President's Message
2013: Our hopes, our resolutions..
Business is finally looking up, though just a bit!
A spate of decisions by the Executive and the Legislator after a long lull has helped lift sentiments. Measures for controlling deficits should reduce inflation, strengthen rupee, attract foreign funds and boost to infrastructure investment by speeding up clearances should give further fillip to the economy.
The global picture though continues to be more unpredictable -with fiscal cliff precariously balanced and the European economies still unable to take firm steps towards fiscal consolidation. Luckily our economy is not dependent too much upon exports. (continued)
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AIFPA Show 2012
PLASTO 2012
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We need a statutory autonomous regulator to ensure fair deal for MSMEs: Survey
According to The FISME Factor survey, 86% of MSMEs feel that there is need of a statutory autonomous regulator to ensure fairness among farmers, and MSME vendors, after Parliament's approval to the decision of allowing FDI in retail.
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HR Heuristics
Is your organisation leaking people energy?
 A major problem that most growing organisations face today is leakage of people energy without the senior management being aware of it.
Finance Fundamentals
Make your money work
 "Cash is King." This axiom needs to be followed by its words. And this is true. Be it companies-small or big, as well as in our personal life.
Marketing Mantras
Overcoming 3 Stigmas of being an Entrepreneur in India
 India is just about coming to terms with start-up entrepreneurship. There is a social stigma attached to practically every stage of life, and mind-sets don't change easily.
Policy Polemic
Dangers posed by FDI in retail
The promised protection for small industries could turn out to be a farce.
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Stockpile
2012: Achievements and initiatives of the Ministry of MSME
Micro, Small and Medium Enterprises (MSMEs) has proved to be an engine of growth in the economic development of the country. For their promotion and development, The Ministry of Micro, Small and Medium Enterprises (MSME) has been implementing various programmes and schemes.
Rs 13k cr in assets, focus on SME favour licence: Religare
Interview with Shachindra Nath, Grp CEO, Religare Enterprises based on recent amendment of Banking Bill to allow RBI to give corporate entities offering financial and banking services, new banking licences.
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Quotable Quotes
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In the modern world of business, it is useless to be a creative original thinker unless you can also sell what you create. Management cannot be expected to recognize a good idea unless it is presented to them by a good salesman.
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- -David Ogilvy, Former Chairman, Ogilvy and Mather
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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
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.
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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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Activities
Business Banter: Lessons from Entrepreneurs
Macro Metre
Domestic Digest
State Scan
World Watch
Knowledge Store
...And A Lot More
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 Giving hope of better life to thousands of artisans engaged in the making of scissors in Meerut for decades, GI-Mark for Meerut scissors cluster is soon to become a reality. The GI-mark assures the users or consumers of specific set of qualities in a product owing to its geographical origin, therefore, enables the product carrying GI mark to secure a premium.
A set of documents claiming GI mark to Meerut Scissor cluster was submitted in Meerut on December 19, 2012 to the team comprising senior officials from Office of Geographical Indications Registry, Govt of India (Chennai). The application of GI mark has been prepared by experts at FISME-IPFC after painstakingly collecting evidence of origin and speciality of scissors made in the geography of Meerut for over 12 months.
 H.E. Gaston STRONCK, Ambassador of Luxembourg visited FISME Head Quarters and held discussions for inviting Indian MSMEs to Luxembourg on December 17, 2012.
Luxembourg offers an exceptional range of assets and opportunities for doing business in Europe, due to its location, in the heart of Western Europe, political and social stability, skilled and multilingual workforce, state-of-the-art infrastructures, and excellent connectivity to markets, favourable legal environment and attractive tax climate. Arcelor Mittal’s headquarters are also in Luxembourg.
 The National Vendor Development Programme- a seminar cum Industrial Exhibition was collectively organized in Bangalore on December 15 & 16, 2012 by MSME Development Institute, Bangalore, Ministry of Industries & Commerce, Government of Karnataka, National Small Industries Corporation (NSIC), Khadi and Village Industries Commission, Coir Board and Small Industries Development Bank of India (SIDBI). As an industry partner, FISME conducted IPR and other awareness programme for participating MSMEs during the exhibition.
 FISME Factor joins millions of fellow Indians in mourning the tragic death of the young brave-heart- the recent rape victim. The incident has shaken the soul of nation and sparked a wave of protests led by youth cutting across geographies, regions, gender, religion and other political and social affiliations.
Is it just a flash mob reaction or indication of larger churn that India is entering? Yogendra Yadav- noted Psephologist, writes: “Urban street protests, first against corruption and now against the violence that targets women, are the beginning of a new kind of politics that has come up to fill a gap in our democratic functioning, that articulates pent-up grievances that have no redress in our system”. Ashis Nandy- one of India’s finest political psychologist and sociologist, warns: “ an anomic, anarchic, free-floating violence.. is looking for targets”.
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Will proposed tighter norms for Non-Banking Financial Companies (NBFCs) hit financing to MSMEs?
