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Finance Minister Nirmala Sitharaman may have been taken aback by the plethora of complaints raised by the MSME representatives against Banks, during their pre-budget meeting. For the RBI swung into action swiftly thereafter and a meeting with major associations was arranged with two Deputy Governors in Mumbai. The meeting was dominated by issues flagged by FISME before the FM: SMA classification, arbitrariness of pre-payment and bank charges, consequences of mis-reporting to CIBIL by banks and lack of grievance redressal mechanism. One after another MSME associations highlighted the excesses of banks. They explained how SMA is pushing- even the healthy accounts, temporarily affected by headwinds, into NPAs. The need to set-up a mechanism for raising equity covered under CGTMSE was also proposed. CIBIL reporting has emerged another headache for business borrowers. Even an insignificant default of the credit card of a director/ owner or sometimes a disputed amount - is reported to CIBIL with immediate downgrade of rating. Examples abound when defaults get notified erroneously by a bank to CIBIL. There is little recourse for the borrower except requesting CIBIL or the Bank to correct the error, which is seldom acted upon. We drew attention of RBI to the dumbing down of decisions in Banks because of replacement of the ‘wise banker’ by an excel-sheet based decision making. FISME also stressed the need for clarity on the ‘Code of Bank’s commitment to MSEs’. Very few Banks adhere to its guidelines that MSMEs be spared of pre-payment charges. The RBI’s top brass was all ears and seemed empathetic – hoping for some action here.
Success doesn't happen by chance. Often, entrepreneurs wear many hats coupled with consistency, habits and strategic decisions. While founders usually find fulfillment in building a business from the ground up, the road to success can be challenging and full of hurdles. There will be moments of doubt, and you will question whether it is all worth it or if it's time for you to give up hope. These five lessons, which put me in a position to start a company and scale my business quickly, are the ones I wished someone had given me when I was just starting out a few years ago.
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....
In a significant boost to India's automotive sector, exports of two-wheelers and passenger vehicles have shown robust growth in the first quarter of the current fiscal year, according to the latest data released by the Society of Indian Automobile Manufacturers (SIAM). This upward trend in exports comes despite a relatively modest performance in the domestic market. Two-wheeler exports saw a substantial increase of 16.7 per cent, reaching 923,148 units compared to 791,316 units in the same period last year. Leading exporters in this segment include Bajaj Auto, TVS Motor Company, and Honda Motorcycle and Scooter.
In a significant reversal of recent trends, India's foreign exchange reserves experienced a substantial increase of USD 5.158 billion, reaching USD 657.155 billion for the week ending July 5, according to data released by the Reserve Bank of India (RBI) on July 12.
This upturn follows two consecutive weeks of decline, during which the forex reserves had decreased by USD 1.713 billion to USD 651.997 billion for the week ended June 28. The current figures approach the all-time high of USD 655.817 billion recorded on June 7 this year.
The foreign currency assets, which constitute a major portion of the reserves, rose by USD 4.228 billion to USD 577.11 billion.
In a significant boost to India's automotive sector, exports of two-wheelers and passenger vehicles have shown robust growth in the first quarter of the current fiscal year, according to the latest data released by the Society of Indian Automobile Manufacturers (SIAM).
This upward trend in exports comes despite a relatively modest performance in the domestic market. Two-wheeler exports saw a substantial increase of 16.7 per cent, reaching 923,148 units compared to 791,316 units in the same period last year. Leading exporters in this segment include Bajaj Auto, TVS Motor Company, and Honda Motorcycle and Scooter.
In a significant move towards addressing climate change, the Indian government is set to introduce a comprehensive policy framework for Carbon Capture, Utilisation, and Storage (CCUS).
The policy, which comes as part of India's commitment to achieving net-zero emissions by 2070, focuses on capturing CO2 from major industrial sources, particularly in the power and manufacturing sectors. These two areas alone account for approximately 50 per cent of global greenhouse gas emissions.
In a recent analysis of the gems and jewellery sector, data from the Gem and Jewellery Export Promotion Council (GJEPC) reveals a complex picture of the industry's performance in June and the April-June quarter of this year.
