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President Message
The unfolding Middle East crisis has brought into sharp focus the extreme vulnerability of MSME supply chains. What began as a disruption in shipping routes has quickly escalated into an emergency situation—with consignments stuck at ports or in transit, soaring freight costs, and export orders being jeopardized? At the same time, erratic gas supplies, especially PNG, are forcing units to curtail production, with sectors like apparel in Delhi-NCR facing near paralysis at a critical export juncture. The immediate priority, therefore, must be to address these on-ground disruptions—facilitating movement of stranded shipments, easing port-level bottlenecks, and providing relief from demurrages and compliance burdens. Beyond the immediate crisis, early signals point to a deeper structural shock building up—sharp increases in raw material prices, artificial shortages, and opportunistic pricing by suppliers, particularly in polymers, chemicals, and energy-linked inputs. The cascading impact is already visible across sectors—from plastics and chemicals to fertilizers and electronics—threatening production viability. FISME has urged a calibrated response: ensuring stable and predictable energy supply, curbing speculative price rises, rationalizing import duties where needed, and prioritizing domestic availability of critical inputs. A timely and targeted intervention now will be crucial to safeguard MSME competitiveness and prevent temporary disruptions from turning into long-term damage. We have apprised Government of the pain points and have suggested remedial measures. The ball is in the government’s court now.
A two-day National Level IP Yatra Programme was organised in Gurugram on 13–14 March to enhance awareness and understanding of Intellectual Property Rights (IPR) among MSMEs. The programme was conducted by the FISME-IPFC with support from the Ministry of MSME, in partnership with the SBI Centre of Excellence, Manesar Industries Welfare Association, and the Gurgaon Chamber of Commerce and Industry.
Expert-led sessions covered topics such as IP protection and commercialisation, financial valuation of IP assets, access to credit and equity, and government support available for IP filing and reimbursement. Discussions also addressed emerging regulatory frameworks, including the Digital Personal Data Protection (DPDP) Act and POSH compliance.
Many startups begin with founders making every decision. In the early days, this makes sense. Teams are small, resources are limited, and the founder often understands the product better than anyone else. But as the company grows, the same behaviour can become a serious problem.
The conflict in West Asia is beginning to squeeze Indian exports and FMCG supply chains linked to Iran, with disruptions in shipping routes, rising insurance costs and fresh input price pressures creating a two-front challenge for exporters and consumer goods companies.
The immediate pressure point is logistics. With routes through the Strait of Hormuz disrupted, Indian exporters are facing delays, higher freight bills and growing uncertainty over deliveries into Iran and the wider region. That matters because West Asia remains a key market for India across food products, pharmaceuticals, chemicals, engineering goods....
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India’s electronics manufacturing sector has witnessed significant expansion, with production of electronic goods increasing sixfold to Rs 11.3 lakh crore in 2024–25, while exports have grown eightfold to Rs 3.3 lakh crore, the government informed the Rajya Sabha. Minister of State for Electronics and Information Technology Jitin Prasada said the growth reflects the government’s strategy to build a comprehensive domestic electronics ecosystem aligned with the Make in India and Atmanirbhar Bharat initiatives.
India’s real GDP growth is expected to moderate to 7.1 per cent in FY27 from 7.6 per cent in FY26, according to rating firm Crisil. The forecast assumes a normal monsoon, moderate food inflation, Brent crude prices of USD 75–80 per barrel and steady global growth, despite tariff and geopolitical uncertainties. Growth will remain supported by domestic demand, public infrastructure capex and a gradual pick-up in private investment, even as the global environment stays uncertain.
The Union Cabinet, chaired by Prime Minister Narendra Modi, has relaxed foreign direct investment (FDI) rules for companies from China and other countries which share land borders with India. An official statement said that the change in FDI rules is aimed at unlocking greater FDI inflows from global funds for startups and deep techs. Citing opportunistic takeovers of Indian companies due to Covid pandemic, the government had in 2020 changed FDI rules so that companies or investors from countries sharing a land border with India can invest only with prior government approval. The move was largely seen as the one targeted at China.
