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  The FISME Factor  

 

President's Message
Dr. Sangam Kurade, President, FISMEA number of analytical reports emerged during the last month alludes to a precarious global economic scenario. US’ trade war threats and actions have left currencies and crude prices in a tailspin. Indian Rupee has been among the currencies that have depreciated the most during 2018. (The countries whose currencies have been battered the most are ones having the highest current account deficit.) With rising global crude prices and no dramatic investment inflows in sight, the current account deficit in India is likely to rise even more, putting more pressure on Rupee. Further, with general elections also in horizon, there is a need to be vigilant. But tight economic situation and impending elections, make politicians more amendable to policy reforms. Here lies opportunity for us to push for reforms. Let us prioritize MSME issues and engage political parties to ease doing business in India. "
Mr. Dinesh Chandra Tripathi, President, FISME
Vol VI, Issue 163: Sep 15, 2018
Business Banter: Lessons from Entrepreneurs
Talking company culture and risk appetite
Macro Metre
IIP grows at 6.6% in July as manufacturing, capital goods shine
Supreme Court restores 'safeguard duty' on solar cell imports
Domestic Digest
Indian Startup Factory gets SEBI’s nod to launch Rs 2 bn VC fund to invest in startups and MSMEs Knowledge and News Network (KNN)
Ministry of MSME approves KVIC's proposal of 36% hike in artisans’ wages
A&A launches 2 flagship programs to facilitate development of SMEs
State Scan
New industrials zones in 8 districts of Gujarat will help industrialists set up MSMEs, create employment Knowledge and News Network (KNN)
TN govt launches new ICT policy with a focus on MSMEs, start-ups
Plywood industries in bad shape after Kerala floods; want interest free loans from govt to rebuild factories: SOPMA President
World Watch
Suresh Prabhu's visit to Russia concludes; held meetings with various ministers of Russia to enhance bilateral ties
C-CAMP & AgriHub of Brazil to create Indo-Brazil Innovation Corridor to encourage innovations in agriculture
Knowledge Store
This college dropout built an AI platform to give upskilling, internship options to Tier II and III students
...And A Lot More
Business Banter: Lessons from Entrepreneurs

Talking company culture and risk appetite

Chief executives (CEOs) are trying to figure out the recipe for success in the increasingly unpredictable world, and having the right ‘culture’ seems to be the common answer across industry. This sentiment is well-mirrored in Ginni Rometty, IBM CEO's statement, “Culture is your company’s number one asset”. A company’s culture is about its stated and unstated policies that depict its personality. Essentially, it’s the amalgamation of attitude and character of the organisation which manifests itself into self-sustaining behavioural patterns. These patterns are nothing but how the old adage goes, “the way we do things around here”.
Writing on the Wall

GDP growth peaking; slowdown ahead, warns Credit Suisse

India’s GDP growth is likely to have peaked in the first quarter of this fiscal and going ahead some moderation is expected as weaker rupee and rising oil prices remain two major headwinds for the economy, says a report. According to global financial services major Credit Suisse, the 8.2 per cent GDP growth for the April-June quarter of this year, though “encouraging” was largely owing to base effects. According to official data, the Indian economy grew at a two-year high of 8.2 per cent in the April-June quarter of current fiscal on good show by manufacturing and farm sectors. “A moderation in the PMI seems to be confirming our view..

Media Monitor

Macro Metre

WPI Inflation drops to 4-month low of 4.53%; inflation in manufactured products at 0.3%

Inflation based on wholesale prices eased to 4.53 percent in August, the lowest in four months, mainly due to easing of prices of food articles, especially vegetables. The Wholesale Price Index (WPI) based inflation stood at 5.09 percent in July and 3.24 percent in August last year. According to a press release by the Ministry of Statistics, inflation in manufactured products, which includes items such as food/beverages, tobacco, chemicals and pharma, and has the maximum weightage of over 64 per cent on the WPI index, stood at 0.3 per cent. The food articles registered deflation at 4.04 percent in August 2018. Last month, deflation in this category was 2.16 percent.

IIP grows at 6.6% in July as manufacturing, capital goods shine

Industrial production grew at 6.6 per cent in July on the back of good performance by the manufacturing sector and higher offtake of capital goods and consumer durables. Factory output measured in terms of the Index of Industrial Production had expanded by just 1 per cent in July last year, according to the data released by Central Statistics Office (CSO). downwards to 6.8 per cent from the provisional estimate of 7 per cent released last month, the data showed. The manufacturing sector recorded a 7 per cent growth in July as against a contraction of 0.1 per cent in the same month year ago.

