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President Message
Need To Reorient Export Promotion Efforts Towards Asia
India’s overall exports in FY 2024 reached to US$ 775 Bn. However, while services exports have grown, the merchandise exports have been limping for last several years. Why? All major export markets of India notably in the West are experiencing recession like conditions since the Covid pandemic. This is not a short-term phenomenon. Latest reports point out that the share of West in the world GDP is shrinking since 1990s and that of Asia is expanding which is likely to reach 60% by 2030. The reversal of trend has huge bearing on export promotion policies. It is estimated that today almost 75% of export promotion funds in India are directed to the Western markets. Indian participation in trade fairs in large Asian economies like China, Japan and South Korea is scant and negligible in rapidly growing economies such as Vietnam, Indonesia and Thailand. Due to low exposure, our exports to the region have barely benefited from the FTAs also. Secondly, the narrow focus of existing schemes such as International Cooperation Scheme of Ministry MSME on participation in trade fairs alone also needs to be reviewed. MSMEs should be facilitated in exploring new markets through trade delegations, do market research and hold B2B meetings. There is a need to institutionalize creation of B2B linkages through chambers and trade associations. We have all the ingredients that make trade flourish: logistics, excellent relations, complementarities (in labour and services). Let Asia come under sharp policy support focus. It shall be a win-win relationship.
The Federation of Indian Micro and Small & Medium Enterprises (FISME) in association with Global Alliance for Mass Entrepreneurship (GAME) organised a regional consultation, and hosted by the Federation of Small & Medium Industries (FOSMI) in West Bengal on May 7, 2024. The session focused on MSMEs’ access to finance and the delayed payment provisions of the MSMED Act, featured entrepreneurs' criticism of banks for indulging in unfair practices. During the consultation, a number of suggestions were forwarded by participants for amending the MSMED Act. Many Plastic manufacturing MSME units demanded raising the turnover threshold for small enterprises from Rs 50 crore to Rs 100 crore, due to inflation of raw materials.
The Federation of Indian Micro and Small & Medium Enterprises (FISME), in collaboration with the Global Alliance for Mass Entrepreneurship (GAME) and the Chamber of Small Industry Associations (COSIA), organized a regional roundtable discussion on 'MSMEs’ Access to Finance & Timely Payments'. The discussion was held on May 14, 2024, in Mumbai. This event addressed critical challenges faced by MSMEs, particularly difficulties in accessing finance and delays in payment receipts. The discussion featured open forums on the obstacles to obtaining finance and the impact of delayed payments, alongside group explorations of government schemes and the role of banks and financial institutions in supporting MSMEs. Additionally, the legal framework for timely payments under the MSMED Act and the role of Trade Receivables Discounting System (TReDS) in facilitating timely payments were analysed. Participants also shared best practices for managing delayed payments.
Sustainability might have seemed like a passing fad at first, but today, I believe it’s a must-have for any business. In fact, 78% of consumers believe sustainability is important, according to a report by Nielsen. And, almost half of respondents to a PWC survey said they often or always recommend a brand with good environmental practices. Many businesses might avoid investing in sustainability because they feel it doesn’t add value to their bottom line. But in my years as a consumer packaged goods business owner, I’ve learned that going green can be a great way to preserve customer trust and keep your business in the black.
As economic power continues to shift towards Asia, India is ramping up efforts to boost its exports and solidify its position as a major player in global trade.New data projects that by 2030, Asia's share of global GDP will reach around 58 per cent based on 5-year compound annual growth rates (CAGR).The gravity of change has not sunk into the policy making circles as yet according to Federation of Micro and Small & Medium Enterprises (FISME). “India should revamp its trade promotion policies and focus them on Asia. It would not be efficient to deploy resources for market access in West which is shrinking. Instead India should focus on Asia”...
India's automobile industry witnessed a mixed trend with passenger vehicle exports for April 2024 surging by 21.1 per cent compared to the same month last year, totalling 49,563 units.
