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President's Message
" The quote ‘road to the hell is paved with good intentions’ fits to the Basel accords perfectly. The Basel Committee on Bank Supervision (BCBS) provides recommendations/ norms for banking regulations in regards to capital, market and operational risks. The Basel-I (1998), II (2004) and version III (2013) advocated stricter prudential norms for banks. It may have made the financial system more robust- though sceptics are abound, but had devastating consequences on SME lending worldwide. In India, MSME lending has consistently come down since 2000. The mandatory BLR rating has increased multi fold woes further after 2012. We at FISME have written to Honorable Prime Minister to intervene.
"
The 15th edition of INFOCOM India’s leading business, technology and leadership conference, has been organized in Delhi by ABP group. (ABP- media conglomerate having The Telegraph, Anandabazar Patrika, Fortune India, ABP News, etc). FISME is the partner in organizing INFOCOM facilitating participation of MSMEs.
Prakash Javadekar, who took charge of the Human Resource Development (HRD) Ministry on Thursday, inaugurated “INFOCOM 2016″. The day-long conference themed on “Transform, Disrupt, Transform” witnessed participation of over 300 delegates comprising industry leaders and policymakers, among others.
The opening sessions witnessed keynote addresses by Manoj Chugh, President-Enterprise Business, Tech Mahindra on the theme “Disruption, Innovation and Industry Change” where he spoke about industry change being driven by disruptive innovations and transformations.
So, you want to be an entrepreneur? Great. So did Paritosh Sharma. In fact, he believed he was cut out for it. After completing a bachelor's of computer application (BCA) from Jagannath International Management School in New Delhi in 2006, Sharma joined MindtreeBSE 0.88 % in Bengaluru as a test engineer. He quit after 11 months. Reason: he was inspired by a book written by Mindtree cofounder Subroto Bagchi — The High-Performance Entrepreneur: Golden Rules for Success in Today's World — to start his own venture. One of Bagchi's golden rules was to listen to one's heart.
While the Centre and RBI are well-prepared to handle any upcoming bout of rupee volatility, India Inc may be caught napping
The months ahead promise to be turbulent for the Indian rupee, with the Brexit referendum triggering global volatility, even as India is bracing for over $20 billion in foreign exchange outflows in September from the maturity of FCNR (B) deposits raised in 2013. The Reserve Bank of India’s (RBI) latest data on the country’s external debt position as of end-March 2016 show that while both the Government and the central bank are well-prepared to handle any future currency volatility, it is Corporate India that may be caught napping.
Industrial production growth unexpectedly recovered into the positive zone in May after shrinking in the previous month, but the muted growth showed just a tepid recovery.
The Index of Industrial Production (IIP) rose 1.2 per cent in May from a year earlier, government data released on Tuesday showed.
The revised reading for April was -1.3 per cent. Manufacturing output grew a marginal 0.7 per cent in May. Electricity generation was up 4.7 per cent, while mining output rose 1.3 per cent.
The Expert Committee, set up to examine the Income Computation and Disclosure Standards (ICDS) notified by the Centre on 31st March, 2015, has recommended to defer by one year the implementation of ICDS commonly referred to as tax standards.
The ICDS-which had earlier come into effect from April 1, 2015 - will now be applicable from April 1, 2016, an official release said on Wednesday.
Hence, financial year 2016-17 would be the first year of ICDS implementation.
Aiming to double farmers' income in the next five years, the Centre is chalking out a national action plan to attract more foreign investment in the dairy sector.
The Department of Animal Husbandry under the aegis of Agriculture Ministry is holding a series of discussion with private players in this regard.
"We are preparing a national action plan to boost FDI in dairy sector. We want FDI in this sector in such a format that our farmers are benefited and their income goes up," Animal Husbandry Secretary Devendra Chaudhury told PTI.
The next chairperson of the Unique Identification Authority of India (UIDAI) will be selected on the recommendation of a top-level committee headed by the cabinet secretary and will draw a salary of the level of a secretary, the government notified on Tuesday.
