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President Message
India's 7.8% real GDP growth in the first quarter of FY 2026-27 is an encouraging signal at a time when the global economy continues to face geopolitical and trade uncertainties. While the revisions in the new GDP series have generated some debate, the underlying composition of growth deserves greater attention. Household consumption grew by 7.1%, investment by a strong 11.9%, exports by 12%, manufacturing by 9.2% and services by 10%. Particularly heartening is the simultaneous strengthening of consumption and investment—suggesting that growth is becoming more broad-based. The income-tax relief provided in the Budget, which left greater disposable income with a large section of households, may also now be beginning to play through into consumption and demand.
For MSMEs, this composition of growth is perhaps more important than the headline number itself. Consumption is the oxygen of millions of small businesses, while rising investment, construction and manufacturing generate orders through long domestic supply chains of components, materials, fabrication, logistics and services. The 9.2% expansion in manufacturing, accompanied by strong growth in capital goods and infrastructure-related production, therefore offers reason for optimism. The task now is to ensure that this demand impulse reaches smaller enterprises through easier credit, timely payments, competitive input costs and greater participation in expanding supply chains. If domestic demand remains buoyant and private investment continues to gather momentum, MSMEs can become not merely beneficiaries of India's growth, but one of its principal multipliers.
FISME and Egrow Foundation organised a webinar on the MSMED Amendment Bill 2026 on 28 August 2026, focusing on key reforms aimed at strengthening India's MSME ecosystem. The dialogue examined measures to improve ease of doing business, enhance access to finance, streamline regulatory processes, and address emerging challenges faced by enterprises. Industry stakeholders highlighted the need for practical, inclusive reforms that can improve competitiveness, resilience, and sustainable growth across India's diverse MSME sector.
FISME has signed a Memorandum of Understanding (MoU) with Jindal Global Business School (JGBS), O.P. Jindal Global University, to deepen Industry-Academia collaboration and empower India's MSME sector. Formalised on 31 August 2026 at the JGBS campus, the partnership will promote joint research, knowledge-sharing, skill development, and industry-oriented initiatives, fostering innovation, competitiveness, and sustainable growth across the MSME ecosystem.
You have a great idea for a product, service or even a brick-and-mortar shop. You’ve discovered a need, an area that you can fulfill or even improve upon what’s already being done. Integral to your planning, sales and marketing strategies is determining how you build and scale the business to drive growth not only next year, but also for the next five or 10 years and beyond. You want your business not only to survive but also to thrive. Sustainable growth is not about getting bigger at record speed and generating revenue quickly. It’s about looking at the long game, so you achieve consistent and stable growth,
India’s economy grew by 7.8% in the quarter to the end of June, mainly driven by strong performance of the financial, real estate, information technology and professional services sectors. The reading is comfortably above a Reuters poll of expectations for 7.1% growth and follows 7.8% growth in the previous quarter.While agriculture and allied sectors reported tepid growth, the performance of manufacturing and services sectors sharply improved in the June quarter, India’s Ministry of Statistics and Program Implementation said in a release on Monday.The Iran war has not impacted India’s growth as feared, Aastha Gudwani, India chief economist at Barclays, told CNBC’s Inside India earlier...
The Directorate General of Foreign Trade (DGFT) has enabled automated issuance of Free Sale and Commerce Certificates (FSC) on its portal to reduce processing time and compliance requirements for eligible exporters. The certificates are issued under the Foreign Trade Policy for products not covered under the Drugs & Cosmetics Act, 1940. Previously, applications were processed by Regional Authorities (RAs) after manual scrutiny and verification.
India’s industrial output growth slowed to 6.7 per cent in July from an upwardly revised 8.8 per cent in June, with three of four broad sectors recording weaker growth, according to NSO data.
The IIP stood at 124.8 in July, unchanged from June. Manufacturing, electricity, and water supply sectors grew, while mining and quarrying contracted after expanding in June. The moderation in industrial output growth was driven by slower expansion across three of the four broad sectors, while mining and quarrying slipped into contraction, reported Business Standard.
A total of 29 foreign direct investment (FDI) proposals worth Rs 4,895.65 crore have been reported under the revised FDI framework as of August 20, 2026, covering sectors such as IT, artificial intelligence, manufacturing, pharmaceuticals, data centres and transport services. The revised framework allows investments through the automatic route where ownership from countries sharing a land border with India is non-controlling and up to 10percent, subject to applicable sectoral conditions.
