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President's Message
" The continued fall of Industrial production for the second consecutive month, falling 2.1% in November, is a sign of worry. Further, 3.5% decline in manufacturing output meant that the overall index of industrial production stayed in the red. The poor industrial activity was reflected in production of boilers, earth moving machinery and aluminium conductor falling by over 40%. However it is intriguing that in spite of fall in manufacturing, the raw material prices in India have more or less remained firm. Is it an indication that industrial input prices in India are not elastic? "
The Knowledge and News Network (KNN) a new age online media platform which was launched in Aug 2013 by FISME with support of GIZ- German Agency for International Cooperation, is growing at a fast pace.
KNN delivers news, views and analysis both in the forms of text, graphic and video fed through a national network of over member industry associations and institutions.
In a review held on 15th Jan revealed that the number of partner associations of KNN has reached 169 and that of institutions 111. The number of hits to the portal knnindia.co.in has reached 10,000. So far the network has generated over 2100 stories covering 18 sectors and 20 states. KNN content is being used by host of agencies. While emphasis in the first phase was on news, now the KNN network is to focus on capturing and dissemination of ‘knowledge’ as well to further innovation among MSMEs.
- Rich Fairbank, Capital One Chief Executive Officer
"Companies miss a fateful strategic fork in the road. When the world is about to change, the ones that are closest to it are usually the last to see it. Our greatest opportunities come in the debris of crisis…. Out of the ashes of near failure, come our greatest opportunities. It is always darkest before the dawn. We want to find a way to harness the bad energy that’s out there and be a catalyst for change."
[Adapted from 8 Lessons in Entrepreneurship & Leadership, Successful Culture]
The specific characteristics of the Indian growth slowdown are poised, according to some observers, to stall a major structural change to the Indian economy. According to the ratings agency Crisil, its researchers estimate that "non-farm employment will decrease more than 25 per cent to 38 million in the financial years 2013-19 compared with 52 million seen in financial years 2005-12". Whatever the exact calculations behind this quantitative assessment, the direction is nonetheless startling. Crisil argues that this decrease in non-farm employment will mean that, in the six years from April 2013, 12 million people will re-enter agricultural work, while in the seven years from April 2005, 37 million people left jobs on the farm.
[Adapted from Business Standard, Editorial Section]
The government proposes to make the Arbitration and Conciliation Act, 1996 more effective in order to make dispute resolution for corporates speedier, cheaper and amicable.
The law relating to arbitration is contained in the Arbitration and Conciliation Act. It provides for domestic arbitration and also enforcement of foreign arbitral awards. It also contains the new feature on conciliation. It proceeds on the basis of the UN Model Law so as to make our law accord with the Law adopted by the United Nations Commission on International Trade Law (UNICITRAL).
In a major relief to the Government, the current account deficit could dip to as low as $41 billion (2.2 per cent of gross domestic product or GDP), the rating agency India Ratings said here on Tuesday. However, the agency has not revised its overall economic growth estimate of 4.9 per cent for 2013-14 while projecting growth of 5.6 per cent for 2014-15.
One of the two primary components of the balance of payments, CAD is the sum of the balance of trade (that is, revenue from exports minus payments for imports), factor income (earnings on foreign investments minus payments made to foreign investors) and cash transfers. The Government earlier estimated this deficit at $70 billion or 3.7 per cent of GDP then revised first to $60 billion, then $56 billion and finally below $50 billion.
Retail inflation eased to a three-month low at 9.87 per cent in December, thanks to moderation in vegetable prices.
This has raised hopes that the Reserve Bank of India may leave key rates untouched at its policy review meeting this month-end.
In recent months, the RBI has indicated that it may look at the consumer price index-based inflation as a gauge for inflation management.
Currently, the central bank is largely guided by the movements in the wholesale price index.
Consumer price index-based inflation for November 2013 now stands revised downward to 11.16 per cent from 11.24 per cent earlier, official data released on Monday showed.
The MSME Development Institute, is organising a specialised management development programme on marketing and export management to cater to weaker sections of the society.
The training programmes will be held from January 27 - 31, 2014 at the institute’s campus in Okhla.
