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  The FISME Factor  

 

President's Message
Dr. Sangam Kurade, President, FISME " ASEAN stands as a testimony to the spectacular success of policies that underline that trade is not a zero sum game and that the greater intra-regional trade leaves everybody better off. In one generation, the region has almost completely transformed itself from third world economies to the tiger economies. Though ASEAN and India traversed on different routes for far too long, the paths are crossing now. Since Vajpayee Government India has consistently followed look-east policy to integrate India with its ASEAN neighbours both economically and politically. The present Modi Government is trying to accelerate these policies with Act-East Policy. US - ASEAN trade pact under Trans Pacific Partnership (TPP) is also in the offing. FISME always had this conviction that ASEAN is the region we need to focus to do business. In this backdrop, it was a pleasure for me to be part of ASEAN – India Business Leadership Conclave which was held under the aegis of ASEAN India Business Council in Kuala Lampur, Malaysia. We have forged new linkages and renewed older ones with our counterparts which we shall leverage to deepen bilateral trade. "
Dr. Sangam Kurade, President, FISME
Vol IV, Issue 112: Aug 1, 2016
Activities
FISME raises issue of impact of Basel norms on trade finance at UNCTAD-XIV, Kenya
FISME President addresses ASEAN-India Business Leaders Conclave - Kuala Lumpur
At 2nd BRICS MSME Roundtable, FISME suggests leveraging the Forum for securing differential treatment for SMEs in international trade related agreements
Business Banter: Lessons from Entrepreneurs
Three types of decisions you will make as an entrepreneur
Macro Metre
Manufacturing PMI hits 4-month high of 51.8 in July
India Inc’s Q1 earnings signal revival of demand Knowledge and News Network (KNN)
Commerce Ministry working to align FDI policy with NIC code
Domestic Digest
Companies can obtain PAN, TAN within a day with Digital Signature Certificate based application Knowledge and News Network (KNN)
Cooperation among MSMEs discussed at BRICS Meet
MSME Ministry comes up with online complaint redressal system Knowledge and News Network (KNN)
State Scan
Haryana Govt asks polluting units to shift out of residential areas in 6 months Knowledge and News Network (KNN)
Himachal to formulate separate MSME Policy; issues related to the sector to be resolved, assures Minister
World Watch
India cautions traders about fraud in import-export from Chinas
Afghan Minister urges Indian investors to cash in on opportunities in different sectors
Knowledge Store
Online lending: A quick fix for loan-starved small enterprises
...And A Lot More
Activities

FISME raises issue of impact of Basel norms on trade finance at UNCTAD-XIV, Kenya

As a concurrent event on Trade Finance organized by Commonwealth Secretariat (London) during UNCTAD IX in Kenya, FISME raised the issue of impact of Basel norms on MSME lending. Representing FISME, Mr. Anil Bhardwaj, Secretary General highlighted that after BASEL II SME lending has been showing negative trend across the countries and that after Basel-III it was the turn of trade finance to take a hit. Under Basel III, banks will be required to hold the leverage ratio of Tier 1 capital over total assets and off-balance sheet exposures equal to 3%. It means that off-balance-sheet trade finance (i.e. letters of credits, standby letters of credits and letters of indemnity), along with other off-balance-sheet items, will have to be incorporated into the calculations of the leverage ratio, and thus are assigned a 100% credit conversion factor.

FISME President addresses ASEAN-India Business Leaders Conclave - Kuala Lumpur

The ASEAN India Business Council organized ASEAN-India Business Leaders' Conclave in Kuala Lumpur on 21 st July 2016. Business leaders from both India and 10 ASEAN countries participated. FISME President Dr. Sangam Kurade who was invited to deliver special address stressed for more frequent interaction among the business communities of the two regions to realize the potential that exist bilaterally. It's time we capitalized on India's Act-East Policy and ASEAN's renewed interest in India, he said. (Dr. Kurade is seen in the pic with Dato' Ramesh Koddamal, Co-chairman of ASEAN-INDIA Business Council)

At 2nd BRICS MSME Roundtable, FISME suggests leveraging the Forum for securing differential treatment for SMEs in international trade related agreements

The 2nd BRICS MSME Roundtable was held in Agra on 28th July 2016 as a precursor to the BRICS summit to be held in October later this year. Delegates from Brazil, Russia, India, China and South Africa participated in the discussions. FISME proposed that the powerful BRICS forum could be leveraged to secure special and differential clauses for SME sector in the multilateral agreements such as WTO and trade related agreements such as Basel norms for banking. FISME Secretary General made a presentation during the roundtable.
Business Banter: Lessons from Entrepreneurs

Three types of decisions you will make as an entrepreneur

There are three types of decisions that you will ever make - good decisions, bad decisions and a third category of the worst kind, no-decisions. In this last category are those ideas that you deliberate on for eons, but never take any action on. In it lie those reasons you look for not starting up, such as the right business model or funding. But, make a decision and you will see that the startup ball magically moves forward.