Similarly, two-wheeler exports witnessed a 24.3 per cent year-on-year jump, reaching 320,877 units, according to data released by the Society of Indian Automobile Manufacturers (SIAM) on Tuesday. While the overall exports declined by 5.5 per cent year-on-year to 4.5 million units, the passenger vehicle and two-wheeler segments showed signs of recovery in the closing month of April.
India's export of leather and leather products, including sports goods, witnessed a significant decline of nearly 10 per cent in the fiscal year 2023-24 (FY24), dropping from USD 4.75 billion in the previous fiscal to USD 4.28 billion.
The primary reason for this downturn was attributed to poor demand from major markets like the United States and Europe reported businessline.Tamil Nadu, the largest exporter of leather products in India, was hit the hardest by this slump.The state's export of leather products plummeted by 18 per cent, from USD 2.04 billion in FY23 to USD 1.66 billion in FY24, according to data from the Central Government.
The Index of Industrial Production (IIP) increased 4.9 per cent year-on-year in March, slower than the 5.8 per cent cumulative growth for the full fiscal year 2023-24, according to the latest quick estimates from the Ministry of Statistics and Programme Implementation (MoSPI). The mining sector saw a modest 1.2 per cent rise, while manufacturing output rose 5.2 per cent and electricity generation jumped 8.6 per cent.
Among manufacturing sub-sectors, basic metals (7.7 per cent growth), pharmaceuticals (16.7 per cent) and other transport equipment (25.4 per cent) were the top performers in March.
The Indian government is working on establishing a verification system to assist exporters in addressing countervailing duty cases imposed on domestic products under the Remission of Duties and Taxes on Exported Products (RODTEP) scheme.
This move comes as a response to countervailing or anti-subsidy duties imposed by the United States and the European Union (EU) on certain Indian units involved in the reimbursement of levies like electricity duty, VAT on fuel, or APMC taxes under the RODTEP scheme.
The Indian government is mulling over changes to its public procurement policies aimed at boosting domestic manufacturing and production under the Make in India initiative.
According to a senior government official, the Department for Promotion of Industry and Internal Trade (DPIIT) has proposed raising the minimum local content requirements for suppliers bidding on government contracts. Under the current Public Procurement Order, suppliers are classified into three categories based on their local content value addition. Class I, where at least 50 per cent of the content is locally procured, Class II, with 20-50 per cent locally content procured, and non-local suppliers with less than 20 per cent local content.
The pre-packaged insolvency resolution process, introduced through the Insolvency and Bankruptcy Code (Amendment) Act of 2021, has witnessed a measured adoption rate thus far.
This mechanism, tailored for Micro, Small, and Medium Enterprises (MSMEs), offers a hybrid approach allowing corporate debtors and creditors to negotiate and formulate a base resolution plan before initiating formal proceedings.Data from the Insolvency and Bankruptcy Board of India (IBBI) indicates that as of May 31, 2023, eight applications had been filed to initiate pre-packaged insolvency proceedings, of which six were admitted.
The Supreme Court on Monday declined to hear a challenge by micro, small and medium enterprises (MSMEs) against Section 43B(h) of the Income Tax Act rule that restricts them from extending credit to buyers beyond 45 days.
The rule aims to regulate credit practices in the MSME sector and ensure timely payments to address working capital issues these businesses often face. Under the provision, if an MSME registered under the MSMED Act of 2006 allows a credit period of over 45 days to a buyer when selling goods or services, it faces penalties.
The MSME Technology Centre in Visakhapatnam recently organised a major placement drive in collaboration with Tata Advanced Systems Limited (TASL), Hyderabad and the support of Learning Links Foundation and Department of Technical Education, Andhra Pradesh. The drive, held at the MSME TC (V) Pudi campus, aimed to provide employment opportunities for students enrolled in various technical programs like Industrial Training Program on Aerospace Manufacturing, Diploma in Advanced Tool and Die Making, Mechanical Engineering, Mechatronics & Automation, Metallurgy as well as B.Tech in Mechanical Engineering.
