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  The FISME Factor  


President's Message
Dr. Sangam Kurade, President, FISME " The MSMEs, as most businesses, approach the Budget with trepidation. In last decades, hardly a budget has gone by which has not given a few new bruises to nurse. This year’s budget seems to follow a Latin dictum: Primum non nocere i.e. ‘first, do no harm’. It is a balanced budget. It assures that the Government would live within it means, largely. It lines up more money for capital expenditure and commits itself to farmers and rural areas to rave up demand in economy. Turning to MSMEs, it reduced direct tax burden on smaller companies by 5%. The CGTMSE has been re-capitalized further by infusing Rs. 3000 crore enabling it shoulder the larger responsibilities of covering units up to 2 crore now. But two more signals given in the budget are important: (a) amendment in Negotiable Instrument Act to address cheque bouncing. (b) reforms in labour laws. FISME consistently raised these two issues during last few months. I am happy that the efforts have borne fruit. Surely, people expected the Finance Minister to be more aggressive in giving relief to more segments and sectors. He seemed holding back perhaps due to uncertainties in the global environment and fall-out of implementation of GST. May be a right pragmatic approach. Over all, a good budget. Thumbs-up! "
Dr. Sangam Kurade, President, FISME
Vol V, Issue 124: Feb 1, 2017
FISME delegation meets Secretary MSME to provide a facilitating credit environment
Business Banter: Lessons from Entrepreneurs
It’s Not All About the Money
Macro Metre
Govt set to launch Aadhaar Pay service for cashless, card-less payments
Govt to set deficit target at 3.3-3.4%: reports Knowledge and News Network (KNN)
'Industry 4.0 mandatory to boost manufacturing share' Knowledge and News Network (KNN)
Domestic Digest
Cheer for SMEs in Budget 2017 after the pain of demonetisation Knowledge and News Network (KNN)
Companies' CSR spend hit Rs 8,300 cr in 2015-16: Report
State Scan
Awareness programme being held in Kolkata for MSMEs on ZED Maturity Assessment Knowledge and News Network (KNN)
‘Vyapar 2017’ will bring opportunities for MSMEs: KSSIA
World Watch
Ireland pushes for more investments from India
Cabinet approves MOU between India-UAE for cooperation in the field of MSMEs and Innovation
Knowledge Store
Why take a loan, when you can get a credit line
...And A Lot More
FISME Delegation to :
TIMTOS 2017 – 26th edition
(Taipei International Machine Tool Show)

FISME delegation meets Secretary MSME to provide a facilitating credit environment

A delegation of senior members of the Central Executive Committee of FISME held a meeting with Mr. K K Jalan, Secretary, Ministry of MSME, recently. The delegation led by Mr. V K Agrawal, past president FISME, briefed the Secretary about near stoppage of bank credit to the sector. Mr. Agrawal informed Mr. Jalan how by taking the plea of third party credit rating, banks are asking for additional collateral and higher interest from MSMEs. Explaining the futility of the third party credit rating system, the delegation mentioned that at a recent meeting of the Reserve Bank of India, even the SBI representative expressed dissatisfaction about the quality and methodology of the third party credit rating system conducted by the credit rating agency.
Business Banter: Lessons from Entrepreneurs

It’s Not All About the Money

Want to make loads of money? Grow and sell a business. I won’t lie: that was one of my goals. One thing you should come to terms with is that the vast majority of entrepreneurs won’t get rich quick. You hope it will happen eventually, but make sure you’re in it for the long haul. So, in pursuit of those loads of riches, a funny thing happened. Building a business created value that wasn’t monetary.
Writing on the Wall

Budget: Aimed to push digital economy, leaves MSMEs a little dissatisfied

Walking on a tight rope and warding off the potential ire of demonetisation critiques and election commission, Finance Minister Arun Jaitley presented the Union Budget 2017-18 focussing farmers, rural area, small tax payers and infrastructure. Though not fortunate enough to have the favourable treatment in the Budget, the MSME sector is sanguine about Finance Minister’s promise of a suitable amendment in the Negotiable Instrument Act to address the problems of cheque bouncing.

