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President's Message
"
Opinions may vary on the specific outcomes of the national workshop on ‘Make in India’ held in Delhi last week, but nobody can deny that never before such a determined resolve was seen on ‘manufacturing’ in India.
However, conflicting signals continue to emanate from various organs of the government. There is no respite from badly drafted provisions of the Companies Act which make accepting deposits illegal.
The cost of hiring people and providing social security to them is proposed to be further hiked without realizing its consequences on employment. While we rue on cost of capital, we ourselves raise the cost of capital through BLR rating. Our PSUs continue to be at forefront in delaying payments to MSMEs. List goes on.
If there is one resolve worth undertaking in 2015 for augmenting manufacturing, it is to synchronize various arms of the government to one purpose. "
FISME organised ‘Profit Mantras for Business”- yet another programme in a nationwide series of workshops for bringing in practical wisdom to entrepreneurs on 17th December 2014 at The Westin in Pune. This was organised in association with The Mahratta Chamber of Commerce Industries & Agriculture (MCCIA), Pune.
After the opening remarks by Mr. Mukesh Kalra, Joint Secretary, International Trade, FISME, Ms. Priti Patil, Practicing IT and Management Consultant & Trainer, Snehdeep Learning and Consulting Centre, talked on Business Intelligence for MSMEs.’
Taking their national campaign to Kerala, FISME & Hindustan Unilever Ltd (HUL), jointly organized an awareness programme on Competition Law in Kochi. The programme was hosted by Kerala Chamber of Commerce and Industry (KCCI).
The chief resource person for the programme was Mr. Saif Jamali, Regional Legal Manager from HUL. He explained the rights and responsibilities of the MSMEs arising of the legal framework of Competition Act and Policy.
Shiv Nadar, HCL founder and chairmanI have always maintained that entrepreneurship is a state of mind.
It's a state in which you have to be flexible, alert, aggressive, inspiring and positive and use every low as a learning opportunity to bounce back. My journey to build HCL has been a roller coaster ride - with highs and lows; with its adrenaline rushes; with its setbacks and learnings, and finally, with a lot of fun.
I am keeping this anecdotal to help whoever reads this connect with real-life situations - something that I believe many young entrepreneurs or aspiring ones may find useful.
Blaming high cost of capital for slowdown in manufacturing sector, Finance Minister Arun Jaitley today pitched for removal of entry barriers and a globally competitive taxation regime to attract investments and boost growth.
"We have to put house in order," Jaitley said, to accelerate the growth, as the manufacturing sector was not growing as per its potential and radical steps might be required to revive growth in this key segment, although as results will not be visible overnight.
The Government today allowed 100 per cent FDI under automatic route in medical devices sector to encourage the manufacturing of equipment, including diagnostic kits and other devices.
“Easing of norms for medical devices industry by creating special carve out in the extant FDI policy on pharma sector will encourage FDI inflows in this area,” said an official statement issued after the Union Cabinet meeting here.
The 100 per cent FDI, it added, will be permitted under the automatic route, meaning a foreign investor will not have to seek the permission of Foreign Investment Promotion Board (FIPB) to acquire an existing company or set up a new manufacturing unit in the medical devices sector.
The condition of ‘non-compete clause’ would also not be applicable to greenfield (new project) as well as brownfield projects (existing units) of this industry.
The Centre today recommended an ordinance to make significant changes to the Land Acquisition Act so as to fasttrack projects in key sectors such as power, roads, defence and housing.
A Cabinet meeting, chaired by Prime Minister Narendra Modi, took note of the difficulties in implementing the Land Acquisition Act. The Centre claimed that the amendments will strengthen the provisions to protect the interests of the ‘affected families’ and also reduce procedural difficulties in acquiring land required for ‘development’.
