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Vol III, Issue 39: August 1, 2013 Activities   News   Reader Reactions   Members   Contact     Print Version  

President's Message

President - Mr D. Gandhikumar

" In FISME, we had a dream that an MSME, no matter how small, must have an opportunity to have its say. An opportunity to share its pain and its struggle. An opportunity to share its successes and victories. An opportunity to collaborate, to learn and to contribute. With KNN I feel we have come closer to realizing that dream. "

(Excerpts from address of FISME President at KNN launch)

-Shri D. Gandhikumar, President FISME
Please see full address

KNN an Introduction

FISME delegation to Thailand – November 2013

Date: 19-23 November 2013
Venue: Bangkok

See Details

9th Health Asia 2013
International Exhibition & Conferences

Date: 9-11 Sep 2013
Venue: Karachi Expo Centre, Pakistan

See Details

Aluminium India 2013

Date: 12-14 September, 2013
Venue: Mumbai

See Details

India Composites Show 2013

Date: 24-26 Oct, 2013
Venue: New Delhi

See Details

Residential training programme on ‘Effective Office Administration & Management’

Date: November 14-18, 2013
Venue: Port Blair

See Details

Rajiv Gandhi National Quality Award 2012

Bureau of Indian Standards under Ministry of Consumer Affairs, Food and Public Distribution, Government of India invites applications for Rajiv Gandhi National Quality Award for year 2012.

See Details

India lacks infrastructure and eco-system to be manufacturing hub: Survey

FISME survey

According to the FISME Factor survey, 75 per cent of the Micro, Small and Medium Enterprises (MSMEs) feel that India might not be the next manufacturing hub as it lacks the required infrastructure and the eco-system. The Commerce and Industry Minister Anand Sharma has said that the government is committed to make India a manufacturing hub on the other hand, Tata Motors has chosen Indonesia as a hub to export vehicles.

HR Heuristics

How to ensure your employees are a happy lot

Gaining employee loyalty and satisfaction is a very difficult task. Various companies come up with different strategies to combat employee dissatisfaction and attrition.

Finance Fundamentals

Bank SME credit schemes galore; are there enough takers?

By Esther Suhasini
Most public sector banks have specialised units and schemes in place to cater to the MSME sector, especially in the industrial clusters. But how effective are their schemes? Have they succeeded in providing critical assistance to the small and medium units?

Marketing Mantras

'We launched the men's fairness cream first, others followed suit'

Fair and Handsome not only had the first mover advantage when it was launched nationally in 2005, but it also opened up the fray and saw the entry of big players like Garnier and Nivea.

It is time for social media to take centrestage in marketing

By Esther Suhasini
Regardless of whether you have a storefront business or not, you need to have a virtual one, considering the number of people active on social media sites such as Facebook, Twitter, LinkedIn and Google+ these days.

Policy Polemic

Will listing on the stock exchange benefit SMEs?

One of the biggest challenges for all start-ups and small and medium enterprises (SME) is raising capital to either launch one's company or expand operations.

SME Special

A primer for getting credit rating by SMEs

By Gunja
A credit rating evaluates the credit worthiness of a borrower, especially an enterprise. It is an evaluation made by a credit rating agency, profiling a company’s ability to borrow and service debt.

Success Story

From a dreamy-eyed schoolboy to an astute businessman

That young boy with dreamy eyes is now in his 50s and is the CEO of Pune-based Rochi Engineers, which manufactures exhaust and emission control systems for the off-highway diesel engine applications like mining, power generation, earthmoving equipment as well as the construction industry.


India's central bank left interest rates unchanged on July 30 as it supports a battered rupee but said it would roll back recent liquidity tightening measures when stability returns to the currency market, enabling it to resume supporting growth.

Quotable Quotes

" My biggest motivation? Just to keep challenging myself. I see life almost like one long University education that I never had — everyday I’m learning something new. "

-Richard Branson, Founder and Chairman of Virgin Group

Directory of Testing Laboratories in India

Directory of Testing Laboratories in India
Buy our one-of-a-kind guide to all industrial testing laboratories in India. Find the one most convenient for getting your products tested and certified. An invaluable compendium for all industrial units and exporters.
PP: 894, Hard Cover.
Price: Rs 900.
50% discount for members.

