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  The FISME Factor  

 

President's Message
Dr. Sangam Kurade, President, FISME " All the achievements of the year 2016 notwithstanding, the year is set to go down in history when the full scale demonetisation was tried in India. Through the interaction with experts and economists during FISME’s roundtable on the issue the sense I get is the jury is still out about its success. While the economists warned of negative fall-out in terms of demand contraction in coming quarters and resulting slower growth or even outright recession. The entrepreneurs on the other hand sounded sanguine. Whatever the outcome of demonetisation, the simultaneous events of digital push and GST warranted recalibration on part of most entrepreneurs as all business dealings would be recorded. FISME spearheaded a campaign for amnesty against harassment on account of past non-compliance in labour and taxation by many informal sector enterprises. I am delighted to say that PM himself responded to our plea and announced several measures to allay our fears. Now with the worst phase of cash management being over, let’s welcome 2017 with hope. Let me wish all members of MSME community and FISME Factor readers a very happy and prosperous 2017. "
Dr. Sangam Kurade, President, FISME
Vol V, Issue 122: Jan 1, 2017
Activities
FISME holds roundtable discussion on impact of demonetization on MSMEs and way forward
FISME-SIDBI organizes roundtable on GST for MSMEs in Kolkata
Business Banter: Lessons from Entrepreneurs
Power of Partnerships
Macro Metre
Modi govt's top 6 policy decisions in 2016
Economy grew 7.2% in H1, inflation in comfort zone: Finance Ministry Knowledge and News Network (KNN)
PM launches digital payments app Knowledge and News Network (KNN)
Domestic Digest
Report Card for govt by MSMEs for 2016 Knowledge and News Network (KNN)
SIDBI launches ‘Udyami Mitra’ portal to improve accessibility of credit for MSMEs
State Scan
Telangana to set up Industrial Health Clinic with Rs 100 cr corpus to rejuvenate MSME Knowledge and News Network (KNN)
Ludhiana MSMEs struggling with convincing workers to open bank accounts for wage payment
World Watch
India, Egypt aim to boost ties in New Year after eventful 2016
India to resume Curry Leaf exports to EU
Knowledge Store
Indian SME trends: The year gone by and 2017
...And A Lot More
Activities

FISME holds roundtable discussion on impact of demonetization on MSMEs and way forward

The apex body for MSME Associations in the country, FISME, today organized a roundtable on Demonetization & Push for Cashless Economy: Impact & Way Forward for MSMEs. Eminent speakers like TK Arun, Editor, Economics Times; Prof Abhijeet Das, Head, Centre for WTO Studies at IIFT; and Prof Kavita Rao, NIPFP gave their expert views on the subject. Representatives from MSME Associations from across the country participated at the roundtable.

FISME-SIDBI organizes roundtable on GST for MSMEs in Kolkata

In continuation of their joint efforts towards “Identifying implications of GST and facilitating adoption by MSMEs”, SIDBI the focal financial institutions for MSMEs and FISME, the leading federation of MSME Associations in India, organised a roundtable in Kolkata on 24th December, 2016. The round table was organized jointly with Federation of Small & Medium Industries (FOSMI), West Bengal. The programme was conducted by Mukesh Kalra, Joint Secretary, FISME.
Business Banter: Lessons from Entrepreneurs

Power of Partnerships

Physician and social entrepreneur Dean Ornish demonstrated the power of partnering with a bigger organization when he licensed his healthy lifestyle program to Healthways to help people overcome cardiac problems. This single deal allowed Ornish to help people across the country gain access to professional help with implementing his program.
Writing on the Wall


2016 was a roller-coaster year: From demonetisation, Donald Trump to GST, here are a few reasons why

When one looks back at 2016, there are stories that get etched in the mind, and just like the Billboard chart of top 10, there can be one drawn up for major economic upheavals in the last almost 365 days. The year was full of surprises, and it was not just a case of Bob Dylan getting the Nobel Prize in Literature. If words like “Mama, wipe the blood off of my face, I can’t see through it anymore, I need someone to talk to in a new hiding place, Feel like I’m looking at heaven’s door” are literature, then Donald Trump is also pro-free trade.

