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President Message
With the formation of a new Government in sight, preparations for the Union Budget are in full swing. Recently, Ministry of Commerce held one-to-one meeting with key industry bodies including FISME. Leading the presentation, I took this opportunity to flag the larger issue that in an interconnected world the challenges that businesses face, can’t be fully understood from the local context alone. Therefore, policy responses need to take into account international events, geo-politics and developments in global supply chains. FISME raised five issues. Firstly, the need to change the straight jacketed SMA early warning system for NPAs used by Banks since 2013. The rigidity of mechanism fails to take into account losses in business due to Covid and disruptions led by wars in its aftermath. We stressed need for flexibility in adhering to compliances. Secondly, we highlighted futility of mandatory BLR rating and suggested its purge. Thirdly, we brought out the fallacies of QCOs citing several examples and suggesting a robust consultative mechanism. Fourthly, to enhance the resilience of our export-oriented MSMEs amidst natural or man-made disasters, we proposed the establishment of a dedicated Disaster Support Mechanism. Fifthly, we tried to impress upon policy makers to shift export promotion resources away from West towards Asia which is to account for 60% of global GDP. Finally, we also shared with Ministry a list of products which required change in customs duty structure as suggested by FISME members. I hope the suggestions would find traction as they always have.
The Federation of Indian Micro and Small & Medium Enterprises (FISME) in collaboration with the Federation of Karnataka Chambers of Commerce and Industry (FKCCI) organized a regional roundtable discussion on 'Access to finance and timely payment to MSMEs'. The discussion was held on May 17, 2024 in Bengaluru. The event addressed critical challenges faced by MSMEs to obtaining finance, particularly difficulties in accessing finance and delays in payment receipts.
Hiring talent with entrepreneurial minds helps foster the same culture of innovation that brings a company from idea to fruition. As an HR leader who seeks to employ true self-starters — those who take the initiative and are eager to see the impact of what they're building — I have witnessed these traits contribute to the successful scaling of their companies.Candidates identify with this work culture. Let's face it: nobody wants to feel like a small fish in a big pond where nothing they say or do matters. Part of the allure of working for a company still in its growing stages is that you can truly impact shaping its trajectory. This environment encourages opportunity beyond a job description – for both the employee and the company, allowing the entrepreneurial spirit to spread throughout the organization.
India will mark 100 years of independence in 2047. Reflecting on the journey from 1947 to 2021, the celebrations of the 75th Independence anniversary, termed Azadi Ka Amrit Mahotsav, set the tone for a future-focused India. The events that spanned from March 12, 2021, to August 15, 2023, were a prelude to the ambitious goals envisioned for 2047.In his address from the Red Fort on August 15, 2021, Prime Minister Narendra Modi invoked the words of Swami Vivekananda from his speech “The Future of India”, where he spoke of drawing strength from India's rich history to build a future of unparalleled greatness. ...
India's pharmaceutical exports are expected to surge over 11 per cent to a record USD 31 billion in the fiscal year 2024-25, propelled by multiple factors including drug shortages in the key U.S. market, according to a top official from the exporters' body under the Commerce Ministry.For the fiscal year ended March 2024, India's pharma exports – a mainstay of the country's global trade – rose 9.6 per cent to USD 27.8 billion, despite numerous global challenges
Foreign direct investment (FDI) inflows into India's manufacturing sector continued its downward trajectory in the fiscal year 2023-24, according to provisional data released by the Reserve Bank of India (RBI).
The RBI's annual report shows that manufacturing received only USD 9.3 billion in FDI in FY24, marking a steep 17.7 per cent decline from the USD 11.3 billion received in the preceding fiscal year FY23. The latest FDI number is a far cry from the USD 16.3 billion that poured into the manufacturing sector in FY22 - the highest level of investment into the industry in recent years.
The Indian Ministry of Defence is increasing monitoring and enforcement of export rules for defence equipment manufactured in the country.This move comes after reports that some Indian-made weapons and military gear have ended up in unauthorised hands abroad.
India's defence manufacturing sector has grown rapidly in recent years, producing arms and equipment for both domestic use and international export markets. In the last financial year, India's annual defence production value surpassed 1 trillion rupees, with the private sector contributing over 210 billion rupees.
The Drugs Controller General of India (DCGI), Rajeev Raghuvanshi, has directed medical device manufacturers and in-vitro diagnostic (IVD) testing laboratories to adhere to the Bureau of Indian Standards (BIS) for product testing.
