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President Message
The Union Budget 2024-25 presented by Hon’ble Finance Minister Nirmala Sitharaman has several things to talk about. But I think two things stand out: Her readiness to act on feedback from ground and Her commitment to push economic growth without losing sight of equity and sustainability.
During her pre-budget consultations with industry bodies, I had the privilege to raise issues of SMA, BLR rating and bank for MSMEs that could lend directly. She has acted on all the three suggestions. A Fund is announced that would help MSMEs affected by SMA and requiring restructuring. The requirement of BLR rating is done away with and Banks have been asked to develop their own risk assessment models. On MSME focused bank, for the time being, instead of going for a full-fledged separate bank for MSMEs, she has instructed SIDBI to open branches in all districts in 3 years. She has also acted upon the demand of medium class and raised the income tax bar and doubled the Mudra loan limit for self-employed.
We have noted with interest, her approach to balance economic growth with environmental sustainability. This is evident in the Budget’s focus on promoting clean energy sources like solar and nuclear power initiatives – as in the PM Surya Ghar Muft Bijli Yojana, which subsidizes rooftop solar installations and the planned Pumped Storage Policy. Plan for transition of hard-to-abate industries from energy efficiency targets to emission targets and their support for clean energy adoption in traditional industries including MSMEs, both point towards this commitment. Not only as suggested by FISME but the Budget has proposed investment grade energy audit - A detailed financial feasibility study for improving energy efficiency thus reducing carbon intensity. Finance Minister has gone further and simultaneously proposed financial support for implementing measures brought out in the audit. The scheme would be replicated in 100 more clusters in future.
I feel amidst the political and economic turmoil that the world is in, India’s Budget is balanced very sensibly and exudes hope for the future.
FISME and the Rai Industries Association (RIA) organized an exposure visit for the wooden handicraft artisans of the Thar Dhat Handicrafts Society (TDHS), Jodhpur from July 29 to July 31, 2024. This visit was part of the Programme for Capacity Building of the Thar Dhat Handicraft Society. To discuss the challenges that artisans face, an initial discussion was held at FISME head office with Ms. Smriti Bajpai, Assistant General Manager at SIDBI, Mr. Sandeep Prasad from KPMG, and members of TDHS. Thereafter, an interaction between members of TDHS and representatives of RIA was held. The interaction focused on the role of the association, issues related to access to finance, the availability of land in industrial areas, and the skill upgradation of artisans.
If you hope to establish your startup in your industry, you must find a product-market fit.
Product-market fit is the point where a product seamlessly aligns with the needs and desires of its target audience. Identifying, measuring, and adapting to achieve this fit in highly competitive markets can be the difference between thriving and barely surviving — especially if you hope to raise capital from investors. I can't stress enough how essential of a foundation this is for long-term success. Unfortunately, I've seen too many companies with highly functional, well-designed products or services fail because they never paid attention to their customer's needs.
Federation of Indian Micro and Small & Medium Enterprises Industry (FISME) on Monday urged the Reserve Bank of India (RBI) to extend the threshold period for stress loan accounts under the special mention account-2 (SMA-2) category to 180 days from 90 days currently. The association also requested the RBI to review the definition of wilful defaulter for MSMEs.
“The current SMA classification triggers penal actions even for minor delays (SMA-0), impacting credit score (SMA-1), and restricting credit access (SMA-2). This rigidity disregards genuine reasons for delays, such as late payments from buyers,” FISME said in a memo on the meeting with RBI officials....
Government data reveals that India's fiscal deficit for the first quarter of the financial year 2024-25 stood at Rs 1.36 lakh crore, representing 8.1 per cent of the annual estimate.
This marks a substantial improvement from the previous year, when the Q1 fiscal deficit accounted for 25.3 per cent of the annual target. The total receipts for Q1 2024-25 reached Rs 8.34 lakh crore, constituting 27.1 per cent of the year's budget target. This figure shows an increase from the 22.1 per cent recorded in the same quarter last year.