Read full Editorial from The financialexpress.com >>
Click here >>





Media Monitor

Macro Metre

Modi govt's top 6 policy decisions in 2016

The Modi government had promised to take a different course than its predecessors when it came to governing the country and setting in place policies that would take the nation on a new path. The year 2016 did see critical policy decisions being made, and some being implemented, though the final outcome of all of them is not known yet. From far-reaching decisions such as demonetisation, to the passing of the Goods and Services Tax (GST) Constitutional Amendment Bill, the year gone by will have significant consequences for the Indian economy and the nation as a whole.

Economy grew 7.2% in H1, inflation in comfort zone: Finance Ministry

Finance Ministry today said that the Indian economy grew 7.2 per cent in the first half of the current fiscal, retaining its position as one of the fastest growing major economies in the world. The Ministry, in its year-end review, said that inflation has remained in "comfort zone" during the year with retail and wholesale inflation averaging 5.2 per cent and 2.7 per cent, respectively, in the April-October period. "The stress given to fiscal consolidation through expenditure rationalisation and revenue raising efforts and the focus on administrative measures for cooperative financial governance and also steps towards containing inflation have contributed significantly to macro-economic stability," an official statement said.

Fiscal health looks up on increase in November tax collections

A surge in tax collections in November has improved the government’s finances dramatically, while also indicating some boost from demonetisation. Data released by the Controller General of Accounts showed net tax revenue at Rs 6.21lakh crore at the end of November, compared with Rs 5.3 lakh crore a month earlier, an increase of over Rs 91,000 crore. In November 2015, the corresponding increase in net tax revenue was Rs 36,000 crore.

PM launches digital payments app

Prime Minister Narendra Modi on Friday launched a digital payments app 'BHIM: Bharat Interface for Money'. BHIM is an app that lets one make easy and quick payment transactions using unified payments interface (UPI). All payments over BHIM are linked to one's bank account and the transactions can be implemented within seconds. BHIM app is currently available on Android (version 8 and above) and iOS mobiles (version 5 and above).

Domestic Digest

Report Card for govt by MSMEs for 2016

Micro, Small and Medium Enterprises (MSMEs) across India have faced ups and downs in the year 2016. There have been several initiatives and policy implementations by the Centre as well as State Governments to pursuade investors and boost the sector. However, demonetization, financial inclusion, interest rates have been some problems that had given the sector a roler coaster ride. To find out what were the highs and lows of the concerned sector, KNN spoke to various associations from across the country.

Businesses can soon cash in on Aadhaar-enabled payments: Ravi Shankar Prasad

After unveiling a slew of ‘incentives’ for digital payment, the government may roll out certain ‘disincentives’ for cash payments as well in the coming year, said Law and IT minister Ravi Shankar Prasad in an exclusive interview to ET, Prasad spoke about measures that the government is taking to push cashless transactions, the need for an overarching privacy law and why the IT Act needs to be strengthened. Edited Excerpts: How would you rate the success of the cashless drive started in November?

SIDBI launches ‘Udyami Mitra’ portal to improve accessibility of credit for MSMEs

The Small Industries Development Bank of India (SIDBI) has launched ‘Udyami Mitra’ portal (www.udyamimitra.in) to improve accessibility of Credit for the MSMEs. Under the portal entrepreneurs can apply for loan without physically visiting bank branches. It also has facility for uploading all necessary documents. Through the portal the MSMEs can seek handholding support for getting finance. They can also select and apply for preferred banks.

RBI advises banks to allow additional working capital to MSEs but are the Banks listening?

Modi Government is pulling all stops to make life easier for business while implementing ‘Notebandi’. By a recent circular, Reserve Bank of India has advised banks to” allow additional working capital limits to their MSE borrowers, to overcome the difficulties arising out of withdrawal of legal tender status of ₹ 500 and ₹ 1000 denominations”. RBI has also mentioned that this initiative is based on feedback that some MSEs are facing temporary difficulties in carrying out their normal business due to cash flow mismatches, due to demonetisation and will be an one time measure upto 31st march, 2017.
State Scan

Telangana    

Telangana to set up Industrial Health Clinic with Rs 100 cr corpus to rejuvenate MSME

The Telanagana State Industries Minister K T Rama Rao said on Friday that state government will soon set up an Industrial Health Clinic to revive sick units in the Micro, Small and Medium Enterprises (MSME) sector with a corpus of rupees 100 crore. KT Rao said, government proposes to set up the Industrial Health Clinic as a Non-Banking Financial Institution (NBFC) with a CEO in place. He also said that there is a need to protect units in the sector as 70-75 per cent jobs are provided by the MSME sector.