Supreme Court restores 'safeguard duty' on solar cell imports

The Supreme Court has allowed the Centre to levy 25 per cent safeguard duty on solar cell imports. The duty on solar cells — the basic ingredient needed to manufacture solar panels — was imposed for a year, ending July 19, 2019, and the tax was to reduce to 20% for the six months till January 29, 2020, and 15% for the subsequent six months. Odisha High Court had passed an interim order staying imposition of 'safeguard duty' on import of solar cells. The Orissa HC, hearing a writ petition against the duty filed by local solar plant developers, had barred the government from imposing it till August 20, but the government went ahead and slapped the 25% impost on July 30.

Govt simplifies GST refund process; GSTR-2A from is enough for claiming refunds

To simplify the process of claiming GST refunds, the Finance Ministry has said that now simply submitting a printout of ‘GSTR-2A’ form to tax authorities would be enough instead of giving invoices of all purchases in a month. Goods and Services Tax (GST) refund had become a big problem for businesses due to liquidity issues, said Ministry. Thus to simplify the process, government has come out with GSTR-2A, which is a purchase return auto-generated by the system for claiming refunds. The government said that the GSTR-2A form will serve as evidence showing which a claimant can avail input tax credit (ITC).

Domestic Digest

Indian Startup Factory gets SEBI’s nod to launch Rs 2 bn VC fund to invest in startups and MSMEs

Indian Startup Factory (ISF) got SEBI approval for the launch of Rs 2 billion maiden India venture capital fund to invest in startups as well as small and medium enterprises (SMEs). This move would increase funding accessibility and give momentum to upcoming ecosystems, including startups and SMEs, said Indian Startup Factory in a statement. The ISF special opportunity fund will invest in startups, SMEs and MSMEs. ISF Special Opportunity Fund, founder Kapil Kaul said that the fund's mantra is based on a simple fact of business known as Profitability.

MSMEs with good CIBIL MSME Rank (CMR) can avail loans at lower interest rate: Bank of Baroda

Taking a major step forward in the direction of risk based pricing of Micro Small and Medium Enterprises (MSME) loans, Bank of Baroda has announced an offering of lower interest rates on such loans to MSMEs who have good CIBIL MSME Rank (CMR). To predict the probability of an MSME becoming NPA in the next 12 months, CMR uses machine learning algorithms and provides rank to MSME based on its credit history data on a scale of 1 to 10. CMR-1 is considered as the best possible rank for the least risky MSMEs while CMR-10 is considered as the riskiest rank for MSMEs.

Ministry of MSME approves KVIC's proposal of 36% hike in artisans’ wages

The proposal to hike artisans' wage by Khadi and Village Industries Commission (KVIC) has been approved by the Ministry of Micro, Small and Medium Enterprises (MoMSME). In the proposal, KVIC asked for over 36% increase in artisans’ wages that is from Rs 5.50 per hank previously to Rs 7.50 per hank. In a statement, KVIC said “proposal for increase in wages to Khadi spinners along with payment of government subsidy-modified market development assistance (MMDA) has been approved with effect from August 15, 2018.” Under the MMDA program, 30 per cent of the prime cost is paid to the Khadi institutions as production subsidy. Out of this 30 per cent, 40 per cent goes to artisans as wage incentives and the remaining 60 per cent goes to the Khadi institutions.

A&A launches 2 flagship programs to facilitate development of SMEs

In a bid to help Indian SME companies to grow financially, A&A business consulting has announced the launch of two flagship programs for SME sector. The program called "SPEED for Business and Strategic Alliance in Business “are the two programs that will support the development of SME sector capabilities thus increasing the overall contribution of the sector to the GDP," said Sanjay Sharma, President of the consulting department.