Handbook for Managing Export Payment Risks 

If you are an exporter you simply cannot do without this unique publication which tells you how to manage payment and other risks arising from exports.
PP: 78.
Price: Rs 300.
50% discount for members.

Free Publications

Identification & Valuation of IPRs in MSMEs  

Identification & Valuation of IPRs in MSMEs
Identification & Valuation of IPRs in MSMEs - Selected Research Papers.

Fertilizer quality control in India: Need for change 

Fertilizer Quality Control in India: The need for a systemic change
This monograph argues for a systemic change in fertiliser quality control. Essential reading for those in policy-making positions.
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:
Coming August, K J Somaiya Institute of Management Studies and Research located in Vidyavihar, Mumbai is launching a certificate programme on Creating New Ventures.

Knowledge & News Network (KNN) launched by MSME Minister

Knowledge and News Network (KNN), India's first online media platform with a focus on the micro, small and medium enterprises was launched by MSME Minister Mr K H Muniyappa, with a promise to espouse the cause of the vibrant and dynamic sector which contributes 40 per cent to the country's industrial production and exports. Promoted by the Federation of Indian Micro, Small and Medium Enterprises (FISME) in partnership with GIZ- German Agency for International Cooperation, KNN is a multi-media platform equipped to disseminate news, views and analysis of the topical issues through texts, graphics and videos.

FISME to organise Indo-Pak SME delegation exchange in Oct’13

The Federation of Indian Micro, Small and Medium Enterprises (FISME) will organize the first exchange programme for the small and medium enterprises of India and Pakistan in October this year. “I am happy to announce that FISME would organize first SME exchange programme in the decade between India and Pakistan. We shall mount to and receive a delegation from Pakistan,” said the President of FISME Mr D Gandhikumar during KNN launch in New Delhi on July 25, 2013.

FISME to help Fiji set up bilateral trade council

In order to increase trade between India and Fiji, a bilateral business council will soon be set with the help of the Federation of Indian Micro, Small and Medium Enterprises (FISME) to benefit businesses of both the countries, where they can discuss issues and explore avenues like exhibitions and buyer-seller meets. The First Secretary of the Government of the Republic of Fiji, Mr Alivereti Naioko met Secretary General of FISME, Mr Anil Bhardwaj and Joint Secretary-International Trade, Mr Mukesh Kalra on July 29, 2013 in FISME’s secretariat, New Delhi to identify areas for co-operation.

Listen and accept the feedback

-Jim Yong Kim, 12th President of the World Bank
“I received some great advice from Marshall Goldsmith, one of the preeminent authorities in the field of leadership,” said Jim Yong Kim, President World Bank. He told me, “If you want to be an effective leader, listen to and accept with humility the feedback that comes from your team.” The most fundamental commitment you have to make as a leader is to humbly listen to the input of others, take it seriously, and work to improve. Again, it sounds simple, but it’s not easy. Leadership, as Marshall always says, is a contact sport, and one has to constantly ask for and respond to advice from colleagues so you can improve.

(Taken from Business Insider)

Macro Metre

Got to live with high interest rates

Industry and other borrowers will have to live with high interest rates as the Reserve Bank of India (RBI) has retained the benchmark interest rates. The focus of the RBI’s monetary policy is to somehow protect the rupee from the onslaught in the foreign exchange market. RBI has clearly sacrificed once again growth and would maintain a tight fist on the money flow in the system by keeping interest rates high. While reviewing the policy, the central bank has kept the repo rate, the rate at which it lends to commercial banks, steady at 7.25 per cent; and the cash reserve ratio (CRR), the proportion of deposits banks must keep with the RBI as cash, was also left unchanged at 4 per cent. The reverse repo rate also stands at 6.25 per cent, according to RBI.

Rupee breaches 61 level again

The rupee has dropped by 73 paise to 61.20 in the late morning deals on persistent month—end dollar demand from importers on the back of strengthening in the US currency overseas. The rupee resumed lower at 60.91 per dollar as against the last closing level of 60.47 at the Interbank Foreign Exchange (Forex) Market and dropped further to a low of 61.20. However, it recovered afterwards to 60.83 per dollar before quoting at 61.06 per dollar at 1100 hrs.