The contents of the course on Marketing Management will include topics such as modern concepts of marketing, marketing mix, market segmentation, marketing research and sales forecasting, pricing decision, sales promotion, advertising, creative selling and marketing assistance by government.
Exim Bank's Line of Credit of USD 125 million to the Government of the Republic of Sudan is likely to help exporters of Indian machinery and equipment to that country.
“Export-Import Bank of India (Exim Bank) has entered into an Agreement dated July 24, 2013 with the Government of the Republic of Sudan, for making available to the latter, a Line of Credit (LOC) of USD 125 million (USD One Hundred and Twenty Five million) for financing eligible goods, services, machinery and equipment including consultancy services from India for the purpose of financing of Mashkour (earlier Elduem) Sugar Project in Sudan,” said an RBI notification yesterday.
The Centre for the Development of Glass Industry (CDGI) plans to improve its infrastructure with the setting up of a pot furnace with recuperator, a glass studio with cabin, and an annealing oven.
CDGI wants to purchase equipment like double beam scanning UV-VIS spectrophotometer, laboratory oven, digital muffi furnace, flame photometer with Na, K, Li and Ca filters, radiation pyrometer, flue gas analyser with oxygen, CO, CO2 sensors, water purifier, electric kiln for slumping and fusion of glass and microwave digestion system.
In a move to facilitate more credit flows to the micro, small and medium enterprises, the Reserve Bank of India will organise ‘Town Hall’ Meetings in the important MSME clusters of Delhi.
This was decided at the recently held Meeting of the Empowered Committee to Monitor Credit Flows to the MSME sector.
The Town Hall meetings will be open fora where senior officers from Banks and MSME borrowers will interact freely to de-bottleneck the credit flow to this priority sector of Indian economy.
To provide a platform to manufacturers, exporters and retailers to showcase and sell an array of intricate silk designs produced domestically, Silk Mark Expos are held across the country on a regular basis.
Organised by the Silk Mark Organisation of India which is an initiative of the Central Silk Board, Ministry of Textiles, Government of India, Silk Mark Expo 2014 will begin here tomorrow.
The expo will be inaugurated by Union Minister for Textiles, Kavuru Sambasiva Rao. During the event, Secretary, Textiles, Zohra Chatterji will brief media regarding the Interactive Designers' Meet. The highlight of the event will be a fashion extravaganza called Silken Splendour, choreographed by Prasad Bidapa.
To encourage transportation of goods by ships, the Andhra Pradesh State Shipping Board has announced incentives to producers of steel, fertilizer, cement and other products if they change their mode of transportation from rail and road to coastal shipping.
A special committee had been set up by the Shipping Ministry to look into the matter and offer incentives.
According to Chairman, State Shipping Board (SSB) and Chairman of the Committee, P V K Mohan, the state government has approved the recommendations of the committee.
In order to develop Industrial Training Institutes (ITIs) at various locations within the state, Jharkhand government plans to rope in the private sector for effective upgradation, operation and management of the ITIs.
“Government of Jharkhand through Department of Labour, Employment and Training (DoLET), has created several ITIs in the state and now for the purpose of this project intends to select suitable Private Sector Participant(s) for the Up gradation, Operation, Maintenance and Management of these ITIs (8 General ITIs and 5 Women’s ITIs) through Public Private Partnership,” said a notification.
Sharing West Bengal’s achievement in the Micro and Small Scale Industries (MSME) sector, on a social network site, state chief minister Mamata Banerjee said that West Bengal has become the leading state in India in terms of credit flow to the MSME sector.
“We are No. 1 in credit flow to the MSME sector in the country. During the period April-September 2012, the credit flow from banks to MSME sector in Bengal was the highest at Rs 4,331 crore,” Banerjee said on Facebook.
Policy also calls for providing awards to the best MSMEs on the basis of their growth and profitability
The draft of Uttarakhand's first MSME policy is ready, with a bonanza of incentives for developing new enterprises.
With a thrust on skill development and creation of new infrastructure like mini tool rooms and flatted factories, a host of potential sectors for the development of MSMEs has been identified. They include agro-based food processing and allied industry, handloom, hosiery, textile, pharma, khadi and village industry, floriculture, tourism, herbal, medicinal plants and others.