Read full Editorial from The knnindia.co.in >>
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Media Monitor

Macro Metre

All eyes on the Budget

The largely cash-dependent MSME sector is once again pinning hopes on the Union Budget’s proposals for 2017-18, to pull it out from the impact of demonetisation, which has led to job losses and fewer orders, especially in the domestic market. As it is, the sector has been facing challenges on the ‘ease of doing business’, with poor credit flow and rising bad loans. However, with the prospects of a National MSME Policy brightening after the one-member panel, headed by former Cabinet Secretary Prabhat Kumar presented its report to MSME Minister Kalraj Mishra last week, the sector is banking on Budget incentives, such as tax breaks and higher allocations, as well as lower interest rates for bank loans.

Govt set to launch Aadhaar Pay service for cashless, card-less payments

Government is all set to launch Aadhaar Pay service which is a non-traditional digital payment system without a need of card, pin, password or mobile with the consumer. Ravi Shankar Prasad, Minister of Electronics & IT and Law & Justice, today said, “Now in its fourth phase, with demonetisation and Digital India drive towards less-cash economy, Aadhaar is all set to be the game changer with Aadhaar Pay – a non-traditional digital payment system without a need of card, pin, password or mobile with the consumer.”

Govt to set deficit target at 3.3-3.4%: reports

The government is likely to set fiscal deficit target in the range of 3.3-3.4 per cent of the GDP for the financial year 2017-18 in the upcoming Budget which will be presented on February 1, say research reports. “We think that the government will have to tread very carefully between the need for stimulating demand in a weak economic environment after demonetisation and continuing on the path of fiscal consolidation. We expect the government to Budget for a fiscal deficit target of 3.3 per cent of GDP, 30 basis points higher than planned in the government’s medium-term fiscal consolidation program,” Goldman Sachs said in its research report.

'Industry 4.0 mandatory to boost manufacturing share'

To achieve the desirable stand in the global market, the country needs to focus on using green technologies and best global practices to increase the share of manufacturing in Gross Domestic Product (GDP), says expert. According to the Managing Director of Hospira Healthcare Srini Srinivasan, to achieve this target, Indian industry has to adopt Industry 4.0 as it is important to boost manufacturing. He was speaking at a session on 'Industry 4.0: leveraging for efficiency, adaptability, productivity, - what is in it for India' at the Andhra Pradesh investment summit here on Saturday.

Domestic Digest

Cheer for SMEs in Budget 2017 after the pain of demonetisation

The Finance Minister has taken a bold position by increasing the fiscal deficit to 3.5% as against the initial expectation of 3% on the back of substantial increase in expenditure to boost Rural India, Infrastructure and various other growth projects. The key to success will be effective execution of revenue generating initiatives and successful implementation of GST. Overall the budget has brought cheer to SMEs after the negative sentiment and impact of demonetisation.

Companies' CSR spend hit Rs 8,300 cr in 2015-16: Report

Marking higher spending towards CSR works, companies shelled out Rs 8,300 crore for such activities in the last financial year, says a report. Crisil Foundation today said companies' CSR spending rose 22 per cent, with much of the amount going towards education, skill development, healthcare and sanitation initiatives. Under the Companies Act 2013, a certain class of profitable firms is required to cough up at least 2 per cent of their 3-year annual average net profit towards corporate social responsibility (CSR) activities.

GSTN to set up call centre to handle tax queries

For a smooth transition of over 80 lakh assessees to the new indirect tax regime being implemented from this July, the Goods and Services Tax Network is setting up a call centre to answer queries. “Since GST is a completely new tax system, and will have a new method and timeline for filing returns, the proposed call centre will answer all technical queries of taxpayers,” said a senior official.