Oil and Natural Gas Corporation (ONGC) has taken a major step towards technological advancement and environmental responsibility by launching four state-of-the-art cementing units in Ahmedabad.
These units, crucial for the cementing process in oil wells, are equipped with advanced technology to improve performance, quality, and compliance with environmental standards.The new cementing units feature advanced automation capabilities and a modern slurry mixing system, ensuring superior consistency and precise control over cement parameters.
In a significant ruling, the High Court of Jharkhand has held that occupiers and managers of factories cannot be prosecuted under the Factories Act if a worker meets with an accident despite being provided with adequate safety equipment.
The order underscores that workers also have a duty to ensure their safety by properly utilising equipment made available by the management. Factories cannot be prosecuted for every workplace accident if they have complied with safety norms.
The Tamil Nadu government has opened nominations for its annual Micro, Small and Medium Enterprises (MSME) Sector Awards to recognise outstanding entrepreneurial achievements in the state during the 2023-24 financial year.
With over 50 lakh MSME companies operating in Tamil Nadu, providing employment to more than 1 crore individuals, these awards aim to encourage innovative and competitive businesses in both domestic and global markets.
In the last decade, bilateral trade between India and China has seen a significant increase of 90.14 per cent, growing at an average yearly rate of 12.87 per cent.
In 2022, the overall trade crossed USD 100 billion for the second consecutive year, reaching USD 136.26 billion - an 8.47 per cent year-on-year rise.However, the trade deficit with China stood at a huge USD 101.28 billion as India's imports from China witnessed a major surge. To reduce this risk exposure, the Indian government has been making efforts to ramp up domestic manufacturing in critical areas.
India and the Association of Southeast Asian Nations (ASEAN) are set to hold crucial talks in July to review their existing free trade agreement (FTA), aiming to bolster economic cooperation and facilitate greater trade between the regions.
According to a senior government official, a high-level delegation from ASEAN nations, comprising senior officials, will convene in Jakarta, Indonesia, from July 29 to 31 for the negotiations.The primary focus of the review will be on the ASEAN Trade in Goods Agreement (ATIGA), which has been in effect since 2010.The talks are expected to explore the possibility of including more goods and services under the purview of non-tariff barriers, thereby enhancing trade facilitation and benefiting businesses across the region.
The ESG imperative: Why it matters to the workforce
The 2015 Volkswagen emissions scandal serves as a stark reminder of the consequences companies face when environmental considerations are neglected. The German auto giant’s deliberate deception shattered consumer trust, resulting in boycotts, plummeting sales and a blemish on the brand’s reputation.
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.
Alot of people ask me what I do. I say, I am a content marketer. They then ask me if I write blogs. And when I reply in the negative and say I do marketing, they wonder what the difference is. Anyone can write a blog, but only marketers think beyond writing and make a solid strategy with potential of reaching out to millions of people. Eventually getting tons of traffic to website and convert the visitors into customers.
Bangladesh Transhipment Crowd-out MSME Exporters Delaying Their Air Cargo
The Noida Apparel Export Cluster (NAEC), where 80 per cent of apparel production and export units are classified as Micro, Small and Medium Enterprises (MSMEs), has urged authorities to allocate priority air cargo space for such local enterprises. Their request comes amid escalating concerns over delays and surging freight costs attributed to the transhipment of Bangladeshi export cargo through Delhi's air cargo complex.
Agritech Startup Superplum Raises $15 Million to Expand Premium Fresh Fruit Business
Agritech startup Superplum, which sells premium fresh fruits directly from farms across India, has raised USD 15 million in a Series A funding round.
The investment was led by Erik Ragatz, the incoming chairman of Superplum and former partner at the private equity firm Hellman & Friedman.
How Shipyaari’s trifecta can be the game-changer for business logistics
In the rollercoaster world of logistics, Shipyaari's narrative unfolds like a blockbuster saga, dazzling with its blend of innovation, strategy, and execution. With a 2X revenue boost and a doubled customer base in the last fiscal year, Shipyaari demonstrates the formidable power of harnessing diverse strengths for a unified goal.