This move aims to enhance the quality, safety, and performance of medical devices and IVDs, while strengthening the PAN-India testing infrastructure.The directive comes in the wake of reports indicating that several medical devices were not tested according to established norms, potentially compromising product quality and posing health risks.
The Reserve Bank of India (RBI) on Thursday released its final guidelines for the establishment of a self-regulatory organisation (SRO) to govern the financial technology (fintech) sector.
The central bank aims for this industry-led entity to enforce regulatory standards and promote transparency among fintech firms operating in India.
As per the guidelines issued, the SRO for fintechs (SRO-FT) should be a development-oriented body that serves as a true representative and legitimate arbiter within the sector.
Boilers are a critical part of many chemical manufacturing processes, but they also pose serious safety risks if not operated and maintained properly.
With summer temperatures soaring, the dangers of boiler failure or explosion are heightened as excess heat can cause dangerous pressure buildup. However, incidents occur not due to boiler bursts, but due to the mishandling of chemicals. In the context of above, Federation of Indian micro and small & medium enterprises (FISME) released precautionary guidelines for boiler maintenance and chemical storage for the MSME units.
In a move aimed at streamlining the co-lending landscape and promoting credit access for Micro, Small, and Medium Enterprises (MSMEs), the Department of Financial Services (DFS) is forming a high-level committee with the State Bank of India at the helm.
The primary objective of this committee is to thoroughly examine and address prevailing issues related to co-lending practices while simultaneously devising strategies to bolster MSME credit flow and potentially curb the accelerated growth witnessed in certain segments of consumer lending facilitated through co-lending arrangements, reported BL.
In a significant stride towards digitising the judicial system, the District Courts of Meerut unveiled a state-of-the-art e-filing centre on Wednesday.
The inauguration ceremony was presided over by District Judge Rajat Singh Jain, who formally opened the facility housed within the heritage building located at the e-service centre premises. The establishment of the e-filing centre comes in response to a recent directive from the Supreme Court of India.
The Karnataka government is planning to create a dedicated platform that will provide direct access for state-born startups to venture capitalists and high net-worth individuals, in an effort to revive investments after a prolonged funding winter.
The proposed platform will benefit hundreds of startups incubated under the state government's Elevate program
The only mechanism with the government now is to provide a grant. We want to develop a platform in coordination with private firms to ensure startups get access to credible investors willing to fund them and provide mentorship," said Priyank Kharge, Karnataka's Minister for IT, BT and Skill Development.
A simmering dispute between textile sizing unit owners and the Maharashtra Pollution Control Board (MPCB) came to a head this week over allegations that the regulator plans to shutter operations in the textile hub.
At a meeting on Tuesday organised by the local Sizing Association, industry representatives claimed the MPCB has unfairly targeted their factories while turning a blind eye to other entities discharging an estimated 8.5 crore litres of untreated sewage daily into area rivers and waterways.
The Telangana government is set to adopt six new industrial policies aimed at boosting the state's manufacturing sector and economic growth.
This comes after Chief Minister A. Revanth Reddy reviewed industrial development in the state and called for policies to help Telangana better compete with other countries. During a meeting with officials from the Telangana State Industrial Infrastructure Corporation, Reddy emphasised the need for a revamped industrial strategy.
The United Arab Emirates (UAE) is looking to broaden the scope of its trade agreement with India to further boost bilateral trading volume, according to a senior UAE official.
Feryal Ahmadi, Chief Operating Officer of the Dubai Multi-Commodities Centre (DMCC), stated that the UAE wants to add agri-commodities and critical minerals to the Comprehensive Economic Partnership Agreement (CEPA) with India. The UAE and India signed the historic CEPA in February 2022 to enhance their economic ties. India is the largest trading partner for the Emirates.
In a significant step towards strengthening economic ties and fostering entrepreneurship, the India-US CEO Forum's Working Group 7 (WG7), in collaboration with the United Services Institute (USI) and CyberPeace Foundation, has inaugurated a bilateral knowledge-sharing platform between India and the United States. The platform aims to facilitate inclusive growth, enhance trade opportunities, and enable start-ups and Micro, Small, and Medium Enterprises (MSMEs) to thrive in the digital age.