June saw a decline in both exports and imports, with gross exports of gems and jewellery falling by 14.78 per cent to USD 1,909 million, while gross imports decreased by 16.51 per cent to USD 1,548.93 million. The April-June period reflected a similar trend in exports, showing a 7.44 per cent decline, although imports grew by 2.9 per cent during this time.
In a significant move to enhance ease of doing business in India, the Ministry of Micro, Small and Medium Enterprises (MSME) has announced the launch of the National Single Window System (NSWS).
This digital platform, developed by the Department for Promotion of Industry and Internal Trade (DPIIT), aims to simplify the process of obtaining business approvals and registrations across central and state authorities. The NSWS portal offers a comprehensive suite of features designed to streamline the often complex process of business compliance. At its core, the system provides centralised approval access, allowing businesses to apply for and track all necessary approvals from various ministries, departments, and states through a single platform.
The supply of Cold Rolled Grain Oriented (CRGO) Steel, a critical component in transformer manufacturing, has been severely disrupted that could significantly impact India's ambitious power sector expansion plans.
This shortage stems from recent actions taken by the Bureau of Indian Standards (BIS), which has either not renewed approvals, issued Stop Marking orders, or revoked approvals for several CRGO mills in neighbouring countries.
In a bold move to establish Kerala as a leading destination for artificial intelligence (AI) in India, Chief Minister Pinarayi Vijayan has unveiled an Industries Policy that prioritises AI-based industries.
The policy, which includes 18 incentives to promote AI-driven MSMEs and companies, was announced during the inaugural address of the two-day 'International Conclave on GenAI' in Kochi on July 11. The Chief Minister emphasised the state's commitment to AI integration across various sectors, including education. Kerala has introduced AI into school textbooks starting from Class VII, making it the first state in India to train all its teachers in AI through the KITE initiative.
In a significant move to boost the state's technology sector, the Tamil Nadu government has announced plans to establish a deep-tech fund aimed at supporting startups in the field.
The announcement was made by Palanivel Thiagarajan, the state's Minister for Information Technology and Digital Services, during an event in Chennai on Thursday. While specific information about the fund's size and launch date was not disclosed, the minister emphasised that it would provide both financial backing and mentorship fr0m global experts in deep-tech. This initiative is expected to give a substantial boost to the state's growing technology ecosystem.
The Karnataka Small Scale Industries Association (KASSIA) presented a comprehensive list of banking-related issues at a high-level meeting convened by the MSME Division of the Financial Inclusion & Development Department, Reserve Bank of India (RBI).
KASSIA, drawing upon its extensive experience in representing the interests of MSMEs, put forth several key proposals aimed at streamlining banking processes and enhancing access to credit for small businesses.
Rajasthan government has introduced a comprehensive 10-year energy plan in its revised fiscal Budget 2024-25, aimed at addressing the growing electricity demand and ensuring sustainable energy production. The plan places a strong emphasis on developing renewable energy sources, with a particular focus on solar power. Central to this initiative is the establishment of three major solar parks in Pugal, Chhatargarh-Bikaner, and Bodana-Jaisalmer. These parks are projected to generate over 50,000MW of solar energy, demonstrating the government's commitment to green energy solutions.
In a significant two-day conclave in New Delhi, U.S. Ambassador to India Eric Garcetti emphasised the deepening ties between the United States and India, particularly in the realm of defence and security.
The event, titled "U.S.-India defence News Conclave: Stories of U.S-India defence and Security Partnership," brought together key stakeholders to discuss the future of this crucial bilateral relationship. Ambassador Garcetti, in his keynote address, stressed that both nations see their futures intertwined, with commerce, technology, people, and security at the core of this partnership.
The Indian Commerce Ministry announced on Wednesday that a Mutual Recognition Agreement (MRA) between India and Taiwan for organic products has come into force as of July 8.
This agreement is expected to streamline trade in organically-produced goods, including tea and medicinal plants. The MRA aims to simplify export procedures by eliminating the need for dual certifications, thereby reducing compliance costs and adherence to multiple regulations. This is anticipated to enhance trade opportunities in the organic sector between the two regions. Under the agreement, major Indian organic products such as rice, processed food, green/black and herbal tea, and medicinal plant products will have easier access to the Taiwanese market.
