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The FISME Factor


President's Message
" The RBI Governor Raghuram Rajan deserves kudos for his candid counseling to the government that it should first focus on improving business environment so that youth is encouraged to start new enterprises. His assertion that FDI cannot be attracted by merely giving tax incentives deserves serious consideration. There is a need to make supply chain more efficient by developing infrastructure and improving human resources, introducing GST, putting policy framework and tax planning which is transparent and redressal quick. There is no short cut for the ‘Make in India’ strategy to be successful.
Dr. D. Gandhikumar, President, FISME
Vol IV, Issue 72: December 15, 2014
FISME hosts SME Working Group (SAARC-TPN) meeting in New Delhi
Business Banter: Lessons from Entrepreneurs
Taking a Shot: Lessons Learned in Entrepreneurship
Macro Metre
World Bank signs $1100 million loan agreement with Dedicated Freight Corridor Corp
Government to ban import of machinery over 5 years old
Domestic Digest
USIBC hosts webinar for US SMEs on doing business in India Knowledge and News Network (KNN)
Government approves Credit Guarantee Funds for Factoring for MSME Knowledge and News Network (KNN)
BSE SME's Mcap Rises to Rs 10k crore
State Scan
Karnataka launches mobile governance project
Odisha is ready to return to the high-growth path, having overcome constraints that had held it back
World Watch
India's economic growth likely to increase to 6.3% in 2016: UN Report
India, Poland keen to collaborate in mining sector
Knowledge Store
Challenges That SMEs Face While Hiring Senior Talent From Multi National Corporations
5 finance tips for SME owners, professionals & pork barrel
...And A Lot More

FISME hosts SME Working Group (SAARC-TPN) meeting in New Delhi

The SAARC Trade Promotion Network- an international initiative to deepen intra-SAARC trade and cooperation and supported by GIZ, Nepal, held the meeting of SME Working group meeting at FISME Secretariat from 9th to 11th December, 2014. The working group members from Afghanistan, Bangladesh, Bhutan, Nepal, Pakistan and Sri Lanka participated in the meeting which was held to discuss in detail the modalities of implementation of the Value Chain Development project for two sectors: Juices and Textiles & Garments being sponsored by GIZ. FISME which has been entrusted the role of the lead implementing agency made a detailed presentation on the overall framework and envisaged targeted interventions with specific emphasis on the member institutions support.
Business Banter: Lessons from Entrepreneurs

Taking a Shot: Lessons Learned in Entrepreneurship

“If you had one shot, or one opportunity. To seize everything you ever wanted in one moment. Would you capture it or just let it slip?” Taking that shot at starting a business feels like jumping off a ski jump- you know should be able to land but it will require luck and skill. I started my first business with my friend Bob Roback twenty years ago with an idea. We fundamentally believed that the computer was going to be the way people consumed and discovered music. We created a prototype using the cutting edge technology available to us in 1994 to create a monthly CD-ROM that people played on their computer. It was called LAUNCH and was described as an “MTV that you could control.”
Writing on the Wall

Make In India: Largely for India

by Dr. Raghuram Rajan, RBI Governor

With Western economies under recession and world economy in slow growth, there is little room for another manufacturing export led growth story to script a la China. India’s strategy needs to factor in its domestic savings and domestic growth. To exploit that India needs a slew of reforms, says RBI Governor.

Media Monitor

Macro Metre

World Bank signs $1100 million loan agreement with Dedicated Freight Corridor Corp

The Dedicated Freight Corridor Corporation (DFCC) and the World Bank today signed a loan agreement of USD 1100 million for construction of the second phase of a 393-km long electrified double line between Mughalsarai-Bhaupur section of Eastern DFC. The agreement was signed by DFCC Director (Finance) MK Mittal and World Bank Country Director Onno Ruhl in the presence of senior officials from Railway Ministry and the DFCC. The loan agreement is crucial for the DFC project implementation, said a senior Railway Ministry official. World Bank has agreed in principle to partly finance the Eastern DFC Corridor project from Mughalsarai to Ludhiana, which has been divided into three phases.