The National Statistical Office (NSO), Ministry of Statistics and Programme Implementation (MoSPI) has released the Quick Estimates of Index of Industrial Production (IIP) and Use-Based Index for the month of March 2024 (Base 2011-12=100).
FISME regularly receives monthly reports on the economies of various countries from their missions in India. These reports provide information on key economic parameters, trade related information and all news relevant for importers and exporters. In this edition you can take a look at reports on:
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Need To Reorient Export Promotion Efforts Towards Asia
India’s overall exports in FY 2024 reached to US$ 775 Bn. However, while services exports have grown, the merchandise exports have been limping for last several years. Why? All major export markets of India notably in the West are experiencing recession like conditions since the Covid pandemic. This is not a short-term phenomenon. Latest reports point out that the share of West in the world GDP is shrinking since 1990s and that of Asia is expanding which is likely to reach 60% by 2030. The reversal of trend has huge bearing on export promotion policies. It is estimated that today almost 75% of export promotion funds in India are directed to the Western markets. Indian participation in trade fairs in large Asian economies like China, Japan and South Korea is scant and negligible in rapidly growing economies such as Vietnam, Indonesia and Thailand. Due to low exposure, our exports to the region have barely benefited from the FTAs also. Secondly, the narrow focus of existing schemes such as International Cooperation Scheme of Ministry MSME on participation in trade fairs alone also needs to be reviewed. MSMEs should be facilitated in exploring new markets through trade delegations, do market research and hold B2B meetings. There is a need to institutionalize creation of B2B linkages through chambers and trade associations. We have all the ingredients that make trade flourish: logistics, excellent relations, complementarities (in labour and services). Let Asia come under sharp policy support focus. It shall be a win-win relationship.
The Federation of Indian Micro and Small & Medium Enterprises (FISME) in association with Global Alliance for Mass Entrepreneurship (GAME) organised a regional consultation, and hosted by the Federation of Small & Medium Industries (FOSMI) in West Bengal on May 7, 2024. The session focused on MSMEs’ access to finance and the delayed payment provisions of the MSMED Act, featured entrepreneurs' criticism of banks for indulging in unfair practices. During the consultation, a number of suggestions were forwarded by participants for amending the MSMED Act. Many Plastic manufacturing MSME units demanded raising the turnover threshold for small enterprises from Rs 50 crore to Rs 100 crore, due to inflation of raw materials.
The Federation of Indian Micro and Small & Medium Enterprises (FISME), in collaboration with the Global Alliance for Mass Entrepreneurship (GAME) and the Chamber of Small Industry Associations (COSIA), organized a regional roundtable discussion on 'MSMEs’ Access to Finance & Timely Payments'. The discussion was held on May 14, 2024, in Mumbai. This event addressed critical challenges faced by MSMEs, particularly difficulties in accessing finance and delays in payment receipts. The discussion featured open forums on the obstacles to obtaining finance and the impact of delayed payments, alongside group explorations of government schemes and the role of banks and financial institutions in supporting MSMEs. Additionally, the legal framework for timely payments under the MSMED Act and the role of Trade Receivables Discounting System (TReDS) in facilitating timely payments were analysed. Participants also shared best practices for managing delayed payments.
Sustainability might have seemed like a passing fad at first, but today, I believe it’s a must-have for any business. In fact, 78% of consumers believe sustainability is important, according to a report by Nielsen. And, almost half of respondents to a PWC survey said they often or always recommend a brand with good environmental practices. Many businesses might avoid investing in sustainability because they feel it doesn’t add value to their bottom line. But in my years as a consumer packaged goods business owner, I’ve learned that going green can be a great way to preserve customer trust and keep your business in the black.
India's automobile industry witnessed a mixed trend with passenger vehicle exports for April 2024 surging by 21.1 per cent compared to the same month last year, totalling 49,563 units.