India's manufacturing sector continued its robust performance in July, albeit with a slight moderation in growth, according to the latest HSBC India Manufacturing Purchasing Managers' Index (PMI) released on August 1.
The seasonally adjusted PMI eased to 58.1 in July from 58.3 in June, primarily due to a marginal slowdown in new orders and output growth. Despite this small dip, the index remained well above the long-term average, indicating sustained strength in the manufacturing sector at the start of the second quarter.
In a significant development for India's telecommunications industry, government officials have reported that domestically designed and manufactured telecom equipment is now being exported to over 100 countries.
The sector's global reach was underscored by exports of telecom equipment and services exceeding USD 18.2 billion in the previous fiscal year. Madhu Arora, Member (Technology) of the Digital Communications Commission, Department of Telecom, noted the success of Indian telecom companies in Western markets, including the United States, despite intense international competition.
In a significant move to bolster domestic solar manufacturing and ensure compliance with local content requirements, India's solar photovoltaic (PV) sector has introduced an online registration system.
This initiative, developed collaboratively by solar PV manufacturing associations and the Ministry of New and Renewable Energy (MNRE), marks a pivotal step in the country's renewable energy landscape. The new portal mandates registration for all solar PV manufacturers operating within India, creating a comprehensive database of domestic production facilities.
Indian Bank's Managing Director and CEO, Shanti Lal Jain, has announced the bank's willingness to lend to micro, small, and medium enterprises (MSMEs) in the Special Mention Account (SMA) category.
This decision comes in response to the government guarantee announced in the Union Budget 2024.
Indian Bank is open to lending to SMA 1 and SMA 2 category customers, citing their existing relationship and customer history. Jain emphasised that the bank's familiarity with these customers and their track records makes them comfortable with extending credit to this segment.
In a landmark move, the Ministry of Defence (MoD) and the National Stock Exchange of India Limited (NSE) have inked a Memorandum of Understanding (MoU) aimed at empowering Micro, Small and Medium Enterprises (MSMEs) in the defence sector.
The agreement, signed on July 29, 2024, seeks to facilitate easier access to capital markets for these vital players in India's defence ecosystem. The MoU was formalised in the presence of Defence Secretary Giridhar Aramane, with Additional Secretary of the Department of Defence Production (DDP) and the Managing Director of NSE as signatories.
The Trade Receivables Discounting System (TReDS), an electronic platform designed to enhance cash flow for Micro, Small and Medium Enterprises (MSMEs), is projected to see substantial growth in invoice financing volumes this fiscal year.
Industry experts forecast an increase of 80-100 per cent compared to the previous year, primarily attributed to increased corporate participation following recent policy changes A key factor driving this growth is the reduction in the corporate turnover threshold announced in the recent Union Budget. The turnover threshold for mandatory onboarding of corporates has been lowered from Rs 500 crore to Rs 250 crore, potentially bringing 7,000 more companies onto the platform.
In a significant boost to the state's economic landscape, Gujarat has witnessed a substantial growth in its Micro, Small and Medium Enterprises (MSME) sector, according to state government spokesperson and Health Minister Rushikesh Patel.
Speaking at a press conference on Wednesday, Minister Patel revealed that Gujarat added an impressive 6.29 lakh new MSME units in the fiscal year 2023-24 alone. This surge brings the total number of MSMEs registered in the state over the past four years to a staggering 19.63 lakh.
In a significant development for India's clean energy initiatives, Amit Sharma, Secretary of IT Transport and DMRRR for the Union Territory of Ladakh, conducted a pivotal inspection of the country's first Green Hydrogen Mobility Project in Leh district on Wednesday.
The project, which has been under Sharma's close supervision for the past year, aims to boost transportation in the region with the introduction of hydrogen fuel cell buses and a green hydrogen production facility.
In a significant move to bolster the Micro, Small, and Medium Enterprises (MSME) sector, a delegation of industrialists recently met with Sanjeev Chawla, the Assistant Development Commissioner-cum-Director of MSME-Development and Facilitation Office (MSME-DFO).