The Technology Development Board (TDB) under the Department of Science and Technology (DST) has extended support to APChemi Private Limited for developing an AI-integrated microwave plasma system aimed at producing CO₂-free hydrogen and advanced carbon nanomaterials. The project, supported under the Indo–Singapore collaborative call for proposals, will be implemented in partnership with Singapore-based Commsens.
The Jawaharlal Nehru Port Authority (JNPA) has announced a waiver of storage or dwell time charges and reefer plug-in charges for Middle East-bound export containers stranded at the port due to ongoing geopolitical disruptions in the region. The relief measures have been issued through a trade notice following directives from the Ministry of Ports, Shipping and Waterways to mitigate the impact of supply chain disruptions on the export-import (EXIM) community.
President Droupadi Murmu has approved the Court Fees (Delhi Amendment) Act, 2026, enabling litigants in the national capital to claim a full refund of court fees if disputes are settled amicably at any stage of proceedings. The law, notified on March 6, 2026 by the Department of Law, Justice and Legislative Affairs, amends the Court Fees Act, 1870 as applicable to the National Capital Territory of Delhi. The legislation was passed by the Delhi Legislative Assembly on January 9, 2026, and received presidential assent on February 19, 2026.
The Directorate General of Foreign Trade (DGFT) has extended the export obligation (EO) period for certain Advance Authorisation and EPCG authorisations, offering relief to exporters affected by disruptions in global shipping routes and supply chains. In a public notice issued on March 6, 2026, the DGFT said the EO or block-wise EO periods that were due to expire between March 1 and May 31, 2026, will now be automatically extended until August 31, 2026.
Indian Potash Limited (IPL) has signed a memorandum of understanding (MoU) with the Government of Odisha to revive and modernise the long-shut Badamba Cooperative Sugar Mill in Cuttack district, with an estimated investment of Rs 360 crore. The agreement was signed by Dr. P. S. Gahlaut, Managing Director, IPL, and Rajesh Prabhakar Patil, Commissioner-cum-Secretary of the state’s Cooperation Department, in the presence of Amit Shah, Union Minister for Home and Cooperation, on March 6, 2026.
The Excise and Taxation Department of Haryana has directed mandatory physical verification of GST registrations that were automatically approved by the system and ordered correction of cases where taxpayers have been mapped to incorrect jurisdictions. The instructions follow observations that a large number of registrations had been approved automatically under provisions of the Central Goods and Services Tax Rules 2017. Officials noted that such approvals were granted within a short span through system-driven processes.
The Government of Maharashtra will establish a dedicated commissionerate for the Micro, Small and Medium Enterprises (MSME) sector in Mumbai, aimed at strengthening policy implementation and expanding support for enterprises across the state. The announcement was made by Chief Minister Devendra Fadnavis while presenting the Maharashtra Budget 2026–27. He said the government will also set up a separate commissionerate for the service sector, with both institutions to be headquartered in Mumbai, reported The Times Of India.
The Goa government has renamed the Directorate of Industries, Trade and Commerce as the Directorate of MSME, Industries, Trade and Commerce, signalling a stronger policy focus on micro, small and medium enterprises (MSMEs). Announcing the move in the state budget, Chief Minister Pramod Sawant said the change aims to address the absence of a dedicated administrative structure for MSMEs. According to him, this gap had often slowed enterprise growth even after businesses completed the registration process, TOI reported.
India and Chile have agreed to strengthen cooperation in trade, investment, health and pharmaceuticals, science and technology, mining, education, agriculture and people-to-people exchanges. Minister of State for External Affairs Kirti Vardhan Singh visited Chile from March 10–12 and represented the Government of India at the inauguration of Chile’s new President Jose Antonio Kast Rist, the Ministry of External Affairs (MEA) said.
Prime Minister Narendra Modi on Monday held bilateral talks with Canadian Prime Minister Mark Carney at Hyderabad House, focusing on deepening cooperation under the India–Canada Strategic Partnership.
What would encourage you to adopt AI more rapidly?
According to the FISME factor, 100% of MSMEs think that access to skilled personnel or training programs would encourage them to adopt AI more rapidly.
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) are emerging as unlikely but powerful beneficiaries.