Centre has been interacting with States on the Act. In June, several States, including those ruled by the Opposition, had conveyed to the Centre that the present Act was creating trouble in acquiring land for even State projects. Their main objections were to the compulsory consent of 80 per cent of the affected landowners and the social impact assessment of the alienated land.
The statement made by the Office of the US Trade Representative on the Out-of-Cycle Review of India, acknowledged India’s efforts and urges India to further strengthen and deepen our bilateral engagement on IP issues in the coming months.
“Over the last few months, there have been multiple engagements with Government of India officials at the staff and senior levels on the broad range of issues of concern to the United States and to US stakeholders. India has made useful commitments in recent months, including institutionalise high-level engagement on IP issues, to pursue a specific work program and to deepen cooperation and information exchange with the United States on IP-related issues under the U.S.-India Trade Policy Forum”, said an official statement.
For the first time since the private sector was allowed into defence production in 2001, a defence minister has met private sector defence CEOs face-to-face to discuss the role they could play in boosting defence production in India.
On Saturday, at the Taj Vivanta Hotel in Goa, Defence Minister Manohar Parrikar - alone, except for a personal secretary - met for three hours captains of private defence industry. Not one of his ministry's five secretary-level officers was in attendance. Nor was anyone from the public sector invited.
Major issues discussed included the 'Make' category of procurement; ways of harnessing micro, small and medium enterprises (SMEs); and boosting defence exports.
In order to give a fillip to vocational training and escalate efforts for skill development, the Minister of State (independent charge) for Skill Development and Entrepreneurship, Rajiv Pratap Rudy outlined government’s intention to set up a Skill Development University.
“The Prime Minister has underlined the need for a university for skill development that would run parallel to the current skill development institutes.” said Rudy at a conference organised by FICCI.
The minister stressed that such a university will fill the gap and provide a degree akin to university degrees of Bachelors and Masters and would be considered ‘respectable’.
The official release titled ‘Year End Review 2014 MSME’ says that Make in India campaign will spur both Indian companies as well as global firms to invest and partner in the manufacturing sector. The concept of Make in India is well drawn out and is the most relevant for India’s MSMEs.
“Make in India campaign can attract the foreign MNCs to bring in their investment, set up venture/angel funds to take advantage of the inherent depth of the MSME sector in terms of range of products and services, marketing networks and the ability to grow fast. Another advantage in Indian MSME sector the foreign partners would experience is that production process in this sector is already underway. The various networks required for undertaking the production process are already established. The foreign MNC is just required to bring in investment and technical know-how to achieve excellence in these areas,” it said.
Some States are likely to get up to a year more to join the Goods and Services Tax (GST) regime after its introduction on April 1, 2016. A transitional provision has been prescribed in the Constitution Amendment Bill, introduced in the Lok Sabha last Friday.
“This (provision) is only to deal with the transitory situation. It is possible that some State or States on Day One (April 1, 2016) may not be fully prepared. Maybe their IT backbone is not ready or there is some procedural issue or local difficulty. In that case, instead of joining on April 1, they can join after two-three months or six months, but not later than one year,” Revenue Secretary Shaktikanta Das toldBusinessLine.
To address the growing demand from the market and customers, the Reserve Bank of India has decided to extend the business hours of Real Time Gross Settlement (RTGS) from December 29 2014. The business hours on weekdays will be 8 am to 8 pm and 8 am to 3.30 pm on Saturday.
The circular issued under Section 10 (2) of Payment and Settlement Systems Act, 2007, dated 15th December 2014 says:
1. It has been the endeavour of the Reserve Bank of India to keep enhancing the systems, procedures, etc. to meet the growing needs of the markets/ customers. The launch of the new RTGS system in October 2013 was one of the steps taken by the Bank for catering to the growing volume and to provide liquidity saving and other features of the new system to the members.
Textile industry in Tamil Nadu looks to move up in the value chain for which it has the potential and looks upon the Centre to take the necessary steps in this regard, according to D Prabhu, Secretary, Texpreneurs Forum, Coimbatore.
