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  The FISME Factor  


President's Message
Dr. Sangam Kurade, President, FISME " With passage of the GST amendment bill by both houses of the Parliament and the process of ratification of the amendment by 50% of the States to be completed soon, the action will shift to the GST council. It is the Council that will decide on every single major issue concerning GST: Revenue Base of Centre and States, Compensation requirements, GST Rates structure, Exemptions, Threshold and Compounding limits and proposed Model GST Bill. MSMEs have many apprehensions with regard to GST ranging from the thresholds to the exemptions to the compliance complexities. It’s time MSME associations collated and documented these apprehensions. We need to apprise the authorities about our concerns and considered views. GST will surely throw new challenges. But it will open up opportunities too. We will have access to larger Indian market that we may serve with less friction and cost. Devoid of cascading effect of local taxes, our exports could be more competitive. FISME is in dialogue with a couple of public institutions to launch a nationwide campaign for awareness and capacity building of MSMEs. I invite all stakeholders to come together and join hands. "
Dr. Sangam Kurade, President, FISME
Vol IV, Issue 113: Aug 15, 2016
Business Banter: Lessons from Entrepreneurs

5 mistakes you need to grow out of as an entrepreneur

Whenever I realize I have made a mistake, I get a rush of excitement and anxiety. Excited because I have had this 'aha' opportunity to learn something. Anxiety because usually the learning has come with a cost I cannot afford. Entrepreneurial growth is wrought with mistakes that both hurt and help. When you start becoming aware of your mistakes, the journey of developing an organization becomes more natural and effortless. Here are a few mistakes that I have made, observed and grown out of.
Writing on the Wall

Don’t kill GST with many exemptions; exemptions raise the rate and break the chain

It is wholly welcome that Parliament has amended the Constitution to adopt the goods and services tax (GST). Now, the Centre and states must ensure that the new tax system is not riddled with exemptions that distort the tax structure.

Media Monitor

Macro Metre

Exports in red again, fall 6.8%

NEW DELHI: India's merchandise exports resumed their declining trend in July after a marginal rise in June as Brexit and slowing global growth pulled down shipments. July exports were down 6.8% to $21.6 billion while the decline in imports was sharper at 19% to $29.4 billion, data released by the commerce department on Friday showed. Trade deficit in the month narrowed to $7.76 billion from $8.1 billion in June. "As feared, the y-o-y rise in merchandise exports, both aggregate and non-oil, has proved to be shortlived with widespread y-o-y degrowth in July 2016," said Aditi Nayar, Senior Economist,..

DGFT announces Special Advance Authorisation Scheme to boost apparel export

To boost apparel exports from the country, Government has announced a ‘Special Advance Authorisation Scheme’ under which duty-free import of fabric, in certain type of products, would be allowed. The scheme will come into effect from September 1. "Duty free import of fabric under 'Special Advance Authorisation Scheme for export of Articles of Apparel and Clothing Accessories' shall be allowed, as per Customs Notification issued for this scheme, for export of items covered under Chapter 61 and 62 of ITC(HS) Classification of Export and Import," the Directorate General of Foreign Trade said in a notification.

MSMEs get less space in media, in economic discussions and during policy formations: Jaitley

Acknowledging that the MSME sector faces difficulties in getting access to finance from the banks, Union Finance Minister Arun Jaitley said MSMEs get less space in media, in economic discussions and even during the policy formations. Jaitley said this while addressing the launch of MSME Databank Portal and Finance Facilitation Portal here today. The Finance Minister said the major challenge before an MSME is finance availability. In the Companies Act passed in 2013, there were provisions like related party transactions, which resulted into difficulties for the MSME sector.

Double-whammy: inflation is rising, factory output is falling

A barely growing manufacturing sector and a surging inflation dealt a double-whammy to the economy. Retail inflation surged to 6.07 per cent in July, overshooting the government and central bank’s comfort zone of 5 per cent, even as manufacturing growth remained almost standstill at 0.9 per cent in June. Yet, the Index of Industrial Production (IIP) grew 2.1 per cent, led by robust growth in electricity and mining sectors. According to official data released on Friday, IIP’s cumulative growth between April and June was 0.6 per cent against 3.3 per cent in the year-ago period. While electricity and mining grew 8.3 per cent and 4.7 per cent, respectively, in June, amongst use-based industries, capital goods production dipped 16.5 per cent. Basic and intermediate goods grew 5.9 per cent and 6.1 per cent, respectively.

Domestic Digest

Jaitley launches MSME Databank and Finance Facilitation Centre

Union Finance Minister Arun Jaitley today launched two important initiatives of the Ministry of MSME – MSME Data Bank Portal and Online Finance Facilitation Web Portal. The initiatives were launched on the side-lines of 14th Meeting of the National Board of MSME in the presence of Union MSME Minister Kalraj Mishra, MoS MSME Ministry Giriraj Singh, Haribhai Parthibhai Chaudhary and MSME Secretary K K Jalan..