Factory output contracts 4.2% in Oct on lower manufacturing activity

Factory output contracted 4.2 per cent in October year-on-year as manufacturing activity saw a steep decline. According to Government data for the Index of Industrial Production (IIP), the manufacturing sector index fell 7.6 per cent. Manufacturing accounts for over 75 per cent in the IIP. However, there was some good news as Consumer Price Index (CPI)-based inflation cooled to 4.4 per cent in November from 5.52 per cent in October because of easing food prices. But, economists do not see the RBI going in for any policy rate cut for now despite the cooling of retail inflation. The data for IIP comes with a lag of one month. Mining, which has 14.6 per cent weight in the IIP, grew at 5.2 per cent in October, while electricity grew at 13.3 per cent. Electricity accounts for 10.32 per cent in the IIP. “The fall in manufacturing growth in October is disturbing, more so because it is broad based and not limited to a few sectors.

Government to ban import of machinery over 5 years old

Government has decided to ban imports of machinery that is more than five years old, a move which would help in increasing competitiveness of domestic manufacturers. "Government has decided not to allow import of machinery more than five years old unless a different maximum age is specified by the Department of Commerce in consultation with concerned ministry/department and National Manufacturing Competitive Council ( NMCC)," Commerce and Industry Minister Nirmala Sitharaman said in a written reply to the Lok Sabha.

Russia, India funds agree $1 bn Indian infrastructure deal

The Russian Direct Investment Fund will team up with an Indian partner to invest $1 billion in infrastructure and hydroelectric projects in Asia's third-largest economy, the head of the Russian state fund told Reuters on Wednesday. The RDIF and India's IDFC, a leading infrastructure investor, will each commit $500 million to projects under a deal to be signed on Thursday during Russian President Vladimir Putin's visit to India. Prime Minister Narendra Modi wants to overcome India's chronic power shortages, and the country has vast untapped hydroelectric potential in its northern Himalayan belt.

Joint ventures, co-production the way forward: Russia on 'Make in India'

Welcoming Prime Minister Narendra Modi's thrust for " Make in India", Russia today said joint ventures and co-production was the way forward in all sectors, including defence, to achieve the target of USD 30 billion bilateral trade by 2025. Russia also said it was ready to engage with India for the modernisation of all defence equipment, including ships, submarines and aircraft. "We (Russia and India) are shifting towards bigger cooperation. We are shifting from pure commercial cooperation to something like joint production," Russian Minister of Industry and Trade Denis Manturov said here a day after his President Vladimir Putin's visit.

Domestic Digest

MSMEs can take their problems regarding procurement to the Grievance Cell

A Grievance Cell has been opened in the Ministry for sorting out grievances/problems related to procurement, said Union Minister for Micro, Small and Medium Enterprises, Kalraj Mishra in the Lok Sabha today. Talking about the efforts made by the Government to enhance procurement from MSEs, he said that communications are being issued from Ministry of MSME to all Central Ministries/Departments/CPSUs to comply with all the provisions of the Public Procurement Policy for MSE, Order 2012, according to an official release. A Grievance Cell has been opened in the Ministry for sorting out grievances/problems related to procurement, said Union Minister for Micro, Small and Medium Enterprises, Kalraj Mishra in the Lok Sabha today.

Gems & jewellery, SME, 3 others to come under 'Make in India'

Government is likely to expand the scope of 'Make in India' programme by including five more sectors like gems and jewellery to boost growth in the manufacturing sector. The government has identified 25 sectors, including pharmaceuticals, automobiles, textiles, aviation, mining, chemicals, which have potential to make India a leader in their respective fields. "Five more sectors are expected to be added, including gems and jewellery and SMEs (small and medium enterprises). The aim is to boost manufacturing sector's growth and increase its share in the country's GDP," an official said.

