If you are unable to view this mailer, click here.
President Message
India’s MSMEs are once again confronting a deepening liquidity crisis. For years, FISME has consistently highlighted through its studies, policy submissions and media interventions that delayed payments are not merely a compliance issue but one of the biggest structural constraints on MSME growth and competitiveness. In many MSMEs, as much as 70–80% of working capital remains tied up in receivables, forcing firms to borrow at punishing costs simply to sustain operations. In effect, large buyers use MSME suppliers as a source of interest-free working capital, shifting financial stress to the weakest link in the supply chain. The problem has become far more acute amid ongoing geopolitical wars, supply-chain disruptions, volatile freight costs and uncertain global demand conditions. MSMEs are today battling rising input costs and shrinking margins even as payments stretch well beyond statutory timelines. While gradual tightening on the prevailing practices of delayed MSME payments, has helped but not to the extent that MSMEs are paid in time automatically. Protecting MSME cash flows is no longer just a sectoral concern — it is central to India’s manufacturing and supply-chain ambitions. Automatic placement of MSME bills on TReDS platforms for discounting if not paid within 45 days can induce greater discipline in payment markets.
FISME, Kanohar Lal Trust and Meerut Citizens Forum (MCF) organised a roundtable discussion titled ‘Increasing Uptake of Skill Development in Meerut’ on 18 April 2026 to enhance skill development adoption. The discussion focused on building a positive societal perception of skilling and enabling students to make informed choices. It highlighted that India has largely prioritised training youth under existing schemes, rather than empowering them to choose pathways based on aspiration, earning potential, dignity, and mobility. Special guests included Chief Guest Kapil Dev Aggarwal, Minister of State (Independent Charge), Vocational Education and Skill Development, Uttar Pradesh; Rajendra Agrawal, former MP, Meerut and Convenor of ‘Friends of MSMEs in Parliament’; and Amit Agarwal, MLA, Meerut Cantonment.
The Centre of Excellence for Aspiring SMEs (CoEAS), a joint initiative of FISME and IFCI Ltd., in collaboration with the Haryana Chamber of Commerce and Industry (HCCI), conducted an awareness session in Kurukshetra, Haryana. The session was titled 'Raising External Equity through SME IPOs and the Role of CoEAS in Handholding SMEs.' The program focused on addressing the financing challenges faced by MSMEs by highlighting the importance of external equity alongside traditional debt. It aimed to build awareness regarding investor readiness and the critical role of SME IPOs in enabling business expansion, improved governance, and long-term sustainability. The event was graced by Kailash Saini, Incharge of the Chief Minister’s Office, Haryana. Eminent speakers from BSE Ltd., IFCI, CoEAS, HCCI, and the industry shared their perspectives on financing avenues, policy support, and strategic growth."
On the occasion of World Intellectual Property Day on April 22, 2026, FISME, in association with the Meerut Industrial Development Forum (MIDFO) and the Western U.P. Chamber of Commerce & Industry, organized an IP awareness program in Meerut for weavers, artisans, and small gas cylinder manufacturers. The event featured Chief Guest Amresh Pandey, Joint Commissioner of Industries, who highlighted that every district in Western Uttar Pradesh is home to unique traditional skills, citing Meerut’s Khaddar and Gas Cylinder clusters as prime examples. He emphasized that Geographical Indication (GI) tags act as a vital legal safety net, protecting these traditional crafts while playing a key role in elevating local goods to a global stage. FISME representatives provided comprehensive information on the GI registration process, necessary documentation, and government support schemes.
Continuous, rapid, and often unpredictable change—where industries, business models, and competitive advantages are constantly being reshaped by technology, shifting consumer expectations & new market entrants have given way to a new normal referred to as the “Age of Disruption’. Disruption is no longer a buzzword, it defines our times. While disruption has always been a part of our lives, it’s the speed of change today that has created the challenge.
Across India, the total value of such pending payments to micro, small and medium enterprises is estimated at Rs 8.1 lakh crore, according to industry estimates and government assessments. An estimated Rs 8.1 lakh crore is locked in unpaid dues to micro, small and medium enterprises, according to industry estimates and government assessments. The dues are invoiced but not settled within expected timelines, often stretching to 60 to 90 days or longer. For MSMEs, this creates immediate cash flow pressure. A large share of working capital remains tied up in receivables, in some cases as high as 70 to 80%, limiting their ability to fund operations. ...