The incentives are being offered in areas that have been grouped into three major categories - A, B and C. Incentives like capital investment subsidy, interest subsidy, employment-intensive subsidy and venture capital assistance are being offered in a big way.
Disturbed over a proposed hike in power tariff in Punjab, Ludhiana-based Chamber of Industrial & Commercial Undertakings (CICU) has urged state Chief Minister Parkash Singh Badal to advise Punjab State Electricity Regulatory Commission (PSERC) not to grant approval for the proposal, which has been submitted by the state electricity corporation to encourage investments from other states in Punjab and to boost existing industry.
Avtar Singh, president, CICU said that the proposal of Punjab State Power Corporation Ltd (PSPCL) for a hike in power tariff by 65 paise per unit submitted to PSERC is uncalled for, as it will raise the cost of production and make industry in Punjab uncompetitive.
In an effort to foster cooperation between India and Canada in the mining and steel sector, Union Minister of Steel, Beni Prasad Verma has signed a deal with Canadian Minister of Natural Resources, Joe Oliver.
“…Verma held discussions with the Canadian minister which aimed at expanding and strengthening bilateral relations between the two countries and also identifying areas of cooperation and assistance where India could be benefitted from Canada, endowed with a huge wealth of natural resources especially coking coal,” said an official release.
The Asian Development Bank is showing a lot of interest in the small scale hybrid renewable systems in Myanmar with a focus on energy development plan for that country.
ADB will be holding online conversation on the subject ‘Powering Myanmar’s growth’ on January-15.
“Since Myanmar’s reform process began in 2011, its energy architecture has seen many positive developments. A robust energy development plan is crucial to the successful continuation of the country's economic and social development,” said an ADB notice.
Enhancing the trade relation between India and South Korea, both sides agreed to make efforts to promote SME cooperation between the two countries by sharing knowledge and experience gained on SME policies and creating strategic industrial partnerships for investment and technical cooperation.
The Fourth Korea-India Finance Minister’s Meeting was held between the Ministry of Strategy and Finance of the Republic of Korea and the Ministry of Finance of the Republic of India. The Korean delegation was led by Deputy Prime Minister and Minister of Strategy, Oh-Seok Hyun.
To display and demonstrate the products and services of plastics, petrochemicals, rubber, packaging and allied industries to the fast developing market of Sultanate of Oman, Oman Plast 2014 will be held in the Arab state next month.
The second largest plastics packaging show, Oman Plast 2014, will begin on February-11 to facilitate the development of trade links between Oman and the rest of the world.
According to Managing Director, Silver Star Corporation, P D Nath, the event offers a perfect gateway to reach the highly potential market while holding tremendous prospects for excellent business opportunities and new collaborations.
The Emergence of Aam Aadmi Party will definitely influence political economy
According to the FISME Factor, 85 per cent of the Micro, Small and Medium Enterprises (MSMEs), think that The Emergence of Aam Aadmi Party will impact political economy also.
Over the last decade or more entrepreneurship has received immense attention in this country, so many management students and engineers have graduated with a vision to do something different.
Corporate bigwigs have turned to starting their own businesses for a deeper sense of professional satisfaction. But many businesses also ‘fail’ miserably.
Ashish Goel and Rajeev Srivatsa, on two separate occasions, had wandered the streets of Marathahalli, Bangalore’s prime furniture market. In search of a bed and sofa set, they spent hours sifting through wrought iron, plastic, and heavy, intricately carved furniture with velvet upholstery to boot. None of these appealed to their taste; was there no middle ground, they wondered.
In spite of slower economic growth and spiralling inflation, India's e-commerce market is bucking the trend. It recorded a staggering 88 per cent growth in 2013 to $16 billion, according to a recent survey by industry body Assocham, which estimates the e-commerce market in India to reach $56 billion by 2023.
The manufacturing sector in Noida industrial area is facing many problems, with many units unable to function smoothly or produce to their full capacity owing to heavy load shedding.
Several manufacturing firms have had to shut down operations for several hours a day as there is no electricity at their workshops.
“In some parts of the township, workshop operations have had to shut down every day from 6 am to 9 am due to non-availability of power,” said Secretary General of Noida Entrepreneurs Association VK Seth.