Government approves Credit Guarantee Funds for Factoring for MSME

The Cabinet today cleared a proposal for setting up of a Rs 500-crore Credit Guarantee Fund for Factoring for MSME units. Factoring is a financing arrangement for suppliers by making prepayments against invoices. This provides liquidity to MSMEs and facilitates collection of receivables. India's factoring volume is below Rs 20,000 crore. "The corpus of the fund is Rs 500 crore. Assuming a leverage of five times of the corpus, gross factoring transactions would cover Rs 20,000 crore per annum at the end of fifth year," an official statement said after a meeting of the Cabinet chaired by Prime Minister Narendra Modi.

USIBC hosts webinar for US SMEs on doing business in India

US India Business Council (USIBC) today hosted a webinar for US small and medium enterprises on the ABC’s of doing business in India. “This interactive webinar on doing business in India for SME’s will provide a clear-eyed 2015 overview of the business-opportunity landscape for small and mid-size American companies seeking to do business in India, and practical advice as to how best to get started,” an official notification said. Calling US SMEs to invest in India, USIBC said the time has never been better than now for entry into India.

India is the only major economy with clear pick-up in growth momentum: OECD

Economic growth will continue to lose momentum in Europe while the outlook is for stable growth momentum in most other major economies and in the OECD area as a whole, according to a report by the Organisation for Economic Co-operation and Development (OECD). “India is the only major economy where the CLI (Composite leading indicators) points to a clear pick-up in growth momentum,” an OECD press release said. Composite leading indicators (CLIs) are designed to anticipate turning points in economic activity relative to trend.

BSE SME's Mcap Rises to Rs 10k crore

The small and medium enterprises (SME) segment on the Bombay Stock Exchange, which was launched about two years back, has notched up a market capitalisation of Rs 10,000 crore. The SME platform has 82 listed on it and about 16 more companies are in various stages of getting listed on it. Besides helping the SME and MSME companies get access to credit, the SME platform is helping companies that seek and get listing, to improve their corporate governance, accounting systems and greater transparency both internally and externally for all their stakeholders and accordingly get better access and cheaper funds. “India has a huge potential for SMEs and the success at BSE SME has opened up important avenues for high growth SME companies to raise funds for their growth from public,’’ said Ashishkumar Chauhan, managing director and chief executive officer of BSE
State Scan

Andhra Pradesh    

Opening of APIIC ED office brings cheers

The posting of an ED in Vizag city will sort out the problems with regard to allotment of land to investors, say entrepreneurs The opening of the office of Executive Director, AP Industrial Infrastructure Corporation (APIIC), has started doing wonders. The office, which was opened without any fanfare a month ago as per the promise made by the State Government at a CII-organised conclave here in July, has brought cheers among investors. Hit by bifurcation blues, entrepreneurs say the posting of an ED here will sort out the problems with regard to allotment of land to investors. Several projects involving crores of rupees could not be grounded for want of prompt decision-making.


Karnataka launches mobile governance project

President of India, Pranab Mukherjee has launched the first of its kind mobile governance project, ‘Karnataka Mobile One’ which is an integrated mobile-enabled services delivery system. “It is commendable that Karnataka, which is a leading centre of IT, has cohesively merged technology, innovation and governance to create a novel process of citizen-government engagement,” the President said at the launch yesterday of what he considers a new era in governance, according to an official release. The mobile governance project will make available services like bill payments, traffic alerts, traffic fine payments and other utility services through the mobile phone. It will also enable access to Sakala, the platform for time-bound delivery of services, as well as prompt redressal of grievances.


Assam international trade fair to showcase products of various sectors

Assam International Trade and Industrial Fair, scheduled to be held from February 19 to 25 next year in Jorhat district promises to be the largest international trade fair in Asia, showcasing products of various sectors including the MSME. The fair has been organised by Federation of Industry and Commerce of North Eastern Region (FINER), media reports said. Speaking at a press meet, Jorhat deputy commissioner Solanki Vishal Vasant said that the event will feature more than 250 stalls, 100 of them from other Asian countries. While the fair will provide opportunities for the national and international community to interact with regard to trade and enterprise, it will also offer insights and direction to those who aspire to start enterprises of their own.


