spent a year-and-a-half reading, exploring, and travelling. During this time, she applied to the India Fellow social leadership programme, and entered the development sector. During her fellowship, she realised that what mattered most to her was livelihoods—improving the quality of life in communities.
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Success Story
Simple Energy raises Rs 250 Cr in equity and debt
 Simple Energy, the Bengaluru-based electric two-wheeler manufacturer, has raised Rs 250 crore in a Series B round of funding led by the family office of Arokiaswamy Velumani. This funding round, which is a combination of debt and equity, also saw the participation of Simple Energy founders, Suhas Rajkumar and Ankit Gupta. The debt component amounting to Rs 123 crore was provided by HDFC Bank, Capitar Ventures and other NBFCs. According to this EV manufacturer, the majority of the proceeds will be deployed to scale up production, including manufacturing and capacity expansion.
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Stockpile
The National Statistical Office (NSO), Ministry of Statistics And Programme Implementation (MoSPI), has released the first press release of All India Index of Industrial Production of New Series with base year 2022-23.
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Quotable Quotes
 “ Money is like manure. It stinks when you pile it; it grows when you spread it. ”
– - J. R. D. Tata - French-born Indian industrialist and aviator
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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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| New Members |
1 enterprise became member of FISME during the period from 16th May to 31st May 2026
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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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