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‘The Best Advice I Got’
-Y C Deveshwar, Chairman ITC Limited
 “The best advice I have received is to listen to my inner voice,” says Y C Deveshwar, Chairman, ITC Limited. Corporate Journey is full of challenges and opportunities. One has to deal with turning points, critical decisions which can later determine success and failure. The process of decision making is always crucial for a firm, and is driven by deep insights, organisational capabilities, strategy and plans, but often, a final choice needs to be made from competing alternatives. It is always advisable to listen to everyone, as in such situation different views are valued. Such advice indeed makes you stop and think to refine your views.
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Macro Metre
 From January 1, 2013, exports to conventional markets such as US and Europe will be eligible to fetch government incentives. Concerned over the shrinkage of Indian exports during the first eight months of the current fiscal, the government has notified a scheme whereby an exporter is entitled to get an incentive even if exports are meant for US, Europe or China, three key destinations of Indian exports.
 India announced incentives to revive growth in exports recently as it looks to narrow a trade deficit that has put the country's current account balance and currency under pressure. As part of the package, the government extended a 2-percentage-point interest subsidy on rupee-denominated export loans for labour-intensive and small-scale industries by one year to the end of March 2014 to cushion the impact of weak demand in developed economies.
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 Global rating agency Standard and Poor's (S&P) has said it expects India to grow by 6.5 per cent during 2013, amidst the possibility of global economic recovery continuing during the year. For China, S&P expects the growth rate to move back to eight per cent level in 2013, after it slipped to 7.4 per cent in the third quarter of 2012. In a report on global credit outlook for 2013, S&P said that "the ball is in the policymakers' court" to sustain the recovery in global economy.
Here’s more proof that all is not well with the Indian economy. India’s exports in July contracted by 14.8% — the steepest fall in three years — over the same month in 2011 as orders from Europe, hit by sovereign debt worries and a wobbly political situation, shrank. This has shown that exporters haven’t been able reap the advantage of the weakening rupee, which has slid to a record low.
Dr. A Sakthivel Chairman AEPC hailed Government for all exports incentives announced, by Shri Anand Sharma, the Union Minister of Textiles and Commerce. Speaking on the announcement Dr. Sakthivel said, “2% Interest Subvention Scheme decision to extend for specific sectors up to 31st March 2014 is a timely move and will help in boosting the exports. It will surely give needed thrust to the apparel and textiles sector which was reeling under the sluggish markets of US and Europe. The impacted markets especially in Europe and America’s and the resultant weak demand have adversely impacted performance of our exports.”
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 With small-scale industries being hit by inflation, steep increase in fuel price and increased cost of production, their promoters are looking up to the Centre for some immediate relief, including waiver of interest on loans, loan repayment holidays and a special package for small-scale units. Representatives of the Belgaum Small-Scale Industries Association (BSSIA), who met K.H. Muniyappa, Minister of State (Independent charge) for Micro, Medium and Small Enterprises (MSME), at the Belgaum airport recently, explained to him their difficulties in sustaining their establishments.
The Ministry of Micro, Small and Medium Enterprises (MSME) will select 200 entrepreneurs in each district for extending help to start their businesses, union minister K H Muniyappa said recently. “In every district 200 entrepreneurs would be identified and the selection process would be completed in three months’ time for extending help in the form of loans for starting their projects,” Muniyappa, Minister of MSME.
The National Association of Software and Services Companies (Nasscom) recently, has entered a Memorandum of Understanding (MoU) with Small Industries Development Bank of India (SIDBI) to work together for entrepreneurship growth and development of Micro Small & Medium Enterprise (MSME) in the ICT sector. In order to assess and evaluate various proposals from eligible Nasscom MSME members, Nasscom and SIDBI will create a joint working group of five members with three nominees from SIDBI and two from Nasscom.
The government recently said the Planning Commission has allocated Rs 24,124 crore for the Ministry of Micro, Small and Medium Enterprises (MSME) for the 12th Five-Year Plan. "The Planning Commission has allocated Rs 24,124 crore for 12th Five-Year Plan for the Ministry of MSME which is subject to the approval of National Development Council," MSME Minister K H Muniyappa said in a written reply to the Lok Sabha.
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Dedicated financier to MSME sector, SIDBI, recently signed first-of-its kind MoUs with eight Regional Rural Banks (RRBs) and Urban Co-operative Banks (UCBs) in West Bengal, eastern and north eastern India. "These MoUs are for increasing credit flow to the 'missing middle' - micro, small and medium enterprises (MSMEs) in the region. SIDBI is also extending capacity building support for handling micro enterprise loans of MSMEs in West Bengal, Eastern and North Eastern India," a release said recently.
In order to meet the procurement standards required by overseas multi-brand retail firms, think-tank ICRIER recently suggested a technical collaboration between small units and foreign retailers to build a pool of skilled professionals. On the issue of global quality standards for sourcing goods from micro and small units (MSEs), ICRIER Professor Arpita Mukherjee said there are basic minimum international standards, but there are variations in those as well. Besides, at times, companies follow their own private standards.