 

Writing on the Wall


Evaluating economic reforms: 25 years on, need to change direction

The way forward is not opening up more sectors for FDI or lowering the deficit, but improving basic human conditions and governance—these are mammoth tasks. Two points should be kept in mind when we speak of economic reforms. The first is that there has been a continuity over the years, notwithstanding the government in power.



Media Monitor

Macro Metre

Manufacturing PMI hits 4-month high of 51.8 in July

Indicating an upswing in factory activity, the Nikkei India Manufacturing Purchasing Managers’ Index (PMI) posted a four-month high of 51.8 in July. It was marginally lower at 51.7 in June. “The performance of India’s manufacturing economy continued to improve in July, with a stronger expansion in new business contributing to faster increases in output and buying levels,” Nikkei said in a release on Monday. A reading above 50 on the index denotes expansion while a reading less than 50 reflects contraction.

India Inc’s Q1 earnings signal revival of demand

Demand for goods and services is picking up, if one were to go by the initial set of results for the June quarter. For the second quarter in a row, Corporate India continues to show a growth in the top line. This is after several quarters of lacklustre demand. Following the low single-digit growth in the March 2016 quarter, net sales for about 400-odd companies, which have announced their numbers so far, grew 2.3 per cent in the June quarter. Adjusted net profits grew 11.6 per cent over the same quarter last year.

Centre may agree to States having sole control of small businesses under GST

The Centre may accept the demand of the States that small traders should be under the administrative control of States under the new indirect tax regime – GST. This was a key demand of the Empowered Committee of State Finance Ministers at a recent meeting with Finance Minister Arun Jaitley, where it had unanimously rejected a proposal of the Central Board of Excise and Customs for dual control of businesses with an annual turnover of less than rs 1.5 crore.

Commerce Ministry working to align FDI policy with NIC code

The Commerce and Industry Ministry is working to align the FDI policy with the National Industrial Classification (NIC) code with a view to promote ease of doing business for overseas investors. The Department of Industrial Policy and Promotion (DIPP) has asked the Department of Economic Affairs to examine the draft on mapping of NIC code prepared by it.

Domestic Digest

Companies can obtain PAN, TAN within a day with Digital Signature Certificate based application

Companies can now get PAN and TAN registration within a day if they provide Digital Signature Certificate based application. For fast tracking the allotment of PAN and TAN to company applicants, Digital Signature Certificate (DSC) based application procedure has been introduced on the portals of PAN service providers M/s NSDL eGov and M/s UTIITSL, the Income Tax department has said. Under the new process PAN and TAN will be allotted within one day after completion of valid on-line application.

Cooperation among MSMEs discussed at BRICS Meet

The 2nd meeting of the micro, small and medium enterprises (MSME) round table and the Seminar on Services was held today in Agra. The BRICS is a grouping consisting of 5 countries namely Brazil, China, India, Russia and South Africa. Dammu Ravi, Joint Secretary, Department of Commerce was the moderator of both the MSME Round Table and the Seminar on Services. S.N Tripathi, Additional Secretary and Development Commissioner, MSME was the Chief Guest at the 2nd MSME Round Table.

MSME Ministry comes up with online complaint redressal system

For immediate redressal of grievances of the small businesses, the Ministry of Micro, Small and Medium Enterprises (MSME) has come up with an online complaint redressal system. The complaint will be forwarded to the concerned departments and the monitoring will be done by the MSME Ministry and after the redressal of the problem, the information will be uploaded on the website. The small entrepreneurs or associations or individuals can put up their complaints and suggestions with regards to the MSME development commissioner, MSME development institute, tool room, Public Procurement Policy etc.