..
India’s economy remains resilient at the start of FY2026-27, but faces emerging risks from the ongoing West Asia conflict, which has disrupted supplies of energy, fertilisers and key industrial inputs, according to the latest Monthly Economic Review released by the Department of Economic Affairs under the Finance Ministry. The report noted that India enters the new fiscal year at the intersection of domestic resilience and external turbulence, following a strong GDP growth of 7.6 percent in the previous financial year, reported Financial Express.
NITI Aayog on Monday launched DPI@2047 for Viksit Bharat, a strategic roadmap to guide the next phase of India’s Digital Public Infrastructure (DPI) journey, with a focus on productivity-led and inclusive growth. The roadmap underscores a shift in technology competition—from standalone innovation to the ability to connect and scale solutions across sectors using digital infrastructure. It highlights the growing importance of digital rails in enabling ideas and services to reach population scale.
The government has announced a series of duty reductions and regulatory relaxations to support domestic industry and stabilise supply chains amid ongoing geopolitical disruptions in West Asia. In a key move, the Centre has reduced the Basic Customs Duty to zero on critical raw materials used in the leather and footwear industry, including Ethylene Vinyl Acetate (EVA), Polyvinyl Chloride (PVC), Polyurethane (PU) and Solid Bleached Sulphate (SBS).
Union Commerce and Industry Minister Piyush Goyal on Saturday announced that all intellectual property (IP) registrations related to sports will be made free of charge for a period of three years, effective immediately. The announcement was made at the World IP Day 2026 event organised by the Department for Promotion of Industry and Internal Trade in association with Federation of Indian Chambers of Commerce and Industry.
The Reserve Bank of India (RBI) Governor Sanjay Malhotra on Tuesday launched ‘Mission SAKSHAM’, a nationwide capacity-building initiative aimed at strengthening the Urban Cooperative Banking (UCB) sector through focused training and skill development. Mission SAKSHAM—meaning “to make capable”—will be implemented in a mission mode across the country. The programme will include both in-person and e-learning modules, targeting around 1.4 lakh participants from UCBs.
The Federation of Indian Micro and Small & Medium Enterprises (FISME) has been nominated to a high-powered standing committee constituted by NITI Aayog to strengthen the link between education, employment and entrepreneurship. The ‘Education-to-Employment and Enterprise (EEE) Standing Committee’ will focus on unlocking the potential of India’s services sector as a key driver of growth, jobs and exports, in line with the government’s vision outlined in the Union Budget 2026–27.
The Reserve Bank of India (RBI) has cancelled the banking licence of Paytm Payments Bank Limited with effect from April 24, 2026, under Section 22(4) of the Banking Regulation Act, 1949 (‘BR Act’), citing serious regulatory and governance concerns. The action bars the bank from conducting any banking business with immediate effect. In a press release, RBI said, “Consequently, Paytm Payments Bank Limited is prohibited from conducting the business of ‘banking’ as defined in Section 5(b) or any additional business specified under Section 6 of the Banking Regulation Act, 1949 with immediate effect.”
The Madhya Pradesh Cabinet has approved a significant increase in compensation for farmers whose land is acquired for development projects, in a move aimed at making the process more equitable and reducing delays in infrastructure execution. The decision was taken at a Cabinet meeting chaired by Chief Minister Mohan Yadav at the state secretariat, following longstanding demands from farmers and agricultural bodies.
To promote industrial growth and attract investment, the Uttar Pradesh state government has introduced a Third-Party Audit Scheme aimed at making compliance more transparent and less burdensome for businesses. Under the new system, no immediate punitive action will be taken against industrial establishments. Instead, units will first receive a notice with an opportunity to rectify issues, followed by a second notice if needed. Prosecution will only begin after approval from a senior authority, reducing undue pressure on industries.
In a significant development for India’s digital infrastructure, Google has laid the foundation for a USD 15 billion artificial intelligence (AI) data centre hub near Visakhapatnam in Andhra Pradesh. This marks one of the largest foreign direct investments in the country, reported Times Of India.