Punjab    

Ludhiana MSMEs struggling with convincing workers to open bank accounts for wage payment

The MSME units in Punjab’s industrial hub Ludhiana are struggling to retain their labour workforce after demonetization which had led to cash crunch. With the deadline for depositing the old notes ending December 30, the industries are pushing their workforce into the banking system as quickly as possible so that their salaries can be transferred online. But it has been found by KNN that campaign by the industries to open the banks accounts of their workforce is not a concrete solution as the associations have pointed that the workers are not willing to open accounts.

J&K    

J&K MSMEs facing difficulty in opening bank accounts of workers; urge govt to allow paying wages in cash

At a time when the government is pushing for cashless economy and digitization, several banks in Jammu are refusing to open bank accounts of industrial workers who do not have KYC despite employment certificate. The members of Bari Brahmana Industries Association held a meeting to discuss issues being faced by the entrepreneurs in opening of bank accounts of the industrial workers for making payments of wages.
World Watch

Egypt    

India, Egypt aim to boost ties in New Year after eventful 2016

India and Egypt had a fulfilling year in 2016 as the leadership of the two countries agreed to step up their defence and security cooperation to tackle the twin challenges of terrorism and radicalisation besides enhancing economic and people-to-people engagements. This year also witnessed some of the high-level meetings between the two countries including the visit of President Abdel Fattah al-Sisi to India at the invitation of his Indian counterpart Pranab Mukherjee in September to discuss ways to develop bilateral cooperation in different fields.
Read More    Back to Top

India    

India to resume Curry Leaf exports to EU

After a hiatus of three years, India will resume export of curry leaves to the European Union. The exports will now entail quality checks including lab tests and Agmark certification, as mandated by the EU. In 2013, the EU had banned importing curry leaves from India, citing concerns related to high pesticide residue. It had later stipulated that exports must be accompanied by results of sampling and analysis and by a health certificate verified by authorised representatives.
Read More    Back to Top

German    

2nd Indo-German Start-up Bootcamp: Calling Social Enterprises from the Transport & Mobility Sector

Following the successful first Indo-German Start-up Bootcamp conducted in July 2016 in Berlin, GIZ together with their partners Bosch, Social Impact Lab, IIM Calcutta Innovation Park and Intellecap are geared to conduct the second Indo-German Start-up Bootcamp which will take place in India and will bring together entrepreneurs from India and Germany to explore cooperation and grow their social impact.
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Singapore    

India, Singapore revise tax treaty

The government signed a pact with its Singapore counterpart on Friday, amending their decade-old tax treaty, gaining taxation rights over capital gains. This is the third double taxation avoidance agreement (DTAA) amended so far this financial year with a zero or low tax jurisdiction. The other two were with Mauritius and Cyprus. According to tax consultants, Mauritius would be the most attractive source of investments into India for debt funds and Singapore for equity investments.
Read More    Back to Top
Upcoming Events
FISME Delegation to :
TIMTOS 2017 – 26th edition
(Taipei International Machine Tool Show)

SIDBI-FISME national campaign on GST: Roundtables, Webinars and Guide for MSMEs
5th in the series
GST: Identifying implications & facilitating adoption by MSMEs
January 2017, Ahmedabad
FISME’s official Twitter handle
@fisme
Knowledge and News Network (KNN)
KNN India’s official Twitter handle
@knnindia
Anil Bhardwaj, Secretary General
@abhardwaj_fisme
Other Events