India Post Payments Bank branches launched in Ranchi & Raipur

The operations of the India Post Payments Bank (IPPB) have been launched in Ranchi and Raipur as two pilot branches. Finance Minister, Arun Jaitley and Minister of Communications Manoj Sinha launched the operations through video conferencing from Delhi. Speaking on the occasion, Jaitley said that about 650 IPPB branches will be opened by September this year and that will have a multiplier impact as far as banking in India is concerned.

RBI removes cash withdrawal limits on current a/c; maintains weekly cap of Rs 24000 on saving a/c

The Reserve Bank of India (RBI) has removed the cash withdrawal limit from current accounts, cash credit accounts and overdrafts, with immediate effect. However, the weekly cap of Rs 24,000 has been retained on withdrawals from savings accounts. On a review of the pace of remonitisation, it has been decided to partially restore status quo ante, said RBI. The cash withdrawal limit from ATMs stands withdrawn from February 1, 2017.
State Scan

West Bengal    

Awareness programme being held in Kolkata for MSMEs on ZED Maturity Assessment

An awareness programme is being held today for Kolkata MSMEs on ZED Maturity Assessment. The ZED Maturity Assessment Model has been conceived and structured to offer graded benchmark levels of an organisation's performance through a set of standard enabler and outcome parameters focusing on quality and environmental performances. It aims to rate and handhold all MSMEs to deliver top-quality products using clean technology.


‘Vyapar 2017’ will bring opportunities for MSMEs: KSSIA

The sixth edition of Kerala business-to-business meet will be held in Kochi from February 2. President of Kerala Small scale industries Association (KSSIA) told KNN the meet will be highly beneficial for the industrial sector. “These meets encourage the MSMEs and also make units aware of the products range in the market,” said Thomas John, President of KSSIA. Stressing over the need of Business-to-Business meets for the growth of the industrial sector, he said Vyapar 2017 will generate new opportunities for the MSMEs.

Jammu & Kashmir    

J&K MSMEs disappointed with DIPP for not releasing Rs. 60 cr against sanctioned Incentives of Industrial Sector

The Jammu based micro, small and medium enterprises (MSMEs) have expressed disappointment with the Department of Industrial Policy & Promotion (DIPP) Government of India, for not releasing Rs 60 crores against sanctioned Incentives of Industrial Sector. The amount is pending since last two years. In this regard, Federation of Industries Jammu held a meeting under the Chairmanship of Lalit Mahajan, Chairman FOIJ where in the members raised serious concerns over the issue.

Uttar Pradesh    

MSME-DI organizing State Level Vendor Program in Agra

In order to enlarge market base for the suppliers, a State Vendor Development Programme is being organized by Micro, Small & Medium Enterprises- Development Institute (MSME-DI), Agra. Deputy Director (I/C) of MSME-DI, Agra, V.M.Jha, said the event is being organized with an objective of searching new channels for MSME sector. “The aim is to enlarge market base and explore new pathways, engaged in manufacturing and services,” he added.
World Watch


Ireland pushes for more investments from India

Until a few years ago Indian firms had only a small footprint in Ireland, but that is begining to change as the EU nation has made a concerted effort to attract businesses — particularly from the IT, pharmaceutical and advanced manufacturing sectors. IT majors such as TCS and Infosys have a presence in the country, while Tech Mahindra earlier this month opened a new centre of excellence.
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Russia says steel exports to India dipped by a third due to curbs

Russia has alleged that its exports of steel items to India have fallen by a third following imposition of import restrictions by the country and has proposed that the measures be removed immediately. In a submission to the World Trade Organisation’s (WTO) Dispute Settlement Body, Moscow said it wants to participate in the dispute consultations requested by Japan with India on the matter, a government official told BusinessLine.
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United Arab Emirates    

Cabinet approves MOU between India-UAE for cooperation in the field of MSMEs and Innovation