MSME Loan Scheme 2026 - Interest Rate, How to Apply, Eligibility & Types
MSME loan schemes help micro, small, and medium enterprises access affordable credit for expansion, working capital, and technology upgrades. With MSME loan interest rates starting from 7% p.a., these loans are offered by banks, NBFCs, and government schemes to boost entrepreneurship and employment. An MSME loan is a credit facility that banks and Non-Banking Financial Companies (NBFCs) provide to small and medium-scale businesses. They offer MSME loans with limited or no collateral at reasonable interest rates.
7 Strategies for Marketing in a Recession: Small Business Tips
Here’s what you need to know about marketing in a recession, plus tips to help you navigate economic uncertainty and target long-term business growth.
Reference: https://www.shopify.com/in/blog/marketing-in-a-recession. Long-term profit growth is a gradual, uneven process. Contractions, downturns, and even full-blown recessions are inevitable, so getting ready for the bad times during the good ones is key to business stability.
SC Rules No Pre-Award Interest If Contract Bars It; Raising Concerns For MSME Payment Recovery
The Supreme Court has ruled that an arbitral tribunal cannot grant pre-award or pendente lite interest as compensation if the underlying contract expressly prohibits such payments.
This decision could have implications for MSMEs, which often rely on arbitration to recover delayed payments. If contracts bar pendente lite interest, smaller firms may not be able to claim compensation for financing costs during disputes, potentially increasing financial strain—particularly in public sector projects where such clauses are common.
From baking treats for his daughter to building a guilt-free food chain: How Sandeep Jangala is scaling Yummy Bee
Founded in 2022 by Sandeep Jangala under parent company VLOGS Food Private Limited, Yummy Bee is scaling a sugar-free, gluten-free food brand to tap shifting consumer preferences. When entrepreneur Sandeep Jangala began experimenting with healthier baking at home, he wasn’t thinking about launching a food startup—he was thinking about his daughter.
“I like baking and cooking,” the founder of Yummy Bee says. “When my daughter was born, I wanted to make sure that whatever I baked for her was a better version with less sugar, no maida, but still something she would enjoy. That’s really where this whole journey started.”
This Mumbai-based company is building a global-grade beauty brand without external capital
PAC Cosmetics began as a professional makeup tools company in 2006, and has since evolved into a profitable, self-funded beauty brand. With a commitment to quality, accessibility, and Indian consumer needs, it is now building its footprint for global markets.
When Bonish Jain joined PAC Cosmetics in 2014, the company was already well regarded within professional makeup circles, but largely invisible to the wider consumer market.
Founded by his father Ramesh Jain in 2006, the Mumbai-based company had earned reputation as a trusted brand of professional, high-quality makeup tools used largely by makeup artists.
The National Statistical Office (NSO), Ministry of Statistics And Programme Implementation (MoSPI) has released the Consumer Price Index (CPI) with base 2024=100 for February.
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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The unfolding Middle East crisis has brought into sharp focus the extreme vulnerability of MSME supply chains. What began as a disruption in shipping routes has quickly escalated into an emergency situation—with consignments stuck at ports or in transit, soaring freight costs, and export orders being jeopardized? At the same time, erratic gas supplies, especially PNG, are forcing units to curtail production, with sectors like apparel in Delhi-NCR facing near paralysis at a critical export juncture. The immediate priority, therefore, must be to address these on-ground disruptions—facilitating movement of stranded shipments, easing port-level bottlenecks, and providing relief from demurrages and compliance burdens. Beyond the immediate crisis, early signals point to a deeper structural shock building up—sharp increases in raw material prices, artificial shortages, and opportunistic pricing by suppliers, particularly in polymers, chemicals, and energy-linked inputs. The cascading impact is already visible across sectors—from plastics and chemicals to fertilizers and electronics—threatening production viability. FISME has urged a calibrated response: ensuring stable and predictable energy supply, curbing speculative price rises, rationalizing import duties where needed, and prioritizing domestic availability of critical inputs. A timely and targeted intervention now will be crucial to safeguard MSME competitiveness and prevent temporary disruptions from turning into long-term damage. We have apprised Government of the pain points and have suggested remedial measures. The ball is in the government’s court now.
A two-day National Level IP Yatra Programme was organised in Gurugram on 13–14 March to enhance awareness and understanding of Intellectual Property Rights (IPR) among MSMEs. The programme was conducted by the FISME-IPFC with support from the Ministry of MSME, in partnership with the SBI Centre of Excellence, Manesar Industries Welfare Association, and the Gurgaon Chamber of Commerce and Industry.
