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President's Message
" The recent electoral victory of BJP in Uttar Pradesh and Uttarakhand has been unprecedented. It may have huge political as well as economic repercussions. It has been widely agreed that one of the chief reasons for tardy economic reforms in India has been coalition governments since 1991. The motley group of parties with different ideologies would make change in status quo impossible. The NDA II broke the jinx and won the Lok Sabha with clear majority in 2014. Yet majority still eludes in the Rajya Sabha. The UP verdict would eradicate this handicap too. Therefore, now for the first time in the recent history we have a party in power having majority in both houses of the Parliament. And as is evident after recent demonetization exercise, masses are also behind the Prime Minister Modi ready to swallow the bitter pill in larger national interests.
Therefore, there is no excuse for not unleashing second generation of economic reforms beginning with Banking and Labour. It is historical moment indeed and should not be allowed to go waste. We, the stakeholders should also do our homework and be ready with what we seek to change. In order to not just survive, but Prosper.
And so we march on…..
"
Anil Bhardwaj, Secretary General of Federation of Indian Micro and Small & Medium Enterprises (FISME) was invited to make a presentation before a section of Members of the Parliament on the challenges faced by Indian MSMEs.
Elucidating on various initiatives taken by successive governments to protect and promote MSMEs, he sought assistance of MPs in resolving four major issues namely continuously rising cost of compliance of Labour laws, problems in MSMEs’ access to finance, Public Procurement related issues and the need for a Grievance redressal cum feed-back mechanism at all levels of government.
A series of programmes has been scheduled across the country to create awareness among MSMEs on ZED (Zero Effect and Zero Defect) Certification process.
Tamil Nadu, Telangana, Andhra Pradesh and Kerala are the few states where these programmes were held recently. TANSTIA, LSLSI, FOSMI, KSSIA were the partner associations in their respective states.
FISME, the leading federation of Indian MSMEs, recently organised a meeting of its ‘MSME Defence Suppliers’ Group’ in Bangalore.
With the launching of the ‘Make in India’ mission by Manohar Parikkar, the till recent Defence Minister, the multibillion dollar defence procurement market was opened to Indian Industry, including MSMEs.
To make an early start, FISME formed the ‘MSME Defence Suppliers’ Group’ (MDSG) in 2015 which was launched at a National Seminar on Opportunities in defence procurement for MSMEs’ by the Defence Minister.
A large Indian delegation comprising of fifty eight micro, small and medium enterprises (MSMEs) is visiting the 26thTaipei International Machine Tool Show (TIMTOS) to look out for the latest manufacturing technologies.
The delegation, being coordinated by India’s premier industry body Federation of Indian Micro and Small & Medium Enterprises (FISME), is visiting the Trade Fair and also participating in Business to Business meetings from 7~9 Match 2017 in Taipei.
The National Board for Quality Promotion (NBQP), a constituent Board of Quality Council of India, is being reconstituted and would now include industry body FISME as one of its members.
Roping in Federation of Indian Micro and Small & Medium Enterprises (FISME), the apex body for MSME associations across the country, as its member, NBQP said, “FISME is a premier MSME sector association which is actively engaged in promoting Quality. The Board has thus decided to invite FISME to join NBQP Board as a member.”
The CEO of a small tech startup from India is sitting opposite table with the head of a Malaysian trade association, with which he is trying to forge a deal.
The client is essential for the sustainability of the startup’s revenues. The CEO has spent days in Malaysia being the only sales guy from the 8-member startup based in India.
The association head asks for a bribe straight away. He said it could be delivered to him through his man in India. The CEO refuses.
“Prime Minister Narendra Modi’s stunning performance in the recent Assembly elections puts him in the sweet spot to pursue economic and administrative reforms that can substantively boost investments and jobs, his core poll promise since 2014. Several of these reforms are low-hanging fruit, and others may be tougher and demand a longer term agenda….”
