President's Message
 MSMEs are the trinamool of the industrial sector – they are resilient, flexible and humble – and they need careful nurturing as they provide 90% of jobs in the manufacturing sector.
- Mr V.K. Agarwal
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Dear Readers,
The year 2011 may have been rather indifferent from the point of view of the health of the Indian economy but it turned out to be a great year for the Federation of Indian Micro and Small & Medium Enterprises FISME, India’s largest organisation of micro, small and medium enterprises. Read our report and find out why. Meanwhile, perhaps as a result of the holiday season, there has been a lull in not only in FISME’s activities but that of our partner associations as well. So, this time we have a much smaller newsletter on offer although there is still quite a bit of reading material.
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QMS & QTT Awareness
 The Federation of Indian Micro and Small & Medium Enterprises has been conducting Quality Management Standard (QMS) & Quality Technology Tools (QTT) Awareness Programmes as part of the National Manufacturing Competitiveness Programme of the Ministry of MSMEs, Government of India.
IPR Awareness
 The Federation of Indian Micro and Small & Medium Enterprises will be conducting Intellectual Property Rights (IPR) Awareness Programmes as part of the National Manufacturing Competitiveness Programme of the Ministry of MSMEs, Government of India.
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Policy Polemics
Reforms hit as rules are rigged
How should the policy for FDI not only in retail but in all other sectors of the economy be tweaked to ensure the maximum benefit for MSMEs in particular and the Indian economy in general? This article tries to answer this question while pointing out that vested interests are putting up road blocks on the path of reforms.
Small business essential to an economic jumpstart
Jump-starting the world economy will be a central topic of discussion among world leaders meeting for the next few days at the World Economic Forum in Davos. Many of the business leaders in Davos lead large global companies. This article, however, argues that you cannot talk about growth, jobs, and innovation without talking about small and medium-sized enterprises and how they can contribute to getting the world economy back on track.
HR Heuristics
How do you react to negative feedback or criticism?
In this article, well-known human resources expert and acclaimed author Rashmi Datt writes about how to handle negative feedback or criticism. Some readers may have missed out on her previous article in this newsletter. You may read it here. Rashmi has two books to her credit Managing Your Boss (2005) and And The Lion Smiled at the Rabbit (2011).
Technology Tracker
5 Keys for Building a Corporate Website
Building a new website is a major undertaking, and if it goes wrong, your business survival could be in danger. Your website is a source — often the most important source — of leads, sales and referrals. It’s how people check you out, learn why you’re good, and communicate with you about their needs. Keeping these five points in mind will help see you through a successful web development project.
Finance Fundamentals
Effective risk management is crucial for SMEs
Protiviti Consulting, established in 2006, is the Indian arm of Protiviti Inc, a risk and business consulting firm specialising in internal audit. Protiviti helps both established and emerging companies to identify and manage risk. In this article the company's chief talks to Pravda Godbole about how SMEs can mitigate their business risks and what the government can do to support them.
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Directory of Testing Laboratories in India
Buy our one-of-a-kind guide to all industrial testing laboratories in India. Find the one most convenient for getting your products tested and certified. An invaluable compendium for all industrial units and exporters.
PP: 894, Hard Cover.
Price: Rs 900.
50% discount for members.
Handbook for Managing Export Payment Risks
If you are an exporter you simply cannot do without this unique publication which tells you how to manage payment and other risks arising from exports.
PP: 78.
Price: Rs 300.
50% discount for members.
Free Publications
Fertilizer quality control in India: Need for change
This monograph argues for a systemic change in fertiliser quality control. Essential reading for those in policy-making positions.
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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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Special Report: 2011 in Retrospect
FISME raises the bar even higher
The Federation of Indian Micro and Small and Medium Enterprises (FISME) continued its march towards deepening, widening and strengthening its network of stakeholders to achieve its mission: survival and growth of Indian MSMEs. The year 2011 saw events scaling a new high - its flagship events were attended by Heads of State, Ministers of several foreign countries, Central Ministers and Chief Ministers of States on the one hand, while on the other, its pan-India geographical spread of activities spanned an even wider area covering around 60 stations across 17 Indian states. More importantly, it was able to push a key reform process during the year: a revival and closure mechanism for MSMEs.
