If you are unable to view this mailer, click here.
President's Message
"The Financial Chronicle ran a headline the other day: ‘GST- Govt. sprints, Industry crawls’. It has a grain of truth. May be industry got so fed-up with perpetual delays on GST over the decades that it thought that nothing would happen this time too. But the speed and determination with which the Govt. moved surprised even the sceptics. The constitutional amendment for GST is passed, GST council is in place, formats for submission, refund etc are placed in public domain for comments and the GSTN network is being tested. It is industry’s turn to do catch-up act now. Given the inherent complexities in a GST regime, the tax administration legacies and the issues of centre and the states, operationalizing GST is going to be a huge challenge. FISME considers GST a crucial reform. At the same time we are acutely conscious of the fact that industry particularly the MSMEs may face implementation pains.
I am happy to inform that SIDBI and MSME are initiating a nationwide campaign of Roundtables and webinars to inform MSMEs of the current status of GST implementation and seek their feedback on operational/ implementation related issues. Following the interactions, FISME & SIDBI are to publish a guide for MSMEs. FISME, which has been specifically asked by Ministry of MSME to take a lead in in this regard, shall propose a slew of capacity building measures to facilitate seamless transition by MSMEs to the GST regime.
"
SIDBI-FISME national campaign on GST: Roundtables, Webinars and Guide for MSMEs 1st in the series GST: Identifying implications & facilitating adoption by MSMEs
13th October 2016, New Delhi
A two member delegation comprising of Shri Dinesh Singhal, Past President and CMD, Kanohar Electricals Ltd and Shri Anil Bhardwaj, Secretary General met Prof. Bibek Debroy, Member of NITI Aayog recently. Some of the important issues discussed and on which NITI aayog could initiate action were the need: to evolve India specific framework for Credit Rating; to develop a comprehensive model to capacitate, empower and incentivize Urban Development Agencies/ Municipal Corporations at ground to promote trade and investment and improve ‘Ease of Doing Business’; to commission a critical study of the orders passed by the ERCs to assess functioning of DISCOMS and evaluate effectiveness of ERCs; and to evaluate efficacy of various MSME support schemes and suitable realignment / enhancement in their outlays.
A high level delegation from the Federation of Nepal Cottage and Small Industries (FNCSI) accompanying the Prime Minister of Nepal has visited FISME.
Shyam Giri, President of FNCSI, told KNN that their mission is to develop a SAARC wide interlink within MSMEs and to start with, they would like to have an institutional mechanism for sustained collaboration within MSMEs of India and Nepal.
In course of their mission, the FNCSI delegation is meeting various stakeholders in India and interacted with senior office bearers of FISME, the leading federation of Indian MSMEs.
At my company, we've always focused on continually improving and innovating our services, and believe that as long as we continue down this path, growth will be a byproduct (this has worked for the last 15 years). Greg told us about how he never focused on how to make Cross fit more profitable; rather, he sought to make the program a better experience for his athletes, helping them achieve their goals.
The issue is whether the Centre can prevent a 2013-type macroeconomic crisis and rein in government-driven inflation
The economic reforms record of the NDA government in the past two years has recently been the subject of media headlines. The trigger was rating agency Moody’s decision to retain India’s rating at the lowest investment level.
India has become the second most competitive BRICS economy and will grow faster than China this year, according to the latest edition of the Global Competitiveness Index of the World Economic Forum.
The report showed India’s competitiveness improved the fastest in 2015-16, jumping 16 places to rank 39th among 138 countries on the index, with the “stellar areas of improvement” being public institutions and increasing transparency in the financial system.
Enthused by improvement in India's rank in WEF's Competitiveness Index, the government today exuded confidence that the country will witness a similar gain in the World Bank's ease of doing business ranking and it may also prompt a sovereign ratings upgrade.
Although global credit rating agencies follow their own procedure, they will certainly take into account the 16-point jump in India's ranking in the World Economic Forum's Index, Finance Minister Arun Jaitley told reporters here.
To make tax payments less cumbersome for taxpayers, the government has proposed that over-the-counter cash payments of rs 10,000 and above as tax by private companies and traders will not be allowed under the goods and services tax (GST) regime.
The draft payment rules, released by the Central Board of Excise and Customs (CBEC), have instead recommended that all tax payments under GST be done electronically through Internet banking, debit/credit card or NEFT/RTGS.
The Goods & Services Tax (GST) Council arrived at three important consensus after its second day of meeting - threshold limit at Rs 20 lakh; the draft compensation formula and the issue of dual control.