Delhi's economy grew at 8.34 per cent in 2015-16, with the per capita income rising to three times the national level, Lt Governor Anil Baijal said on Monday.
Addressing the Delhi assembly at the start of the budget session, Baijal said Delhi's per capita income in fiscal 2015-16 as per advance estimates of Gross State Domestic Product (GSDP) was Rs 280,142, compared to Rs 93,293 at the national level.
Delhi's per capita income "is three times higher than the per capita income at national level", he said.
Union MSME Minister Kalraj Mihra has asked the banks to increase lending to the sector as it is the largest employment generating sector and the growth engine of the economy.
Mishra also asked the banks to further lend towards helping SC (scheduled class) and ST (scheduled tribes) segment.
He was addressing at the women's entrepreneurs convention on Wednesday.
He said the government was providing support through SIDBI and efforts are being taken to prevent MSME units from turning sick.
The Finance Bill would be passed by the Parliament before the 31st March, 2017, therefore, the different Ministries should be in a stage of readiness as the funds for various schemes would be available with effect from 1st April, 2017, said Union Finance Minister Arun Jaitley.
Jaitley was addressing all the Financial Advisors in the different Central Ministries/Departments after releasing the Revised General Financial Rules (GFRs) – 2017 at the Conference of the Financial Advisors (FAs) in the national capital on Tuesday.
One of the key problems forcefully turning the MSME suppliers into NPAs is the vicious cycle of bad payments by their large buyers and their run against time to fight the cases in the court and at the same time struggle to repay loans to the banks before they term them as ‘bad loans’.
While the Government has made adequate legal provisions under the MSME Development Act, 2006 to enforce payment to micro and small enterprises on time, very few entrepreneurs ask for the legal measures due to the enormous delay in the legal process.
The government is inviting feedback from various sectors to modify the definition of Indian businesses that can be classified as ‘startups’. DIPP secretary Ramesh Abhishek said that the definition of startups in its current form needs to undergo a change.
“We would be happy to make it even more broad-based. We are not hung up on definition. For example, startups working in biotech, nothing happens before eight years. Maybe we can have different periods for different kinds of startups...to be much more inclusive on the ground reality,” Abhishek said at an event on Monday.
In a move to improve ease of doing business for micro, small and medium enterprises (MSMEs), the Ministry of MSME has introduced a new provision to enable applicants edit the Udyog Aadhar Memorandum.
The applicants can now Edit or Update their information in Udyog Aadhaar.
They will get a One Time Password to either mobile linked to Aadhar or the mobile number given during UAM filing or will be sent via email to the applicant.
Digital wallet Paytm has started recurring billing service for companies which work on a digital-subscription model of revenue. The feature provides services, utilities, and media, among others.
The feature will allow developers and entrepreneurs utilise Paytm as a channel for recurring payments. After one-time authorisation, subscription amount will be autodebited from their Paytm wallet periodically.
“Our easy-to-integrate subscription billing service would make payments easier and seamless than ever before while allowing newage entrepreneurs to offer innovative services at an aggressive pricing.
The Karnataka government has launched a Rs 10-crore fund for women entrepreneurs, through which the Department of Information Technology, Biotechnology and Science & Technology can sanction upto Rs 50 lakhs for any woman innovator looking for funds for proof of concept validation, certification, and for other purposes such as to cover costs in manufacturing pilot devices. The state government announced the new Idea2POC (Idea to Proof of Concept) fund on the occasion of International Women's Day this week. Karnataka already has three other Idea2POC funds, one for all technology sectors (Rs 10 crore), one focused on agriculture (Rs 2.5 crore) and another focused on tourism (Rs 2.5 crore).
The Telangana State Industrial Infrastructure Corporation Ltd (TSIIC) has decided to develop new industrial parks as well as upgrade old industrial parks under the Central Government’s Micro & Small Enterprises - Cluster Development Programme (MSE-CDP). In a meeting held by the corporation, the officials discussed development of at least one park in each district with at a cost of Rs 10 crore. The Industrial Area Local Authority (IALA) will be investing Rs 2 crore for the project while the Central Government will release Rs 8 crore.