The Central government has formally notified Semicon 2.0, a Rs 1,27,500-crore programme to expand India’s semiconductor ecosystem across design, intellectual property, equipment, materials, advanced packaging, R&D and talent development. Following the Union Cabinet’s July 15 approval, MeitY has outlined incentives across six pillars and 10 categories. IT Secretary S Krishnan said the scheme will strengthen domestic capabilities and build a globally competitive industry.
The Centre has extended the Companies Compliance Facilitation Scheme, 2026 (CCFS-2026) by another 15 days, giving companies additional time to complete pending statutory filings. The Ministry of Corporate Affairs (MCA), in an order, said the extension follows representations from stakeholders seeking more time to comply with statutory requirements. The scheme, which allows companies to clear pending filings on the MCA-21 registry, will now remain operational until September 15, 2026.
The government has introduced a series of reforms to simplify defence export procedures and expand the Open General Export Licence (OGEL) framework, with the aim of helping Indian manufacturers access overseas markets more quickly. The Department of Defence Production has consolidated three existing OGEL procedures into a single framework and extended the validity of the licence from two to three years, the Ministry of Defence said in a release.
The Central Government has notified the establishment of the Mediation Council of India (MCI), with its head office in Delhi, under the Mediation Act, 2023. The Council is intended to promote and facilitate domestic and international mediation in India and strengthen the country’s mediation framework. The Department of Legal Affairs under the Ministry of Law and Justice issued a gazette notification on August 27 under Section 31(1) of the Mediation Act.
Andhra Pradesh Chief Minister N Chandrababu Naidu on August 27 launched Pramaan OS, an AI-powered practice operating system designed for Chartered Accountant (CA) firms and the MSMEs they serve. Developed by Andhra Pradesh-based Pramanique Fintech Pvt Ltd, the platform combines AI-driven accounting automation, statutory compliance management and information security tools.
The ‘Parishrama Adalat’, a conciliation conclave for delayed-payment disputes involving micro and small enterprises (MSEs), has resolved 65 cases involving Rs 8.29 crore, the Telangana government said. Organised by the Commissionerate of Industries and Commerce, Telangana, in association with the Ministry of MSME, the conclave was held at FTCCI in Hyderabad. It brought together MSEs, buyers, public sector enterprises, MSE Facilitation Councils, alternative dispute resolution institutions and government officials.
The Uttar Pradesh government and Japan’s Yamanashi Prefecture on Friday announced measures to deepen economic cooperation, including a Rs 600-crore fund for Uttar Pradesh’s MSMEs and a dedicated Yamanashi Desk at Invest UP to facilitate investment. The announcements were made at the Japan–India Business Networking Event in Lucknow, attended by Uttar Pradesh Chief Minister Yogi Adityanath, Yamanashi Governor Kotaro Nagasaki, Japanese business leaders and senior state officials, The Hindu reported.
The Centre has approved 11,18,937 pucca houses for Bihar under the Pradhan Mantri Awas Yojana-Gramin (PMAY-G), involving an allocation of Rs 13,427 crore. The announcement was made by Union Minister for Agriculture and Farmers’ Welfare and Rural Development Shivraj Singh Chouhan at a state-level PMAY-G programme in Patna. In addition to housing, Chouhan announced the implementation of the Pradhan Mantri Fasal Bima Yojana (PMFBY) in Bihar, plans to establish She-Marts to support products made by women’s self-help groups, and highlighted the State's progress in creating 53.83 lakh Farmer IDs.
India and Denmark reviewed measures to strengthen cooperation in MSME development, innovation and intellectual property (IP) during the 4th India–Denmark Joint Working Group (JWG) meeting held in Copenhagen from August 24 to 28, 2026. The meeting brought together officials from India’s Ministry of MSME and the Danish Patent and Trademark Office (DKPTO). Discussions covered technology adoption, innovation, IP, technology commercialisation, entrepreneurship and cluster-based MSME development.The Indian delegation was led by Dr. Rajneesh, Additional Secretary & Development Commissioner, Ministry of MSME, while the Danish delegation included senior officials from DKPTO and the Royal Danish Embassy.
India and Argentina reviewed measures to expand bilateral trade, investment and market access during the 4th India-Argentina Joint Trade Committee (JTC) meeting held in Buenos Aires on August 24. Commerce Secretary Rajesh Agrawal led the Indian delegation, while Argentina’s Secretary for International Economic Relations Fernando Brun led the Argentine side. Both sides reviewed progress on the roadmap agreed during Prime Minister Narendra Modi’s 2025 visit to Argentina. Bilateral trade crossed USD 6.5 billion in 2025, with India becoming Argentina’s fifth-largest trading partner. Both sides discussed opportunities to diversify trade and improve market access.