The threshold has been fixed at Rs 20 lakh annual turnover which means that an entity having daily sales worth around Rs 5,500 would not come under the GST bracket.
Businesses with an annual turnover of up to Rs. 10 lakh in the North East and hill states and Rs. 20 lakh in all other states will be exempt from GST, Finance Minister Arun Jaitley said on Friday after the meeting of the Council.
The commerce and industry ministry is looking to engage consultants to promote the government's Startup India campaign for budding entrepreneurs.
The department of industrial policy and promotion (DIPP), under the ministry, has issued an advertisement for engaging a senior consultant and two consultants for the Startup India initiative.
It has invited applications from eligible candidates for "engagement as senior consultant/consultant on contractual basis."
The finance ministry has revised the declarations to be furnished by exporters who manufacture export goods by using inputs procured from domestic sources without payment of excise duty or under claim of rebate of excise duty paid on them. The amendment aims to remove an unnecessary difficulty that exporters face.
To expedite the payments of vendors stuck with the PSUs, the Ministry of Micro, Small and Medium Enterprises (MSME) has asked the suppliers to approach its Facilitation Council to get their grievances redressed.
The Ministry has said, “MSME unit can approach Micro and Small Enterprise Facilitation Council (MSEFC) in their State to redress their delayed payment grievance.”
The Ministry has come up with the MSEFC Delayed Payment Monitoring System (MDPMS) which reveals
In the backdrop of the continued challenging global environment being faced by Indian exporters, Department of Commerce has extended support to certain new products and enhanced the rate of incentives for certain other specified products under the Merchandise Exports from India Scheme (MEIS).
The major highlights of the support include addition of 2901 additional products falling under different product categories.
The Khadi Village and Industries Board (KVIB), which has been designated as nodal agency for establishment of clusters in Jammu and Kashmir by the Ministry of Micro Small and Medium Enterprises (MSME), would soon be submitting its reports on the progress of the project.
KVIB would to establish units like Health care centers, Gyms and Fruity Packing box units in every district to propagate the schemes being implemented by the KVIB to benefit the youth
Improving ease of doing business environment for city based businessmen, the Brihanmumbai Municipal Corporation (BMC) is planning to come up with a Single Window Clearance system to facilitate businessmen in their various transactions with the corporation.
Aditya Thackeray, Chief of Shiv Sena Youth Wing, made the announcement on Sunday.
"I spoke to the BMC Commissioner and he informed me that very soon Mumbaikars are going to have a Single Window Clearance System for the entire city," said Thackeray, according to a media report.
The Rajasthan Cabinet has given in-principle approval to the Rajasthan Protection of Interests of Depositors (in Financial Establishments) Ordinance, 2016. The provisions in the Ordinance shall protect the interest of depositors in case of fraudulent default by any financial establishment. It will be sent to the President of India through Governor for his consent. Briefing the media after cabinet meeting Parliamentary Affairs Minister Rajendra Rathore informed that provision has been made in the Ordinance that if financial establishment defaults any repayment of deposit on maturity along with any benefit as promised or fails to render service as assured against the deposit such financial
To ensure that the products manufactured in Bengal get proper market access, West Bengal Government is trying new initiatives like floating market in the waters and Biswa Bangla stores.
The floating market would come up at the banks of Bagjola canal, located near the upcoming international convention centre at New Town.
The Housing Infrastructure Development Corporation (HIDCO), along with the irrigation department, has taken up for the 2 km stretch along the canal.
India has identified infrastructure development and energy security as the key areas for cooperation with Nigeria and said these sectors would allow both countries to collaborate and benefit from each other's expertise. "Infrastructure stimulation programmes launched by the government of India, like the mission to develop 100 smart cities, upgrade infrastructure development in urban and rural areas and enhance nationwide connectivity through the 'Digital India'
India will invest up to $2 billion in Sri Lanka over the next four years in a range of sectors including real estate, energy and infrastructure, its Commerce and Industry Minister Nirmala Sitharaman said on Tuesday.
India is Sri Lanka's largest trading partner and the South Asian neighbours are considering a broader trade agreement as President Maithripala Sirisena's government tilts towards New Delhi after his predecessor pursued a pro-China policy.
The data released by the World Economic Forum (WEF) shows that India’s ranking in the Global Competitiveness Index (GCI) has improved by 16 places for the second year in a row.
According to the latest ranking, he said that India is placed 39th among 138 countries, ahead of BRICS countries other than China which is ranked 28th.
Union Finance Minister Arun Jaitley said this adding that India’s rank has steadily improved from 71 in 2014-15 to 55 in 2015-16 and to 39 in the latest report. With this improvement in its ranking, India has covered a long distance and is well on its way to emerge as a major player in the global economy, he added.