Domestic Digest

Interest subsidy for MSME exporters raised to 3%

The Government today announced increase in the interest subsidy for all exporters in the micro small and medium enterprises (MSME) sector from two to three per cent giving them a boost to compete in the tough global market. In addition, the exporters belonging to sectors such as handlooms, handicraft, carpets, toys, readymade garments etc., are also eligible to receive interest subvention. As many as 235 tariff lines in the engineering goods will also be eligible for the increased interest subsidy.

MSME Act needs review

The Jharkhand Small Industries Association has made a representation to the Central and State Governments seeking changes to the MSMED Act which they consider obsolete. “The industry operates on outdated laws. Labour Laws, Factory Act, Minimum Wages Act, Workmen's Compensation Act, Employees Liability Act and many more need to be completely overhauled to be of benefit to entrepreneurs,” President of Jharkhand Small Industries Association, Arun Kumar Khemka told KNN. He further stated that although the government had come up with several legislations to safeguard the interests of the MSME sector, there were many issues yet to be addressed.

SIDBI identifies niche areas of financing for tiny units

The Small Industries Development Bank of India (SIDBI) is looking at potential areas of financial support to the MSME (Micro Small and Medium Enterprises) sector. SIDBI’s Deputy Managing Director N. K. Maini, who spoke at the SME CEO Knowledge Forum organised by UTI Mutual Fund in association with The Hindu Business Line at the Codissia Trade Fair Complex recently in Coimbatore, said that SIDBI was set up as a refinance institution initially. “We found gaps in financing over time. After undertaking a major re-positioning exercise within the organisation last year, we started looking to fill the gaps by stepping into areas that banks did not look into,” he told representatives of the MSMEs at the event.

Badal - a cloud computing project for MSMEs

With a view to make the Micro, Small and Medium Enterprise (MSME) sector globally competitive, the Union Minister of State, Ministry of MSME, K H Muniyappa has announced the launch of his government's upcoming project 'Badal,' a cloud computing platform for MSMEs. Badal will promote internet-driven activities such as e-Commerce among relatively small and medium businesses in India, the project likely to be rolled out by MSME Ministry within six months. With cloud-based services that include software and IT infrastructure, the platform would empower units, enabling them to cut operational costs and increase efficiency.

Potholes, lack of security, main concerns in Industrial estates

By Swati Dayal
Industrial estates across different states are in a sorry state of affairs in terms of maintenance of roads, law and order and other civic amenities. Poor maintenance in otherwise planned industrial estates has been a matter of concern, more so for the small industries which unlike large industries cannot spend much on security and infrastructure themselves. As the report of the working group on MSMEs growth for 12th Five Year Plan said, maintenance of Industrial Estates (mainly maintenance of roads, drainage, sewage, power distribution and captive power generation, water supply, dormitories for workers, common effluent treatment plants, common facilities, security, etc.) is a critical component for successful functioning of the industrial enterprises in any industrial estate/ industrial area.

Delhi industry upset over hike in power tariff

Industry associations in the national capital, mainly in the MSME sector, said the increase in power tariff would push up their cost of production. The Delhi Electricity Regulatory Commission (DERC) has announced hike in domestic power tariff by 5 per cent. As per the new rates, a domestic consumer will be charged Rs 3.90 per unit for the first 200 units of power instead of the current Rs 3.70. Each unit consumed between 201 and 400 units will cost Rs 5.80 per unit, as against the present Rs 5.50 per unit in that range of consumption.

BIS registration tall order for small electronic item makers

By Gunja
New Delhi, (KNN) The small companies find the procedure of registering electronics and information technology products with Bureau of Indian Standards (BIS) difficult and lengthy, the date for which has been extended by three months till October 3, 2013. “With the poor infrastructure available to small manufacturers, the process of registering products with BIS is lengthy and difficult. Besides, small businesses do not know how to go about it; time and energy is wasted in looking for the right people-either certification agent or vendors who could help to obtain certification,” said Kapil Kumar Garg, Co-Founder and CEO of ThinnkWare- a venture of KC Robotics and Embedded Private Limited.