Famous Chikankari industry of Lucknow identified as first industry to be promoted under ODOP scheme of UP govt

The micro, small and medium enterprise (MSME) department has identified 6 product-specific traditional industries for promotion in the coming months under the ambitious One District One Product (ODOP) plan of Uttar Pradesh government to revive the industry. The famous Chikankari industry of Lucknow will be the first product to be promoted under ODOP followed by Muradabad (Metal Craft), Varanasi (Silk Products), Gorakhpur (Terracota), Agra and Kanpur (Leather Products). MSME Secretary Bhuvnesh Kumar said “We will handle one city each month, starting with Lucknow where the department intends holding events related to ODOP by the third week of September.”
State Scan

Gujarat    

New industrials zones in 8 districts of Gujarat will help industrialists set up MSMEs, create employment

The Gujarat Industrial Development Corporation (GIDC) will set up nine new industrial zones in eight districts, said state revenue minister Kaushik Patel adding that the move will help industrialists set up micro, small and medium enterprises (MSMEs). The Minister said that land has already been allotted for the industrial zones. The new industrial zones will come up at Patan, Mehsana, Anand, Rajkot, Morbi, Surendranagar, Bhavnagar, and Gandhinagar districts, the minister said. “Nine new GIDC zones will come up in the state over 1,050.3 hectare land parcel spanning eight districts,” Patel said.

Tamil Nadu    

TN govt launches new ICT policy with a focus on MSMEs, start-ups

Almost after a decade, the Tamil Nadu government has released revised Information, Communication and Technology (ICT) Policy 2018 with a focus on MSMEs and Startups. The policy released by Chief Minister Edappadi K Palaniswami would provide 20 different incentives including fiscal incentives, capital subsidies, tax exemptions, relaxation of FSI, among other things, for the IT companies. The policy aims to attract investment from IT companies by setting up Special Economic Zones in Tier-II cities. The vision of the new ICT policy 2018 is to make Tamil Nadu number one State in IT sector and choice for foreign investors.

Uttar Pradesh    

Haier inks pact with UP govt to set up 2nd industrial park in Greater Noida

Expanding its roots in Uttar Pradesh, Haier, a multi-national company, has signed MoU with the Uttar Pradesh government to set up its second industrial park in India at Greater Noida. A global leader in home appliances and consumer electronics is expected to invest Rs 3,069 crore in the Greater Noida industrial park. The MoU was signed in the presence of Chief Minister Yogi Adityanath, Haier Appliances India Limited managing director Song Yujun and other officials of the company and dignitaries of the UP government. As per the MoU, Haier will invest Rs 3,069 crore for setting up its second industrial park in the state over the next four years in two phases.

Kerala    

Plywood industries in bad shape after Kerala floods; want interest free loans from govt to rebuild factories: SOPMA President

The state of Plywood industry in Kerala after floods is very bad as near about 70 factories dealing in plywood trade suffered huge damages, M.M Mujeeb Rahman, President of Sawmill Owners & Plywood Manufacturers Association (SOPMA) told KNN. He said, 400 factories deal in plywood trade in Perumbavoor out of which 70 factories were directly affected and of those 70, the condition of 40 factories is very grim. He said the situation is out of control as damages are so large that it will be difficult to recover. Because of floods, raw materials, machinery, finished plywood and electrification got damaged, he added. There was so much water in the factories' basements that it drowned away all the equipments and machinery, said Rahman.
World Watch

Russia    

Suresh Prabhu's visit to Russia concludes; held meetings with various ministers of Russia to enhance bilateral ties

Union Minister of Commerce & Industry and Civil Aviation, Suresh Prabhu held bilateral meeting with Yurvy Trutnev, Deputy Prime Minister of Russia to discuss areas of cooperation between India and Russia. He was in Vladivostok, Russia, to attend the Far Eastern Economic Forum being held from 11th to 13th September 2018. During his visit, Prabhu interacted with the Governors, Vice-Governors and Representatives of the Russian Far East Regions of Primorye, Yakutia, Sakhalin, Amur, Magadan, Kamchatka, and Khabarovsk with a view to strengthen bilateral ties for economic growth.
Read More    Back to Top

Syria    

India -Syria trade to reach USD 500 million in next 3 years: FIEO Pres

Leading a delegation of Indian entrepreneurs to Syria, consisting of 84 members, Federation of Indian Export Organization (FIEO), President, Ganesh Kumar Gupta said that the two countries should endeavor to take bilateral trade from USD 175 million in 2017 to USD 500 million in 2020. He said that Indian Exports should touch USD 350 million, while imports should increase to USD 150 million by 2020. “India should review its exports strategy depending on imports profile of Syria,” he added. Elaborating further, he said that the import of automobiles in Syria is about USD 293 million with India’s exports of less than USD 1 million. Similarly, in electrical machinery imports of USD 303 million, our exports are USD 4.18 million.
Read More    Back to Top

Brazil    

C-CAMP & AgriHub of Brazil to create Indo-Brazil Innovation Corridor to encourage innovations in agriculture