Ease of Doing Biz: Startups can now take care of their IPR assets without bureaucratic red tape

To improve ease of doing business, Commerce and Industry Minister Nirmala Sitharaman today said a start-up would now need only a certificate of recognition from the government to avail IPR-related benefits. Earlier, a budding entrepreneur had to go through an elaborate process of approaching an inter-ministerial board to procure the Intellectual Property Rights (IPR) benefits. "A start-up would now require only a certificate of recognition from the Department of Industrial Policy and Promotion (DIPP) and would not be required to be examined by the inter-ministerial board, as was being done earlier. This is one rapid change that we have brought in," she said here at the 'Start-up India States' Conference'.

Sebi eases rules for listing of startups

The Securities and Exchange Board of India (Sebi) has proposed a slew of changes for the start-up listing platform to make it attractive for newage companies to consider going public in local markets. The regulator said, based on the feedback received from market participants, it has decided to not just relax rules further but also rename the institutional trading platform as 'High-tech Start-up & Other New Business Platform'.
State Scan

Haryana    

Haryana Govt asks polluting units to shift out of residential areas in 6 months

The Haryana Government has come up with a notification asking 98 ‘dangerous and hazardous industries causing pollution’ (red category) to shift out of residential areas within six months. Speaking on the Government’s move, the Vice President of Manesar Industries Welfare Association (MIWA), Manmohan Gaind told KNN that shifting hazardous units is a good move. He also said that government has expanded the list of industries which are allowed to work out of residential areas across the state.

Himachal Pradesh    

Himachal to formulate separate MSME Policy; issues related to the sector to be resolved, assures Minister

The hilly state of Himachal Pradesh is all set to formulate its own policy for the MSMEs, State Industries Minister Mukesh Agnihotri has said. While addressing an MSME conclave on ‘Enhancing Competitiveness’, he said the issues related to the sector will be resolved soon. The conclave was organised by Confederation of Indian Industry at Baddi. Agnihotri raised concerns over the exorbitantly high rates being charged by truck operators in Baddi-Barotiwala- Nalagarh industrial hub and directed the local MLA to look into the issue.

Kolkata    

MSME-DI Kolkata to organize state level vendor development programme on Aug 3

Aiming to enhance the procurement from SC/ ST entrepreneurs, the MSME- Development Institute, Kolkata, is organizing a State Level Vendor Development Programme (SLVDP) on August 3, 2016. SLVDP is being organized for SC/ST entrepreneurs in collaboration with Garden Reach Shipbuilders & Engineers Ltd. (GRSE Ltd.) and Ministry of Defence, Government of India. The basic objective of the above SLVDP programme is to promote the SC/ST Entrepreneurs as the vendors of GRSE Ltd and highlight the Public Procurement Policy, 2012.

West Bengal    

WB Govt invites pvt sector to invest into agro-industries, farming machineries

West Bengal Government has invited the private sector to invest into developing cold storages, cold chains, seed industry and factories to manufacture machineries essential for farming. In a bid to make the State self-sufficient in all aspects of the agriculture sector, the department’s minister Purnendu Basu welcomed the investment of private sector for infrastructure development. The Minister said that agriculture is the biggest industry. Thus, the State has to be self sufficient so that it doesn’t need to depend on any other states for a better quality yield. “But it is not possible by the state government on its own.
World Watch

China    

India cautions traders about fraud in import-export from China

Indian diplomatic missions in China have cautioned traders from India that they may end up getting sand, stones, salt, bricks, mud etc in place of items ordered and issued detailed guidelines to avoid incidents of cheating. The Indian Embassy and the Consulates have issued trade advisories to various trade bodies and associations cautioning traders and small and medium enterprises (SMEs) planning to do business with China after receiving several complaints.

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Afghanistan    

Afghan Minister urges Indian investors to cash in on opportunities in different sectors

Abdul Qadeer Jawad, Deputy Minister of Agriculture, Irrigation and Livestock of Afghanistan, today urged Indian investors to cash in on the opportunities offered by Afghanistan in the areas of agriculture manufacturing and processing, packaging and trading & marketing to boost the Afghan economy and contribute to economic prosperity, peace and stability in the region. Addressing the Conference & Exhibition on ‘Made in Afghanistan’ under the aegis of Trade, Commerce and Investment Opportunities –CBM of the ‘Heart of Asia’ process for Rebuilding Afghanistan, Jawad said that developing business to business relationships between Afghan producers and suppliers of high quality fresh and dried fruits and Indian retail and direct wholesale markets for these products would be critical for sustaining private sector business relationships during the years ahead.
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Netherlandss    