Textile ministry wants MNREGA linkage with cottage sector

With a view to encourage skill development and establish worker linkages between the Mahatma Gandhi National Rural Employment Guarantee Act (MNREGA) and production in the cottage sector, the Minister of Textiles K S Rao has decided to take up the matter with the Cabinet. “Skill development is the need of the hour and it is important to establish worker linkages between MNREGA and the production in the cottage sector,” he said. Launched in 2006, MNREGA guarantees 100-day employment for rural poor people. It aims to provide jobs to people who are unemployed in the off season and it is hoped that by linking the scheme to the textiles sector the workers will also be trained.

SMEs seek renewal of duty free access to US market

As the US Vice President Joe Biden interacted with leaders of the Indian industry, a strong demand was made for renewal of duty free exports from the Indian SMEs to the American market. The US grants duty free entry of Indian exports of items which are of interest to the small and medium enterprises. These are: most manufactured items; many types of chemicals, minerals and building stone; jewellery; many types of carpets; and certain agricultural and fishery products. The facility is enjoyed by developed countries under the Generalised System of Preferences (GSP). However, for India and some other select countries, the market access to the US under this system will stop from July-31.

Inclusive growth not possible without MSMEs: CII

Inclusive growth is not possible without strengthening micro, small and medium enterprises (MSMEs), the sector being one of the largest job creators in India, said Member Secretary, National Manufacturing Competitiveness Council, Ajay Shankar. "The success of India's inclusive growth is dependent on the success of SMEs and is dependent on the success of the manufacturing," said Shankar, while addressing the launch of '1,000 Visionary SME (VSME) Programme' by NMCC, the Confederation of Indian Industry (CII) and the Japan International Co-operation Agency (JICA).


Assamese industry body holds awareness programmes to protect IPR

With an aim to create awareness amongst small and medium enterprises in Assam regarding the risks of intellectual Property (IP) rights infringement, North Eastern Small Scale Industries Association (NESSIA) has organized several awareness programmes here in collaboration with the Ministry of MSME. Most of the MSMEs in India avoid taking measures to protect their ideas and business strategies. Considering that awareness of IP rights is very low, NESSIA State President, Sailen Baruah in a press release stressed the need for urgent steps towards protection of natural and manmade items of the State. “Geographical Indication (GI) registration under Intellectual Property Rights (IPR) Act is a corrective step,” he said.


Haryana to sell power to traders, but industry reels under scarcity

By Gunja
Industries in Haryana facing frequent power cuts are furious over the move of the state power generation company to sell 300 mega watt (MW) through traders. “The move of the Haryana Power Generation Corporation Limited (HPGCL) is unfortunate and disappointing,” said President of Udyog Vihar Chamber of Commerce Gurgaon, H R Vaish. The HPGCL has invited bids to sell 300 MW to power traders who have inter- state trading licence from the Central Electricity Regulatory Commission (CERC) or different state electricity utilities.


Govt of Rajasthan keen to introduce monorail in Jaipur

After initiating the Jaipur Metro rail project, the Government of Rajasthan is now seriously contemplating a monorail project in Jaipur. The Departments of Urban Development and Housing and LSG (local self-government) have invited consultants with the required manpower and experience to oversee the project, according to an official notification from the state government of Rajasthan. Monorail will be introduced on PPP model.

Tamil Nadu    

Rs 10 cr loss per day due to backing down of windmills in TN

By Swati Dayal
The Indian Wind Power Association has asked the central electricity regulatory commission (CERC) to stop unscheduled and unforecast backing down of windmills by the State Load Despatch Centre (SLDC). Wind energy generation is not at the maximum even during peak time because of evacuation problems, according to chairman of the Indian Wind Power Association, K Kasthoorirangaian. Backing down of windmills has badly affected the economy of investing in windmills and finances of small industries that are dependent on generation of wind energy for their economic survival, he added.