SRW India Water Expo

Date: 05th – 07th Jan 2017
Venue: Chennai Trade Centre, Chennai
See Details

MahaTech

Date: 05th – 08th Jan 2017
Venue: Agriculture College Grounds, Pune
See Details

Power On Exhibition and Conference

Date: 06th – 08th Jan 2017
Venue: Bangalore KTPO Trade Centre, Bengaluru
See Details

Rice Tech Expo

Date: 06th – 08th Jan 2017
Venue: Vijaywada
See Details

Assam International Agri Horticultural Show

Date: 06th – 09th Jan 2017
Venue: College Of Veterinary Science, Guwahati
See Details

International Battery Expo & Recycling Conference

Date: 09th – 11th Jan 2017
Venue: Goa Marriott Resort & Spa, Goa Velha
See Details
Your Views

Can cash prizes convince merchants to switch to digital payments?

According to the FISME Factor, 89 percent of Micro, Small and Medium Enterprises think that cash prizes will encourage merchants to switch to digital payments
Knowledge Store

HR Heuristics

View: Understanding the importance of high potentials employees in 21st century enterprises

The world is on reboot mode and so are its corporate enterprises. Continued global economic whirlwinds are forcing organizations to undergo paradigm shifts in the way they function. In Marshall Goldsmith's iconic words, alluding to leading enterprises of the 20th century, "what got them here will not get them there".

Finance Fundamentals

How will startups steer their way in 2017?

It has been a rollercoaster ride for Indian startups this year as they battled a funding crunch and dipping valuations after heady days of the past two years. ET takes a look at what the new year holds for companies across sectors from online retail to financial technology, venture capital, online media & entertainment, software-as-a-service, cyber security and mergers & acquisition.

Marketing Mantras

Startups get creative with unique mass marketing strategies

It's not just Facebook or Twitter ads that startups are using to attract users. Now, companies are taking to micro-marketing vis-a-vis mass marketing ads. From sending you exciting offers when you are hungry to giving great deals on flights when you have a wait-listed train ticket, startups know who and when exactly to tap.

Policy Polemic

Demonetization: Increased price may lead to closure of bicycle units

The Ludhiana MSMEs held a meeting regarding the burning issues of increased rate of steel in market, sale of iron scrap and problem in withdrawal of new currency. In the context of increased prices after demonetization, Rajeev Jain, General Secretary, United Cycle and Parts Manufacturers Association (UCPMA) said while addressing that on November 8, 2016 the basic price of Steel ingot was rupees 25300 per ton and on 28-12-16 the price is rupees 28900 per ton.

SME Special

Indian SME trends: The year gone by and 2017

Flourishing amidst a challenging environment, the Small and Medium Enterprises (SMEs) of India experienced several highs and lows in the past few years. With the Indian economy expected to emerge as one of the leading economies in the world and likely to become a $5 trillion economy by 2025, major impetus is being given to strengthen the backbone of our economy - the SME sector.

Success Story

1001 Startup Idea | Brain Music for Improving Performance

This is the story of a man who failed in Class 6, but went on to join the Regional Engineering College (now the National Institute of Technology), Calicut and the Indian Institute of Management-Bangalore. This is the story of a man who decided to become an entrepreneur and employ people from rural India. Today, fresh idli and dosa batter made by P C Mustafa’s company ID Fresh reaches homes in Bengaluru, Chennai, Pune, Mumbai, Delhi, Hyderabad, Mangaluru and even Dubai.

Stockpile

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

Quotable Quotes

“ Everyone is deserving of your time and attention. There is no customer (or person for that matter) that is insignificant. ”
– Nick Eubanks – VP of Digital Strategy at Snook & Associates
 
Country Chronicles
 
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:
Starting a New Venture
 
Coming August, K J Somaiya Institute of Management Studies and Research located in Vidyavihar, Mumbai is launching a certificate programme on Creating New Ventures.
New Members

2 New Member Join FISME

During the period from 15th December 2016 to 31st December 2016 a total of 2 new MSME became member of FISME
Reader Reactions

Write and Win prize!

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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Opportunities
Editorial Team:
Hon. Editor: Anil Bhardwaj
Asstt. Editor: Simmi Nagpal
Types setting & websdesigning: Sanjay Sachan  
Video & Photography:  Vipul Kumar Chettry

 

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