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President Message
The BJP Government has been sworn in under leadership of Prime Minister Modi, third time in a row. A feat with just one parallel after more than 60 years. Many political pundits are casting doubts about its efficacy as the ruling party does not have majority on its own, but rests on two major collation partners this time. Having seen coalition governments of many hues in the last few decades, our assessment is that even weak coalition governments can be effective or majority party governments ineffective. What is important is the conviction in the leadership for important initiatives and ability to engage stakeholders through consultations. One issue that has emerged during elections, very strongly, is the urgent need to create more jobs. The way Ministries have engaged FISME prior to and immediately after election, we have no doubt whatsoever that economic policies will remain on course and the focus on manufacturing will continue and get even more pronounced. In just a few days, Finance Minister is meeting the industry captains and I am also going to represent MSMEs for pre-budget consultations. Industry bodies need to play a leadership role in demanding what is good for the whole country and not just guided by their narrow sectoral interests.
For business owners, few aspects matter more than credibility. Entrepreneurs who don't take time to maximize their credibility will struggle to win favorable terms with suppliers, attract investors, retain existing clients and land new business. Through personal experience, and the annual B2B BuyerSCAN survey conducted by my company, I have studied how credibility is killed and how to recover. For business owners, few aspects matter more than credibility. Entrepreneurs who don't take time to maximize their credibility will struggle to win favorable terms with suppliers, attract investors, retain existing clients and land new business.
A nation-wide apprenticeship programme and extended Agniveer tenure, support for MSMEs, and MSP law for farmers are needed urgently. A new government has been sworn in, with Narendra Modi taking charge as Prime Minister for the third time. Though his party has not been able to secure an absolute majority in the Lok Sabha, as on two previous occasions, it is still the single-largest party. So, after the last 10 years, India’s polity is reverting to a coalition configuration, which is a more common historic pattern.This should not be surprising for a country that exhibits incredible diversity in every conceivable dimension. In that sense, the national election to the Lok Sabha is not one, but 543 separate elections.
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India's total exports witnessed robust growth in May 2024, according to the latest data released by the government.
The country's combined merchandise and services exports were estimated at USD 68.29 billion, registering a positive growth of 10.25 per cent compared to May 2023. Merchandise exports grew by 9.10 per cent to USD 38.13 billion in May 2024, up from USD 34.95 billion in May 2023. Services exports also showed significant improvement, estimated at USD 30.16 billion in May 2024, compared to USD 26.99 billion in May 2023.
India's gems and jewellery sector demonstrated resilience in the face of global economic headwinds, according to the latest export data for April to May 2024.
The sector recorded gross exports of USD 4,691.58 million (Rs. 39,123.07 crores), reflecting a slight decline of 5.94 per cent in dollar terms and 4.56 per cent in rupee terms compared to the same period last year. Despite the overall dip, several segments within the industry exhibited robust growth. Gold jewellery exports surged by 15.4 per cent to USD 1,420.55 million, with plain gold jewellery leading the charge at a 30.66 per cent increase. Silver jewellery exports also rose significantly by 22.47 per cent to USD 178.8 million.
India's foreign exchange reserves soared to a record level of USD 651.5 billion as of May 31, 2024, marking a substantial increase of USD 4.8 billion, the Reserve Bank of India (RBI) Governor Shaktikanta Das announced on Friday. This announcement was made in conjunction with key decisions pertaining to the nation's monetary policy.
The central bank had previously reported a dip of USD 2 billion to USD 646.67 billion as of May 24, temporarily retreating from the previous all-time high of USD 648.7 billion.
The India Energy Storage Alliance (IESA), a leading industry body, is set to release a comprehensive "white paper" outlining recommendations to tackle key policy and regulatory challenges facing the electric vehicle (EV), clean technology (cleantech), green hydrogen, and battery storage sectors in India.
The much-awaited white paper will be unveiled at the India Energy Storage Week (IESW) 2024, an international conference and expo scheduled to take place in New Delhi from July 1-5. The event is expected to draw over 200 global energy leaders from more than 50 countries.
The State Bank of India (SBI), the nation's preeminent banking institution, unveiled a pioneering digital lending initiative aimed at revolutionising access to credit for micro, small, and medium enterprises (MSMEs) across the country.
Titled ‘SME Digital Business Loans,’ this cutting-edge platform leverages advanced data analytics and automated closure to condense the entire loan sanctioning process to a mere 45 minutes from start to finish.Developed as part of SBI's strategic focus on the MSME segment for driving future growth, the new offering harnesses application programming interfaces (APIs) to seamlessly integrate verified data sources such as income tax returns, goods and services tax (GST) filings, and bank statements.