West Bengal to set up MSME panel on FISME request
 The West Bengal government, in response to a request made by the Federation of Indian Micro and Small & Medium Enterprises (FISME), India’s largest organisation of micro, small and medium enterprises (MSMEs), has agreed to set up a high level committee to hear and address grievances of the MSME sector as part of its strategy to boost industrial growth in the state. The announcement was made by Partha Chatterjee, the West Bengal commerce and industry minister at the fourth India MSME Summit on January 19, 2012 in Kolkata organised by FISME in collaboration with the Federation of Small and Medium Industries (FOSMI), West Bengal. “The West Bengal government is committed to the growth of the MSME sector and will set up a high powered committee to hear and address the grievances of the sector to ensure their rapid growth,” the minister said while delivering his address as Chief Guest.
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Macro Metre
Subbarao goes halfway, keeps all guessing on rate cut
Reserve Bank of India Governor D Subbarao on Tuesday went halfway by cutting the cash reserve ratio, which determines the amount of cash banks must keep with the central bank, by 50 basis points (bps) to 5.5 per cent. But, the central bank’s refusal to go the full distance was termed “woefully inadequate” by many in industry. Subbarao initially warmed many hearts by saying the CRR reduction “can be viewed as a reinforcement of the guidance that future rate actions will be towards lowering them.” But, what many see as a sting in the tale is RBI’s assertion later in the third-quarter monetary policy statement that “it would be difficult to predict the timing, pace and magnitude of any interest rate cuts” and “strong signs of fiscal consolidation” are necessary for it to happen.
Core sector growth slows to 3.1 per cent in December
Growth in the eight core industries that include crude oil, electricity, steel coal, natural gas, fertilisers and cement slowed to 3.1 per cent during December, 2011 from 6.3 per cent in the corresponding period a year ago, according to data released by the ministry of commerce and industry on Monday.
Drivers of economic growth, the eight industries together contribute 37.9 per cent to the overall index of industrial production (IIP). For the April-December quarter this fiscal, the IIP growth was lower at 4.4 per cent compared to 5.7 per cent in the corresponding period of 2010-11 in wake of deceleration in investment.
MSME growth will be in focus in 12th Plan
 The MSME sector of India is today at the gateway of global growth on the strength of competitive and quality product range. The Report of the Working Group on Micro, Small & Medium Enterprises (MSMEs) Growth for 12th Five Year Plan (2012-2017) feels facilitation from the Government is required to minimize transaction costs of technology up gradation, market penetration, modernization of infrastructure etc.
Sidbi’s Singhwan assumes charge at ISTSL
India SME Technology Services Ltd (ISTSL), which provides technology transfer services to small and medium enterprises, has appointed KS Singhwan as its new chief executive. The new incumbent confirmed the development. ISTSL is a joint venture between Small Industries Development Bank of India, State Bank of India, Oriental Bank of Commerce, Indian Overseas Bank and Indian Bank. It provides a platform where SMEs can tap global opportunities for acquiring new and emerging technology or establish business collaboration. Chandigarh gets new SME cluster
 New industry cluster consisting of twelve-small and medium enterprises (SMEs) from the earth moving and construction equipment industry has commenced operations here recently. The new JCB cluster is part of an initiative by the CII-AVANTHA Centre for Competitiveness for SMEs, which had earlier commenced a similar cluster in the state, starting from May 2010 to November last year.
BSE, NSE gear up to launch SME trading
Exchanges would prefer companies with a sizable fund requirement to start with, say market players. The Bombay Stock Exchange (BSE) and the National Stock Exchange (NSE) are ready to launch trading in the small and medium enterprises (SME) segment and a formal announcement is round the corner, according to officials. However, market players believe key issues regarding market-making and other costs are yet to be addressed.
Late payments by 'big boys' continue to irk SMEs
 Hit hard by late payments that further exhaust their already-stretched cash flow, Indian small and medium enterprises (SMEs) have urged the government to draw up a plan of action in order to ensure that all invoices are paid to them promptly, particularly by large companies — the "big boys" — whom they view as the worst offenders.