He felt that the troubles that Russia was witnessing are temporary and it offered a huge market for the Indian textile sector.
Speaking to newsmen in Coimbatore on Tuesday ahead of the programme on `Make in India-textile industry-opportunities & challenges’ being organised by a group of textile associations in Western Tamil Nadu here on Saturday, he said the spinning mills in the state accounted for consumption of 30 per cent of the cotton produced in the whole country.
The state government has not yet provided 25 acre land to MSME ministry for setting a processing centre in Bihar, said Union minister of state for MSME Giriraj Singh here today.
Talking to newspersons at state BJP headquarters before taking off for Delhi, he said the Centre would set up the processing centre as soon as Bihar government provided land for the same.
'The state government is indulging in sheer politics in the name of development. Actually, the state government has nothing to do with development', he asserted.
Karnataka Chief Minister Siddaramaiah on Tuesday announced that at least 20 per cent of land possessed by Karnataka Industrial Areas Development Board (KIADB) will be provided to small scale industries, said a media report.
According to the report, the minister, in the golden jubilee celebrations of Karnataka State Small Industries Development Corporation (KSSIDC), said the state government will invest Rs 15,000 crore in small scale industries. It will help in creating 15 lakh jobs in the state.
In order to make filing of entrepreneurs’ memorandum process easier for the entrepreneurs, through anytime anywhere registration without any hassle, the Haryana government, on Thursday, launched online filing of entrepreneurs' memorandum, said a media report.
The initiative was taken up under micro, small and medium enterprises (MSMEs) Development Act 2006 in the state.
According to the report, the state Industries and Commerce Department Principal Secretary Devender Singh said that the online facility will help obtaining the acknowledgement of entrepreneurs’ memorandum within eight working hours.
The Union Ministry of Micro, Small and Medium Enterprises (MSME) will set up 10 incubation centres in Tamil Nadu in the next five years to develop entrepreneurship and encourage self-employment in the State.
These centres will promote and support untapped creativity of individual innovators and assist them to become technology-based entrepreneurs, according to Kalraj Mishra, Union Minister for MSME.
For instance, the centre will buy expensive design software and rent it to MSMEs for a nominal fee, he told newspersons after inaugurating SOUMEX 2014, a three-day sourcing and manufacturing exhibition organised by National Small Industries Corporation and Tamil Nadu Small and Tiny Industries Association.
The Ministry of Micro, Small and Medium Enterprises (MSME) will set up a Rs. 200 crore aerospace technology centre at Oragadam, near Chennai , according to SM Jamkhandi, Director, MSME Development Institute, Chennai.
The Ministry has sought 20 acres of land from the Tamil Nadu government to build the centre, he told BusinessLine.
will be one of the four such centres, each with its own area of specialisation. The other centres will come up in Bengaluru, Puducherry and Biwandi (in Gujarat). The Oragadam centre will focus on aerospace components and electronics as there are a large number automobile component and electronics manufacturing units in the vicinity. Aerospace will be an extension, he said.
Nadu Industrial Development Corporation (Tidco) is planning an integrated aerospace park project in Sriperumbudur.
India has asked Korea to look at co-production of LNG tankers as part of the "Make in India" programme. Foreign minister Sushma Swaraj, on her maiden trip to Seoul, told Yoon Sang-jick, Korean minister of trade, industry and energy, that India would welcome joint ventures between Korean and Indian companies to make LNG tankers, said MEA sources.
Separately, she said, India was also looking at outright purchase of giant LNG tankers from Korea, given its growing energy needs. Korea is one of world's biggest manufacturers of such tankers, including the advanced ones which function as fully loaded floating terminals with liquefaction plants on board. In Seoul for the Joint Commission meeting, Swaraj made a determined pitch for this specific area of cooperation.