Expert-led sessions covered topics such as IP protection and commercialisation, financial valuation of IP assets, access to credit and equity, and government support available for IP filing and reimbursement. Discussions also addressed emerging regulatory frameworks, including the Digital Personal Data Protection (DPDP) Act and POSH compliance.
Many startups begin with founders making every decision. In the early days, this makes sense. Teams are small, resources are limited, and the founder often understands the product better than anyone else. But as the company grows, the same behaviour can become a serious problem.
India’s electronics manufacturing sector has witnessed significant expansion, with production of electronic goods increasing sixfold to Rs 11.3 lakh crore in 2024–25, while exports have grown eightfold to Rs 3.3 lakh crore, the government informed the Rajya Sabha. Minister of State for Electronics and Information Technology Jitin Prasada said the growth reflects the government’s strategy to build a comprehensive domestic electronics ecosystem aligned with the Make in India and Atmanirbhar Bharat initiatives.
India’s real GDP growth is expected to moderate to 7.1 per cent in FY27 from 7.6 per cent in FY26, according to rating firm Crisil. The forecast assumes a normal monsoon, moderate food inflation, Brent crude prices of USD 75–80 per barrel and steady global growth, despite tariff and geopolitical uncertainties. Growth will remain supported by domestic demand, public infrastructure capex and a gradual pick-up in private investment, even as the global environment stays uncertain.
The Union Cabinet, chaired by Prime Minister Narendra Modi, has relaxed foreign direct investment (FDI) rules for companies from China and other countries which share land borders with India. An official statement said that the change in FDI rules is aimed at unlocking greater FDI inflows from global funds for startups and deep techs. Citing opportunistic takeovers of Indian companies due to Covid pandemic, the government had in 2020 changed FDI rules so that companies or investors from countries sharing a land border with India can invest only with prior government approval. The move was largely seen as the one targeted at China.
The Technology Development Board (TDB) under the Department of Science and Technology (DST) has extended support to APChemi Private Limited for developing an AI-integrated microwave plasma system aimed at producing CO₂-free hydrogen and advanced carbon nanomaterials. The project, supported under the Indo–Singapore collaborative call for proposals, will be implemented in partnership with Singapore-based Commsens.
The Jawaharlal Nehru Port Authority (JNPA) has announced a waiver of storage or dwell time charges and reefer plug-in charges for Middle East-bound export containers stranded at the port due to ongoing geopolitical disruptions in the region. The relief measures have been issued through a trade notice following directives from the Ministry of Ports, Shipping and Waterways to mitigate the impact of supply chain disruptions on the export-import (EXIM) community.
President Droupadi Murmu has approved the Court Fees (Delhi Amendment) Act, 2026, enabling litigants in the national capital to claim a full refund of court fees if disputes are settled amicably at any stage of proceedings. The law, notified on March 6, 2026 by the Department of Law, Justice and Legislative Affairs, amends the Court Fees Act, 1870 as applicable to the National Capital Territory of Delhi. The legislation was passed by the Delhi Legislative Assembly on January 9, 2026, and received presidential assent on February 19, 2026.
The Directorate General of Foreign Trade (DGFT) has extended the export obligation (EO) period for certain Advance Authorisation and EPCG authorisations, offering relief to exporters affected by disruptions in global shipping routes and supply chains. In a public notice issued on March 6, 2026, the DGFT said the EO or block-wise EO periods that were due to expire between March 1 and May 31, 2026, will now be automatically extended until August 31, 2026.
Indian Potash Limited (IPL) has signed a memorandum of understanding (MoU) with the Government of Odisha to revive and modernise the long-shut Badamba Cooperative Sugar Mill in Cuttack district, with an estimated investment of Rs 360 crore. The agreement was signed by Dr. P. S. Gahlaut, Managing Director, IPL, and Rajesh Prabhakar Patil, Commissioner-cum-Secretary of the state’s Cooperation Department, in the presence of Amit Shah, Union Minister for Home and Cooperation, on March 6, 2026.