You'll Never Escape the Cycle of Turnover If You Don't Learn This Important Skill
Attracting and retaining employees remains one of the biggest challenges facing entrepreneurs today. A recent Megaphone of Main Street report from SCORE on employee engagement revealed that 60.7% of small business owners rank hiring the right talent as their top challenge, and 45.8% say retaining existing staff is difficult. Another 33% of small business owners say retaining and motivating employees is a "concerning issue."
In the face of adversity, business loans serve as crucial lifelines for maintaining cash flow. Yet, for small and micro enterprises (SMEs), securing credit demands a meticulous approach to avoid lurking dangers such as Non-Performing Assets (NPAs). According to an RBI report, gross NPAs from banks stood at Rs 5.7 lakh crore as of March 2023.
3 Effective Engagement Tactics to Help Small Businesses Create Authentic Connections With Customers
Over the past few years, small business owners have been resilient in the face of change, overcoming a variety of obstacles in the business environment. Despite the challenges of today's economic landscape, it remains clear the reason why small business owners continue to be confident in their revenue and business outlook. Small businesses have the unique ability to create personalized experiences for their customers by getting creative with their outreach and customer engagement techniques, setting them apart from big-box retailers and larger competitors.
Matchbox Makers Seek Ban on Imported Lighters to Save Industry
Matchbox manufacturers in Tamil Nadu have appealed to the state government to ban the sale of imported Chinese cigar lighters to save their industry which employs over 2 lakh workers. The 700 matchbox units in Kovilpatti, Sattur, Tenkasi and other areas produce 9 crore matchboxes daily, providing direct livelihood to 2 lakh workers, mostly women.
Agnikul Cosmos launches world’s first 3D-printed rocket engine
Spacetech startup Agnikul Cosmos on Thursday successfully launched its first sub-orbital test vehicle powered by the world’s first single-piece 3D-printed rocket engine from Sriharikota. The Chennai-based company achieved this milestone two days after it was forced to call off the launch of Agnibaan’s “SubOrbital Technological Demonstrator or SOrTeD” mission.
E-Commerce Startup Logistiex Secures USD 250,000 In Bridge Funding Round
Logistiex, an e-commerce solutions startup founded in 2023, has raised USD 250,000 in a bridge funding round led by PACE Family Office, bolstered by contributions from angel investors including Siddhant Khemka. The fresh capital injection will be utilised to bolster product development efforts and expand the company's tech team, according to Sarvartha Kanchan, Founder and Chief Executive Officer of Logistiex.
The National Statistical Office (NSO), Ministry of Statistics and Programme Implementation (MoSPI) has released the Provisional Estimates (PE) of Annual Gross Domestic Product (GDP) for the Financial Year (FY) 2023-24 and Quarterly Estimates of GDP for the Fourth quarter (January-March) of 2023-24 along with its expenditure components both at Constant (2011-12) 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:
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With the formation of a new Government in sight, preparations for the Union Budget are in full swing. Recently, Ministry of Commerce held one-to-one meeting with key industry bodies including FISME. Leading the presentation, I took this opportunity to flag the larger issue that in an interconnected world the challenges that businesses face, can’t be fully understood from the local context alone. Therefore, policy responses need to take into account international events, geo-politics and developments in global supply chains. FISME raised five issues. Firstly, the need to change the straight jacketed SMA early warning system for NPAs used by Banks since 2013. The rigidity of mechanism fails to take into account losses in business due to Covid and disruptions led by wars in its aftermath. We stressed need for flexibility in adhering to compliances. Secondly, we highlighted futility of mandatory BLR rating and suggested its purge. Thirdly, we brought out the fallacies of QCOs citing several examples and suggesting a robust consultative mechanism. Fourthly, to enhance the resilience of our export-oriented MSMEs amidst natural or man-made disasters, we proposed the establishment of a dedicated Disaster Support Mechanism. Fifthly, we tried to impress upon policy makers to shift export promotion resources away from West towards Asia which is to account for 60% of global GDP. Finally, we also shared with Ministry a list of products which required change in customs duty structure as suggested by FISME members. I hope the suggestions would find traction as they always have.
The Federation of Indian Micro and Small & Medium Enterprises (FISME) in collaboration with the Federation of Karnataka Chambers of Commerce and Industry (FKCCI) organized a regional roundtable discussion on 'Access to finance and timely payment to MSMEs'. The discussion was held on May 17, 2024 in Bengaluru. The event addressed critical challenges faced by MSMEs to obtaining finance, particularly difficulties in accessing finance and delays in payment receipts.