In its latest monetary policy review meeting, the Reserve Bank of India's (RBI) Monetary Policy Committee (MPC) maintained the repo rate at 6.5 per cent for the eighth consecutive time.This decision marks the first MPC gathering since the recently concluded general elections. During the post-meeting press conference, RBI Governor Shaktikanta Das announced an upward revision of the gross domestic product (GDP) growth projection for the fiscal year 2024-25 to 7.2 per cent, an increase from the earlier estimate of 7 per cent.
The Commerce Department of India is formulating a comprehensive 100-day action plan aimed at boosting the country's trade and export capabilities, according to senior government officials.
One major element under consideration is allowing special economic zones (SEZs) to sell goods in the domestic market upon payment of applicable duties
The Tamil Nadu government has unveiled plans for a comprehensive skill development programme in textiles through the state's Skill Development Corporation.
Given the textile industry's prominence in the regional economy and its substantial employment potential, the initiative aims to equip youth with industry-relevant capabilities across various aspects of textile manufacturing and production. According to government officials, the programme will feature a thorough curriculum and hands-on training components, providing participants with valuable insights and practical experience to facilitate career opportunities in the textile sector.
The government of Uttar Pradesh has unveiled a series of measures aimed at stimulating the state's rural economy and startup ecosystem.
These initiatives focus on enhancing institutional credit flow and promoting self-employment opportunities for the youth.
According to state officials, approximately 8,300 enterprises are slated to receive funding under two credit schemes: the Mukhyamantri Yuva Swarojgar Yojana (MYSY) and the Mukhyamantri Gramodyog Rojgar Yojana (MMGRY).
West Bengal Government claims that the State has emerged as a significant ground for micro, small and medium enterprises (MSMEs), ranking among the top states in promoting and supporting the growth of this vital sector.
According to Dr. Shashi Panja, Minister for Industries, Commerce & Enterprises in West Bengal, the state has implemented several innovative initiatives to facilitate the development of MSMEs.
Kerala Start-up Mission (KSUM), the state government's nodal agency for entrepreneurship development and incubation activities, is organising an Artificial Intelligence (AI) conclave in collaboration with Google for Start-ups on June 14 at Technopark in Thiruvananthapuram.
Titled 'AI Day for Start-ups,' the event aims to assist nascent start-ups in quickly integrating generative AI solutions into their products through a series of multi-format sessions designed by Google for Start-ups.
The Indian government is considering allowing new joint ventures between domestic and Chinese companies, provided the Indian partner maintains a majority stake, according to multiple industry executives seeking such partnerships.
Senior officials from the Department for Promotion of Industry and Internal Trade (DPIIT) have been engaging with chief executives to facilitate these potential joint ventures, said the sources, who requested anonymity due to the sensitive nature of the discussions
India and Qatar reaffirmed their commitment to strengthening bilateral economic relations during the first meeting of their Joint Task Force on Investment (JTFI) held on Thursday, according to an official statement.
The meeting, co-chaired by Ajay Seth, Secretary of India's Department of Economic Affairs, and Mohamed bin Hassen Al-Malki, Undersecretary of Qatar's Ministry of Commerce and Industry, underscored the robust economic partnership between the two nations. "The Joint Task Force has reiterated both countries' resolve to leverage their collaborative potential for accelerated growth, investment prospects and synergistic cooperation across diverse sectors encompassing infrastructure, energy, technology and innovation," the statement said.
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.
How to Combat Payment Fraud and Negative Cash Flow
Payment fraud poses significant risks for small businesses, often overlooked by the owners. Ignoring this threat can lead to devastating consequences, even business closure. Shockingly, the SEON report of 2021 revealed a staggering 1,862 data breaches and 293 million victims, highlighting the pervasive threat. Business owners must prioritize security and stay vigilant against evolving fraud tactics to safeguard their businesses and customers.
5 Small Business Marketing Tactics to See Results This Quarter
There's always a push-and-pull between long-term marketing and short-term financial goals, but there are several small business marketing tactics you can implement today that will bring you short-term results while also setting you up for long-term success.
Import Tariffs Must Be Reduced From 18% To Below 10%
A leading think tank, the Global Trade Research Initiative (GTRI), has proposed several key economic reforms for India's new government including simplifying the customs duty structure, which has not been reviewed in 20 years, leading to complex rates. The GTRI suggests this simplification could reduce the average import tariff from 18.1 per cent to below 10 per cent.
Shivalik Small Finance Bank Appoints MSME Veteran Dinesh Singhal as Independent Director
Shivalik Small Finance Bank, the pioneering institution that transitioned from an urban cooperative bank to a small finance bank, has announced the appointment of Dinesh Singhal as an independent director to its board.
Singhal, an alumnus of the prestigious Indian Institute of Technology (IIT) Roorkee, brings a wealth of experience in the Micro, Small, and Medium Enterprises (MSME) sector.
Mumbai-based quick commerce startup Zepto is raises USD 660 million in a new funding round, valuing the company at USD 3.62 billion, more than doubling its previous USD 1.4 billion valuation from August 2022.