Stakeholders Sensitization Programs on E-commerce, a joint initiative of FISME & FLIPKART
Date: November – December
Venue: Banaras, Ludhiana, Meerut
Awards for “Responsible Indian BMOs”
At India International Centre, New Delhi, 17th March, 2015, 1700 hrs IST
Organised by
Foundation for MSME Clusters (FMC) under European Union (EU) co-funded project “Scaling up Sustainable Development of MSME Clusters in India”
Supported by
GIZ, GRI, IICA, UNIDO and SIDBI Last date to submit application : 23rd January 2015,1700 hrs IST
RBI Governor has said that current prevailing economic conditions in India are such that growth cannot be stimulated much by lowering interest rates. Do you agree?
According to the FISME Factor, 50 percent of Micro, Small and Medium Enterprises (MSMEs) agree with the RBI Governor that current prevailing economic conditions in India are such that growth cannot be stimulated much by lowering interest rates, while 50 per cent disagree.
Challenges That SMEs Face While Hiring Senior Talent From Multi National Corporations
The lifeblood of your organisation is your employees. What, then, is the value you place in your employees? You might be under the assumption that given the detailed plan in your organisation and the solid processes that are in place, your employees are satisfied and highly engaged. However, in most cases this is not generally seen. What is the right way to build employee loyalty?
While starting a business, revenue fluctuations are common and owners struggle to have a steady income. Rising manpower costs and spends on technology add to the burden of managing finance better.
Taking a deep dive in any non core business activity often makes entrepreneurs uncomfortable. In such situations they have to rely on experts. When it comes to advertising and branding, SMEs in India often take a backseat. Prahlad Kakkar is considered to an authority on advertising and branding. Mr Kakkar made several poster boys since 1980s.
MSME Act up for amendment to provide revival and exit route for ailing MSMEs
The Micro Small and medium enterprises Development Act 2006 is up for an amendment to address the issue of rising nonperforming assets and sickness in sector.
This startup makes sure you get dosas in 60 seconds flat!
Lip-smacking, crisp and super-fresh, the ubiquitous dosa is an iconic South Indian dish served up at street corners and fancy restaurants in almost every part of India and even overseas.
3 Millionaire Entrepreneurs You Probably Haven't Heard Of (and How They Did It)
When it comes to wealthy entrepreneurs, there are a lot of names you probably think of immediately, such as Bill Gates, Steve Jobs, Mark Zuckerberg and Richard Branson. However, there are plenty of millionaires out there that you likely haven’t heard of, which is a shame, because you can learn a lot from their stories.
" 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. "
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:
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.
send mail to: newsletter@fisme.org.in
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This Newsletter is edited by the FISME Secretariat. We welcome contributions as well as comments and suggestions. Please write to newsletter@fisme.org.in
"
Opinions may vary on the specific outcomes of the national workshop on ‘Make in India’ held in Delhi last week, but nobody can deny that never before such a determined resolve was seen on ‘manufacturing’ in India. 
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FISME organised ‘Profit Mantras for Business”- yet another programme in a nationwide series of workshops for bringing in practical wisdom to entrepreneurs on 17th December 2014 at The Westin in Pune. This was organised in association with The Mahratta Chamber of Commerce Industries & Agriculture (MCCIA), Pune.
After the opening remarks by Mr. Mukesh Kalra, Joint Secretary, International Trade, FISME, Ms. Priti Patil, Practicing IT and Management Consultant & Trainer, Snehdeep Learning and Consulting Centre, talked on Business Intelligence for MSMEs.’
Taking their national campaign to Kerala, FISME & Hindustan Unilever Ltd (HUL), jointly organized an awareness programme on Competition Law in Kochi. The programme was hosted by Kerala Chamber of Commerce and Industry (KCCI).
The chief resource person for the programme was Mr. Saif Jamali, Regional Legal Manager from HUL. He explained the rights and responsibilities of the MSMEs arising of the legal framework of Competition Act and Policy.