Tender on Supply of Advanced Electricity Metering System
It may be of interest to you to know that Uzbekistan’s Joint Stock Company “Uzbekenergo” has released a tender for “supply, installation and implementation of AEM System “. The Notice states that the financing for the project “ Advanced Electricity Metering Project” has been received from the Islamic Development Bank and that a part of it will be utilized for procurement of meters.
Will The Next RBI Governor Be Able To Slip Into Raghuram Rajan's Shoes Easily?
According to the FISME Factor, 100 percent of Micro, Small and Medium Enterprises (MSMEs) think that the new RBI Governor will be able to slip easily into Raghuram Rajan’s shoes.
How young achievers can turn adversity into strength to reach the ultimate goal
"Now when I climb the mountains I don't have fear of frost bite," Mark Inglis, first double amputee to climb Mount Everest, very matter-of-factly told a bunch of 40 young achievers under 40 and a gathering of top CEOs of India Inc.
Founder's Diary: How to battle the funding squeeze in today's start-up market
The start-up scenario began with huge rounds of funding in 2015; totalling to a whopping $3.5 billion. However, the investments have slowed in 2016, resulting into a downturn of 40 per cent. According to research, the number shrank to $2.1 billion in the first-half of 2016, signalling a challenging year for start-ups; with recent stories to that effect too.
To advertise or not to advertise, a startup's dilemma
Leo Burnett, the founder of the global advertising company once said, 'The sole purpose of business is service. The sole purpose of advertising is explaining the service which business renders.'
Sharp drop in merchandise exports mainly contributed to a loss of 70,000 jobs during the second quarter of 2015 reinforcing a crucial point that the employment generation has to be led by the domestic demand in the wake of subdued global demand, a study noted.
Startup India learning programme now gets an official 'UpGrad'
The government has appointed online learning platform UpGrad as the official education partner for its ‘StartUp India’ learning programme. UpGrad, cofounded by Ronnie Screwvala, Mayank Kumar, Ravijot Chugh, and PrabhavBSE 1.42 % Phalgun, will offer a four-week course — varied from its flagship 15-week programme
Bangalore startup launches solutions for SME automations
ITaaS Solution to allow SMEs Automate Business Processes G7CR Technologies today announced the launch of its Business Enablement & Automation Program (BEAP) for SMEs, the world's first free suite of custom solutions for SME automation.
The Central Statistics Office (CSO), Ministry of Statistics and Programme Implementation, has released the Consumer Price Index numbers on base 2012=100 for rural, urban and combined for the month of June 2016
“ A successful entrepreneur can't be afraid of failures or setbacks. An initial setback can be a great opportunity to take a new and more promising approach to any problem, to come back stronger than ever. ”
– - John Victor Roos, a former United States Ambassador to Japan and former technology lawyer, was the CEO of Silicon Valley-based law firm Wilson Sonsini Goodrich & Rosati.
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.
send mail to: newsletter@fisme.org.in
You are receiving this Newsletter because you are included in our mailing list of recipients who are involved or interested in FISME or Indian MSMEs. You are welcome to partly or fully reproduce and disseminate the contents of this publication provided that you acknowledge the source.
This Newsletter is edited by the FISME Secretariat. We welcome contributions as well as comments and suggestions. Please write to newsletter@fisme.org.in
"The Financial Chronicle ran a headline the other day: ‘GST- Govt. sprints, Industry crawls’. It has a grain of truth. May be industry got so fed-up with perpetual delays on GST over the decades that it thought that nothing would happen this time too. But the speed and determination with which the Govt. moved surprised even the sceptics. The constitutional amendment for GST is passed, GST council is in place, formats for submission, refund etc are placed in public domain for comments and the GSTN network is being tested. It is industry’s turn to do catch-up act now. Given the inherent complexities in a GST regime, the tax administration legacies and the issues of centre and the states, operationalizing GST is going to be a huge challenge. FISME considers GST a crucial reform. At the same time we are acutely conscious of the fact that industry particularly the MSMEs may face implementation pains.
I am happy to inform that SIDBI and MSME are initiating a nationwide campaign of Roundtables and webinars to inform MSMEs of the current status of GST implementation and seek their feedback on operational/ implementation related issues. Following the interactions, FISME & SIDBI are to publish a guide for MSMEs. FISME, which has been specifically asked by Ministry of MSME to take a lead in in this regard, shall propose a slew of capacity building measures to facilitate seamless transition by MSMEs to the GST regime.
