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Vol II, Issue 24: December 15, 2012 Activities   News   Members   Contact     Print Version  

President's Message

President-Mr V.K. Agarwal

" With the states being the final arbiters, ‘FDI in Retail’ will be ushered in only in a few of the states. Hopefully this will give small industry and agriculturists in rest of the country, a chance to wait and watch the results of this tectonic experiment. As a representative body of MSMEs we should now be demanding a comprehensive regulatory mechanism that takes care of their interests; simply because small vendors to large organized retail will be up against a set of globally powerful and formidable players in this new game.
The trade bodies could also start dialogue with interested global players to serve as links and communicators between them and the small vendors. Government of India should actively encourage and support such initiatives. "

- Shri V.K. Agarwal, President FISME

AIFPA Show 2012

Date: Dec 13-15, 2012
Venue: New Delhi

See Details


Date: Dec 20-23, 2012
Venue: Pune

See Details

Increasing FDI limit will benefit MSME sector: Survey

FISME survey

According to The FISME Factor survey, 71% of Indian MSMEs feel that increasing FDI limit from 24% to 100% will be beneficial for them.

Advertise in this newsletter

Marketing Mantras

SMEs yet to embrace the social media

Despite the fact that the social media is taken as an effective tool for engaging customers, it is yet to be embraced by small and medium enterprises (SMEs).

SME advice: 5 tips for better sales

Selling can be a neglected part of a company but with proper planning and execution, your work can start to reap dividends.

Finance Fundamentals

Why people are sceptical when it comes to financial planning?

Financial planning is important before the start of any exercise and people have started seeking professional advice to build the road map. But they are reluctant when it comes to implement the recommendations of the plan.

Right credentials help SMEs access bank finance with ease

For the Small and Medium Enterprises (SMEs) accessing bank finance is not that tough if it has the right credentials.

Policy Polemic

Credit tap runs dry for small biz

The RBI’s move to keep lending to NBFCs out of priority sector has, in turn, hit small entrepreneurs’ access to finance.


Industries in 2013

The Economist Intelligence Unit surveyed 405 executives in November 2012 on their expectations for business conditions in 2013.

India's Foreign Trade: latest figures

Ministry of Commerce has come up with latest figures on exports, imports, crude oil & non-oil imports and trade balance.

Quotable Quotes

President-Mr V.K. Agarwal

" Innovation has nothing to do with how many R&D dollars you have. When Apple came up with the Mac, IBM was spending at least 100 times more on R&D. It's not about money. It's about the people you have, how you're led, and how much you get it. "

- -STEVE JOBS, Former CEO, Apple

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

FISME Policy Paper  

SME Exchanges in India: Review and Suggestions
FISME Policy Paper SME Exchanges in India: Review and Suggestions

Fertilizer quality control in India: Need for 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:

Briefing on 'KNN' reached Ahmedabad, Indore & Kolkata

FISME is coming up with a distinctive platform to bring together various MSME Associations and Institutions for sharing knowledge and reaching out to media through  ‘Knowledge and News Network (KNN)’. The process of briefing and feedback sessions in major cities for MSME associations, initiated last month,  reached to Ahmedabad, Indore and Kolkata.

The briefing sessions were organised in Ahmedabad on December 1, 2012 followed by Indore and Kolkata on December 4 and 5, 2012 respectively. KNN will not only be an MSME focused news agency but will also run an internet based portal to be information clearing house for MSMEs, associations and institutions. KNN will disseminate information through all formats: text, audio and video (through VoD/IPTV).  

KNN is being established with assistance from GIZ (German International Development Cooperation). MSME associations working with SIDBI in credit delivery, associations being assisted under GIZ / SEQUA programme for capacity building of MSME associations and FISME partner associations form the core of over 100 associations that have joined the network. Over 75 prestigious institutes of management and engineering besides Universities have also joined.   
Policy of FDI in multi-brand retail is endorsed by the Parliament too but don't we need a statutory autonomous regulator to ensure fair deal to farmers, their MSME vendors and consumers?