Odisha is ready to return to the high-growth path, having overcome constraints that had held it back

The past decade has been industrially the most active for Odisha since its creation as a separate state in 1936. During this period, the state has attracted investment commitments of Rs 8.8 lakh crore through 93 MoUs (memorandum of understanding) with large- and medium-sized companies from within the country and abroad. The investments lined up are mostly in the mineral-processing sector, based on the state's rich deposits of basic minerals such as coal, iron, bauxite, manganese, chromite and dolomite. Of the total investment proposed, Rs 2.15 lakh crore has already been utilised in building projects to make steel, aluminium, power, cement and port facilities. According to government data, 41 of the 93 MoUs have been implemented in terms of full or partial commissioning of projects.
World Watch


India, Poland keen to collaborate in mining sector

India and Poland on Friday explored the collaborative opportunities in the mining sector in India and abroad for raw material security. “I am confident that Poland will make use of the provision for 100 per cent foreign direct investment in Indian mining industry, and our PSUs will collaborate with their Polish counterparts for securing and optimizing raw material resources,” said the Union Minister of Steel and Mines Narendra Singh Tomar at a meeting with a Polish team. Senior Polish delegates met with representatives of different States and heads of steel and mining PSUs. The meeting comes ahead of amendments in MMDR Act to simplify law related to mining and plan to ramp up steel production from the present level of 90 million tonnes (mt) to 300 mt by 2025. According to Steel Secretary Rakesh Singh Indian miners were looking forward to technical collaboration in deep underground mining.


India's economic growth likely to increase to 6.3% in 2016: UN Report

The country's economic growth is likely to increase to 6.3 per cent in 2016 from 5.9 per cent in 2015, while leading economic recovery in the South Asian region, according to a recent UN Report. The United Nations ‘World Economic Situation and Prospects 2015’ (WESP) report which was released yesterday said that on a global scale, economy will improve marginally, although mounting uncertainties and risks could undermine economic growth, as per a press release. The global economy is expected to grow 3.1 per cent in 2015 and 3.3 per cent in 2016, compared with an estimated growth of 2.6 per cent for 2014.
Upcoming Events

'Profit Mantras for Business' Series

Pune, Vijayawada
See Details

Intellectual Property - Awareness Programs

Date: December-February
Venue: Hyderabad, Chennai, Bangalore, Lucknow

Stakeholders Sensitization Programs on E-commerce, a joint initiative of FISME & FLIPKART

Date: November – December
Venue: Banaras, Ludhiana, Meerut
Other Events


Date: 15th -18th December 2014
Venue: India Expo Centre and Mart, Greater Noida, India
See Details

Indian Engineering Sourcing Show (IESS)

Date: 16th -18th December 2014
Venue: Convention & Exhibition Centre, Mumbai, India
See Details

India International Packaging & Labeling Expo Baddi

Date: 16th -19th December 2014
Venue: Nimantran Resorts,Baddi, India
See Details

International Industrial Expo-Baddi

Date: 17th -19th December 2014
Venue: Nimantran Resorts, Baddi, India
See Details

India International Mega Trade Fair-Kolkata

Date: 18th -28th December 2014
Venue: Science City Exhibition Ground, Kolkata, India
See Details

Industrial Piping & Compressor Expo

Date: 18th -20th December 2014
Venue: Dr Prabhakar Kore Convention Centre, Bangalore, India
See Details

China Products (Mumbai India) Exhibition

Date: 18th -20th December 2014
Venue: Bombay Convention & Exhibition Centre, Mumbai, India
See Details

New Year Shopping Festival-2014

Date: 19th -21st December 2014
Venue: Chennai Trade & Convention Centre, Chennai, India
See Details


Date: 19th-20th December 2014
Venue: Swabhumi Exhibition Hall. Kolkata, India
See Details

India International Sporting Goods Show

Date: 19th-21st December 2014
Venue: Pragati Maidan, New Delhi, India
See Details

Jaipur Jewellery Show

Date: 20th-23rd December 2014
Venue: Jaipur Exhibition & Convention Centre, Jaipur, India
See Details

Business Opportunities Show Nagpur

Date: 22nd December 2014
Venue: The Pride Hotel Nagpur ,Nagpur, India
See Details