With BJP's remarkable victory in Uttar Pradesh Assembly Elections, the micro, small and medium enterprises (MSMEs) have expressed immense happiness with the change and believe that the state will finally see development of sectors other than just real estate.
Talking to KNN, the UP MSMEs have welcomed the public’s decision to choose development rather that go for dynasty and caste based politics.
With growth in the developed world still shaky, India and Africa have a great opportunity to increase trade as equal partners, said Commerce Minister Nirmala Sitharaman.
“There has been an increase in India-Africa trade over the past few years,” Sitharaman said speaking at the ‘India-Africa Project Partnership’ conclave on Monday, adding that it could grow manifold in the future. The conclave, jointly organised by the Centre, Exim Bank, and industry body CII, is a platform to bring together Indian and African entrepreneurs and decision makers.
Doing business with the Trump regime is not going to be easy for Delhi. If the H-1B visa row was not enough, serious troubles lie ahead on the trade and investment fronts, too.
The first indication of the trouble comes from the 2017 Trade Policy Agenda unveiled by the Trump administration. This document says ominously that the US will come down on India’s export subsidy programmes, and push for a stricter regime for intellectual property rights and patents.
Both India and Canada agreed that the present trade between the two countries which is in the range of $ 8 billion is much below its potential and there is a need to conclude CEPA in a time bound manner for ensuring higher levels of trade in goods and services.
During the bilateral meeting held on Friday between visiting Canadian Minister of International Trade, François-Philippe Champagne and Commerce and Industry Minister Nirmala Sitharaman, both the Ministers directed the respective Chief Negotiators on both sides to agree on a time line and conclude it as per the agreed time line.
India’s move to ban farm product imports from Vietnam on phytosanitary issues will hurt the exports of value-added instant coffees from the country, exporters said.
Instant coffee makers in India such as Tata Coffee, CCL Products and Nestle India, among others, depend on Vietnam for cheaper robusta imports and re-export the same after value-addition here. Vietnam is a major producer of the robusta variety.
Do you think the tax relief offered by Arun Jaitley to the individual taxpayer is enough to cushion the note ban blow?
According to the FISME Factor, 59 percent of Micro, Small & Medium Enterprises are of the opinion that the tax relief offered in the budget to the individual taxpayer is sufficient to cushion the note ban blow while 25 percent think otherwise.
Only 8% of companies manage to scale. Here's their secret
It is a dumbfounding piece of statistic that 92% businesses fail to scale. You would think that in line with the popular adage 'change is the only constant', this number would get better too. And yet, it is one that has defied norms, and stayed constant through the times.
From Indore to hitting the big league, snack brand Yellow Diamond has come a long way!
In the early 90s, Indore-born Amit Kumat was a young student in the US and an important part of his food-routine was a potpourri of daal and rice with Lays chips (as a replacement for the desi papad). His belief in the power and potential of snacks as a sunrise category firmed up then itself, he recalls. It was in 2004 that Yellow Diamond was launched as a home-grown snack offering by founders, Amit Kumat, MD & CEO, Prataap Snacks, along with Apurva Kumat and Arvind Mehta.
As entry into the crorepati club halves in startups, restructuring claims its new victims
For Indians, eight figure pay packages traditionally announced their entry into an exclusive club: This year, its membership more than halved at bulge-bracket startups, where packages are fast dropping a digit to the right.
Technical or operational leaders aren’t the sole victims of restructuring or diminished fund flows to the sector where CXO pay, too, is headed south.
Ease of doing business: Big changes by Modi Govt will allow you to start a business in 6 days
In a major push by the Government to improve ease of doing business in India, by March-end you will be able to start a business in India in six days, compared to the current 26 days. The number of procedures will also be halved from the current 12 to only six.