India MSME Expo fails to enthuse visitors & buyers

The India MSME Expo 2016 running at Pragati Maidan in New Delhi seems to have failed to generate enthusiasm among the potential buyers and visitors alike. The much hyped Expo inaugurated by heavy weight Ministers like Suresh Prabhu, Smriti Irani, Ravi Shankar Prasad among others could not mobilize buyers and the visitor alleys remain rather empty. The density of footfall is directly proportional to how advance or effective the marketing strategies are. But the number of visitors who actually help yielding positive outcomes from such exhibitions was not that appealing during the Expo.

Railways committed to boost small and medium enterprises:Prabhu

Railways are taking a series of steps to boost small and medium enterprise in the country to make the government's ambitious Make in India programme a success. Railways is committed to boost small and medium enterprise and steps are undertaken in this regard, said Suresh Prabhu, railways minister, on Thursday, at a MSME summit here. There is a need for working on many fronts to make the Prime Minister's Make in India programme successful and for this boosting of small and medium industries is required.

GST will not impact SMEs negatively: Expert

The Micro, Small and Medium Enterprises (MSMEs) in the country are in confusion about the implementation of Goods and Services Tax (GST) passed two days back as the rules and regulations have not come out for them. The general perception is that GST may negatively impact SMEs as aspects like excise exemption will disappear when GST rolls out. Rajeev Dimri the leader of Indirect Tax at BMR & Associates said that Government’s intention behind GST is to expand the taxpayers base and not to enhance tax burden on business / individual tax payers.
State Scan


Assam becomes first state to ratify GST

In a series of tweet, the Assam Chief Minister Sarbanand Sonowal today infomed that Assam has become the first state in the country to ratify the Constitutional Amendment Bill relating to GST. “A historic resolution was passed in Assam Assembly as Assam became the 1st State to ratify the Constitutional Amendment Bill relating to GST,” said Assam CM. He hoped that Assam will benefit from the GST through higher economic growth & better revenue collection. Though opposition Congress and AIUDF MLAs supported the Bill, they had earlier sought a discussion in the Assembly to evaluate GST's impact on Assam and people.


Chhattisgarh gets a MSME Centre in Durg district

Union Minister for MSME Kalraj Mishra has laid the foundation of MSME centre and a tool room at village Rasmada. This MSME centre is the 12th in thr country to be set up in an area of 25 acres at an estimated cost of Rs 100 crore. The centre will help in training for MSME entrepreneurs and imparting practical training to youth to handle technical equipment. Mishra said similar centres are being opened across the country in an effort to promote Make in India and Skill India campaign, a vision envisaged by Prime Minister Narendra Modi.


Haryana to sensitize its lower bureaucracy to respond to industry needs: Principal Secretary, I&C

Principal Secretary, Industries & Commerce, Haryana, Devender Singh has said that with new regime in place, several pro-active measures have been notified for the industrial development of the State, admitting that the notified decisions have not been percolated down the lower rung of bureaucracy and, therefore, their implementation is stuck up. However, he added that industrial applications if registered on prescribed portals and websites; it becomes the responsibility of the administration to facilitate their logical execution as it is closely monitoring such applications in time bound manner.


MSMEs hail move to set up Plastic Park in J’khand but doubtful over implementation

Micro, Small and Medium Enterprises (MSMEs) in Jharkhand are happy with the announcement of a Special Purpose Vehicle (SPV) and an industrial park for promoting plastic industries in state. However, how successful the implementation would be still remains a big question for them. The 11 member ministerial council led by chief minister Raghubar Das approved the formation of the SPV (Jharkhand Plastic Park Limited) and also called for setting up a plastic park in Debipur block in Deoghar district.
World Watch


Australia keen to supply uranium to India

The civil nuclear agreement between India and Australia has come to force in 2015 and the state of South Australia is keen to supply uranium to India. Visiting South Australian Minister for Trade and Investment, Defence Services and Veterans' Affairs Martin Hamilton-Smith said on Monday "India and Australia have a great future in the field of nuclear energy." Hamilton-Smith is currently leading a 100-member delegation of the South Australia Trade Commission (SATC) to India.
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Sri Lanka    

India, Sri Lanka look to boost economic ties

India and Sri Lanka, after years of delay following ex-President Mahinda Rajapaksa's intransigence, have finally launched negotiations this week on Economic and Technical Cooperation Agreement (ETCA) formerly known as CEPA or Comprehensive Economic Partnership Agreement that will push both Indian investments and services into the island nation. Indo-Lanka ETCA that promises Indian investments in Lanka besides boosting service sector hopes to be in place by year-end despite strong opposition from Rajapaksa supporters.
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CMIA to organise meet on Indo- German trade opportunities