You Need Constructive Feedback From Your Employees — Here's How to Make Sure They Feel Safe Enough to Provide It.
To grow and nurture an agile and adaptable company, you have to encourage a constant flow of constructive insights. Reed Hastings has said the secret to his success as CEO at Netflix is what he calls, "farming for dissent." Disagreements with the boss, he says, allow new ideas and strategies for growth to come to a leader's attention, and a leader's efforts to draw out dissent help people feel more comfortable about doing it.
5 Ways to Reduce Cash Flow Delays in Your Business
Have you ever wondered what keeps a business thriving through highs and lows, ensuring bills are paid, employees are compensated, and growth opportunities are seized? If your business is a river of financial transactions, then how do you ensure this river flows smoothly, avoiding random blockages that can lead to financial droughts? Cash flow management is the essential current that powers your business forward. Cash flow delays can cause significant problems for businesses.
These Creative Marketing Hacks Can Help Deliver Big Returns For Your Bootstrapped Startup
When resources are tight, creativity becomes your most valuable asset in marketing. In this challenge lies an opportunity to innovate, stand out and boost marketing ROI. In today's competitive business landscape, bootstrapped startups often face limited resources and tight budgets when marketing their products or services. However, with some creativity and strategic planning, these startups can still reach and significantly influence their target audience.
Textile Industry Calls For Removal Of QCOs Amidst Supply Chain Struggles
The Indian textile sector is grappling with significant challenges as downstream synthetic textile manufacturers urge the government to revoke Quality Control Orders (QCOs) on man-made fibres (MMF).
These QCOs, implemented to ensure product quality, have reportedly impacted the competitiveness of the MMF supply chain by restricting access to affordable and specialised raw materials, reported The Indian Express.
Enterprise Spend Management Firm Dice Secures USD 5 Mn In Series A Funding
Dice, an enterprise spend management platform, has successfully raised USD 5 million in a Series A funding round. The investment was led by Dallas Venture Capital (DVC), with participation from GVFL.
The company plans to utilise the newly acquired funds for several strategic initiatives, including enhancing market penetration, expanding customer outreach, optimising sales and marketing strategies, and improving artificial intelligence (AI) capabilities.
Mumbai-Based Proptech Start-up Jugyah Secures USD 1.5 Mn In Funding
Jugyah, a Mumbai-based proptech start up, has successfully raised USD 1.5 million in a recent funding round. The investment was led by White Venture Capital, QED Investors, and Godrej Properties, with additional participation from Whiteboard Capital and Singularity Ventures.
Notable angel investors, including Cred founder Kunal Shah, Dream Sports' Harsh Jain, and Livspace's Ramakant Sharma, also contributed to the round.
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 May 2024 (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.
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Finance Minister Nirmala Sitharaman may have been taken aback by the plethora of complaints raised by the MSME representatives against Banks, during their pre-budget meeting. For the RBI swung into action swiftly thereafter and a meeting with major associations was arranged with two Deputy Governors in Mumbai. The meeting was dominated by issues flagged by FISME before the FM: SMA classification, arbitrariness of pre-payment and bank charges, consequences of mis-reporting to CIBIL by banks and lack of grievance redressal mechanism. One after another MSME associations highlighted the excesses of banks. They explained how SMA is pushing- even the healthy accounts, temporarily affected by headwinds, into NPAs. The need to set-up a mechanism for raising equity covered under CGTMSE was also proposed. CIBIL reporting has emerged another headache for business borrowers. Even an insignificant default of the credit card of a director/ owner or sometimes a disputed amount - is reported to CIBIL with immediate downgrade of rating. Examples abound when defaults get notified erroneously by a bank to CIBIL. There is little recourse for the borrower except requesting CIBIL or the Bank to correct the error, which is seldom acted upon. We drew attention of RBI to the dumbing down of decisions in Banks because of replacement of the ‘wise banker’ by an excel-sheet based decision making. FISME also stressed the need for clarity on the ‘Code of Bank’s commitment to MSEs’. Very few Banks adhere to its guidelines that MSMEs be spared of pre-payment charges. The RBI’s top brass was all ears and seemed empathetic – hoping for some action here.