The project, named Google Cloud India AI Hub, is being developed in partnership with Adani ConneX and Airtel Nxtra. It is expected to be Google’s largest infrastructure initiative in India and its biggest AI hub outside the United States.
The Chhattisgarh government has introduced a long-term resource planning framework for the power sector, mandating distribution companies (discoms) to prepare integrated plans covering a 10-year horizon. The move is aimed at ensuring reliable power supply, optimising resource utilisation, and supporting the state’s transition towards a more sustainable and efficient energy mix.Focus on Renewables, Grid Stability and Efficiency Under the new framework, discoms will be required to undertake comprehensive demand forecasting, assess supply-side resources, and align procurement strategies accordingly.
The 10th session of the India–Kenya Joint Trade Committee (JTC) concluded on Tuesday in Nairobi, aimed at reviewing and strengthening bilateral trade and economic cooperation. The meeting was co-chaired by Commerce Secretary Rajesh Agrawal, and Regina Akotah Ombam, Principal Secretary, State Department for Trade, Republic of Kenya. Discussions centred on diversifying trade, improving market access, and leveraging complementarities in sectors such as engineering goods, pharmaceuticals, agriculture and electronics.
Both sides noted steady growth in bilateral trade, which rose to USD 4.31 billion in 2025–26, marking a 24.9 per cent increase from the previous year.
The India–New Zealand Free Trade Agreement (FTA), signed today, provides 100 per cent duty-free access to Indian goods in the New Zealand market from the date of implementation. Covering all tariff lines, the pact is expected to boost the competitiveness of labour-intensive sectors including textiles, apparel, leather, footwear, engineering goods, and processed foods. New Zealand had earlier imposed tariffs of up to 10 per cent on many of these products.
India, in turn, has offered tariff liberalisation on about 70 per cent of tariff lines, covering 95 per cent of bilateral trade value, while excluding sensitive sectors such as dairy, certain agricultural products, metals, and defence-related items.
Will RBI's recent measures improve ease of doing business for MSMEs?
According to the FISME factor, 60% of MSMEs believe that the RBI's recent measures will improve the ease of doing business for MSMEs, while 40% can't say.
Should organisations move beyond hiring diversity to truly measuring inclusion?
If diversity opens the door, what ensures people actually stay and grow inside? It is easy to celebrate diversity when it shows up neatly in hiring dashboards. Percentages improve, targets are met and representation increases. But the real test begins after that. Do people feel heard? Do they stay, grow and thrive? Organisations are increasingly realising that diversity without inclusion is incomplete.
Capital, Uncertainty, and the Reverse Trade Credit Problem
In times of uncertainty, capital does not disappear, it retreats, reshapes, and, most dangerously, misallocates itself. What is unfolding in India’s trade credit ecosystem today is not simply a liquidity problem. It is a deeper distortion in how capital is being directed through the economy, with consequences that are serious, compounding, and largely invisible to conventional financial reporting.
5 tips to boost your small business using the power of social media
In an online-first world, your business has to put its best foot forward to make a lasting impression. Here are our five tips to boost your small business through social media. Social media is our go-to space for recommendations — where to eat, how to dress, what to do, or which movie to watch next. In this digital era, it is critical for a customer-facing business to get its social media strategy
Coimbatore Industry Body Flags MSME Stress, Seeks RBI Support Measures
The Coimbatore Compressor Industries Association has urged the Reserve Bank of India (RBI) to provide relief to micro, small and medium enterprises (MSMEs) facing sharp increases in raw material costs.
In a memorandum to the central bank, association president M Raveendran said prices of key inputs such as copper, aluminium and steel have surged between 30 percent and 80 percent over the past six months, putting significant pressure on MSME finances.
How Tuba Siddiqui turned a home garden into a personal care brand
Tuba Siddiqui's natural personal care brand, Soil Concept, offers plant-based products with a healthier, more sustainable approach. After completing her engineering degree in biotechnology from Integral University in Lucknow, Tuba Siddiqui started a small medicinal garden at home and named it ‘Garden of Health’. She grew aloe vera, several varieties of basil,
Bettrlabs is building an AI-powered R&D platform for consumer product innovation
Bengaluru-based deeptech startup Bettrlabs is digitising product development for consumer brands, helping them move from idea to formulation faster without investing heavily in physical labs. When JP Mohanty first saw how long it takes consumer goods companies to develop a new product, he was stunned. It took months of experimentation across multiple laboratories,
The National Statistical Office (NSO), Ministry of Statistics And Programme Implementation (MoSPI) has released the Quick Estimate of Index of Industrial Production and Use-Based Index for the month of March 2026 (base 2011-12+100).