Similarly, two-wheeler exports witnessed a 24.3 per cent year-on-year jump, reaching 320,877 units, according to data released by the Society of Indian Automobile Manufacturers (SIAM) on Tuesday. While the overall exports declined by 5.5 per cent year-on-year to 4.5 million units, the passenger vehicle and two-wheeler segments showed signs of recovery in the closing month of April.
India's export of leather and leather products, including sports goods, witnessed a significant decline of nearly 10 per cent in the fiscal year 2023-24 (FY24), dropping from USD 4.75 billion in the previous fiscal to USD 4.28 billion.
The primary reason for this downturn was attributed to poor demand from major markets like the United States and Europe reported businessline.Tamil Nadu, the largest exporter of leather products in India, was hit the hardest by this slump.The state's export of leather products plummeted by 18 per cent, from USD 2.04 billion in FY23 to USD 1.66 billion in FY24, according to data from the Central Government.
The Index of Industrial Production (IIP) increased 4.9 per cent year-on-year in March, slower than the 5.8 per cent cumulative growth for the full fiscal year 2023-24, according to the latest quick estimates from the Ministry of Statistics and Programme Implementation (MoSPI). The mining sector saw a modest 1.2 per cent rise, while manufacturing output rose 5.2 per cent and electricity generation jumped 8.6 per cent.
Among manufacturing sub-sectors, basic metals (7.7 per cent growth), pharmaceuticals (16.7 per cent) and other transport equipment (25.4 per cent) were the top performers in March.
The Indian government is working on establishing a verification system to assist exporters in addressing countervailing duty cases imposed on domestic products under the Remission of Duties and Taxes on Exported Products (RODTEP) scheme.
This move comes as a response to countervailing or anti-subsidy duties imposed by the United States and the European Union (EU) on certain Indian units involved in the reimbursement of levies like electricity duty, VAT on fuel, or APMC taxes under the RODTEP scheme.
The Indian government is mulling over changes to its public procurement policies aimed at boosting domestic manufacturing and production under the Make in India initiative.
According to a senior government official, the Department for Promotion of Industry and Internal Trade (DPIIT) has proposed raising the minimum local content requirements for suppliers bidding on government contracts. Under the current Public Procurement Order, suppliers are classified into three categories based on their local content value addition. Class I, where at least 50 per cent of the content is locally procured, Class II, with 20-50 per cent locally content procured, and non-local suppliers with less than 20 per cent local content.
The pre-packaged insolvency resolution process, introduced through the Insolvency and Bankruptcy Code (Amendment) Act of 2021, has witnessed a measured adoption rate thus far.
This mechanism, tailored for Micro, Small, and Medium Enterprises (MSMEs), offers a hybrid approach allowing corporate debtors and creditors to negotiate and formulate a base resolution plan before initiating formal proceedings.Data from the Insolvency and Bankruptcy Board of India (IBBI) indicates that as of May 31, 2023, eight applications had been filed to initiate pre-packaged insolvency proceedings, of which six were admitted.
The Supreme Court on Monday declined to hear a challenge by micro, small and medium enterprises (MSMEs) against Section 43B(h) of the Income Tax Act rule that restricts them from extending credit to buyers beyond 45 days.
The rule aims to regulate credit practices in the MSME sector and ensure timely payments to address working capital issues these businesses often face. Under the provision, if an MSME registered under the MSMED Act of 2006 allows a credit period of over 45 days to a buyer when selling goods or services, it faces penalties.
The MSME Technology Centre in Visakhapatnam recently organised a major placement drive in collaboration with Tata Advanced Systems Limited (TASL), Hyderabad and the support of Learning Links Foundation and Department of Technical Education, Andhra Pradesh. The drive, held at the MSME TC (V) Pudi campus, aimed to provide employment opportunities for students enrolled in various technical programs like Industrial Training Program on Aerospace Manufacturing, Diploma in Advanced Tool and Die Making, Mechanical Engineering, Mechatronics & Automation, Metallurgy as well as B.Tech in Mechanical Engineering.