Hiring talent with entrepreneurial minds helps foster the same culture of innovation that brings a company from idea to fruition. As an HR leader who seeks to employ true self-starters — those who take the initiative and are eager to see the impact of what they're building — I have witnessed these traits contribute to the successful scaling of their companies.Candidates identify with this work culture. Let's face it: nobody wants to feel like a small fish in a big pond where nothing they say or do matters. Part of the allure of working for a company still in its growing stages is that you can truly impact shaping its trajectory. This environment encourages opportunity beyond a job description – for both the employee and the company, allowing the entrepreneurial spirit to spread throughout the organization.
India's pharmaceutical exports are expected to surge over 11 per cent to a record USD 31 billion in the fiscal year 2024-25, propelled by multiple factors including drug shortages in the key U.S. market, according to a top official from the exporters' body under the Commerce Ministry.For the fiscal year ended March 2024, India's pharma exports – a mainstay of the country's global trade – rose 9.6 per cent to USD 27.8 billion, despite numerous global challenges
Foreign direct investment (FDI) inflows into India's manufacturing sector continued its downward trajectory in the fiscal year 2023-24, according to provisional data released by the Reserve Bank of India (RBI).
The RBI's annual report shows that manufacturing received only USD 9.3 billion in FDI in FY24, marking a steep 17.7 per cent decline from the USD 11.3 billion received in the preceding fiscal year FY23. The latest FDI number is a far cry from the USD 16.3 billion that poured into the manufacturing sector in FY22 - the highest level of investment into the industry in recent years.
The Indian Ministry of Defence is increasing monitoring and enforcement of export rules for defence equipment manufactured in the country.This move comes after reports that some Indian-made weapons and military gear have ended up in unauthorised hands abroad.
India's defence manufacturing sector has grown rapidly in recent years, producing arms and equipment for both domestic use and international export markets. In the last financial year, India's annual defence production value surpassed 1 trillion rupees, with the private sector contributing over 210 billion rupees.
The Drugs Controller General of India (DCGI), Rajeev Raghuvanshi, has directed medical device manufacturers and in-vitro diagnostic (IVD) testing laboratories to adhere to the Bureau of Indian Standards (BIS) for product testing.
This move aims to enhance the quality, safety, and performance of medical devices and IVDs, while strengthening the PAN-India testing infrastructure.The directive comes in the wake of reports indicating that several medical devices were not tested according to established norms, potentially compromising product quality and posing health risks.
The Reserve Bank of India (RBI) on Thursday released its final guidelines for the establishment of a self-regulatory organisation (SRO) to govern the financial technology (fintech) sector.
The central bank aims for this industry-led entity to enforce regulatory standards and promote transparency among fintech firms operating in India.
As per the guidelines issued, the SRO for fintechs (SRO-FT) should be a development-oriented body that serves as a true representative and legitimate arbiter within the sector.
Boilers are a critical part of many chemical manufacturing processes, but they also pose serious safety risks if not operated and maintained properly.
With summer temperatures soaring, the dangers of boiler failure or explosion are heightened as excess heat can cause dangerous pressure buildup. However, incidents occur not due to boiler bursts, but due to the mishandling of chemicals. In the context of above, Federation of Indian micro and small & medium enterprises (FISME) released precautionary guidelines for boiler maintenance and chemical storage for the MSME units.
In a move aimed at streamlining the co-lending landscape and promoting credit access for Micro, Small, and Medium Enterprises (MSMEs), the Department of Financial Services (DFS) is forming a high-level committee with the State Bank of India at the helm.
The primary objective of this committee is to thoroughly examine and address prevailing issues related to co-lending practices while simultaneously devising strategies to bolster MSME credit flow and potentially curb the accelerated growth witnessed in certain segments of consumer lending facilitated through co-lending arrangements, reported BL.
In a significant stride towards digitising the judicial system, the District Courts of Meerut unveiled a state-of-the-art e-filing centre on Wednesday.
The inauguration ceremony was presided over by District Judge Rajat Singh Jain, who formally opened the facility housed within the heritage building located at the e-service centre premises. The establishment of the e-filing centre comes in response to a recent directive from the Supreme Court of India.