Meet the pump company that has Big B as brand ambassador!
His biggest liability was his address, Pithampur, a town in Madhya Pradesh that 'no one had heard of'. His biggest asset was his father and his own business acumen, which have transformed Shakti Pumps from a shop that once only assembled pumps, to a company with an installed capacity of 5 lakh pumps per annum. Why, Shakti Pumps has even managed to rope in Bollywood superstar Amitabh Bachchan as its brand ambassador!
Ramli Pradhan is in advanced stage of cancer. But she is not in hospital; she's at her home in trained hands, which know how to take care of cancer patients and are sensitive but can sometimes be irritable. Pradhan's daughter has engaged Portea Medical to look after her mother at home.
"The important thing is not being afraid to take a chance. Remember, the greatest failure is to not try. Once you find something you love to do, be the best at doing it. "
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.
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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:
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" The continued fall of Industrial production for the second consecutive month, falling 2.1% in November, is a sign of worry. Further, 3.5% decline in manufacturing output meant that the overall index of industrial production stayed in the red. The poor industrial activity was reflected in production of boilers, earth moving machinery and aluminium conductor falling by over 40%. However it is intriguing that in spite of fall in manufacturing, the raw material prices in India have more or less remained firm. Is it an indication that industrial input prices in India are not elastic? "
The Knowledge and News Network (KNN) a new age online media platform which was launched in Aug 2013 by FISME with support of GIZ- German Agency for International Cooperation, is growing at a fast pace.
KNN delivers news, views and analysis both in the forms of text, graphic and video fed through a national network of over member industry associations and institutions.
In a review held on 15th Jan revealed that the number of partner associations of KNN has reached 169 and that of institutions 111. The number of hits to the portal knnindia.co.in has reached 10,000. So far the network has generated over 2100 stories covering 18 sectors and 20 states. KNN content is being used by host of agencies. While emphasis in the first phase was on news, now the KNN network is to focus on capturing and dissemination of ‘knowledge’ as well to further innovation among MSMEs.
"Companies miss a fateful strategic fork in the road. When the world is about to change, the ones that are closest to it are usually the last to see it. Our greatest opportunities come in the debris of crisis…. Out of the ashes of near failure, come our greatest opportunities. It is always darkest before the dawn. We want to find a way to harness the bad energy that’s out there and be a catalyst for change."
The government proposes to make the Arbitration and Conciliation Act, 1996 more effective in order to make dispute resolution for corporates speedier, cheaper and amicable.
The law relating to arbitration is contained in the Arbitration and Conciliation Act. It provides for domestic arbitration and also enforcement of foreign arbitral awards. It also contains the new feature on conciliation. It proceeds on the basis of the UN Model Law so as to make our law accord with the Law adopted by the United Nations Commission on International Trade Law (UNICITRAL).
In a major relief to the Government, the current account deficit could dip to as low as $41 billion (2.2 per cent of gross domestic product or GDP), the rating agency India Ratings said here on Tuesday. However, the agency has not revised its overall economic growth estimate of 4.9 per cent for 2013-14 while projecting growth of 5.6 per cent for 2014-15.
One of the two primary components of the balance of payments, CAD is the sum of the balance of trade (that is, revenue from exports minus payments for imports), factor income (earnings on foreign investments minus payments made to foreign investors) and cash transfers. The Government earlier estimated this deficit at $70 billion or 3.7 per cent of GDP then revised first to $60 billion, then $56 billion and finally below $50 billion.
Retail inflation eased to a three-month low at 9.87 per cent in December, thanks to moderation in vegetable prices.
This has raised hopes that the Reserve Bank of India may leave key rates untouched at its policy review meeting this month-end.
In recent months, the RBI has indicated that it may look at the consumer price index-based inflation as a gauge for inflation management.
Currently, the central bank is largely guided by the movements in the wholesale price index.
Consumer price index-based inflation for November 2013 now stands revised downward to 11.16 per cent from 11.24 per cent earlier, official data released on Monday showed.
Exim Bank's Line of Credit of USD 125 million to the Government of the Republic of Sudan is likely to help exporters of Indian machinery and equipment to that country.