Oil and Natural Gas Corporation (ONGC) has taken a major step towards technological advancement and environmental responsibility by launching four state-of-the-art cementing units in Ahmedabad.
These units, crucial for the cementing process in oil wells, are equipped with advanced technology to improve performance, quality, and compliance with environmental standards.The new cementing units feature advanced automation capabilities and a modern slurry mixing system, ensuring superior consistency and precise control over cement parameters.
In a significant ruling, the High Court of Jharkhand has held that occupiers and managers of factories cannot be prosecuted under the Factories Act if a worker meets with an accident despite being provided with adequate safety equipment.
The order underscores that workers also have a duty to ensure their safety by properly utilising equipment made available by the management. Factories cannot be prosecuted for every workplace accident if they have complied with safety norms.
The Tamil Nadu government has opened nominations for its annual Micro, Small and Medium Enterprises (MSME) Sector Awards to recognise outstanding entrepreneurial achievements in the state during the 2023-24 financial year.
With over 50 lakh MSME companies operating in Tamil Nadu, providing employment to more than 1 crore individuals, these awards aim to encourage innovative and competitive businesses in both domestic and global markets.
In the last decade, bilateral trade between India and China has seen a significant increase of 90.14 per cent, growing at an average yearly rate of 12.87 per cent.
In 2022, the overall trade crossed USD 100 billion for the second consecutive year, reaching USD 136.26 billion - an 8.47 per cent year-on-year rise.However, the trade deficit with China stood at a huge USD 101.28 billion as India's imports from China witnessed a major surge. To reduce this risk exposure, the Indian government has been making efforts to ramp up domestic manufacturing in critical areas.
India and the Association of Southeast Asian Nations (ASEAN) are set to hold crucial talks in July to review their existing free trade agreement (FTA), aiming to bolster economic cooperation and facilitate greater trade between the regions.
According to a senior government official, a high-level delegation from ASEAN nations, comprising senior officials, will convene in Jakarta, Indonesia, from July 29 to 31 for the negotiations.The primary focus of the review will be on the ASEAN Trade in Goods Agreement (ATIGA), which has been in effect since 2010.The talks are expected to explore the possibility of including more goods and services under the purview of non-tariff barriers, thereby enhancing trade facilitation and benefiting businesses across the region.
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.
The 2015 Volkswagen emissions scandal serves as a stark reminder of the consequences companies face when environmental considerations are neglected. The German auto giant’s deliberate deception shattered consumer trust, resulting in boycotts, plummeting sales and a blemish on the brand’s reputation.
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.
Alot of people ask me what I do. I say, I am a content marketer. They then ask me if I write blogs. And when I reply in the negative and say I do marketing, they wonder what the difference is. Anyone can write a blog, but only marketers think beyond writing and make a solid strategy with potential of reaching out to millions of people. Eventually getting tons of traffic to website and convert the visitors into customers.
The Noida Apparel Export Cluster (NAEC), where 80 per cent of apparel production and export units are classified as Micro, Small and Medium Enterprises (MSMEs), has urged authorities to allocate priority air cargo space for such local enterprises. Their request comes amid escalating concerns over delays and surging freight costs attributed to the transhipment of Bangladeshi export cargo through Delhi's air cargo complex.
Agritech startup Superplum, which sells premium fresh fruits directly from farms across India, has raised USD 15 million in a Series A funding round.
The investment was led by Erik Ragatz, the incoming chairman of Superplum and former partner at the private equity firm Hellman & Friedman.
In the rollercoaster world of logistics, Shipyaari's narrative unfolds like a blockbuster saga, dazzling with its blend of innovation, strategy, and execution. With a 2X revenue boost and a doubled customer base in the last fiscal year, Shipyaari demonstrates the formidable power of harnessing diverse strengths for a unified goal.
“ All Birds find shelter during rain. But Eagle avoids rain by flying above clouds. ”