Success doesn't happen by chance. Often, entrepreneurs wear many hats coupled with consistency, habits and strategic decisions. While founders usually find fulfillment in building a business from the ground up, the road to success can be challenging and full of hurdles. There will be moments of doubt, and you will question whether it is all worth it or if it's time for you to give up hope. These five lessons, which put me in a position to start a company and scale my business quickly, are the ones I wished someone had given me when I was just starting out a few years ago.
In a significant boost to India's automotive sector, exports of two-wheelers and passenger vehicles have shown robust growth in the first quarter of the current fiscal year, according to the latest data released by the Society of Indian Automobile Manufacturers (SIAM). This upward trend in exports comes despite a relatively modest performance in the domestic market. Two-wheeler exports saw a substantial increase of 16.7 per cent, reaching 923,148 units compared to 791,316 units in the same period last year. Leading exporters in this segment include Bajaj Auto, TVS Motor Company, and Honda Motorcycle and Scooter.
In a significant reversal of recent trends, India's foreign exchange reserves experienced a substantial increase of USD 5.158 billion, reaching USD 657.155 billion for the week ending July 5, according to data released by the Reserve Bank of India (RBI) on July 12.
This upturn follows two consecutive weeks of decline, during which the forex reserves had decreased by USD 1.713 billion to USD 651.997 billion for the week ended June 28. The current figures approach the all-time high of USD 655.817 billion recorded on June 7 this year.
The foreign currency assets, which constitute a major portion of the reserves, rose by USD 4.228 billion to USD 577.11 billion.
In a significant move towards addressing climate change, the Indian government is set to introduce a comprehensive policy framework for Carbon Capture, Utilisation, and Storage (CCUS).
The policy, which comes as part of India's commitment to achieving net-zero emissions by 2070, focuses on capturing CO2 from major industrial sources, particularly in the power and manufacturing sectors. These two areas alone account for approximately 50 per cent of global greenhouse gas emissions.
In a recent analysis of the gems and jewellery sector, data from the Gem and Jewellery Export Promotion Council (GJEPC) reveals a complex picture of the industry's performance in June and the April-June quarter of this year.
June saw a decline in both exports and imports, with gross exports of gems and jewellery falling by 14.78 per cent to USD 1,909 million, while gross imports decreased by 16.51 per cent to USD 1,548.93 million. The April-June period reflected a similar trend in exports, showing a 7.44 per cent decline, although imports grew by 2.9 per cent during this time.
In a significant move to enhance ease of doing business in India, the Ministry of Micro, Small and Medium Enterprises (MSME) has announced the launch of the National Single Window System (NSWS).
This digital platform, developed by the Department for Promotion of Industry and Internal Trade (DPIIT), aims to simplify the process of obtaining business approvals and registrations across central and state authorities. The NSWS portal offers a comprehensive suite of features designed to streamline the often complex process of business compliance. At its core, the system provides centralised approval access, allowing businesses to apply for and track all necessary approvals from various ministries, departments, and states through a single platform.
The supply of Cold Rolled Grain Oriented (CRGO) Steel, a critical component in transformer manufacturing, has been severely disrupted that could significantly impact India's ambitious power sector expansion plans.
This shortage stems from recent actions taken by the Bureau of Indian Standards (BIS), which has either not renewed approvals, issued Stop Marking orders, or revoked approvals for several CRGO mills in neighbouring countries.
In a bold move to establish Kerala as a leading destination for artificial intelligence (AI) in India, Chief Minister Pinarayi Vijayan has unveiled an Industries Policy that prioritises AI-based industries.
The policy, which includes 18 incentives to promote AI-driven MSMEs and companies, was announced during the inaugural address of the two-day 'International Conclave on GenAI' in Kochi on July 11. The Chief Minister emphasised the state's commitment to AI integration across various sectors, including education. Kerala has introduced AI into school textbooks starting from Class VII, making it the first state in India to train all its teachers in AI through the KITE initiative.
In a significant move to boost the state's technology sector, the Tamil Nadu government has announced plans to establish a deep-tech fund aimed at supporting startups in the field.