Blaming high cost of capital for slowdown in manufacturing sector, Finance Minister Arun Jaitley today pitched for removal of entry barriers and a globally competitive taxation regime to attract investments and boost growth.
"We have to put house in order," Jaitley said, to accelerate the growth, as the manufacturing sector was not growing as per its potential and radical steps might be required to revive growth in this key segment, although as results will not be visible overnight.
The Centre today recommended an ordinance to make significant changes to the Land Acquisition Act so as to fasttrack projects in key sectors such as power, roads, defence and housing.
A Cabinet meeting, chaired by Prime Minister Narendra Modi, took note of the difficulties in implementing the Land Acquisition Act. The Centre claimed that the amendments will strengthen the provisions to protect the interests of the ‘affected families’ and also reduce procedural difficulties in acquiring land required for ‘development’.
Centre has been interacting with States on the Act. In June, several States, including those ruled by the Opposition, had conveyed to the Centre that the present Act was creating trouble in acquiring land for even State projects. Their main objections were to the compulsory consent of 80 per cent of the affected landowners and the social impact assessment of the alienated land.
The statement made by the Office of the US Trade Representative on the Out-of-Cycle Review of India, acknowledged India’s efforts and urges India to further strengthen and deepen our bilateral engagement on IP issues in the coming months.
“Over the last few months, there have been multiple engagements with Government of India officials at the staff and senior levels on the broad range of issues of concern to the United States and to US stakeholders. India has made useful commitments in recent months, including institutionalise high-level engagement on IP issues, to pursue a specific work program and to deepen cooperation and information exchange with the United States on IP-related issues under the U.S.-India Trade Policy Forum”, said an official statement.
For the first time since the private sector was allowed into defence production in 2001, a defence minister has met private sector defence CEOs face-to-face to discuss the role they could play in boosting defence production in India.
On Saturday, at the Taj Vivanta Hotel in Goa, Defence Minister Manohar Parrikar - alone, except for a personal secretary - met for three hours captains of private defence industry. Not one of his ministry's five secretary-level officers was in attendance. Nor was anyone from the public sector invited.
Major issues discussed included the 'Make' category of procurement; ways of harnessing micro, small and medium enterprises (SMEs); and boosting defence exports.
In order to give a fillip to vocational training and escalate efforts for skill development, the Minister of State (independent charge) for Skill Development and Entrepreneurship, Rajiv Pratap Rudy outlined government’s intention to set up a Skill Development University.
“The Prime Minister has underlined the need for a university for skill development that would run parallel to the current skill development institutes.” said Rudy at a conference organised by FICCI.
The minister stressed that such a university will fill the gap and provide a degree akin to university degrees of Bachelors and Masters and would be considered ‘respectable’.
The official release titled ‘Year End Review 2014 MSME’ says that Make in India campaign will spur both Indian companies as well as global firms to invest and partner in the manufacturing sector. The concept of Make in India is well drawn out and is the most relevant for India’s MSMEs.
“Make in India campaign can attract the foreign MNCs to bring in their investment, set up venture/angel funds to take advantage of the inherent depth of the MSME sector in terms of range of products and services, marketing networks and the ability to grow fast. Another advantage in Indian MSME sector the foreign partners would experience is that production process in this sector is already underway. The various networks required for undertaking the production process are already established. The foreign MNC is just required to bring in investment and technical know-how to achieve excellence in these areas,” it said.
Some States are likely to get up to a year more to join the Goods and Services Tax (GST) regime after its introduction on April 1, 2016. A transitional provision has been prescribed in the Constitution Amendment Bill, introduced in the Lok Sabha last Friday.
“This (provision) is only to deal with the transitory situation. It is possible that some State or States on Day One (April 1, 2016) may not be fully prepared. Maybe their IT backbone is not ready or there is some procedural issue or local difficulty. In that case, instead of joining on April 1, they can join after two-three months or six months, but not later than one year,” Revenue Secretary Shaktikanta Das toldBusinessLine.