The meeting, spearheaded by the Federation of Industrial and Commercial Organisation (FICO), focused on a range of critical demands aimed at enhancing the growth and competitiveness of MSMEs, particularly in the bicycle industry.
The Uttar Pradesh government, under Chief Minister Yogi Adityanath's leadership, has launched a series of ambitious initiatives aimed at boosting farmers' income through agricultural diversification, with a strong focus on horticulture and vegetable farming.
In a recent meeting of the Rajya Mandi Parishad, CM Adityanath directed the establishment of tissue culture laboratories at four agricultural and technological universities across the state. These labs, funded by the mandi parishad, are designed to ensure high-quality planting of horticultural crops.
The economic partnership between India and Peru has reached new heights, with bilateral trade hitting USD 3.12 billion in 2023, signalling a robust and growing alliance between the two nations.
Ambassador Javier Manuel Paulinich of Peru to India revealed these figures in a recent statement to FinancialExpress.com. India's exports to Peru amounted to USD 865.91 million, while Peru's exports to India reached USD 2.55 billion in the same year. Key exports from India include automobiles, motorcycles, and pharmaceuticals, while Peru's primary exports consist of gold and copper.
In a significant development for bilateral economic relations, India and Saudi Arabia convened the first virtual meeting of their newly established High-Level Task Force on investments.
The meeting, which took place on Sunday, focused on exploring various investment opportunities across public and private sectors in both nations. Co-chaired by P.K. Mishra, Principal Secretary to the Indian Prime Minister, and Prince Abdulaziz bin Salman bin Abdulaziz Al Saud, Saudi Energy Minister, the talks covered a wide range of potential investment areas.
What is the most pressing issue faced by MSMEs in their dealings with banks?
According to the FISME factor, 100% of MSMEs think that all the listed issues, ‘SMA classification, arbitrary pre-payment and bank charges, mis-reporting to CIBIL, and the lack of a grievance redressal mechanism’ are equally pressing issues faced by MSMEs in their dealings with banks.
Global Innovations Inc., a renowned technology company (fictitious), was known for its rigorous performance-driven culture. However, a recent situation threw its performance appraisal and promotion system into turmoil. Every year, Global Innovations Inc. used to conduct a comprehensive performance review to determine promotions. It was a transparent process and a point-based system. Only employees who scored above a certain threshold were eligible for promotions.
4 Financial Blind Spots That Could Be Preventing You From Making More Money
If you're ready to grow but feel stagnated and not sure why, check out these common money secrets where revenue is hiding. Money can often be the barrier between being stuck where you are or breaking through to the next level. This includes having or not having a budget, using it properly, hidden revenue or even misaligned goals — all of which influence your growth trajectory.
Launching Your First Paid Product? Here's How to Successfully Turn Your Expertise Into Profit
Now you may be feeling a bit nervous about offering your very first paid product. You're thinking, "What if no one buys it? What if I mess something up? Will people think my product is any good?" I promise those are all normal feelings to have. But I'm here to tell you that offering that first paid thing does not have to be scary. There is a secret to doing it right and having people want to buy from you.
Indian Auto Component Industry Faces Logistical Challenges Amid Export Growth
The Automotive Component Manufacturers Association (ACMA) of India has reported a mixed outlook for the sector, highlighting strong export growth despite significant logistical challenges, particularly stemming from the ongoing Red Sea crisis.
ACMA President Shradha Suri Marwah emphasised that while export demand remains positive, logistics have become a major concern.
Luxury redefined: How Luxelan is revolutionising Indian homes with AI- empowered interiors
Revolutionising Indian homes with unmatched craftsmanship, Luxelan's seamless turnkey solutions redefine luxury interiors. Experience a new standard in elegance, efficiency, and ease. Luxury homebuyers deserve a seamless experience, but the current market is fragmented and stressful. Luxelan identified a gap in the market: a lack of single-source, organised, and professional luxury interior design firms. This approach, often involving multiple vendors, creates a chaotic experience for even high-end homeowners, hindering the journey between acquiring a dream home and finally enjoying it.