‘The Best Advice I Got’

“Minimise risks, but don’t hesitate to take bold decisions”

- Y M Deosthalee, CMD, L & T Finance Holding Ltd
Risk management is the identification, assessment, and prioritization of risks followed by coordinated and economical application of resources to minimize, monitor, and control the probability and impact of unsuccessful events or to maximize the realization of opportunities. It is a rigour of improving the probability of survival and success, mostly in an uncertain and complex condition.
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Macro Metre

IIP soars to 8.2% in Oct, raises hopes of economic recovery

Spurred by robust growth in manufacturing, industrial output bounced back to 16-month high of 8.2 per cent in October raising hopes of economic recovery in the coming months. "I am very encouraged by the indications of the green shoots in economy in terms of production. IIP figures are very encouraging," Finance Minister P Chidambaram told reporters while commenting on surge in Index of Industrial Production (IIP) to 8.2 per cent, as against contraction of 0.7 per cent in September.
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Consumer price inflation at 9.9% in November

Rising for the second consecutive month, retail inflation surged 9.90 per cent in November driven mainly by rising prices of food items such as sugar, vegetables, edible oil and clothing. The retail inflation was 9.75 per cent in October and 9.73 per cent in September. The highest price rise in November was seen in the oil and fats segment with an annual inflation of 17.67 per cent, as per the Consumer Price Index (CPI) data released recently.
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Domestic Digest

Comprehensive Online Services for Patents inaugurated

The Comprehensive online Patent filing services of the Office of the Controller General of Patents, Designs and Trade Marks was recently inaugurated. Shri Saurabh Chandra IAS, Secretary, Department of Industrial Policy and Promotion, Ministry of Commerce and Industry, Government of India inaugurated it and the function was held at Boudhik Sampada Bhawan, senior officers of the Department, officials of the Patent office, officials of National Informatics Centre and Patent Attorneys attended the event.

Govt to facilitate entry of more SMEs into EPFO

The labour ministry is working to curb administrative inefficiencies and end manual intervention in the registration and withdrawal of retirement funds managed by the Employees’ Provident Fund Organisation (EPFO). The move is likely to encourage more establishments, especially micro, small and medium enterprises (MSMEs), to join the social security net, said two ministry officials, requesting anonymity. There are about 700,000 units registered with the EPFO and this number can double in the next few years if SMEs join it in a big way, one of them said.

SEBI allows 12 more Alternative Investment Funds

Market regulator SEBI has allowed 12 entities to set up Alternative Investment Funds (AIFs), a newly created class of pooled-in investment vehicles for real estate, private equity and hedge funds, in the last two months. The 12 AIFs that have been registered with SEBI since October 10 included India Realty Fund, Dar Mentorcap Film Fund, Capaleph Indian Millennium Small & Medium Enterprises Fund and Capaleph Indian Millennium Private Equity Fund.

Solar power solution for Faridabad industry

Faridabad industrial units have been reeling under a power crisis for many years. This has resulted in players either moving out or closing down their production units in the city. Seeing the situation worsening, Faridabad Small Industrial Association (FSIA), with the help of Bosch - a German firm, ministry of new and renewable energy (MNRE) and Small Industrial Development Bank of India (SIDBI), have taken an initiative to reduce the power deficit through solar energy.

BRICS to set up platform for tech, information exchange

BRICS countries have agreed to institute a platform for creating opportunities for exchange of technologies among themselves. The decision on the platform that would also serve for exchange of experiences and good practices for enterprise among member countries was taken at a meeting earlier this week of the BRICS Contact Group on Economy Trade and Investment. The Contact Group also decided to create data bases of exports and imports, as well as a data base and platform for exchange of information for small and medium enterprises (SMEs) of BRICS countries.

Filings to set up MSMEs grow 19% in 2011-12

The Micro, Small and Medium Enterprise (MSME) sector reported a growth of 19.06 per cent in 2011-12, in terms of Entrepreneurs’ Memoranda (EMs), filed at the all-India level. The number of EMs filed in 2011-12 was 282,496, compared to 237,263 in 2010-11 and 213,894 in 2009-10. Growth in 2011-12 was almost twice the rate posted in 2010-11 (10.93 per cent) and 2009-10 (10.78 per cent), according to a written reply by K H Muniyappa, minister of state for MSME, to a question in the Lok Sabha.

Naraina printers hail govt. support policy

West Delhi's 3,000 printing units have good news to share. The government's Public Procurement Policy might open new business avenues for them. It will benefit particularly, the smaller units that fall under the category of micro, small and medium industries. Under the said policy, public sector majors such as Delhi Book Trust (DBT), Central Board of Secondary Education (CBSE), Indira Gandhi National Open University (IGNOU) and National Council of Educational Research and Training (NCERT) have committed to procure about 20 percent of their printed material from the MSMEs.