The financing will see participation from new investors including DST Global, Lightspeed Venture Partners, Avenir Growth, and Anu Hariharan's Avra Capital. Existing backers like StepStone Group, Nexus Venture Partners, and Glade Brook Capital are also reinvesting.
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 April 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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The BJP Government has been sworn in under leadership of Prime Minister Modi, third time in a row. A feat with just one parallel after more than 60 years. Many political pundits are casting doubts about its efficacy as the ruling party does not have majority on its own, but rests on two major collation partners this time. Having seen coalition governments of many hues in the last few decades, our assessment is that even weak coalition governments can be effective or majority party governments ineffective. What is important is the conviction in the leadership for important initiatives and ability to engage stakeholders through consultations. One issue that has emerged during elections, very strongly, is the urgent need to create more jobs. The way Ministries have engaged FISME prior to and immediately after election, we have no doubt whatsoever that economic policies will remain on course and the focus on manufacturing will continue and get even more pronounced. In just a few days, Finance Minister is meeting the industry captains and I am also going to represent MSMEs for pre-budget consultations. Industry bodies need to play a leadership role in demanding what is good for the whole country and not just guided by their narrow sectoral interests.
For business owners, few aspects matter more than credibility. Entrepreneurs who don't take time to maximize their credibility will struggle to win favorable terms with suppliers, attract investors, retain existing clients and land new business. Through personal experience, and the annual B2B BuyerSCAN survey conducted by my company, I have studied how credibility is killed and how to recover. For business owners, few aspects matter more than credibility. Entrepreneurs who don't take time to maximize their credibility will struggle to win favorable terms with suppliers, attract investors, retain existing clients and land new business.
India's total exports witnessed robust growth in May 2024, according to the latest data released by the government.
The country's combined merchandise and services exports were estimated at USD 68.29 billion, registering a positive growth of 10.25 per cent compared to May 2023. Merchandise exports grew by 9.10 per cent to USD 38.13 billion in May 2024, up from USD 34.95 billion in May 2023. Services exports also showed significant improvement, estimated at USD 30.16 billion in May 2024, compared to USD 26.99 billion in May 2023.
India's gems and jewellery sector demonstrated resilience in the face of global economic headwinds, according to the latest export data for April to May 2024.
The sector recorded gross exports of USD 4,691.58 million (Rs. 39,123.07 crores), reflecting a slight decline of 5.94 per cent in dollar terms and 4.56 per cent in rupee terms compared to the same period last year. Despite the overall dip, several segments within the industry exhibited robust growth. Gold jewellery exports surged by 15.4 per cent to USD 1,420.55 million, with plain gold jewellery leading the charge at a 30.66 per cent increase. Silver jewellery exports also rose significantly by 22.47 per cent to USD 178.8 million.
India's foreign exchange reserves soared to a record level of USD 651.5 billion as of May 31, 2024, marking a substantial increase of USD 4.8 billion, the Reserve Bank of India (RBI) Governor Shaktikanta Das announced on Friday. This announcement was made in conjunction with key decisions pertaining to the nation's monetary policy.
The central bank had previously reported a dip of USD 2 billion to USD 646.67 billion as of May 24, temporarily retreating from the previous all-time high of USD 648.7 billion.
The India Energy Storage Alliance (IESA), a leading industry body, is set to release a comprehensive "white paper" outlining recommendations to tackle key policy and regulatory challenges facing the electric vehicle (EV), clean technology (cleantech), green hydrogen, and battery storage sectors in India.
The much-awaited white paper will be unveiled at the India Energy Storage Week (IESW) 2024, an international conference and expo scheduled to take place in New Delhi from July 1-5. The event is expected to draw over 200 global energy leaders from more than 50 countries.
The State Bank of India (SBI), the nation's preeminent banking institution, unveiled a pioneering digital lending initiative aimed at revolutionising access to credit for micro, small, and medium enterprises (MSMEs) across the country.
Titled ‘SME Digital Business Loans,’ this cutting-edge platform leverages advanced data analytics and automated closure to condense the entire loan sanctioning process to a mere 45 minutes from start to finish.Developed as part of SBI's strategic focus on the MSME segment for driving future growth, the new offering harnesses application programming interfaces (APIs) to seamlessly integrate verified data sources such as income tax returns, goods and services tax (GST) filings, and bank statements.
In its latest monetary policy review meeting, the Reserve Bank of India's (RBI) Monetary Policy Committee (MPC) maintained the repo rate at 6.5 per cent for the eighth consecutive time.This decision marks the first MPC gathering since the recently concluded general elections. During the post-meeting press conference, RBI Governor Shaktikanta Das announced an upward revision of the gross domestic product (GDP) growth projection for the fiscal year 2024-25 to 7.2 per cent, an increase from the earlier estimate of 7 per cent.