BluPine Energy Secures Rs 239 Crore Funding for Solar Project
In a significant move for India's renewable energy sector, BluPine Energy has announced securing Rs 239 crore in financial assistance from Tata Capital.
The funds are earmarked for a solar power project in the central Indian state of Chhattisgarh, marking a substantial step forward in the country's green energy initiatives.
The National Statistical Office (NSO), Ministry of Statistics and Programme Implementation (MoSPI) has released the employment related statistics in the formal sector covering the period September 2017 onwards.
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 Union Budget 2024-25 presented by Hon’ble Finance Minister Nirmala Sitharaman has several things to talk about. But I think two things stand out: Her readiness to act on feedback from ground and Her commitment to push economic growth without losing sight of equity and sustainability.
During her pre-budget consultations with industry bodies, I had the privilege to raise issues of SMA, BLR rating and bank for MSMEs that could lend directly. She has acted on all the three suggestions. A Fund is announced that would help MSMEs affected by SMA and requiring restructuring. The requirement of BLR rating is done away with and Banks have been asked to develop their own risk assessment models. On MSME focused bank, for the time being, instead of going for a full-fledged separate bank for MSMEs, she has instructed SIDBI to open branches in all districts in 3 years. She has also acted upon the demand of medium class and raised the income tax bar and doubled the Mudra loan limit for self-employed.
We have noted with interest, her approach to balance economic growth with environmental sustainability. This is evident in the Budget’s focus on promoting clean energy sources like solar and nuclear power initiatives – as in the PM Surya Ghar Muft Bijli Yojana, which subsidizes rooftop solar installations and the planned Pumped Storage Policy. Plan for transition of hard-to-abate industries from energy efficiency targets to emission targets and their support for clean energy adoption in traditional industries including MSMEs, both point towards this commitment. Not only as suggested by FISME but the Budget has proposed investment grade energy audit - A detailed financial feasibility study for improving energy efficiency thus reducing carbon intensity. Finance Minister has gone further and simultaneously proposed financial support for implementing measures brought out in the audit. The scheme would be replicated in 100 more clusters in future.
I feel amidst the political and economic turmoil that the world is in, India’s Budget is balanced very sensibly and exudes hope for the future.
FISME and the Rai Industries Association (RIA) organized an exposure visit for the wooden handicraft artisans of the Thar Dhat Handicrafts Society (TDHS), Jodhpur from July 29 to July 31, 2024. This visit was part of the Programme for Capacity Building of the Thar Dhat Handicraft Society. To discuss the challenges that artisans face, an initial discussion was held at FISME head office with Ms. Smriti Bajpai, Assistant General Manager at SIDBI, Mr. Sandeep Prasad from KPMG, and members of TDHS. Thereafter, an interaction between members of TDHS and representatives of RIA was held. The interaction focused on the role of the association, issues related to access to finance, the availability of land in industrial areas, and the skill upgradation of artisans.
If you hope to establish your startup in your industry, you must find a product-market fit.
Product-market fit is the point where a product seamlessly aligns with the needs and desires of its target audience. Identifying, measuring, and adapting to achieve this fit in highly competitive markets can be the difference between thriving and barely surviving — especially if you hope to raise capital from investors. I can't stress enough how essential of a foundation this is for long-term success. Unfortunately, I've seen too many companies with highly functional, well-designed products or services fail because they never paid attention to their customer's needs.
Government data reveals that India's fiscal deficit for the first quarter of the financial year 2024-25 stood at Rs 1.36 lakh crore, representing 8.1 per cent of the annual estimate.
This marks a substantial improvement from the previous year, when the Q1 fiscal deficit accounted for 25.3 per cent of the annual target. The total receipts for Q1 2024-25 reached Rs 8.34 lakh crore, constituting 27.1 per cent of the year's budget target. This figure shows an increase from the 22.1 per cent recorded in the same quarter last year.