"
A two member delegation comprising of Shri Dinesh Singhal, Past President and CMD, Kanohar Electricals Ltd and Shri Anil Bhardwaj, Secretary General met Prof. Bibek Debroy, Member of NITI Aayog recently. Some of the important issues discussed and on which NITI aayog could initiate action were the need: to evolve India specific framework for Credit Rating; to develop a comprehensive model to capacitate, empower and incentivize Urban Development Agencies/ Municipal Corporations at ground to promote trade and investment and improve ‘Ease of Doing Business’; to commission a critical study of the orders passed by the ERCs to assess functioning of DISCOMS and evaluate effectiveness of ERCs; and to evaluate efficacy of various MSME support schemes and suitable realignment / enhancement in their outlays.
A high level delegation from the Federation of Nepal Cottage and Small Industries (FNCSI) accompanying the Prime Minister of Nepal has visited FISME.
Shyam Giri, President of FNCSI, told KNN that their mission is to develop a SAARC wide interlink within MSMEs and to start with, they would like to have an institutional mechanism for sustained collaboration within MSMEs of India and Nepal.
In course of their mission, the FNCSI delegation is meeting various stakeholders in India and interacted with senior office bearers of FISME, the leading federation of Indian MSMEs.
At my company, we've always focused on continually improving and innovating our services, and believe that as long as we continue down this path, growth will be a byproduct (this has worked for the last 15 years). Greg told us about how he never focused on how to make Cross fit more profitable; rather, he sought to make the program a better experience for his athletes, helping them achieve their goals.
India has become the second most competitive BRICS economy and will grow faster than China this year, according to the latest edition of the Global Competitiveness Index of the World Economic Forum.
The report showed India’s competitiveness improved the fastest in 2015-16, jumping 16 places to rank 39th among 138 countries on the index, with the “stellar areas of improvement” being public institutions and increasing transparency in the financial system.
Enthused by improvement in India's rank in WEF's Competitiveness Index, the government today exuded confidence that the country will witness a similar gain in the World Bank's ease of doing business ranking and it may also prompt a sovereign ratings upgrade.
Although global credit rating agencies follow their own procedure, they will certainly take into account the 16-point jump in India's ranking in the World Economic Forum's Index, Finance Minister Arun Jaitley told reporters here.
To make tax payments less cumbersome for taxpayers, the government has proposed that over-the-counter cash payments of rs 10,000 and above as tax by private companies and traders will not be allowed under the goods and services tax (GST) regime.
The draft payment rules, released by the Central Board of Excise and Customs (CBEC), have instead recommended that all tax payments under GST be done electronically through Internet banking, debit/credit card or NEFT/RTGS.
The Goods & Services Tax (GST) Council arrived at three important consensus after its second day of meeting - threshold limit at Rs 20 lakh; the draft compensation formula and the issue of dual control.
The threshold has been fixed at Rs 20 lakh annual turnover which means that an entity having daily sales worth around Rs 5,500 would not come under the GST bracket.
Businesses with an annual turnover of up to Rs. 10 lakh in the North East and hill states and Rs. 20 lakh in all other states will be exempt from GST, Finance Minister Arun Jaitley said on Friday after the meeting of the Council.
The commerce and industry ministry is looking to engage consultants to promote the government's Startup India campaign for budding entrepreneurs.
The department of industrial policy and promotion (DIPP), under the ministry, has issued an advertisement for engaging a senior consultant and two consultants for the Startup India initiative.
It has invited applications from eligible candidates for "engagement as senior consultant/consultant on contractual basis."
To expedite the payments of vendors stuck with the PSUs, the Ministry of Micro, Small and Medium Enterprises (MSME) has asked the suppliers to approach its Facilitation Council to get their grievances redressed.
The Ministry has said, “MSME unit can approach Micro and Small Enterprise Facilitation Council (MSEFC) in their State to redress their delayed payment grievance.”
The Ministry has come up with the MSEFC Delayed Payment Monitoring System (MDPMS) which reveals
In the backdrop of the continued challenging global environment being faced by Indian exporters, Department of Commerce has extended support to certain new products and enhanced the rate of incentives for certain other specified products under the Merchandise Exports from India Scheme (MEIS).
The major highlights of the support include addition of 2901 additional products falling under different product categories.
The Khadi Village and Industries Board (KVIB), which has been designated as nodal agency for establishment of clusters in Jammu and Kashmir by the Ministry of Micro Small and Medium Enterprises (MSME), would soon be submitting its reports on the progress of the project.