The Karnataka government is planning to create a dedicated platform that will provide direct access for state-born startups to venture capitalists and high net-worth individuals, in an effort to revive investments after a prolonged funding winter.
The proposed platform will benefit hundreds of startups incubated under the state government's Elevate program
The only mechanism with the government now is to provide a grant. We want to develop a platform in coordination with private firms to ensure startups get access to credible investors willing to fund them and provide mentorship," said Priyank Kharge, Karnataka's Minister for IT, BT and Skill Development.
A simmering dispute between textile sizing unit owners and the Maharashtra Pollution Control Board (MPCB) came to a head this week over allegations that the regulator plans to shutter operations in the textile hub.
At a meeting on Tuesday organised by the local Sizing Association, industry representatives claimed the MPCB has unfairly targeted their factories while turning a blind eye to other entities discharging an estimated 8.5 crore litres of untreated sewage daily into area rivers and waterways.
The Telangana government is set to adopt six new industrial policies aimed at boosting the state's manufacturing sector and economic growth.
This comes after Chief Minister A. Revanth Reddy reviewed industrial development in the state and called for policies to help Telangana better compete with other countries. During a meeting with officials from the Telangana State Industrial Infrastructure Corporation, Reddy emphasised the need for a revamped industrial strategy.
The United Arab Emirates (UAE) is looking to broaden the scope of its trade agreement with India to further boost bilateral trading volume, according to a senior UAE official.
Feryal Ahmadi, Chief Operating Officer of the Dubai Multi-Commodities Centre (DMCC), stated that the UAE wants to add agri-commodities and critical minerals to the Comprehensive Economic Partnership Agreement (CEPA) with India. The UAE and India signed the historic CEPA in February 2022 to enhance their economic ties. India is the largest trading partner for the Emirates.
In a significant step towards strengthening economic ties and fostering entrepreneurship, the India-US CEO Forum's Working Group 7 (WG7), in collaboration with the United Services Institute (USI) and CyberPeace Foundation, has inaugurated a bilateral knowledge-sharing platform between India and the United States. The platform aims to facilitate inclusive growth, enhance trade opportunities, and enable start-ups and Micro, Small, and Medium Enterprises (MSMEs) to thrive in the digital age.
According to the FISME factor, 20% of MSMEs think that the RBI's directive will lead to fairer lending practices while 80% can't say.
Attracting and retaining employees remains one of the biggest challenges facing entrepreneurs today. A recent Megaphone of Main Street report from SCORE on employee engagement revealed that 60.7% of small business owners rank hiring the right talent as their top challenge, and 45.8% say retaining existing staff is difficult. Another 33% of small business owners say retaining and motivating employees is a "concerning issue."
In the face of adversity, business loans serve as crucial lifelines for maintaining cash flow. Yet, for small and micro enterprises (SMEs), securing credit demands a meticulous approach to avoid lurking dangers such as Non-Performing Assets (NPAs). According to an RBI report, gross NPAs from banks stood at Rs 5.7 lakh crore as of March 2023.
Over the past few years, small business owners have been resilient in the face of change, overcoming a variety of obstacles in the business environment. Despite the challenges of today's economic landscape, it remains clear the reason why small business owners continue to be confident in their revenue and business outlook. Small businesses have the unique ability to create personalized experiences for their customers by getting creative with their outreach and customer engagement techniques, setting them apart from big-box retailers and larger competitors.
Matchbox manufacturers in Tamil Nadu have appealed to the state government to ban the sale of imported Chinese cigar lighters to save their industry which employs over 2 lakh workers. The 700 matchbox units in Kovilpatti, Sattur, Tenkasi and other areas produce 9 crore matchboxes daily, providing direct livelihood to 2 lakh workers, mostly women.
Spacetech startup Agnikul Cosmos on Thursday successfully launched its first sub-orbital test vehicle powered by the world’s first single-piece 3D-printed rocket engine from Sriharikota. The Chennai-based company achieved this milestone two days after it was forced to call off the launch of Agnibaan’s “SubOrbital Technological Demonstrator or SOrTeD” mission.
Logistiex, an e-commerce solutions startup founded in 2023, has raised USD 250,000 in a bridge funding round led by PACE Family Office, bolstered by contributions from angel investors including Siddhant Khemka. The fresh capital injection will be utilised to bolster product development efforts and expand the company's tech team, according to Sarvartha Kanchan, Founder and Chief Executive Officer of Logistiex.