The announcement was made by Palanivel Thiagarajan, the state's Minister for Information Technology and Digital Services, during an event in Chennai on Thursday. While specific information about the fund's size and launch date was not disclosed, the minister emphasised that it would provide both financial backing and mentorship fr0m global experts in deep-tech. This initiative is expected to give a substantial boost to the state's growing technology ecosystem.
The Karnataka Small Scale Industries Association (KASSIA) presented a comprehensive list of banking-related issues at a high-level meeting convened by the MSME Division of the Financial Inclusion & Development Department, Reserve Bank of India (RBI).
KASSIA, drawing upon its extensive experience in representing the interests of MSMEs, put forth several key proposals aimed at streamlining banking processes and enhancing access to credit for small businesses.
Rajasthan government has introduced a comprehensive 10-year energy plan in its revised fiscal Budget 2024-25, aimed at addressing the growing electricity demand and ensuring sustainable energy production. The plan places a strong emphasis on developing renewable energy sources, with a particular focus on solar power. Central to this initiative is the establishment of three major solar parks in Pugal, Chhatargarh-Bikaner, and Bodana-Jaisalmer. These parks are projected to generate over 50,000MW of solar energy, demonstrating the government's commitment to green energy solutions.
In a significant two-day conclave in New Delhi, U.S. Ambassador to India Eric Garcetti emphasised the deepening ties between the United States and India, particularly in the realm of defence and security.
The event, titled "U.S.-India defence News Conclave: Stories of U.S-India defence and Security Partnership," brought together key stakeholders to discuss the future of this crucial bilateral relationship. Ambassador Garcetti, in his keynote address, stressed that both nations see their futures intertwined, with commerce, technology, people, and security at the core of this partnership.
The Indian Commerce Ministry announced on Wednesday that a Mutual Recognition Agreement (MRA) between India and Taiwan for organic products has come into force as of July 8.
This agreement is expected to streamline trade in organically-produced goods, including tea and medicinal plants. The MRA aims to simplify export procedures by eliminating the need for dual certifications, thereby reducing compliance costs and adherence to multiple regulations. This is anticipated to enhance trade opportunities in the organic sector between the two regions. Under the agreement, major Indian organic products such as rice, processed food, green/black and herbal tea, and medicinal plant products will have easier access to the Taiwanese market.
According to FISME factor, 100% of MSMEs think that a disaster support mechanism for MSMEs will have the most positive impact on MSMEs.
To grow and nurture an agile and adaptable company, you have to encourage a constant flow of constructive insights. Reed Hastings has said the secret to his success as CEO at Netflix is what he calls, "farming for dissent." Disagreements with the boss, he says, allow new ideas and strategies for growth to come to a leader's attention, and a leader's efforts to draw out dissent help people feel more comfortable about doing it.
Have you ever wondered what keeps a business thriving through highs and lows, ensuring bills are paid, employees are compensated, and growth opportunities are seized? If your business is a river of financial transactions, then how do you ensure this river flows smoothly, avoiding random blockages that can lead to financial droughts? Cash flow management is the essential current that powers your business forward. Cash flow delays can cause significant problems for businesses.
The Indian textile sector is grappling with significant challenges as downstream synthetic textile manufacturers urge the government to revoke Quality Control Orders (QCOs) on man-made fibres (MMF).
These QCOs, implemented to ensure product quality, have reportedly impacted the competitiveness of the MMF supply chain by restricting access to affordable and specialised raw materials, reported The Indian Express.
Dice, an enterprise spend management platform, has successfully raised USD 5 million in a Series A funding round. The investment was led by Dallas Venture Capital (DVC), with participation from GVFL.
The company plans to utilise the newly acquired funds for several strategic initiatives, including enhancing market penetration, expanding customer outreach, optimising sales and marketing strategies, and improving artificial intelligence (AI) capabilities.
Jugyah, a Mumbai-based proptech start up, has successfully raised USD 1.5 million in a recent funding round. The investment was led by White Venture Capital, QED Investors, and Godrej Properties, with additional participation from Whiteboard Capital and Singularity Ventures.
Notable angel investors, including Cred founder Kunal Shah, Dream Sports' Harsh Jain, and Livspace's Ramakant Sharma, also contributed to the round.
“The power of concentration is the only key to the treasure-house of knowledge. ”