“Export-Import Bank of India (Exim Bank) has entered into an Agreement dated July 24, 2013 with the Government of the Republic of Sudan, for making available to the latter, a Line of Credit (LOC) of USD 125 million (USD One Hundred and Twenty Five million) for financing eligible goods, services, machinery and equipment including consultancy services from India for the purpose of financing of Mashkour (earlier Elduem) Sugar Project in Sudan,” said an RBI notification yesterday.
The Centre for the Development of Glass Industry (CDGI) plans to improve its infrastructure with the setting up of a pot furnace with recuperator, a glass studio with cabin, and an annealing oven.
CDGI wants to purchase equipment like double beam scanning UV-VIS spectrophotometer, laboratory oven, digital muffi furnace, flame photometer with Na, K, Li and Ca filters, radiation pyrometer, flue gas analyser with oxygen, CO, CO2 sensors, water purifier, electric kiln for slumping and fusion of glass and microwave digestion system.
To provide a platform to manufacturers, exporters and retailers to showcase and sell an array of intricate silk designs produced domestically, Silk Mark Expos are held across the country on a regular basis.
Organised by the Silk Mark Organisation of India which is an initiative of the Central Silk Board, Ministry of Textiles, Government of India, Silk Mark Expo 2014 will begin here tomorrow.
The expo will be inaugurated by Union Minister for Textiles, Kavuru Sambasiva Rao. During the event, Secretary, Textiles, Zohra Chatterji will brief media regarding the Interactive Designers' Meet. The highlight of the event will be a fashion extravaganza called Silken Splendour, choreographed by Prasad Bidapa.
To encourage transportation of goods by ships, the Andhra Pradesh State Shipping Board has announced incentives to producers of steel, fertilizer, cement and other products if they change their mode of transportation from rail and road to coastal shipping.
A special committee had been set up by the Shipping Ministry to look into the matter and offer incentives.
According to Chairman, State Shipping Board (SSB) and Chairman of the Committee, P V K Mohan, the state government has approved the recommendations of the committee.
In order to develop Industrial Training Institutes (ITIs) at various locations within the state, Jharkhand government plans to rope in the private sector for effective upgradation, operation and management of the ITIs.
“Government of Jharkhand through Department of Labour, Employment and Training (DoLET), has created several ITIs in the state and now for the purpose of this project intends to select suitable Private Sector Participant(s) for the Up gradation, Operation, Maintenance and Management of these ITIs (8 General ITIs and 5 Women’s ITIs) through Public Private Partnership,” said a notification.
Sharing West Bengal’s achievement in the Micro and Small Scale Industries (MSME) sector, on a social network site, state chief minister Mamata Banerjee said that West Bengal has become the leading state in India in terms of credit flow to the MSME sector.
“We are No. 1 in credit flow to the MSME sector in the country. During the period April-September 2012, the credit flow from banks to MSME sector in Bengal was the highest at Rs 4,331 crore,” Banerjee said on Facebook.
Policy also calls for providing awards to the best MSMEs on the basis of their growth and profitability
The draft of Uttarakhand's first MSME policy is ready, with a bonanza of incentives for developing new enterprises.
With a thrust on skill development and creation of new infrastructure like mini tool rooms and flatted factories, a host of potential sectors for the development of MSMEs has been identified. They include agro-based food processing and allied industry, handloom, hosiery, textile, pharma, khadi and village industry, floriculture, tourism, herbal, medicinal plants and others.
The incentives are being offered in areas that have been grouped into three major categories - A, B and C. Incentives like capital investment subsidy, interest subsidy, employment-intensive subsidy and venture capital assistance are being offered in a big way. 
Disturbed over a proposed hike in power tariff in Punjab, Ludhiana-based Chamber of Industrial & Commercial Undertakings (CICU) has urged state Chief Minister Parkash Singh Badal to advise Punjab State Electricity Regulatory Commission (PSERC) not to grant approval for the proposal, which has been submitted by the state electricity corporation to encourage investments from other states in Punjab and to boost existing industry.
Avtar Singh, president, CICU said that the proposal of Punjab State Power Corporation Ltd (PSPCL) for a hike in power tariff by 65 paise per unit submitted to PSERC is uncalled for, as it will raise the cost of production and make industry in Punjab uncompetitive.