KVIB would to establish units like Health care centers, Gyms and Fruity Packing box units in every district to propagate the schemes being implemented by the KVIB to benefit the youth
Improving ease of doing business environment for city based businessmen, the Brihanmumbai Municipal Corporation (BMC) is planning to come up with a Single Window Clearance system to facilitate businessmen in their various transactions with the corporation.
Aditya Thackeray, Chief of Shiv Sena Youth Wing, made the announcement on Sunday.
"I spoke to the BMC Commissioner and he informed me that very soon Mumbaikars are going to have a Single Window Clearance System for the entire city," said Thackeray, according to a media report.
The Rajasthan Cabinet has given in-principle approval to the Rajasthan Protection of Interests of Depositors (in Financial Establishments) Ordinance, 2016. The provisions in the Ordinance shall protect the interest of depositors in case of fraudulent default by any financial establishment. It will be sent to the President of India through Governor for his consent. Briefing the media after cabinet meeting Parliamentary Affairs Minister Rajendra Rathore informed that provision has been made in the Ordinance that if financial establishment defaults any repayment of deposit on maturity along with any benefit as promised or fails to render service as assured against the deposit such financial
To ensure that the products manufactured in Bengal get proper market access, West Bengal Government is trying new initiatives like floating market in the waters and Biswa Bangla stores.
The floating market would come up at the banks of Bagjola canal, located near the upcoming international convention centre at New Town.
The Housing Infrastructure Development Corporation (HIDCO), along with the irrigation department, has taken up for the 2 km stretch along the canal.
India has identified infrastructure development and energy security as the key areas for cooperation with Nigeria and said these sectors would allow both countries to collaborate and benefit from each other's expertise. "Infrastructure stimulation programmes launched by the government of India, like the mission to develop 100 smart cities, upgrade infrastructure development in urban and rural areas and enhance nationwide connectivity through the 'Digital India'
India will invest up to $2 billion in Sri Lanka over the next four years in a range of sectors including real estate, energy and infrastructure, its Commerce and Industry Minister Nirmala Sitharaman said on Tuesday.
India is Sri Lanka's largest trading partner and the South Asian neighbours are considering a broader trade agreement as President Maithripala Sirisena's government tilts towards New Delhi after his predecessor pursued a pro-China policy.
The data released by the World Economic Forum (WEF) shows that India’s ranking in the Global Competitiveness Index (GCI) has improved by 16 places for the second year in a row.
According to the latest ranking, he said that India is placed 39th among 138 countries, ahead of BRICS countries other than China which is ranked 28th.
Union Finance Minister Arun Jaitley said this adding that India’s rank has steadily improved from 71 in 2014-15 to 55 in 2015-16 and to 39 in the latest report. With this improvement in its ranking, India has covered a long distance and is well on its way to emerge as a major player in the global economy, he added.
According to the FISME Factor, 100 percent of Micro, Small and Medium Enterprises (MSMEs) think that the new RBI Governor will be able to slip easily into Raghuram Rajan’s shoes.
"Now when I climb the mountains I don't have fear of frost bite," Mark Inglis, first double amputee to climb Mount Everest, very matter-of-factly told a bunch of 40 young achievers under 40 and a gathering of top CEOs of India Inc.
The start-up scenario began with huge rounds of funding in 2015; totalling to a whopping $3.5 billion. However, the investments have slowed in 2016, resulting into a downturn of 40 per cent. According to research, the number shrank to $2.1 billion in the first-half of 2016, signalling a challenging year for start-ups; with recent stories to that effect too.
Leo Burnett, the founder of the global advertising company once said, 'The sole purpose of business is service. The sole purpose of advertising is explaining the service which business renders.'
Sharp drop in merchandise exports mainly contributed to a loss of 70,000 jobs during the second quarter of 2015 reinforcing a crucial point that the employment generation has to be led by the domestic demand in the wake of subdued global demand, a study noted.
The government has appointed online learning platform UpGrad as the official education partner for its ‘StartUp India’ learning programme. UpGrad, cofounded by Ronnie Screwvala, Mayank Kumar, Ravijot Chugh, and PrabhavBSE 1.42 % Phalgun, will offer a four-week course — varied from its flagship 15-week programme
ITaaS Solution to allow SMEs Automate Business Processes G7CR Technologies today announced the launch of its Business Enablement & Automation Program (BEAP) for SMEs, the world's first free suite of custom solutions for SME automation.
“ A successful entrepreneur can't be afraid of failures or setbacks. An initial setback can be a great opportunity to take a new and more promising approach to any problem, to come back stronger than ever. ”