FISME regularly receives monthly reports on the economies of various countries from their missions in India. These reports provide information on key economic parameters, trade related information and all news relevant for importers and exporters. In this edition you can take a look at reports on:
Write your comments on the FISME Factor. Share your views and suggestions on MSME issues. Win prize! The best mail will get a special book every fortnight.
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.
India’s MSMEs are once again confronting a deepening liquidity crisis. For years, FISME has consistently highlighted through its studies, policy submissions and media interventions that delayed payments are not merely a compliance issue but one of the biggest structural constraints on MSME growth and competitiveness. In many MSMEs, as much as 70–80% of working capital remains tied up in receivables, forcing firms to borrow at punishing costs simply to sustain operations. In effect, large buyers use MSME suppliers as a source of interest-free working capital, shifting financial stress to the weakest link in the supply chain. The problem has become far more acute amid ongoing geopolitical wars, supply-chain disruptions, volatile freight costs and uncertain global demand conditions. MSMEs are today battling rising input costs and shrinking margins even as payments stretch well beyond statutory timelines. While gradual tightening on the prevailing practices of delayed MSME payments, has helped but not to the extent that MSMEs are paid in time automatically. Protecting MSME cash flows is no longer just a sectoral concern — it is central to India’s manufacturing and supply-chain ambitions. Automatic placement of MSME bills on TReDS platforms for discounting if not paid within 45 days can induce greater discipline in payment markets.
FISME, Kanohar Lal Trust and Meerut Citizens Forum (MCF) organised a roundtable discussion titled ‘Increasing Uptake of Skill Development in Meerut’ on 18 April 2026 to enhance skill development adoption. The discussion focused on building a positive societal perception of skilling and enabling students to make informed choices. It highlighted that India has largely prioritised training youth under existing schemes, rather than empowering them to choose pathways based on aspiration, earning potential, dignity, and mobility. Special guests included Chief Guest Kapil Dev Aggarwal, Minister of State (Independent Charge), Vocational Education and Skill Development, Uttar Pradesh; Rajendra Agrawal, former MP, Meerut and Convenor of ‘Friends of MSMEs in Parliament’; and Amit Agarwal, MLA, Meerut Cantonment.
The Centre of Excellence for Aspiring SMEs (CoEAS), a joint initiative of FISME and IFCI Ltd., in collaboration with the Haryana Chamber of Commerce and Industry (HCCI), conducted an awareness session in Kurukshetra, Haryana. The session was titled 'Raising External Equity through SME IPOs and the Role of CoEAS in Handholding SMEs.' The program focused on addressing the financing challenges faced by MSMEs by highlighting the importance of external equity alongside traditional debt. It aimed to build awareness regarding investor readiness and the critical role of SME IPOs in enabling business expansion, improved governance, and long-term sustainability. The event was graced by Kailash Saini, Incharge of the Chief Minister’s Office, Haryana. Eminent speakers from BSE Ltd., IFCI, CoEAS, HCCI, and the industry shared their perspectives on financing avenues, policy support, and strategic growth."
On the occasion of World Intellectual Property Day on April 22, 2026, FISME, in association with the Meerut Industrial Development Forum (MIDFO) and the Western U.P. Chamber of Commerce & Industry, organized an IP awareness program in Meerut for weavers, artisans, and small gas cylinder manufacturers. The event featured Chief Guest Amresh Pandey, Joint Commissioner of Industries, who highlighted that every district in Western Uttar Pradesh is home to unique traditional skills, citing Meerut’s Khaddar and Gas Cylinder clusters as prime examples. He emphasized that Geographical Indication (GI) tags act as a vital legal safety net, protecting these traditional crafts while playing a key role in elevating local goods to a global stage. FISME representatives provided comprehensive information on the GI registration process, necessary documentation, and government support schemes.