Bombay Stock Exchange launches SME index

The Bombay Stock Exchange (BSE) recently launched a Small and Medium Enterprises (SMEs) index that aims at tracking the current primary market conditions in the Indian capital market and measure the growth in investors' wealth over a period. The index will be constituted by SMEs listed on the BSE SME platform. So far, there are 11 companies listed on the SME platform and this index will have features similar to the BSE IPO index.

200% employment growth in MSME sectors: Muniyappa

K.H. Muniyappa, Minister of State for Micro, Small, and Medium Enterprises in a written reply to a question recently asked in Rajya Sabha, said MSME sector has achieved satisfactory growth over the last decade. On the basis of the fourth census for MSMEs, we have seen steady growth in number of MSMEs. The number has increased from 105.21 lakhs to 361.76 lakhs during the period of 2001-02 to 2006-07. Employment in the MSME sector increased more than 200% in the last decade, as per third All India Census of SSIs (Small Scale Industries) 2001-02, fourth All India Census 2006-07 and Economic Census 2005, the employment figure jumped from 249.33 lakhs to 805.24 lakhs.

Andhra Pradesh    

Expensive, regular power for industry consumers mooted

With industries crying for uninterrupted power, the Commissionerate of Industries has now mooted the expensive power purchase scheme (EPPS) for those industrial consumers keen on a round-the-clock (RTC) power supply. The commissioner of industries has initiated moves to ascertain the willingness of HT/LT (high tension/ low tension) consumers from the MSME (micro small and medium enterprise) sector that are fed through either dedicated feeders or express feeders to opt for EPPC.


Sonipat SMEs are shifting to Bawana and Narela

In search of uninterrupted power supply, easy availability of labourers and transport facilities, Sonipat-based small scale enterprises have started migrating to Bawana and Narela. They say it will step up their profitability by 12 percent to15 percent.

FDI jumps in Haryana after new industrial policy

Exports from Haryana have crossed Rs 48,530 crore during the year 2010-11 and the State has so far received Foreign Direct Investment (FDI) of Rs 13,128.81 crore, of which an investment of Rs 9628.81 crore has come up after implementation of the Industrial Policy, 2005. A spokesman of Haryana Industries and Commerce Department said that having catalysed an investment of about Rs61, 000 crore since 2005 and an investment of about Rs 97,000 crore being in the pipeline, Haryana has more than 1,000 projects with foreign technical or financial collaboration.


248 GIM projects have been implemented: Shettar

Karnataka Chief Minister Jagadish Shettar recently said 248 projects in large and medium industries segment, which were committed in the Global Investors Meet (GIM) in June, have been implemented. "We have implemented 248 projects in large and medium industries sector committed during the last GIM Meet. These projects invited investment worth of Rs 1, 74,000 crore and created 8, 13,125 jobs in the state," Shettar said after releasing the 'GIM 2012' progress report in Karnataka.

Excellence awards for SMEs

Quality, innovation in corporate governance, information technology, information technology communication, financial management, exports and corporate social responsibility are a few areas of excellence for which the awards will be given. To encourage women entrepreneurs, a special award for women in the SME sector has been instituted. “One can find many awards instituted to encourage and promote multi-national companies. However, there are not many opportunities for small and medium enterprises to showcase their achievements.


Big boost for small-scale industries

Giving a major fillip to small-scale industries, the district Panchayat will start industrial estates in three taluks in the district during 2012-14. According to the recently presented plan document of the local body, 10 acres of land in the taluks of Kozhikode, Vadakara and Koyilandy will be taken over for the purpose and infrastructure facilities will also be provided for starting industrial units to interested persons. For this, the Kozhikode district Panchayat has set aside an initial fund of `51 lakh. “The decision to start more industrial units in the district was taken after the successful functioning of the Industrial estate at Cheruvannur-Nallalam.

Kerala IT Company to go public

Addressing reporters at the College of Engineering, from where it all began, the young entrepreneurs said they bunked classes, raised capital by selling mobile SIM cards and recharge coupons to friends and dreamt big by floating MobME - which develops mobile application software - from the campus. Six years back when their classmates were filling up application forms for their examinations, these students were filling up documents to officially register a technology start-up with the registrar of companies and Technopark Incubator in Kerala.