 Crisil Ltd, India’s oldest rating agency, doesn’t call itself a rating agency any more. Its chief executive and managing director Roopa Kudva prefers to call Crisil a global analytical company providing ratings, research, risk and policy advisory services as rating accounts for just one-third of its business. The rating business roughly accounts for one-third of its revenue, and the contribution of overseas and domestic operations is 50:50.
 Exporters' body FIEO expressed concern about the Reserve Bank of India's decision to maintain status quo on key policy rates in its mid-quarter review of the monetary policy recently. For the MSME export sector stagnating bank credit, which in absolute terms was Rs 40.11 lakh crore ending march 2012 as against Rs. 39.42 lakh crores ending march 2011, is an ominous sign of things to come if real time measures are not taken fast enough, said FIEO president M Rafeeque Ahmed, in a press statement.
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Gujarat
RKMA planning kitchenware cluster in Rajkot
Rajkot Kitchenware Manufacturers Association (RKMA) is planning to develop a kitchenware cluster in the district. The association has met various central and state government authorities and are in the process of preparing a blue print for the project. “As Rajkot is the main supplier of kitchenware items in India, and for the benefit for the small players, association has decided to develop a kitchenware cluster. It will help us grow more and support the stakeholders during slowdown,” said Ashok Manvar, president of RKMA.
MSMEs survey before Vibrant Gujarat
In order to gauge the health of small business in Gujarat, the state government is conducting a crucial sample survey of Micro, Small and Medium Enterprises (MSMEs) that employs about over 16 lakh persons across the state. The results of the survey is expected to be out before the second week of January 2013 when the state government’s flag-ship, Vibrant Gujarat Investors’ Summit, gets underway.
Haryana
3 industrial clusters approved in Haryana
The Haryana government will focus on cluster development as one of the strategies for industrial development in the state, and proposes to set up common facility centres in partnership with industry. These centres will address the common needs of micro, small and medium enterprises (MSMEs) in the areas of research and development, technology up gradation support, standardisation of products, quality testing and marking facilities, and marketing and branding initiatives.
Kerala
Kerala Chief Minister Oommen Chandy recently said the government will adopt 'pro-active' approach in resolving challenges facing the MSME sector, and looks forward to the state becoming the country's hub for small and medium industry. Inaugurating the 'India MSME Summit 2012', Chandy said he looks forward to the support of the small and medium sector for transforming the state into India's MSME hub.
Madhya Pradesh
The Association of Madhya Pradesh (AIMP) has claimed that despite being the biggest employment generating sector after agriculture, the MSME sector is still facing land and infrastructure related problems. Addressing a meeting of representing prominent trade bodies, associations and chambers on Sunday, AIMP state head Ashok Barjatiya said that MSME sector contributes 40 % revenue to state economy.
Maharashtra
The new industrial policy of the state, which is likely to be introduced in the next few days, will include around 80 to 100% refund of Value Added Tax (VAT) for Small and Medium Enterprises (SMEs) while setting up a new plant or buying machineries, along with power and interest loan subsidy. The Maharashtra state government has already drafted a new industrial policy for the state and it is likely to be introduced in the next few days. Chief Minister, Prithviraj Chavan has also given indication that the policy would be announced in the next few days. With an aim to boost the SMEs, the state government has given several sops for the SMEs in terms of subsidies and tax concessions.
Orissa
The demand for creation of a dedicated facilitation body for micro, small and medium enterprise (MSME) just got shriller with small industrial bodies coming together under one platform to press for formation of the Small Industries Development Corporation (SIDCO). The Coordination Committee of Industries Associations, comprising UCCI, OSSIA, OYEA and OASME, have called for withdrawal of MSME sector from IDCO control, as it has shifted all its focus to facilitation for large and mega industries. Creation of SIDCO is an urgent necessity as the interests of MSME sector are not being served, the committee stated.
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Pakistan 
 Pakistan is set to miss the target of granting India the Most Favoured Nation (MFN) status by December 31, 2012 due to vested interests, officials alleged. The next possible cabinet meeting will be held on January 2, 2013 and the issue of granting MFN status to India is not on the agenda, the officials conceded. They further added that Pakistan has also missed the deadline of December 15, 2012 to abolish the negative list.
South Africa 
 While GDP growth may have been slow over the past year, the number of business owners (employers and self-employed) has been growing. This is according to the Absa SME index, which measures the number of SMEs active in the economy every quarter, has shown an increase for the first time in a year. At 93, 2, the index is at its highest level since the last quarter of 2011 when the index was just above 94.
Singapore 
 The Asia Competitiveness Institute is currently developing an index to monitor a company's productivity, efficiency and manpower management. The index will be the first of its kind in Singapore, and will allow Small and Medium Enterprises (SMEs) to track and measure their productivity in a more systematic and comprehensive way. Through its 100 indicators, the index will point out weaknesses and problems in SMEs and help them improve their productivity.
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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.
send mail to: newsletter@fisme.org.in
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There are business opportunities available for Indian companies in Canada. The interested MSMEs can check details.
There are business opportunities available for Indian companies in Turkey. The interested MSMEs can check details.
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During the period December 15, 2012 to December 31, 2012 a total of 7 new MSMEs became members of FISME.
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