To address the growing demand from the market and customers, the Reserve Bank of India has decided to extend the business hours of Real Time Gross Settlement (RTGS) from December 29 2014. The business hours on weekdays will be 8 am to 8 pm and 8 am to 3.30 pm on Saturday.
The circular issued under Section 10 (2) of Payment and Settlement Systems Act, 2007, dated 15th December 2014 says:
1. It has been the endeavour of the Reserve Bank of India to keep enhancing the systems, procedures, etc. to meet the growing needs of the markets/ customers. The launch of the new RTGS system in October 2013 was one of the steps taken by the Bank for catering to the growing volume and to provide liquidity saving and other features of the new system to the members.
Karnataka Chief Minister Siddaramaiah on Tuesday announced that at least 20 per cent of land possessed by Karnataka Industrial Areas Development Board (KIADB) will be provided to small scale industries, said a media report.
According to the report, the minister, in the golden jubilee celebrations of Karnataka State Small Industries Development Corporation (KSSIDC), said the state government will invest Rs 15,000 crore in small scale industries. It will help in creating 15 lakh jobs in the state.
In order to make filing of entrepreneurs’ memorandum process easier for the entrepreneurs, through anytime anywhere registration without any hassle, the Haryana government, on Thursday, launched online filing of entrepreneurs' memorandum, said a media report.
The initiative was taken up under micro, small and medium enterprises (MSMEs) Development Act 2006 in the state.
According to the report, the state Industries and Commerce Department Principal Secretary Devender Singh said that the online facility will help obtaining the acknowledgement of entrepreneurs’ memorandum within eight working hours.
India has asked Korea to look at co-production of LNG tankers as part of the "Make in India" programme. Foreign minister Sushma Swaraj, on her maiden trip to Seoul, told Yoon Sang-jick, Korean minister of trade, industry and energy, that India would welcome joint ventures between Korean and Indian companies to make LNG tankers, said MEA sources.
Separately, she said, India was also looking at outright purchase of giant LNG tankers from Korea, given its growing energy needs. Korea is one of world's biggest manufacturers of such tankers, including the advanced ones which function as fully loaded floating terminals with liquefaction plants on board. In Seoul for the Joint Commission meeting, Swaraj made a determined pitch for this specific area of cooperation.
According to the FISME Factor, 50 percent of Micro, Small and Medium Enterprises (MSMEs) agree with the RBI Governor that current prevailing economic conditions in India are such that growth cannot be stimulated much by lowering interest rates, while 50 per cent disagree.
The lifeblood of your organisation is your employees. What, then, is the value you place in your employees? You might be under the assumption that given the detailed plan in your organisation and the solid processes that are in place, your employees are satisfied and highly engaged. However, in most cases this is not generally seen. What is the right way to build employee loyalty?
While starting a business, revenue fluctuations are common and owners struggle to have a steady income. Rising manpower costs and spends on technology add to the burden of managing finance better.
Taking a deep dive in any non core business activity often makes entrepreneurs uncomfortable. In such situations they have to rely on experts. When it comes to advertising and branding, SMEs in India often take a backseat. Prahlad Kakkar is considered to an authority on advertising and branding. Mr Kakkar made several poster boys since 1980s.
The Micro Small and medium enterprises Development Act 2006 is up for an amendment to address the issue of rising nonperforming assets and sickness in sector.
Lip-smacking, crisp and super-fresh, the ubiquitous dosa is an iconic South Indian dish served up at street corners and fancy restaurants in almost every part of India and even overseas.
When it comes to wealthy entrepreneurs, there are a lot of names you probably think of immediately, such as Bill Gates, Steve Jobs, Mark Zuckerberg and Richard Branson. However, there are plenty of millionaires out there that you likely haven’t heard of, which is a shame, because you can learn a lot from their stories.
" 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. " 