With an view to improve the trade relations between India and Germany, the Chamber of Marathwada Industries And Agriculture (CMIA) has organized an interaction meeting with GIBC -German Indian Business Centre and CWW -Crescendo Worldwide. The meeting is being held on the topic ‘Germany – Gateway to Europe: Opportunities for Indian Companies in European Market’ tomorrow in Aurangabad. As per the release of CMIA, the programme will provide an opportunity to interact with GIBC & CWW representative to explore business possibilities abroad.
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FISME’s official Twitter handle
Knowledge and News Network (KNN)
KNN India’s official Twitter handle
Anil Bhardwaj, Secretary General

Tender on Supply of Advanced Electricity Metering System

It may be of interest to you to know that Uzbekistan’s Joint Stock Company “Uzbekenergo” has released a tender for “supply, installation and implementation of AEM System “. The Notice states that the financing for the project “ Advanced Electricity Metering Project” has been received from the Islamic Development Bank and that a part of it will be utilized for procurement of meters.
Other Events

Aqua World India

Date: 17th – 19th August 2016
Venue: Pragati Maidan, New Delhi
See Details

IPCA Electronics Expo

Date: 20th – 22nd August 2015
Venue: Pragati Maidan, New Delhi
See Details

Footwear India Expo

Date: 19th – 21st August 2016
Venue: D.D.A. Ground, New Delhi
See Details

India International Travel Exhibition (IITE)

Date: 19th – 21st August 2016
Venue: Nutan Nagar Community Hall, Rajkot
See Details

What Hi Fi Show

Date: 19th – 21st August 2016
Venue: The Ritz-Carlton, Bangalore
See Details

Gifts India Stationary Asia Write Show

Date: 19th – 22nd August 2016
Venue: Nehru Centre, Mumbai
See Details
Your Views

Did govt’s radical FDI policy impede growth of Indian e-commerce firms?

According to the FISME Factor, 100 percent of Micro, Small and Medium Enterprises (MSMEs) think that India’s startup sector is finally seeing some reinforcement.
Knowledge Store

HR Heuristics

Can performance appraisal be a weekly affair?

Organizations are essentially about people. If organizations have to successfully transform, changes need to begin at the leadership level and quickly permeate to individual employees. Leaders need to walk the talk, employees need to be clear on what is expected from them in terms of attitude and performance, and the entire ecosystem needs to reinforce the relevant behaviours at all levels.

Finance Fundamentals

How to shed debt and build wealth?

Everyone today has some form of debt or the other. This can be at an individual level or in a company that you have started. However, everyone harbours a desire to pay off all debt and start on the path of creating wealth. How do you do it? Have a goal The first step is always about having a plan. Start by identifying all the debt and how you would want to get rid of it. The goal should involve systematically chipping away at your debt, even as you keep aside money for your daily expenses and emergency.

Marketing Mantras

Traversing the digital path to market brands

"We still make mistakes every day," is how Lenskart's founder Peyush Bansal spoke about his startup's tryst with digital marketing. Bansal was speaking at the 'Digital Marketing Conclave' organised by the online education startup, UpGrad in IIT-Delhi on August 6 to launch their new programme on Digital Marketing.

Policy Polemic

Four rising start-ups in India

Get productive with your weekend with these start-upsthat have raised funding. Medinfi, a start-up that helps people find and review doctors nearby, has raised $200,000 in angel funding from investors, including Genpact Senior Vice-President Mudit Saxena and Singaporean angel investor Evan Lim.

SME Special

How to design a website when you don't know how to

It is safe to say that the Internet has revolutionized how businesses and their customers interact. When people want to find something, almost unequivocally, they search for it on the Internet. In today's connected world, search engines have become more like the gatekeepers of the world's information. With so many people now searching online to find what they are looking for, it is practically mandatory for your business to be present online to be discoverable. Without a website for your business, unfortunately, you are invisible to a world full of growth opportunities.

Success Story

How a 34-year-old foot massage firm assistant made Uber shut its shop in China

Cheng Wei, 34, was once assistant to the head of a foot massage firm. Last week, his company Didi Chuxing bagged Uber's China business in a deal valuing his ride-hailing start-up at $35 billion - a second success in as many years in a gruelling battle with a rival.


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

“ Failure is an option here. If things are not failing, you are not innovating enough. ”
– - Elon Musk, is the founder, CEO and CTO of SpaceX; co-founder, CEO and product architect of Tesla Motors
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

7 New Members Join FISME

During the period from 01st August to 15th August 2016 a total of 7 new MSMEs 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:  Pramod Poddar


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