India's manufacturing sector continued its robust performance in July, albeit with a slight moderation in growth, according to the latest HSBC India Manufacturing Purchasing Managers' Index (PMI) released on August 1.
The seasonally adjusted PMI eased to 58.1 in July from 58.3 in June, primarily due to a marginal slowdown in new orders and output growth. Despite this small dip, the index remained well above the long-term average, indicating sustained strength in the manufacturing sector at the start of the second quarter.
In a significant development for India's telecommunications industry, government officials have reported that domestically designed and manufactured telecom equipment is now being exported to over 100 countries.
The sector's global reach was underscored by exports of telecom equipment and services exceeding USD 18.2 billion in the previous fiscal year. Madhu Arora, Member (Technology) of the Digital Communications Commission, Department of Telecom, noted the success of Indian telecom companies in Western markets, including the United States, despite intense international competition.
In a significant move to bolster domestic solar manufacturing and ensure compliance with local content requirements, India's solar photovoltaic (PV) sector has introduced an online registration system.
This initiative, developed collaboratively by solar PV manufacturing associations and the Ministry of New and Renewable Energy (MNRE), marks a pivotal step in the country's renewable energy landscape. The new portal mandates registration for all solar PV manufacturers operating within India, creating a comprehensive database of domestic production facilities.
Indian Bank's Managing Director and CEO, Shanti Lal Jain, has announced the bank's willingness to lend to micro, small, and medium enterprises (MSMEs) in the Special Mention Account (SMA) category.
This decision comes in response to the government guarantee announced in the Union Budget 2024.
Indian Bank is open to lending to SMA 1 and SMA 2 category customers, citing their existing relationship and customer history. Jain emphasised that the bank's familiarity with these customers and their track records makes them comfortable with extending credit to this segment.
In a landmark move, the Ministry of Defence (MoD) and the National Stock Exchange of India Limited (NSE) have inked a Memorandum of Understanding (MoU) aimed at empowering Micro, Small and Medium Enterprises (MSMEs) in the defence sector.
The agreement, signed on July 29, 2024, seeks to facilitate easier access to capital markets for these vital players in India's defence ecosystem. The MoU was formalised in the presence of Defence Secretary Giridhar Aramane, with Additional Secretary of the Department of Defence Production (DDP) and the Managing Director of NSE as signatories.
The Trade Receivables Discounting System (TReDS), an electronic platform designed to enhance cash flow for Micro, Small and Medium Enterprises (MSMEs), is projected to see substantial growth in invoice financing volumes this fiscal year.
Industry experts forecast an increase of 80-100 per cent compared to the previous year, primarily attributed to increased corporate participation following recent policy changes A key factor driving this growth is the reduction in the corporate turnover threshold announced in the recent Union Budget. The turnover threshold for mandatory onboarding of corporates has been lowered from Rs 500 crore to Rs 250 crore, potentially bringing 7,000 more companies onto the platform.
In a significant boost to the state's economic landscape, Gujarat has witnessed a substantial growth in its Micro, Small and Medium Enterprises (MSME) sector, according to state government spokesperson and Health Minister Rushikesh Patel.
Speaking at a press conference on Wednesday, Minister Patel revealed that Gujarat added an impressive 6.29 lakh new MSME units in the fiscal year 2023-24 alone. This surge brings the total number of MSMEs registered in the state over the past four years to a staggering 19.63 lakh.
In a significant development for India's clean energy initiatives, Amit Sharma, Secretary of IT Transport and DMRRR for the Union Territory of Ladakh, conducted a pivotal inspection of the country's first Green Hydrogen Mobility Project in Leh district on Wednesday.
The project, which has been under Sharma's close supervision for the past year, aims to boost transportation in the region with the introduction of hydrogen fuel cell buses and a green hydrogen production facility.
In a significant move to bolster the Micro, Small, and Medium Enterprises (MSME) sector, a delegation of industrialists recently met with Sanjeev Chawla, the Assistant Development Commissioner-cum-Director of MSME-Development and Facilitation Office (MSME-DFO).