Continuous, rapid, and often unpredictable change—where industries, business models, and competitive advantages are constantly being reshaped by technology, shifting consumer expectations & new market entrants have given way to a new normal referred to as the “Age of Disruption’. Disruption is no longer a buzzword, it defines our times. While disruption has always been a part of our lives, it’s the speed of change today that has created the challenge.
India’s economy remains resilient at the start of FY2026-27, but faces emerging risks from the ongoing West Asia conflict, which has disrupted supplies of energy, fertilisers and key industrial inputs, according to the latest Monthly Economic Review released by the Department of Economic Affairs under the Finance Ministry. The report noted that India enters the new fiscal year at the intersection of domestic resilience and external turbulence, following a strong GDP growth of 7.6 percent in the previous financial year, reported Financial Express.
NITI Aayog on Monday launched DPI@2047 for Viksit Bharat, a strategic roadmap to guide the next phase of India’s Digital Public Infrastructure (DPI) journey, with a focus on productivity-led and inclusive growth. The roadmap underscores a shift in technology competition—from standalone innovation to the ability to connect and scale solutions across sectors using digital infrastructure. It highlights the growing importance of digital rails in enabling ideas and services to reach population scale.
The government has announced a series of duty reductions and regulatory relaxations to support domestic industry and stabilise supply chains amid ongoing geopolitical disruptions in West Asia. In a key move, the Centre has reduced the Basic Customs Duty to zero on critical raw materials used in the leather and footwear industry, including Ethylene Vinyl Acetate (EVA), Polyvinyl Chloride (PVC), Polyurethane (PU) and Solid Bleached Sulphate (SBS).
Union Commerce and Industry Minister Piyush Goyal on Saturday announced that all intellectual property (IP) registrations related to sports will be made free of charge for a period of three years, effective immediately. The announcement was made at the World IP Day 2026 event organised by the Department for Promotion of Industry and Internal Trade in association with Federation of Indian Chambers of Commerce and Industry.
The Reserve Bank of India (RBI) Governor Sanjay Malhotra on Tuesday launched ‘Mission SAKSHAM’, a nationwide capacity-building initiative aimed at strengthening the Urban Cooperative Banking (UCB) sector through focused training and skill development. Mission SAKSHAM—meaning “to make capable”—will be implemented in a mission mode across the country. The programme will include both in-person and e-learning modules, targeting around 1.4 lakh participants from UCBs.
The Federation of Indian Micro and Small & Medium Enterprises (FISME) has been nominated to a high-powered standing committee constituted by NITI Aayog to strengthen the link between education, employment and entrepreneurship. The ‘Education-to-Employment and Enterprise (EEE) Standing Committee’ will focus on unlocking the potential of India’s services sector as a key driver of growth, jobs and exports, in line with the government’s vision outlined in the Union Budget 2026–27.
The Reserve Bank of India (RBI) has cancelled the banking licence of Paytm Payments Bank Limited with effect from April 24, 2026, under Section 22(4) of the Banking Regulation Act, 1949 (‘BR Act’), citing serious regulatory and governance concerns. The action bars the bank from conducting any banking business with immediate effect. In a press release, RBI said, “Consequently, Paytm Payments Bank Limited is prohibited from conducting the business of ‘banking’ as defined in Section 5(b) or any additional business specified under Section 6 of the Banking Regulation Act, 1949 with immediate effect.”
The Madhya Pradesh Cabinet has approved a significant increase in compensation for farmers whose land is acquired for development projects, in a move aimed at making the process more equitable and reducing delays in infrastructure execution. The decision was taken at a Cabinet meeting chaired by Chief Minister Mohan Yadav at the state secretariat, following longstanding demands from farmers and agricultural bodies.
To promote industrial growth and attract investment, the Uttar Pradesh state government has introduced a Third-Party Audit Scheme aimed at making compliance more transparent and less burdensome for businesses. Under the new system, no immediate punitive action will be taken against industrial establishments. Instead, units will first receive a notice with an opportunity to rectify issues, followed by a second notice if needed. Prosecution will only begin after approval from a senior authority, reducing undue pressure on industries.