Aiming to encourage and promote deep science innovations in agriculture allied industries of Brazil and India, the Centre for Cellular and Molecular Platforms (C-CAMP-an innovation hub of India) has signed a MoU with AgriHub of the Federation of Agriculture and Livestock of the State of Mato Grosso in Brazil (FAMATO). The two premier institutes of India and Brazil has signed a MoU with an intent to create and Indo-Brazil Innovation Corridor to foster links between both hubs and enhance collaborations in science-based entrepreneurship, research and businesses in the agriculture sector by leveraging upon each other’s ecosystems.
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Upcoming Events
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

Renewable Energy India Expo

Date: 18-20 Sep 2018
Venue: India Exposition Mart, Greater Noida
See Details

InfoComm India

Date: 18-20 Sep 2018
Venue: Mumbai Exhibition Centre, Mumbai
See Details

CAPEx

Date: 19-21 Sep 2018
Venue: Mumbai Exhibition Centre, Mumbai
See Details

Festival of Architecture and Interior Designing - New Delhi

Date: 21-22 Sep 2018
Venue: NSIC Exhibition Complex, New Delhi
See Details

Medicall Expo

Date: 21-23 Sep 2018
Venue: Pragati Maidan, New Delhi
See Details

Gem & Jewellery India International Fair

Date: 21-23 Sep 2018
Venue: Chennai Trade Centre, Chennai
See Details

North Odisha Agri & Food Processing Expo

Date: 21-24 Sep 2018
Venue: NOCCi BUSINESS PARK, Balasore
See Details

International Conference On Control, Automation, Robotics And Engineering

Date: 24-25 Sep 2018
Venue: Hyatt Regency Pune, Pune
See Details

LASER World of PHOTONICS INDIA

Date: 26-28 Sep 2018
Venue: BIEC Bengaluru International Exhibition Centre, Bengaluru
See Details

Automotive Industry 4.0 Summit

Date: 26 Sep 2018
Venue: The Westin Gurgaon, New Delhi, Gurgaon
See Details
Your Views

Indian economy records 8.2% growth in first quarter of 2018-19. Do you think that the growth momentum signals a long term turnaround?

As Indian economy records 8.2% growth in first quarter of 2018-19, according to FISME factor, 58.3% of Micro, Small & Medium Enterprises think that the growth momentum signals a long term turnaround, 33.3% think it will not while 8.3% can’t say?
Knowledge Store

HR Heuristics

Four ways to build purpose at the workplace

Every organisation has a defined purpose, which may or may not differ from others, but it does exist at the heart and soul of great a endeavor and gives meaning to the work done.

Finance Fundamentals

5 Proven Steps to Manage The Finance Of a Growing Company

A growing company is quantified by increasing customers, resources and profits. As the company grows, there should be good business habits instituted in its workflow. And one of the crucial business habits is having an effective financial planning.

Marketing Mantras

3 steps to automate your sales & marketing process

Since our last article was all about what is marketing automation, this article is about how are we going to automate the sales and marketing process.

Policy Polemic

All is not well with J&K MSMEs: FOIJ

The Jammu micro, small and medium enterprises (MSMEs) have expressed disappointment with regard to delay in grant of fiscal incentives approved in the State Budget 2018-19.

SME Special

This college dropout built an AI platform to give upskilling, internship options to Tier II and III students

Verzeo helps students in small towns learn emerging technologies in their mother tongue, and offers them internship and work opportunities in companies and startups.

Success Story

To diners’ hearts through discounts and deals

Kaching! The sound of falling coins in a cash register or when you hit a jackpot. That is exactly what Shiv Shankar Ganesh had in mind when he decided to name his venture Kaching Software Pvt Ltd.

Stockpile

The Central Statistics Office (CSO), Ministry of Statistics and Programme Implementation has released the Quick Estimates of Index of Industrial Production (IIP) with base 2011-12 for the month of July 2018 stands at 125.8, which is 6.6 percent higher as compared to the level in the month of July 2017.

Quotable Quotes

“ Excellence endures and sustains. It goes beyond motivation into the realms of inspiration. ”
– Azim Hashim Premji - Indian business tycoon & Chairman of Wipro Limited
 
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

1 New Members Join FISME

During the period from 1st September 2018 to 15th September 2018 1 new MSME became members 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: Kalpana Sharma
Types setting & websdesigning: Sanjay Sachan  
Video & Photography:  Vipul Kumar Chettry

 

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