The Excise and Taxation Department of Haryana has directed mandatory physical verification of GST registrations that were automatically approved by the system and ordered correction of cases where taxpayers have been mapped to incorrect jurisdictions. The instructions follow observations that a large number of registrations had been approved automatically under provisions of the Central Goods and Services Tax Rules 2017. Officials noted that such approvals were granted within a short span through system-driven processes.
The Government of Maharashtra will establish a dedicated commissionerate for the Micro, Small and Medium Enterprises (MSME) sector in Mumbai, aimed at strengthening policy implementation and expanding support for enterprises across the state. The announcement was made by Chief Minister Devendra Fadnavis while presenting the Maharashtra Budget 2026–27. He said the government will also set up a separate commissionerate for the service sector, with both institutions to be headquartered in Mumbai, reported The Times Of India.
The Goa government has renamed the Directorate of Industries, Trade and Commerce as the Directorate of MSME, Industries, Trade and Commerce, signalling a stronger policy focus on micro, small and medium enterprises (MSMEs). Announcing the move in the state budget, Chief Minister Pramod Sawant said the change aims to address the absence of a dedicated administrative structure for MSMEs. According to him, this gap had often slowed enterprise growth even after businesses completed the registration process, TOI reported.
India and Chile have agreed to strengthen cooperation in trade, investment, health and pharmaceuticals, science and technology, mining, education, agriculture and people-to-people exchanges. Minister of State for External Affairs Kirti Vardhan Singh visited Chile from March 10–12 and represented the Government of India at the inauguration of Chile’s new President Jose Antonio Kast Rist, the Ministry of External Affairs (MEA) said.
Prime Minister Narendra Modi on Monday held bilateral talks with Canadian Prime Minister Mark Carney at Hyderabad House, focusing on deepening cooperation under the India–Canada Strategic Partnership.
According to the FISME factor, 100% of MSMEs think that access to skilled personnel or training programs would encourage them to adopt AI more rapidly. 
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) are emerging as unlikely but powerful beneficiaries.
MSME loan schemes help micro, small, and medium enterprises access affordable credit for expansion, working capital, and technology upgrades. With MSME loan interest rates starting from 7% p.a., these loans are offered by banks, NBFCs, and government schemes to boost entrepreneurship and employment. An MSME loan is a credit facility that banks and Non-Banking Financial Companies (NBFCs) provide to small and medium-scale businesses. They offer MSME loans with limited or no collateral at reasonable interest rates.
Here’s what you need to know about marketing in a recession, plus tips to help you navigate economic uncertainty and target long-term business growth.
Reference: https://www.shopify.com/in/blog/marketing-in-a-recession. Long-term profit growth is a gradual, uneven process. Contractions, downturns, and even full-blown recessions are inevitable, so getting ready for the bad times during the good ones is key to business stability.
The Supreme Court has ruled that an arbitral tribunal cannot grant pre-award or pendente lite interest as compensation if the underlying contract expressly prohibits such payments.
This decision could have implications for MSMEs, which often rely on arbitration to recover delayed payments. If contracts bar pendente lite interest, smaller firms may not be able to claim compensation for financing costs during disputes, potentially increasing financial strain—particularly in public sector projects where such clauses are common.
Founded in 2022 by Sandeep Jangala under parent company VLOGS Food Private Limited, Yummy Bee is scaling a sugar-free, gluten-free food brand to tap shifting consumer preferences. When entrepreneur Sandeep Jangala began experimenting with healthier baking at home, he wasn’t thinking about launching a food startup—he was thinking about his daughter.
“I like baking and cooking,” the founder of Yummy Bee says. “When my daughter was born, I wanted to make sure that whatever I baked for her was a better version with less sugar, no maida, but still something she would enjoy. That’s really where this whole journey started.”
PAC Cosmetics began as a professional makeup tools company in 2006, and has since evolved into a profitable, self-funded beauty brand. With a commitment to quality, accessibility, and Indian consumer needs, it is now building its footprint for global markets.
When Bonish Jain joined PAC Cosmetics in 2014, the company was already well regarded within professional makeup circles, but largely invisible to the wider consumer market.
Founded by his father Ramesh Jain in 2006, the Mumbai-based company had earned reputation as a trusted brand of professional, high-quality makeup tools used largely by makeup artists.