IFC may invest $20 million in SME fund Pragati
World Bank’s financial arm IFC (International Finance Corporation) may make an equity investment of up to $20 million in Pragati India Fund, an SME focussed fund that will focus on the economically under-developed low income states of India such as Bihar, Jharkhand, Uttar Pradesh, Madhya Pradesh, Chhattisgarh and Orissa.
MSME Sector to benefit from MoU between NSIC, IOCL
 A recently inked memorandum of understanding (MoU) between NSIC and Indian Oil Corporation Ltd (IOCL) will be helpful for the micro, small and medium enterprises (MSME) sector. National Small Industries Corporation Limited (NSIC), the facilitator of micro, small and medium enterprises (MSMEs), has inked MoU for distributing their polymer products to the MSME units.
Incentivize MSME export sector investment proposals: FIEO
Exporters' body FIEO recently urged the government to incentivize investment linked proposals from the country's micro, small and medium enterprise (MSME) export sector. The government should avail a low cost corpus of funds from banks at 7 percent to incentivize the MSME export sector's investment linked proposals and the RBI may set up a committee to monitor new proposals being submitted to banks and ascertain reasons for rejection, if any, said the Federation of Indian Export Organisations (FIEO) in a press statement.
Immense scope for SMEs in aerospace, defence sectors
“All the three wings of the Defence are going out in a big way in modernising and upgrading inventory. Many new weapon systems and equipment are being procured and there is a lot more to look forward to in the future,” Air Marshal D.S. Khajuria, Director General (Systems), Indian Air Force, said here on January 23, 2012. Speaking at an international seminar on “Role of SMEs in Defence and Aerospace” at the Amrita Vishwa Vidyapeetham, he said the IAF was in the process of acquiring state-of-the-art weapon system, radars, aircraft, communication systems, etc. There was immense scope for industry to come in.
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Focus on Europe
SMEs created 85% of net new jobs in 2002-2010 in the EU
 According to the results of a Commission's study, 85% of net new jobs1 in the EU between 2002 and 2010 were created by small and medium sized enterprises (SMEs). Overall, the employment growth for SMEs (with 1% annually) was higher than for large enterprises with 0.5%. A clear exception is the trade sector, in which employment in SMEs increased by 0.7% annually, compared to 2.2% in large enterprises.
Focus on US
Walmart giving big chance to small businesses to expand
 Small businesses often lament the frustrations that come along with going up against big-box retailers like Walmart. Now, the retail giant is giving entrepreneurs the chance to sell their products in its stores across the country. Walmart announced last week the launch of its "Get on the Shelf" contest, which will allow contestants to submit videos of their inventions online, and have the public choose their winners. The project is being run by @WalmartLabs, and is in the same vein as "American Idol" in allowing the public to vote for their favorite inventions and products, according to a press release.
Focus on Trinidad & Tobago
Trinidad & Tobago procurement sop for SMEs
Labour Minister Errol McLeod announced recently that the small and medium enterprises (SME) sector would soon have an opportunity to provide its services to the public sector through the ministry’s Fair Share Programme, according to a report by Guardian Media Ltd.
McLeod said the Fair Share Programme is just one of the initiatives by the Government to assist in developing the SME sector. McLeod, who was speaking at the Third Biennial Conference for SMEs, held at the Trinidad Hilton hotel in St Ann’s, explained that the various ministries would seek out SMEs’ services for contract valued less than $1 million. The SME business conference was hosted by the Nova Committee of the T&T Chamber of Industry and Commerce.
Focus on Brazil
SA must follow Brazil's lead on SMEs
 Small- and medium size-enterprises can provide a sustainable solution to the reduction in the high level of unemployment in SA, as well as contribute to the country's economic growth. However, government and financial institutions need to make funding more accessible in order to support local entrepreneurs and compete with growing entrepreneurial levels in other emerging economies - particularly Brazil, Russia, India and China, which form the BRIC countries.
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Business offers from Austria
Seven Austrian companies are looking for co-operation partners, representatives and sales partners.
Business offers from Canada
Two Canadian companies are looking Indian partners.
Business opportunities from Turkey
Eighteen Turkish companies are looking for Indian partners.
Used machines from Europe
German partner consulting GmbH has informed that it has in its stock several used machines for sales.
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13 new members join FISME
During the period December 15, 2011 to January 1, 2012 a total of 13 new MSMEs became members of FISME.
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