UP-Netherlands sign pact for setting up skill development centres

In order to facilities and agri-techniques to farmers of the state, a skill development centre would be established in UP, with the cooperation of Netherlands, Uttar Pradesh Chief Minister Akhilesh Yadav has said. With this facility, the farmers would get information of not only food processing but also of how modern techniques can be also used for better produce of sugarcane, potato, dairy development and flowers. Other than this, the Dutch government would also help in cleaning the Yamuna in Agra and in sewage treatment.
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FISME’s official Twitter handle
@fisme
Knowledge and News Network (KNN)
KNN India’s official Twitter handle
@knnindia
Anil Bhardwaj, Secretary General
@abhardwaj_fisme
Tender

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

Instore Asia

Date: 04th – 06th August 2016
Venue: Pragati Maidan, New Delhi
See Details

Business Opportunities Show Ranchi

Date: 06th August 2016
Venue: Hotel Le Lac, Ranchi
See Details

Insight. Inspiration. Innovation

Date: 04th – 06th August 2016
Venue: Pragati Maidan, New Delhi
See Details

Glass Doors Windows Expo

Date: 05th – 07th August 2016
Venue: Chennai Trade Centre, Chennai
See Details

Business Opportunities Show

Date: 08th August 2016
Venue: Vijayatej Clarks Inn, Patna
See Details

Garment Show Of India

Date: 08th – 10th August 2016
Venue: Pragati Maidan, New Delhi
See Details
Your Views

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

According to the FISME Factor, about 95 percent of Micro, Small and Medium Enterprises (MSMEs) think that radical FDI policy will impede growth of Indian e-commerce firms while 5 percent think otherwise.
Knowledge Store

HR Heuristics

B2B ecommerce players are helping SMEs in recruiting skilled employees and retaining them

A clutch of business-to-business ecommerce players are seeking to attract more business by helping small and medium enterprises (SMEs) address the issue of recruitment. Ahmedabad-based startup Tradeohub, an end-to-end supplier for SMEs, is one such company. It has tied up with local human resource or hiring firms as it found that recruitment is the second biggest challenge faced by SMEs after finance.

Finance Fundamentals

Online lending: A quick fix for loan-starved small enterprises

India is home to some 30 million micro, small and medium businesses, which face major challenges in raising loans from banks for working capital requirements. Restrictive lending policies, inflexible collateral requirements and slow disbursement times by formal financial institutions often put these MSMEs at the mercy of informal financiers or money lenders. While these lenders are quick to offer funds, crippling interest rates tie down the borrower to a chronic cycle of debt.

Marketing Mantras

Giving a new spin to selling

You know your friend is looking to get a credit card or looking for a loan, but you do not know how to help him out. What do you do? You are a salesperson tasked by your employer with a target to sell so many credit cards a month. You go about calling people randomly not even knowing whether they need a credit card or not. A majority of the calls turn out to be a waste of time. What do you do?

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

Simulating processes to help industries skill-up

His office is in a quiet middle-class Chennai neighbourhood that was ravaged by the rains here in December. There was water till this, he points to the door frame and says it took them a month to clean up the place. But all that is behind him now as Sabarinath Nair is working on launching his second product — a simulator for painters in industrial applications.

Success Story

Kurlon becomes the first SME to implement SAP S4 HANA for its 9 factories

Mattress manufacturing firm Kurlon will be the first SMEs to go live on SAP S4 HANA for its nine factories, one corporate office and 75 branches across India. Established in 1962, the company is the leading mattress manufacturer in the country. Kurlon has the PAN India presence and operates in vivid range of bed accessories.

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

“ The most valuable thing you can make is a mistake- you can’t learn anything from being perfect. ”
– – Adam Osborne, was a Thailand-born British-American author, book and software publisher, and computer designer who founded several companies in the United States.
 
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 Members Join FISME

During the period from 15th July to 31st July 2016 a total of 2 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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Opportunities
Editorial Team:
Hon. Editor: Anil Bhardwaj
Asstt. Editor: Simmi Nagpal
Types setting & websdesigning: Sanjay Sachan  
Video & Photography:  Pramod Poddar

 

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