How an unsuccessful attempt at Olympics and entrepreneurship led Deepinder Singh to start 75F
Minneapolis-based 75F makes building management solutions which they claim would make a building's heating, ventilation and air conditioning smarter, energy efficient and affordable. They launched their operations in India in 2016.
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
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 recent electoral victory of BJP in Uttar Pradesh and Uttarakhand has been unprecedented. It may have huge political as well as economic repercussions. It has been widely agreed that one of the chief reasons for tardy economic reforms in India has been coalition governments since 1991. The motley group of parties with different ideologies would make change in status quo impossible. The NDA II broke the jinx and won the Lok Sabha with clear majority in 2014. Yet majority still eludes in the Rajya Sabha. The UP verdict would eradicate this handicap too. Therefore, now for the first time in the recent history we have a party in power having majority in both houses of the Parliament. And as is evident after recent demonetization exercise, masses are also behind the Prime Minister Modi ready to swallow the bitter pill in larger national interests.
Therefore, there is no excuse for not unleashing second generation of economic reforms beginning with Banking and Labour. It is historical moment indeed and should not be allowed to go waste. We, the stakeholders should also do our homework and be ready with what we seek to change. In order to not just survive, but Prosper.
And so we march on…..
"
Anil Bhardwaj, Secretary General of Federation of Indian Micro and Small & Medium Enterprises (FISME) was invited to make a presentation before a section of Members of the Parliament on the challenges faced by Indian MSMEs.
Elucidating on various initiatives taken by successive governments to protect and promote MSMEs, he sought assistance of MPs in resolving four major issues namely continuously rising cost of compliance of Labour laws, problems in MSMEs’ access to finance, Public Procurement related issues and the need for a Grievance redressal cum feed-back mechanism at all levels of government.
A series of programmes has been scheduled across the country to create awareness among MSMEs on ZED (Zero Effect and Zero Defect) Certification process.
Tamil Nadu, Telangana, Andhra Pradesh and Kerala are the few states where these programmes were held recently. TANSTIA, LSLSI, FOSMI, KSSIA were the partner associations in their respective states.
FISME, the leading federation of Indian MSMEs, recently organised a meeting of its ‘MSME Defence Suppliers’ Group’ in Bangalore.
With the launching of the ‘Make in India’ mission by Manohar Parikkar, the till recent Defence Minister, the multibillion dollar defence procurement market was opened to Indian Industry, including MSMEs.
To make an early start, FISME formed the ‘MSME Defence Suppliers’ Group’ (MDSG) in 2015 which was launched at a National Seminar on Opportunities in defence procurement for MSMEs’ by the Defence Minister.
A large Indian delegation comprising of fifty eight micro, small and medium enterprises (MSMEs) is visiting the 26thTaipei International Machine Tool Show (TIMTOS) to look out for the latest manufacturing technologies.
The delegation, being coordinated by India’s premier industry body Federation of Indian Micro and Small & Medium Enterprises (FISME), is visiting the Trade Fair and also participating in Business to Business meetings from 7~9 Match 2017 in Taipei.
The National Board for Quality Promotion (NBQP), a constituent Board of Quality Council of India, is being reconstituted and would now include industry body FISME as one of its members.
Roping in Federation of Indian Micro and Small & Medium Enterprises (FISME), the apex body for MSME associations across the country, as its member, NBQP said, “FISME is a premier MSME sector association which is actively engaged in promoting Quality. The Board has thus decided to invite FISME to join NBQP Board as a member.”
The CEO of a small tech startup from India is sitting opposite table with the head of a Malaysian trade association, with which he is trying to forge a deal.
The client is essential for the sustainability of the startup’s revenues. The CEO has spent days in Malaysia being the only sales guy from the 8-member startup based in India.
The association head asks for a bribe straight away. He said it could be delivered to him through his man in India. The CEO refuses.