Handloom emporia to help rebuild livelihoods in Uttarakhand

The Uttarakhand Government plans to develop handloom emporia in the flood ravaged region of Uttarkashi and Dharchula, as a measure to rebuild confidence amongst the small and medium entrepreneurs of the handloom sector. Uttarkashi and Dharchula were the worst affected districts during the floods of June 16-17 which completely devastated the place. “These two areas were completely cut off from other places during the floods. People were shattered and many lost their livelihood completely,” said Uttarakhand Industries Association President, Pankaj Gupta. To support the region, the Uttarakhand Handloom and Handicraft Development Council (UHHDC) seeks the services of firms and agencies to handle the concept, design and plan for the interiors of two handloom and handicrafts showrooms, known as ‘Himadri’.

Uttar Pradesh    

Leather Council likely to set up trade centre in Agra

The Council for Leather Exports (CLE) has proposed to establish a trade centre in Agra at a total project cost of Rs 18.90 crore. The project is promoted by Agra Footwear Manufacturers and Exporters Chamber, Agra, according to an official notification from CLE. The Council is keen to initiate the project under the ASIDE Scheme (Assistance to states for development of export infrastructure and allied activities) of the Government of India. In this context, it seeks to appoint a project management consultant who will assist the CLE in all aspects of setting up of the trade centre in Agra.


Colombia launches a safeguard investigation on steel wire

Colombia, a key market in Latin America has notified the World Trade Organization’s (WTO) that it plans to impose safeguard duties on import of steel wires. More and more countries are resorting to this measure hurting the interest of importers from different parts of the world including India. However, Colombia has invited stakeholders to express their views on whether increased imports of steel wire is causing or is likely to cause damage to domestic industry and has informed the WTO to this effect. The questionnaires are available on the website of the Ministry of Trade, Industry and Tourism and views have to be expressed within 30 working days.


India generates business worth USD 32.4 million from garment fair in Tokyo

Indian apparel exporters have generated business worth USD 32.4 million from the JFW International Fashion Fair (IFF), held recently in Tokyo. "India Pavilion has witnessed over 1900 buyers and the business negotiated/ done was USD 32.4 million," Chairman, Apparel Export Promotion Council (AEPC), A Sakthivel said in a press statement recently. Significantly, garment exports during the period 2012 were USD 293 Mn as compared to USD 270 Mn in 2011, posting a positive growth of 8.11 per cent. The first time visitors were hopeful of generating business in long term. Considering this, it is expected that overall growth in business with Japan may be over 10 per cent, Sakthivel added.

United Kingdom    

UK move on visa fee 'retrograde step,' says Sharma

India today said the Britain's move to charge 3,000 pound visa bond from visitors of certain countries including India, would be a 'retrograde measure' for bilateral trade with the UK, which should not be taken. “As far as we are concerned, we have made it abundantly clear that after the successful visit, the second of his term by President David Cameron, and a clear assurance is that have been given a growing partnership that exist between UK and India, this would be a retrograde measure and negative step and should not be taken,” Commerce and industry Minister Anand Sharma said at a press conference here.

United States    

World energy use to rise by 56% through 2040; half owing to India and China

The US Energy Information Administration (EIA) has attributed half of the total world increase in energy consumption to India and China, according to its newly released International Energy Outlook 2013. “The increase in world energy use is largely in the developing world, where growth is driven by strong, long-term economic growth. Half of the total world increase in energy consumption is attributed to China and India,” said the report. Over the next three decades, world energy consumption is projected to increase by 56 per cent through 2040, driven by growth in the developing world, including India and China, it said.

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Business opportunities for India in Canada

There are business opportunities available for Indian companies in Canada. The interested MSMEs can check details.

4 New Members Join FISME

During the period from July 15, 2013 to July 30, 2013 a total of 4 new MSMEs became member of FISME.

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This Newsletter is edited by the FISME Secretariat. We welcome contributions as well as comments and suggestions. Please write to

Federation of Indian Micro and Small & Medium Enterprises (FISME)
Headquarter: B – 4 / 161, Safdarjung Enclave, New Delhi – 110029
Telephone: +91 11 26187948, +91 11 26712064, +91 11 46023157   Fax: +91 – 11 – 26109470
Email: ,   Mobile: +91 9312274911,   Website:
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Tel: +91- 40- 23322117 Fax: +91 -40- 23312116

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