In an effort to foster cooperation between India and Canada in the mining and steel sector, Union Minister of Steel, Beni Prasad Verma has signed a deal with Canadian Minister of Natural Resources, Joe Oliver.
“…Verma held discussions with the Canadian minister which aimed at expanding and strengthening bilateral relations between the two countries and also identifying areas of cooperation and assistance where India could be benefitted from Canada, endowed with a huge wealth of natural resources especially coking coal,” said an official release.
The Asian Development Bank is showing a lot of interest in the small scale hybrid renewable systems in Myanmar with a focus on energy development plan for that country.
ADB will be holding online conversation on the subject ‘Powering Myanmar’s growth’ on January-15.
“Since Myanmar’s reform process began in 2011, its energy architecture has seen many positive developments. A robust energy development plan is crucial to the successful continuation of the country's economic and social development,” said an ADB notice.
Enhancing the trade relation between India and South Korea, both sides agreed to make efforts to promote SME cooperation between the two countries by sharing knowledge and experience gained on SME policies and creating strategic industrial partnerships for investment and technical cooperation.
The Fourth Korea-India Finance Minister’s Meeting was held between the Ministry of Strategy and Finance of the Republic of Korea and the Ministry of Finance of the Republic of India. The Korean delegation was led by Deputy Prime Minister and Minister of Strategy, Oh-Seok Hyun.
To display and demonstrate the products and services of plastics, petrochemicals, rubber, packaging and allied industries to the fast developing market of Sultanate of Oman, Oman Plast 2014 will be held in the Arab state next month.
The second largest plastics packaging show, Oman Plast 2014, will begin on February-11 to facilitate the development of trade links between Oman and the rest of the world.
According to Managing Director, Silver Star Corporation, P D Nath, the event offers a perfect gateway to reach the highly potential market while holding tremendous prospects for excellent business opportunities and new collaborations.
According to the FISME Factor, 85 per cent of the Micro, Small and Medium Enterprises (MSMEs), think that The Emergence of Aam Aadmi Party will impact political economy also.
Over the last decade or more entrepreneurship has received immense attention in this country, so many management students and engineers have graduated with a vision to do something different.
Corporate bigwigs have turned to starting their own businesses for a deeper sense of professional satisfaction. But many businesses also ‘fail’ miserably.
Ashish Goel and Rajeev Srivatsa, on two separate occasions, had wandered the streets of Marathahalli, Bangalore’s prime furniture market. In search of a bed and sofa set, they spent hours sifting through wrought iron, plastic, and heavy, intricately carved furniture with velvet upholstery to boot. None of these appealed to their taste; was there no middle ground, they wondered.
In spite of slower economic growth and spiralling inflation, India's e-commerce market is bucking the trend. It recorded a staggering 88 per cent growth in 2013 to $16 billion, according to a recent survey by industry body Assocham, which estimates the e-commerce market in India to reach $56 billion by 2023.
The manufacturing sector in Noida industrial area is facing many problems, with many units unable to function smoothly or produce to their full capacity owing to heavy load shedding.
Several manufacturing firms have had to shut down operations for several hours a day as there is no electricity at their workshops.
“In some parts of the township, workshop operations have had to shut down every day from 6 am to 9 am due to non-availability of power,” said Secretary General of Noida Entrepreneurs Association VK Seth.
His biggest liability was his address, Pithampur, a town in Madhya Pradesh that 'no one had heard of'. His biggest asset was his father and his own business acumen, which have transformed Shakti Pumps from a shop that once only assembled pumps, to a company with an installed capacity of 5 lakh pumps per annum. Why, Shakti Pumps has even managed to rope in Bollywood superstar Amitabh Bachchan as its brand ambassador!
Ramli Pradhan is in advanced stage of cancer. But she is not in hospital; she's at her home in trained hands, which know how to take care of cancer patients and are sensitive but can sometimes be irritable. Pradhan's daughter has engaged Portea Medical to look after her mother at home.
"The important thing is not being afraid to take a chance. Remember, the greatest failure is to not try. Once you find something you love to do, be the best at doing it. " 
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.