Delhi's economy grew at 8.34 per cent in 2015-16, with the per capita income rising to three times the national level, Lt Governor Anil Baijal said on Monday.
Addressing the Delhi assembly at the start of the budget session, Baijal said Delhi's per capita income in fiscal 2015-16 as per advance estimates of Gross State Domestic Product (GSDP) was Rs 280,142, compared to Rs 93,293 at the national level.
Delhi's per capita income "is three times higher than the per capita income at national level", he said.
Union MSME Minister Kalraj Mihra has asked the banks to increase lending to the sector as it is the largest employment generating sector and the growth engine of the economy.
Mishra also asked the banks to further lend towards helping SC (scheduled class) and ST (scheduled tribes) segment.
He was addressing at the women's entrepreneurs convention on Wednesday.
He said the government was providing support through SIDBI and efforts are being taken to prevent MSME units from turning sick.
The Finance Bill would be passed by the Parliament before the 31st March, 2017, therefore, the different Ministries should be in a stage of readiness as the funds for various schemes would be available with effect from 1st April, 2017, said Union Finance Minister Arun Jaitley.
Jaitley was addressing all the Financial Advisors in the different Central Ministries/Departments after releasing the Revised General Financial Rules (GFRs) – 2017 at the Conference of the Financial Advisors (FAs) in the national capital on Tuesday.
One of the key problems forcefully turning the MSME suppliers into NPAs is the vicious cycle of bad payments by their large buyers and their run against time to fight the cases in the court and at the same time struggle to repay loans to the banks before they term them as ‘bad loans’.
While the Government has made adequate legal provisions under the MSME Development Act, 2006 to enforce payment to micro and small enterprises on time, very few entrepreneurs ask for the legal measures due to the enormous delay in the legal process.
The government is inviting feedback from various sectors to modify the definition of Indian businesses that can be classified as ‘startups’. DIPP secretary Ramesh Abhishek said that the definition of startups in its current form needs to undergo a change.
“We would be happy to make it even more broad-based. We are not hung up on definition. For example, startups working in biotech, nothing happens before eight years. Maybe we can have different periods for different kinds of startups...to be much more inclusive on the ground reality,” Abhishek said at an event on Monday.
In a move to improve ease of doing business for micro, small and medium enterprises (MSMEs), the Ministry of MSME has introduced a new provision to enable applicants edit the Udyog Aadhar Memorandum.
The applicants can now Edit or Update their information in Udyog Aadhaar.
They will get a One Time Password to either mobile linked to Aadhar or the mobile number given during UAM filing or will be sent via email to the applicant.
Digital wallet Paytm has started recurring billing service for companies which work on a digital-subscription model of revenue. The feature provides services, utilities, and media, among others.
The feature will allow developers and entrepreneurs utilise Paytm as a channel for recurring payments. After one-time authorisation, subscription amount will be autodebited from their Paytm wallet periodically.
“Our easy-to-integrate subscription billing service would make payments easier and seamless than ever before while allowing newage entrepreneurs to offer innovative services at an aggressive pricing.
The Karnataka government has launched a Rs 10-crore fund for women entrepreneurs, through which the Department of Information Technology, Biotechnology and Science & Technology can sanction upto Rs 50 lakhs for any woman innovator looking for funds for proof of concept validation, certification, and for other purposes such as to cover costs in manufacturing pilot devices. The state government announced the new Idea2POC (Idea to Proof of Concept) fund on the occasion of International Women's Day this week. Karnataka already has three other Idea2POC funds, one for all technology sectors (Rs 10 crore), one focused on agriculture (Rs 2.5 crore) and another focused on tourism (Rs 2.5 crore).
The Telangana State Industrial Infrastructure Corporation Ltd (TSIIC) has decided to develop new industrial parks as well as upgrade old industrial parks under the Central Government’s Micro & Small Enterprises - Cluster Development Programme (MSE-CDP). In a meeting held by the corporation, the officials discussed development of at least one park in each district with at a cost of Rs 10 crore. The Industrial Area Local Authority (IALA) will be investing Rs 2 crore for the project while the Central Government will release Rs 8 crore.