The Commerce Department of India is formulating a comprehensive 100-day action plan aimed at boosting the country's trade and export capabilities, according to senior government officials.
One major element under consideration is allowing special economic zones (SEZs) to sell goods in the domestic market upon payment of applicable duties
The Tamil Nadu government has unveiled plans for a comprehensive skill development programme in textiles through the state's Skill Development Corporation.
Given the textile industry's prominence in the regional economy and its substantial employment potential, the initiative aims to equip youth with industry-relevant capabilities across various aspects of textile manufacturing and production. According to government officials, the programme will feature a thorough curriculum and hands-on training components, providing participants with valuable insights and practical experience to facilitate career opportunities in the textile sector.
The government of Uttar Pradesh has unveiled a series of measures aimed at stimulating the state's rural economy and startup ecosystem.
These initiatives focus on enhancing institutional credit flow and promoting self-employment opportunities for the youth.
According to state officials, approximately 8,300 enterprises are slated to receive funding under two credit schemes: the Mukhyamantri Yuva Swarojgar Yojana (MYSY) and the Mukhyamantri Gramodyog Rojgar Yojana (MMGRY).
West Bengal Government claims that the State has emerged as a significant ground for micro, small and medium enterprises (MSMEs), ranking among the top states in promoting and supporting the growth of this vital sector.
According to Dr. Shashi Panja, Minister for Industries, Commerce & Enterprises in West Bengal, the state has implemented several innovative initiatives to facilitate the development of MSMEs.
Kerala Start-up Mission (KSUM), the state government's nodal agency for entrepreneurship development and incubation activities, is organising an Artificial Intelligence (AI) conclave in collaboration with Google for Start-ups on June 14 at Technopark in Thiruvananthapuram.
Titled 'AI Day for Start-ups,' the event aims to assist nascent start-ups in quickly integrating generative AI solutions into their products through a series of multi-format sessions designed by Google for Start-ups.
The Indian government is considering allowing new joint ventures between domestic and Chinese companies, provided the Indian partner maintains a majority stake, according to multiple industry executives seeking such partnerships.
Senior officials from the Department for Promotion of Industry and Internal Trade (DPIIT) have been engaging with chief executives to facilitate these potential joint ventures, said the sources, who requested anonymity due to the sensitive nature of the discussions
India and Qatar reaffirmed their commitment to strengthening bilateral economic relations during the first meeting of their Joint Task Force on Investment (JTFI) held on Thursday, according to an official statement.
The meeting, co-chaired by Ajay Seth, Secretary of India's Department of Economic Affairs, and Mohamed bin Hassen Al-Malki, Undersecretary of Qatar's Ministry of Commerce and Industry, underscored the robust economic partnership between the two nations. "The Joint Task Force has reiterated both countries' resolve to leverage their collaborative potential for accelerated growth, investment prospects and synergistic cooperation across diverse sectors encompassing infrastructure, energy, technology and innovation," the statement said.
According to the FISME factor, 20% of MSMEs think that India can achieve its goal of becoming a $20 trillion economy by 2047 while 80% can't say.
Payment fraud poses significant risks for small businesses, often overlooked by the owners. Ignoring this threat can lead to devastating consequences, even business closure. Shockingly, the SEON report of 2021 revealed a staggering 1,862 data breaches and 293 million victims, highlighting the pervasive threat. Business owners must prioritize security and stay vigilant against evolving fraud tactics to safeguard their businesses and customers.
There's always a push-and-pull between long-term marketing and short-term financial goals, but there are several small business marketing tactics you can implement today that will bring you short-term results while also setting you up for long-term success.
A leading think tank, the Global Trade Research Initiative (GTRI), has proposed several key economic reforms for India's new government including simplifying the customs duty structure, which has not been reviewed in 20 years, leading to complex rates. The GTRI suggests this simplification could reduce the average import tariff from 18.1 per cent to below 10 per cent.
Shivalik Small Finance Bank, the pioneering institution that transitioned from an urban cooperative bank to a small finance bank, has announced the appointment of Dinesh Singhal as an independent director to its board.
Singhal, an alumnus of the prestigious Indian Institute of Technology (IIT) Roorkee, brings a wealth of experience in the Micro, Small, and Medium Enterprises (MSME) sector.
Mumbai-based quick commerce startup Zepto is raises USD 660 million in a new funding round, valuing the company at USD 3.62 billion, more than doubling its previous USD 1.4 billion valuation from August 2022.
The financing will see participation from new investors including DST Global, Lightspeed Venture Partners, Avenir Growth, and Anu Hariharan's Avra Capital. Existing backers like StepStone Group, Nexus Venture Partners, and Glade Brook Capital are also reinvesting.
“ Smart people learn from everything and everyone. Average people from their experiences. Stupid people already have all the answers. ”