Which of the seven streams of Sapta Dhara mentioned by PM Modi in Red Fort Speech offers the greatest opportunity for your enterprise?
According to the FISME factor, 70% of MSMEs identified Manufacturing as one of the seven streams of Sapta Dhara mentioned by PM Modi in his Red Fort speech, as offering the greatest opportunity for their enterprises, while 30% identified Soft Power, Tourism, Culture, and Creative Industries as offering the greatest opportunity.
Precision learning: The right skill, for the right person, at the right time
Traditional corporate learning begins with a programme. Precision learning begins with a gap. The idea is to identify what an individual actually needs to learn and deliver an intervention suited to that need, rather than putting an entire workforce through the same course.
The CFO as co-architect: Building resilient, scalable growth with technology
As enterprises navigate an era of heightened volatility, rapid digitisation, and shifting growth models, the role of finance is undergoing a profound transformation. No longer confined to reporting past performance, finance leaders today are expected to anticipate risks, shape strategy, and enable decisions in real time. At the centre of this shift is technology, particularly data analytics, machine learning, and AI, which is redefining how organisations plan, forecast, and allocate capital.
How lean marketing can help Indian start-ups avoid the ‘growth at all costs’ trap
Every founder believes their idea is a smart one. The Indian start-up ecosystem is overflowing with innovation, so much so that the landscape has shifted. It’s no longer a dearth of ideas, but a deluge of pitches that now challenges the venture capital world. As serial entrepreneur and start-up pro Rajneesh Bhasin observed, “Today every private equity company is flooded with pitches.”
Industry Seeks Risk-Based QCO Regime As Certification Burden Weighs On MSMEs
As the Union government considers further relaxations in Quality Control Orders (QCOs), industry leaders and experts have called for a comprehensive review rather than piecemeal exemptions, citing high compliance costs and supply-chain disruptions.
How Magron is building ‘Generation 2’ of electric vehicles
Founded in 2022, the startup is developing three electric motorcycles—H35, C20 and C10—and also working on technologies that it hopes to sell across the wider EV ecosystem. “We thought that at some point of time, motorcycles are actually going to flourish in the industry,” says Co-founder and CEO Abiram Menon. “
How Minus Degre is turning plastic waste into eco-friendly materials
During the COVID-19 lockdown, brothers Rahul Vashukhi and Vikash Kumar decided to leave their corporate careers. They did not have a business idea lined up, but they wanted to find a way to create tangible change around them. The brothers began looking at their immediate surroundings in Ghaziabad for problems that were being overlooked by people.
The National Statistical Office (NSO), Ministry of Statistics and Programme Implementation (MoSPI), has released the Quarterly Estimates of Gross Domestic Product (GDP) for the First Quarter (Q1, April-June) of Financial Year (FY) 2026-27 along with its Expenditure components both at Constant (2022-23) and Current prices.
FISME regularly receives monthly reports on the economies of various countries from their missions in India. These reports provide information on key economic parameters, trade related information and all news relevant for importers and exporters. In this edition you can take a look at reports on:
Write your comments on the FISME Factor. Share your views and suggestions on MSME issues. Win prize! The best mail will get a special book every fortnight.
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India's 7.8% real GDP growth in the first quarter of FY 2026-27 is an encouraging signal at a time when the global economy continues to face geopolitical and trade uncertainties. While the revisions in the new GDP series have generated some debate, the underlying composition of growth deserves greater attention. Household consumption grew by 7.1%, investment by a strong 11.9%, exports by 12%, manufacturing by 9.2% and services by 10%. Particularly heartening is the simultaneous strengthening of consumption and investment—suggesting that growth is becoming more broad-based. The income-tax relief provided in the Budget, which left greater disposable income with a large section of households, may also now be beginning to play through into consumption and demand.
For MSMEs, this composition of growth is perhaps more important than the headline number itself. Consumption is the oxygen of millions of small businesses, while rising investment, construction and manufacturing generate orders through long domestic supply chains of components, materials, fabrication, logistics and services. The 9.2% expansion in manufacturing, accompanied by strong growth in capital goods and infrastructure-related production, therefore offers reason for optimism. The task now is to ensure that this demand impulse reaches smaller enterprises through easier credit, timely payments, competitive input costs and greater participation in expanding supply chains. If domestic demand remains buoyant and private investment continues to gather momentum, MSMEs can become not merely beneficiaries of India's growth, but one of its principal multipliers.