Tamil Nadu    

Acute power crisis to force industries to shift to other areas

With almost 16 hours of power cuts crippling the industrial sector in Tamil Nadu, industrial associations held an emergency meeting in Coimbatore to discuss the likely solution of shifting their units to other areas in the country. Over 140 industrial associations convened a meeting in the city recently to discuss the various problems faced by them. Balasundaram, a member of the Tamil Nadu Power Consumers Joint Association, said units are being forced to run without power and are facing a crisis situation in the state.

Sivaganga focuses on clusters, skill development

An industrial profile of Tamil Nadu’s Sivaganga district says the development plan for the district includes initiatives to support the growth of SMEs, such as more cluster-specific allocations, support for skill development at the unit level, capacity-building, business incubation in selective engineering colleges and polytechnics, and creation of more techno-entrepreneurs. The plan envisions linkages between SMEs and research and development (R&D) institutions, government support for venture capital providers for high-end R&D-based start-ups, and creation of a technology bank in the district.


Separate Corporation under MSME demanded

Entrepreneurs in the micro, small and medium enterprise (MSME) sector recently called upon the State Government to form a separate corporation under the MSME Department that will specifically cater to their needs. A dedicated regulatory and facilitation body for the MSME sector has become imperative as the IDCO has deviated from its avowed objectives of working for MSME sector and focused all its efforts on the large industries and profit-making, they alleged.


SMEs generate more jobs in U'khand than large players

When it comes to employment generation, the Micro, Small and Medium Enterprises (MSME) sector is a clear winner in Uttarakhand, as compared to large companies. Though Tata Motors, Ashok Leyland, Hero Motocorp, Hindustan Unilever and other leading large companies have invested heavily in the hill state over the past few years, the jobs have been generated mainly by the MSME sector, a new report by the department of industries has revealed.

West Bengal    

Investors see West Bengal bonds as risky: RBI

Reserve Bank of India governor Duvvuri Subbarao said West Bengal's financial condition is tight before he stepped in the Writers' Buildings to meet chief minister Mamata Banerjee recently. The meeting was arranged hurriedly by the state government as the CM's refusal to meet the governor had sent wrong signals to investors. "Public finance in West Bengal is tight," Subbarao said. "It is tighter than many other states," he said while interacting with the media at RBI's local head office.


SME's welcome measures to stimulate growth

Measures announced in the Autumn statement to boost SMEs and spur economic growth should provide much needed seasonal cheer, say business organisations. Some of the measures Chancellor George Osborne announced include extending the small business rates relief scheme to April 2014. This will mean 350,000 businesses nationally will pay no business rates until 2014. He also announced a one per cent reduction in corporation tax to 21 per cent and a new business bank intended to help lending to SMEs and UK business and will provide it with £1bn of extra capital.


Empowering Indonesian women

Blair is the founder of the Cherie Blair Foundation for Women, a foundation that provides support for entrepreneurial efforts by women in developing countries through capacity- and capital-building projects. The foundation runs a mobile technology programme, which aims to create economic opportunities for women entrepreneurs through the use of mobile phones and services.


Dubai SME and NASDAQ Dubai sign agreement

SME, the agency of the Department of Economic Development (DED) mandated to develop the small and medium enterprise (SME) sector, and NASDAQ Dubai, the region’s international exchange recently signed an agreement to guide SMEs towards suitable financing options to fund their growth, including carrying out an initial public offering (IPO). The agreement underlines the commitment of Dubai SME and NASDAQ Dubai to promoting the expansion of high-quality SMEs, whose potential for rapid growth is set to play a critical role in the continuing expansion of Dubai’s economy.


APEC economies vow to boost SME development

Small- and medium- sized enterprises have contributed more than 50 percent to China's annual economic growth over the past years. And yet, the global economic crisis is putting the squeeze on the profitability and overall outlook for SMEs, especially in the foreign trade sector. The 2012 APEC SME Summit wrapped up in Chengmai in China's island province of Hainan recently. Participants are vowing to step up their cooperation and meet the challenges ahead.

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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Business Opportunities for India in Turkey

There are business opportunities available for Indian companies in Turkey. The interested candidates can check details.

Business Opportunities for India in Canada

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

3 new members join FISME

During the period from December 1 to December 15, 2012 a total of 3 new MSMEs became members 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
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