The Union Cabinet has given its approval for signing the Memorandum of Understanding between India and United Arab Emirates for cooperation in the field of Small and Medium Enterprises and Innovation. The MoU would benefit Indian SMEs and lead to equitables and inclusive development. The exposure to best practices in SME sector abroad would provide an opportunity to Indian SMEs to improve upon them and innovate further.
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FISME’s official Twitter handle
Knowledge and News Network (KNN)
KNN India’s official Twitter handle
Anil Bhardwaj, Secretary General
Other Events

India Expo- Chennai

Date: 06th February 2017
Venue: Chennai
See Details

Finbridge Expo

Date: 04th – 05th February 2017
Venue: Nehru Centre, Dr. Annie Besant Road, Worli, Mumbai
See Details

Nasik Auto Show

Date: 03rd – 05th February 2017
Venue: Thakkar Dome, Nashik
See Details

Footwear India Expo

Date: 03rd – 05th February 2017
Venue: D.D.A. Ground, New Delhi
See Details

Bombay Times Fashion Jalsa

Date: 03rd – 06th Feb 2017
Venue: World Trade Centre, Mumbai
See Details
Your Views

Do you think the proposal to tax cash withdrawals will incentivise digital transactions?

According to the FISME Factor, 50 percent of Micro, Small & Medium Enterprises are of the opinion that the proposal to tax cash withdrawals will not encourage digital transactions while 38 percent think otherwise.
Knowledge Store

HR Heuristics

The year 2017 belongs to HR data experts

Human resources departments around the world will experience profound shifts during the next few years, and it's all being driven by a single factor -- data. Just as data and the insights it provides has changed many areas of business, it will change the way organisations recruit and manage their staff. The potential benefits for those who get it right are massive.

Finance Fundamentals

Why take a loan, when you can get a credit line

Imagine having the need to borrow Rs. 2.5 Lakh for a medical emergency in the family. There are usually two options to choose from - either apply for a bank loan or borrow from friends. There is a good chance that most friends are in the same age group with similar monthly incomes and inadequate savings. A bank loan, in that case, may look like the only feasible option.

Marketing Mantras

View: 7 steps to craft your digital marketing strategy, improve ROI

Since you have shown interest in reading this post, I am assuming that you are looking for answer to either or all of the following questions: Shall we use Facebook, Google, LinkedIn or some other digital media? How can we repeatedly produce success in leveraging digital marketing? How can I convince my management to increase the budget for digital marketing? How can we decide on the resources we would need for successful execution of digital marketing?

Policy Polemic

MSEs suffered 50% dip in revenue, 35% drop in revenue post demonetization: All India Manufacturers’ Organization

Post demonetization, micro and small enterprises (MSEs) have suffered 35 per cent jobs losses and 50 per cent dip in revenue, highlights a study conducted by All India Manufacturers’ Organization (AIMO). AIMO conducted a study to check the effect of demonetization and projected a drop of 60 per cent in employment and loss of 55 per cent in revenue overall in the manufacturing sector before March 2017.

SME Special

Freecharge co-founder Kunal Shah's tip to entrepreneurs: Deal with pressure & still shine

Kunal Shah doesn’t cry over spilt milk, he doesn’t live with regrets because he believes in having none, and he won’t sugar coat his opinions. The Freecharge co-founder, who is also a philosophy major, isn’t too fond of labels, especially the one that he was recently awarded — the top angel investor of 2016.

Success Story

How does an e-comm start-up stay healthy amid changing govt policy

The Centre’s demonetisation move in November has resulted in ups and downs for all kinds of businesses, including those in retail. But how does an e-commerce company stay healthy regardless of whatever may be unexpected in the policy or regulatory sphere?


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

“ Discipline is the bridge between goals and accomplishment. ”
– Jim Rohn, “Jim" Rohn was an American entrepreneur, author and motivational speaker.
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

4 New Members Join FISME

During the period from 01st January 2017 to 15th January 2017 a total of 4 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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Editorial Team:
Hon. Editor: Anil Bhardwaj
Asstt. Editor: Simmi Nagpal
Types setting & websdesigning: Sanjay Sachan  
Video & Photography:  Vipul Kumar Chettry


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