FISME and Egrow Foundation organised a webinar on the MSMED Amendment Bill 2026 on 28 August 2026, focusing on key reforms aimed at strengthening India's MSME ecosystem. The dialogue examined measures to improve ease of doing business, enhance access to finance, streamline regulatory processes, and address emerging challenges faced by enterprises. Industry stakeholders highlighted the need for practical, inclusive reforms that can improve competitiveness, resilience, and sustainable growth across India's diverse MSME sector.
FISME has signed a Memorandum of Understanding (MoU) with Jindal Global Business School (JGBS), O.P. Jindal Global University, to deepen Industry-Academia collaboration and empower India's MSME sector. Formalised on 31 August 2026 at the JGBS campus, the partnership will promote joint research, knowledge-sharing, skill development, and industry-oriented initiatives, fostering innovation, competitiveness, and sustainable growth across the MSME ecosystem.
You have a great idea for a product, service or even a brick-and-mortar shop. You’ve discovered a need, an area that you can fulfill or even improve upon what’s already being done. Integral to your planning, sales and marketing strategies is determining how you build and scale the business to drive growth not only next year, but also for the next five or 10 years and beyond. You want your business not only to survive but also to thrive. Sustainable growth is not about getting bigger at record speed and generating revenue quickly. It’s about looking at the long game, so you achieve consistent and stable growth,
The Directorate General of Foreign Trade (DGFT) has enabled automated issuance of Free Sale and Commerce Certificates (FSC) on its portal to reduce processing time and compliance requirements for eligible exporters. The certificates are issued under the Foreign Trade Policy for products not covered under the Drugs & Cosmetics Act, 1940. Previously, applications were processed by Regional Authorities (RAs) after manual scrutiny and verification.
India’s industrial output growth slowed to 6.7 per cent in July from an upwardly revised 8.8 per cent in June, with three of four broad sectors recording weaker growth, according to NSO data.
The IIP stood at 124.8 in July, unchanged from June. Manufacturing, electricity, and water supply sectors grew, while mining and quarrying contracted after expanding in June. The moderation in industrial output growth was driven by slower expansion across three of the four broad sectors, while mining and quarrying slipped into contraction, reported Business Standard.
A total of 29 foreign direct investment (FDI) proposals worth Rs 4,895.65 crore have been reported under the revised FDI framework as of August 20, 2026, covering sectors such as IT, artificial intelligence, manufacturing, pharmaceuticals, data centres and transport services. The revised framework allows investments through the automatic route where ownership from countries sharing a land border with India is non-controlling and up to 10percent, subject to applicable sectoral conditions.
The Central government has formally notified Semicon 2.0, a Rs 1,27,500-crore programme to expand India’s semiconductor ecosystem across design, intellectual property, equipment, materials, advanced packaging, R&D and talent development. Following the Union Cabinet’s July 15 approval, MeitY has outlined incentives across six pillars and 10 categories. IT Secretary S Krishnan said the scheme will strengthen domestic capabilities and build a globally competitive industry.
The Centre has extended the Companies Compliance Facilitation Scheme, 2026 (CCFS-2026) by another 15 days, giving companies additional time to complete pending statutory filings. The Ministry of Corporate Affairs (MCA), in an order, said the extension follows representations from stakeholders seeking more time to comply with statutory requirements. The scheme, which allows companies to clear pending filings on the MCA-21 registry, will now remain operational until September 15, 2026.
The government has introduced a series of reforms to simplify defence export procedures and expand the Open General Export Licence (OGEL) framework, with the aim of helping Indian manufacturers access overseas markets more quickly. The Department of Defence Production has consolidated three existing OGEL procedures into a single framework and extended the validity of the licence from two to three years, the Ministry of Defence said in a release.
The Central Government has notified the establishment of the Mediation Council of India (MCI), with its head office in Delhi, under the Mediation Act, 2023. The Council is intended to promote and facilitate domestic and international mediation in India and strengthen the country’s mediation framework. The Department of Legal Affairs under the Ministry of Law and Justice issued a gazette notification on August 27 under Section 31(1) of the Mediation Act.
Andhra Pradesh Chief Minister N Chandrababu Naidu on August 27 launched Pramaan OS, an AI-powered practice operating system designed for Chartered Accountant (CA) firms and the MSMEs they serve. Developed by Andhra Pradesh-based Pramanique Fintech Pvt Ltd, the platform combines AI-driven accounting automation, statutory compliance management and information security tools.
The ‘Parishrama Adalat’, a conciliation conclave for delayed-payment disputes involving micro and small enterprises (MSEs), has resolved 65 cases involving Rs 8.29 crore, the Telangana government said. Organised by the Commissionerate of Industries and Commerce, Telangana, in association with the Ministry of MSME, the conclave was held at FTCCI in Hyderabad. It brought together MSEs, buyers, public sector enterprises, MSE Facilitation Councils, alternative dispute resolution institutions and government officials.