In a significant development for India’s digital infrastructure, Google has laid the foundation for a USD 15 billion artificial intelligence (AI) data centre hub near Visakhapatnam in Andhra Pradesh. This marks one of the largest foreign direct investments in the country, reported Times Of India.
The project, named Google Cloud India AI Hub, is being developed in partnership with Adani ConneX and Airtel Nxtra. It is expected to be Google’s largest infrastructure initiative in India and its biggest AI hub outside the United States.
The Chhattisgarh government has introduced a long-term resource planning framework for the power sector, mandating distribution companies (discoms) to prepare integrated plans covering a 10-year horizon. The move is aimed at ensuring reliable power supply, optimising resource utilisation, and supporting the state’s transition towards a more sustainable and efficient energy mix.Focus on Renewables, Grid Stability and Efficiency Under the new framework, discoms will be required to undertake comprehensive demand forecasting, assess supply-side resources, and align procurement strategies accordingly.
The 10th session of the India–Kenya Joint Trade Committee (JTC) concluded on Tuesday in Nairobi, aimed at reviewing and strengthening bilateral trade and economic cooperation. The meeting was co-chaired by Commerce Secretary Rajesh Agrawal, and Regina Akotah Ombam, Principal Secretary, State Department for Trade, Republic of Kenya. Discussions centred on diversifying trade, improving market access, and leveraging complementarities in sectors such as engineering goods, pharmaceuticals, agriculture and electronics.
Both sides noted steady growth in bilateral trade, which rose to USD 4.31 billion in 2025–26, marking a 24.9 per cent increase from the previous year.
The India–New Zealand Free Trade Agreement (FTA), signed today, provides 100 per cent duty-free access to Indian goods in the New Zealand market from the date of implementation. Covering all tariff lines, the pact is expected to boost the competitiveness of labour-intensive sectors including textiles, apparel, leather, footwear, engineering goods, and processed foods. New Zealand had earlier imposed tariffs of up to 10 per cent on many of these products.
India, in turn, has offered tariff liberalisation on about 70 per cent of tariff lines, covering 95 per cent of bilateral trade value, while excluding sensitive sectors such as dairy, certain agricultural products, metals, and defence-related items.
According to the FISME factor, 60% of MSMEs believe that the RBI's recent measures will improve the ease of doing business for MSMEs, while 40% can't say. 
If diversity opens the door, what ensures people actually stay and grow inside? It is easy to celebrate diversity when it shows up neatly in hiring dashboards. Percentages improve, targets are met and representation increases. But the real test begins after that. Do people feel heard? Do they stay, grow and thrive? Organisations are increasingly realising that diversity without inclusion is incomplete.
In times of uncertainty, capital does not disappear, it retreats, reshapes, and, most dangerously, misallocates itself. What is unfolding in India’s trade credit ecosystem today is not simply a liquidity problem. It is a deeper distortion in how capital is being directed through the economy, with consequences that are serious, compounding, and largely invisible to conventional financial reporting.
In an online-first world, your business has to put its best foot forward to make a lasting impression. Here are our five tips to boost your small business through social media. Social media is our go-to space for recommendations — where to eat, how to dress, what to do, or which movie to watch next. In this digital era, it is critical for a customer-facing business to get its social media strategy
The Coimbatore Compressor Industries Association has urged the Reserve Bank of India (RBI) to provide relief to micro, small and medium enterprises (MSMEs) facing sharp increases in raw material costs.
In a memorandum to the central bank, association president M Raveendran said prices of key inputs such as copper, aluminium and steel have surged between 30 percent and 80 percent over the past six months, putting significant pressure on MSME finances.
Tuba Siddiqui's natural personal care brand, Soil Concept, offers plant-based products with a healthier, more sustainable approach. After completing her engineering degree in biotechnology from Integral University in Lucknow, Tuba Siddiqui started a small medicinal garden at home and named it ‘Garden of Health’. She grew aloe vera, several varieties of basil,
Bengaluru-based deeptech startup Bettrlabs is digitising product development for consumer brands, helping them move from idea to formulation faster without investing heavily in physical labs. When JP Mohanty first saw how long it takes consumer goods companies to develop a new product, he was stunned. It took months of experimentation across multiple laboratories,