The meeting, spearheaded by the Federation of Industrial and Commercial Organisation (FICO), focused on a range of critical demands aimed at enhancing the growth and competitiveness of MSMEs, particularly in the bicycle industry.
The Uttar Pradesh government, under Chief Minister Yogi Adityanath's leadership, has launched a series of ambitious initiatives aimed at boosting farmers' income through agricultural diversification, with a strong focus on horticulture and vegetable farming.
In a recent meeting of the Rajya Mandi Parishad, CM Adityanath directed the establishment of tissue culture laboratories at four agricultural and technological universities across the state. These labs, funded by the mandi parishad, are designed to ensure high-quality planting of horticultural crops.
The economic partnership between India and Peru has reached new heights, with bilateral trade hitting USD 3.12 billion in 2023, signalling a robust and growing alliance between the two nations.
Ambassador Javier Manuel Paulinich of Peru to India revealed these figures in a recent statement to FinancialExpress.com. India's exports to Peru amounted to USD 865.91 million, while Peru's exports to India reached USD 2.55 billion in the same year. Key exports from India include automobiles, motorcycles, and pharmaceuticals, while Peru's primary exports consist of gold and copper.
In a significant development for bilateral economic relations, India and Saudi Arabia convened the first virtual meeting of their newly established High-Level Task Force on investments.
The meeting, which took place on Sunday, focused on exploring various investment opportunities across public and private sectors in both nations. Co-chaired by P.K. Mishra, Principal Secretary to the Indian Prime Minister, and Prince Abdulaziz bin Salman bin Abdulaziz Al Saud, Saudi Energy Minister, the talks covered a wide range of potential investment areas.
According to the FISME factor, 100% of MSMEs think that all the listed issues, ‘SMA classification, arbitrary pre-payment and bank charges, mis-reporting to CIBIL, and the lack of a grievance redressal mechanism’ are equally pressing issues faced by MSMEs in their dealings with banks.
Global Innovations Inc., a renowned technology company (fictitious), was known for its rigorous performance-driven culture. However, a recent situation threw its performance appraisal and promotion system into turmoil. Every year, Global Innovations Inc. used to conduct a comprehensive performance review to determine promotions. It was a transparent process and a point-based system. Only employees who scored above a certain threshold were eligible for promotions.
If you're ready to grow but feel stagnated and not sure why, check out these common money secrets where revenue is hiding. Money can often be the barrier between being stuck where you are or breaking through to the next level. This includes having or not having a budget, using it properly, hidden revenue or even misaligned goals — all of which influence your growth trajectory.
Now you may be feeling a bit nervous about offering your very first paid product. You're thinking, "What if no one buys it? What if I mess something up? Will people think my product is any good?" I promise those are all normal feelings to have. But I'm here to tell you that offering that first paid thing does not have to be scary. There is a secret to doing it right and having people want to buy from you.
The Automotive Component Manufacturers Association (ACMA) of India has reported a mixed outlook for the sector, highlighting strong export growth despite significant logistical challenges, particularly stemming from the ongoing Red Sea crisis.
ACMA President Shradha Suri Marwah emphasised that while export demand remains positive, logistics have become a major concern.
Revolutionising Indian homes with unmatched craftsmanship, Luxelan's seamless turnkey solutions redefine luxury interiors. Experience a new standard in elegance, efficiency, and ease. Luxury homebuyers deserve a seamless experience, but the current market is fragmented and stressful. Luxelan identified a gap in the market: a lack of single-source, organised, and professional luxury interior design firms. This approach, often involving multiple vendors, creates a chaotic experience for even high-end homeowners, hindering the journey between acquiring a dream home and finally enjoying it.
In a significant move for India's renewable energy sector, BluPine Energy has announced securing Rs 239 crore in financial assistance from Tata Capital.
The funds are earmarked for a solar power project in the central Indian state of Chhattisgarh, marking a substantial step forward in the country's green energy initiatives.
“Before anything else, preparation is the key to success. ”