The Uttar Pradesh government and Japan’s Yamanashi Prefecture on Friday announced measures to deepen economic cooperation, including a Rs 600-crore fund for Uttar Pradesh’s MSMEs and a dedicated Yamanashi Desk at Invest UP to facilitate investment. The announcements were made at the Japan–India Business Networking Event in Lucknow, attended by Uttar Pradesh Chief Minister Yogi Adityanath, Yamanashi Governor Kotaro Nagasaki, Japanese business leaders and senior state officials, The Hindu reported.
The Centre has approved 11,18,937 pucca houses for Bihar under the Pradhan Mantri Awas Yojana-Gramin (PMAY-G), involving an allocation of Rs 13,427 crore. The announcement was made by Union Minister for Agriculture and Farmers’ Welfare and Rural Development Shivraj Singh Chouhan at a state-level PMAY-G programme in Patna. In addition to housing, Chouhan announced the implementation of the Pradhan Mantri Fasal Bima Yojana (PMFBY) in Bihar, plans to establish She-Marts to support products made by women’s self-help groups, and highlighted the State's progress in creating 53.83 lakh Farmer IDs.
India and Denmark reviewed measures to strengthen cooperation in MSME development, innovation and intellectual property (IP) during the 4th India–Denmark Joint Working Group (JWG) meeting held in Copenhagen from August 24 to 28, 2026. The meeting brought together officials from India’s Ministry of MSME and the Danish Patent and Trademark Office (DKPTO). Discussions covered technology adoption, innovation, IP, technology commercialisation, entrepreneurship and cluster-based MSME development.The Indian delegation was led by Dr. Rajneesh, Additional Secretary & Development Commissioner, Ministry of MSME, while the Danish delegation included senior officials from DKPTO and the Royal Danish Embassy.
India and Argentina reviewed measures to expand bilateral trade, investment and market access during the 4th India-Argentina Joint Trade Committee (JTC) meeting held in Buenos Aires on August 24. Commerce Secretary Rajesh Agrawal led the Indian delegation, while Argentina’s Secretary for International Economic Relations Fernando Brun led the Argentine side. Both sides reviewed progress on the roadmap agreed during Prime Minister Narendra Modi’s 2025 visit to Argentina. Bilateral trade crossed USD 6.5 billion in 2025, with India becoming Argentina’s fifth-largest trading partner. Both sides discussed opportunities to diversify trade and improve market access.
According to the FISME factor, 70% of MSMEs identified Manufacturing as one of the seven streams of Sapta Dhara mentioned by PM Modi in his Red Fort speech, as offering the greatest opportunity for their enterprises, while 30% identified Soft Power, Tourism, Culture, and Creative Industries as offering the greatest opportunity.
Traditional corporate learning begins with a programme. Precision learning begins with a gap. The idea is to identify what an individual actually needs to learn and deliver an intervention suited to that need, rather than putting an entire workforce through the same course.
As enterprises navigate an era of heightened volatility, rapid digitisation, and shifting growth models, the role of finance is undergoing a profound transformation. No longer confined to reporting past performance, finance leaders today are expected to anticipate risks, shape strategy, and enable decisions in real time. At the centre of this shift is technology, particularly data analytics, machine learning, and AI, which is redefining how organisations plan, forecast, and allocate capital.
Every founder believes their idea is a smart one. The Indian start-up ecosystem is overflowing with innovation, so much so that the landscape has shifted. It’s no longer a dearth of ideas, but a deluge of pitches that now challenges the venture capital world. As serial entrepreneur and start-up pro Rajneesh Bhasin observed, “Today every private equity company is flooded with pitches.”
As the Union government considers further relaxations in Quality Control Orders (QCOs), industry leaders and experts have called for a comprehensive review rather than piecemeal exemptions, citing high compliance costs and supply-chain disruptions.
Founded in 2022, the startup is developing three electric motorcycles—H35, C20 and C10—and also working on technologies that it hopes to sell across the wider EV ecosystem. “We thought that at some point of time, motorcycles are actually going to flourish in the industry,” says Co-founder and CEO Abiram Menon. “
During the COVID-19 lockdown, brothers Rahul Vashukhi and Vikash Kumar decided to leave their corporate careers. They did not have a business idea lined up, but they wanted to find a way to create tangible change around them. The brothers began looking at their immediate surroundings in Ghaziabad for problems that were being overlooked by people.
“ No man ever steps in the same river twice, for it’s not the same river and he’s not the same man. ”