Silk Mark Expo Chennai

Date: 24th – 29th Dec 2014
Venue: To be announced, Chennai, India
See Details


Date: 6th January – 11th January 2015
Venue: Pragati Maidan, New Delhi
See Details

India Steel 2015 (2nd International Exhibition & Conference on Steel Industry)

Date: 16th April–18th April 2015
Venue: Mumbai Exhibition Centre, Mumbai, India
See Details
Your Views

The RCEP Trade negotiations (being organized from 1~5 Dec 2014 in India), is to create a Free Trade Area including 10 ASEAN countries and six nations namely Japan, S. Korea, India, China, Australia and New Zealand. It is to lead to an FTA and goods could be traded at zero duty between India and China. What impact do you think it would have on Indian industry?

According to the FISME Factor, 71 percent of Micro, Small and Medium Enterprises (MSMEs) think that The RCEP Trade negotiations, organized from 1~5 Dec 2014 in India, to create a Free Trade Area including 10 ASEAN countries and six nations namely Japan, S. Korea, India, China, Australia and New Zealand with an aim to lead to an FTA and so that goods could be traded at zero duty between India and China, will have a beneficial impact. While 29 per cent think it will have a harmful impact, none think that it won’t have any impact.
Knowledge Store

HR Heuristics

Challenges That SMEs Face While Hiring Senior Talent From Multi National Corporations

# I have often addressed entrepreneurs who have been in business for 10-20 years. Their businesses often reach turnovers of well over a million dollars (Rs. 6 crores), and they have healthy profit margins. In addition, their employee strength commonly crosses 100 people, usually based at more than one location. But there is a serious problem: despite having many employees, for all practical purposes their organizations are one-person shows. All processes tend to originate, and be driven, by the entrepreneur.

Finance Fundamentals

5 finance tips for SME owners, professionals & pork barrel

One of the often glossed-over weaknesses of small- and medium-scale enterprise (SME) entrepreneurs and professionals who are earning well or have good cash flow is accounting, or how to handle one’s money well.

Marketing Mantras

7 Things Successful Marketers Do Every Morning

No matter what level you are at in the pecking order or what function you work in, every successful person has one thing in common — an energizing and self-affirming start to their work day. This great start is especially critical for marketing professionals.

Policy Polemic

DGFT amends export policy of cotton yarn, removes registration rule

The Directorate General of Foreign Trade in a recent notification has amended the export policy of cotton yarn, removing the registration rule which is likely to give a boost to cotton yarn exporters.

SME Special

How Swajal intends to bring clean drinking water at Re 1 per litre to millions of Indians

The reality of water scarcity and water pollution in India is not hidden anymore. We have all come to accept the fact that water supply will be there only during morning and evenings and have learnt to adjust to this scarcity. As the water purification system became a household essential, like the refrigerator, we also accepted the fact that our tap water will never be clean for drinking. While we continue to adjust to these circumstances, the less fortunate have no option but to live with this clean water scarcity.

Success Story

From play dough to ClayStation: How Ganesh Manickavasagam turned the wheel!

Ganesh Manickavasagam is careful about calling himself the founder of ClayStation in front of his 12-year-old daughter. She has the first claim to the title. It was her idea that kickstarted the startup’s journey five-and-a-half year ago from just a table at a ‘mela’ in the apartment complex where they lived.


The Central Statistical Office (CSO) released the Provisional indices for the month of November 2014 and also final indices for October 2014.

Quotable Quotes

" Apart from values and ethics which I have tried to live by, the legacy I would like to leave behind is a very simple one - that I have always stood up for what I consider to be the right thing, and I have tried to be as fair and equitable as I could be. "
- Ratan Tata

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.
Reader Reactions

Write and Win prize!

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New Members

3 New Members Join FISME

During the period from 1st December to 15th December a total of 3 new MSME became member of FISME.
Editorial Team:
Hon. Editor: Anil Bhardwaj
Asstt. Editor: Sunila Sharma
Asstt. Editor: Kalpana Sharma
Types setting & websdesigning: Sanjay Sachan  
Video & Photography:  Pramod Poddar


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