With BJP's remarkable victory in Uttar Pradesh Assembly Elections, the micro, small and medium enterprises (MSMEs) have expressed immense happiness with the change and believe that the state will finally see development of sectors other than just real estate.
Talking to KNN, the UP MSMEs have welcomed the public’s decision to choose development rather that go for dynasty and caste based politics.
With growth in the developed world still shaky, India and Africa have a great opportunity to increase trade as equal partners, said Commerce Minister Nirmala Sitharaman.
“There has been an increase in India-Africa trade over the past few years,” Sitharaman said speaking at the ‘India-Africa Project Partnership’ conclave on Monday, adding that it could grow manifold in the future. The conclave, jointly organised by the Centre, Exim Bank, and industry body CII, is a platform to bring together Indian and African entrepreneurs and decision makers.
Doing business with the Trump regime is not going to be easy for Delhi. If the H-1B visa row was not enough, serious troubles lie ahead on the trade and investment fronts, too.
The first indication of the trouble comes from the 2017 Trade Policy Agenda unveiled by the Trump administration. This document says ominously that the US will come down on India’s export subsidy programmes, and push for a stricter regime for intellectual property rights and patents.
Both India and Canada agreed that the present trade between the two countries which is in the range of $ 8 billion is much below its potential and there is a need to conclude CEPA in a time bound manner for ensuring higher levels of trade in goods and services.
During the bilateral meeting held on Friday between visiting Canadian Minister of International Trade, François-Philippe Champagne and Commerce and Industry Minister Nirmala Sitharaman, both the Ministers directed the respective Chief Negotiators on both sides to agree on a time line and conclude it as per the agreed time line.
India’s move to ban farm product imports from Vietnam on phytosanitary issues will hurt the exports of value-added instant coffees from the country, exporters said.
Instant coffee makers in India such as Tata Coffee, CCL Products and Nestle India, among others, depend on Vietnam for cheaper robusta imports and re-export the same after value-addition here. Vietnam is a major producer of the robusta variety.
According to the FISME Factor, 59 percent of Micro, Small & Medium Enterprises are of the opinion that the tax relief offered in the budget to the individual taxpayer is sufficient to cushion the note ban blow while 25 percent think otherwise. 
It is a dumbfounding piece of statistic that 92% businesses fail to scale. You would think that in line with the popular adage 'change is the only constant', this number would get better too. And yet, it is one that has defied norms, and stayed constant through the times.
How often do you hear your customers say, 'I lost your invoice' or 'We already sent a cheque through the post, you just haven't received it'?
In the early 90s, Indore-born Amit Kumat was a young student in the US and an important part of his food-routine was a potpourri of daal and rice with Lays chips (as a replacement for the desi papad). His belief in the power and potential of snacks as a sunrise category firmed up then itself, he recalls. It was in 2004 that Yellow Diamond was launched as a home-grown snack offering by founders, Amit Kumat, MD & CEO, Prataap Snacks, along with Apurva Kumat and Arvind Mehta.
For Indians, eight figure pay packages traditionally announced their entry into an exclusive club: This year, its membership more than halved at bulge-bracket startups, where packages are fast dropping a digit to the right.
Technical or operational leaders aren’t the sole victims of restructuring or diminished fund flows to the sector where CXO pay, too, is headed south.
In a major push by the Government to improve ease of doing business in India, by March-end you will be able to start a business in India in six days, compared to the current 26 days. The number of procedures will also be halved from the current 12 to only six.
Minneapolis-based 75F makes building management solutions which they claim would make a building's heating, ventilation and air conditioning smarter, energy efficient and affordable. They launched their operations in India in 2016.
“ Too little confidence and you’re unable to act; too much confidence and you’re unable to hear. ”