The Union Government on Tuesday notified the Aadhaar (Targeted Delivery of Financial and Other Subsidies, Benefits and Services) Act, 2016 and operationalised some of its provisions, giving a legal shape to UIDAI.
Aiming towards generating more employment in the country, NITI Aayog is today holding a meeting with five central trade unions as well as industry chambers to discuss about labour laws and explore ways of improving employment generation in the country.
Vice chairman of the Aayog, Arvind Panagariya, will chair the meeting which will also see participation from industry chambers like CII, Ficci and Assocham, apart from Finance Ministry officials.
The Rural Entrepreneurship Development Scheme, launched in 2015 by PM Modi, will be effective from 2016-17. The objective of pilot studies is to augment knowledge as well as skill as per the requirements of private sector.
It also aims at to create belief and competency amongst undergraduate students so as to initiate their own enterprise.
It is a new programme to impart opportunities for attaining experience as well as entrepreneurship skills on part of agriculture graduates.
Under this scheme, the agriculture graduation students will be granted scholarship at the rate of Rs. 3000 per month.
Central Government has decided to import maize to check prices and hoarding of the important coarse grain, in the wake of fall in domestic production of the crop.
Commerce ministry has tweeted that to check prices and prevent hoarding, Commerce and Industry Minister Nirmala Sitharaman has approved importing 5,00,000 MT of maize under Tariff Rate Quota by a state trading enterprise.
Under Tariff Rate Quota Scheme, Government allows imports of four products, including maize (corn), at concessional rates of customs duty.
In order to increase purchase by PSUs from the MSME suppliers in food sector, Ministry of Micro, Small & Medium Enterprises (MSME) is organizing a two-day National Level Vendor Development Programme cum industrial exhibition in the national capital on July 21-22, 2016.
The Ministry is organizing the programme ‘MSME Food Expo – 2016’ in association with the All India Food Processors Association (AIFPA) to provide marketing opportunity to MSEs engaged in agro and food products procured by PSUs.
The Karnataka Government is taking initiatives to bridge the credit gap in the MSME sector. The Minister for State, Finance & Corporate Affairs of Karnataka, Arjun Mehwal, assured the MSME sector to take up the issues of Non- Performing Asset (NPA) norms and online loan applications with the concerned departments.
Laghu Udyog Bharati (LUB) Karnataka, recently organized a one day Zonal Conference of southern states on ‘ Credit flow to micro , small and medium enterprises’ here.
Tamil Nadu after reserving its position as the energy surplus state in India has become the most conducive place for MSMEs. Few years back Tamil Nadu was one amongst the power deficit regions witnessing huge gaps between power demand and its availability in the state. But the bliss of the state turning to a power surplus ground has proved to be an asset for the industry.
The state being a house of yarn, textiles, automotive or vehicle part manufacturers, metal works, electronics, leather, fireworks etc. had power play its crucial role to keep the industrial setup at place.
More and more MSMEs are keen to explore about usage of Information Technology & Mobile Devices for Business. However, the sector acknowledges that said that though India has large resource of IT professionals yet the penetration of IT applications is very low compared to World’s standards.
A programme on “Use of Information Technology & Mobile Devices for Business” organized by MSME Development Center (IMDC) of Indian Industries Association (IIA) on Sunday.
West Bengal government has taken up a project to set up three Biotechnology hubs across the state which aims at bringing in more biotechnology innovations in the state.
The move intends to improve the socio-economic life of the people.
The Biotechnology department in the state has already taken up an elaborate schemes to not only tie up with other departments like agriculture, fisheries, food processing to increase the productivity and quality of various products, but to also provide germ-free food to the common people, All India Trinamool Congress said today.
Seeking to bolster their ties, India and Kenya today decided to deepen and expand cooperation in a wide range of areas as they signed seven pacts, including in the field of defence and security and avoidance of double taxation.
Prime Minister Narendra Modi, after his talks with Kenyan President Uhuru Kenyatta here, also announced extension of concessional Line of Credit (LOC) of $44.95 million to the African nation to help it in development of small and medium enterprises and textiles.
Commerce and Industry Minister Nirmala Sitharaman said that post Brexit, Free Trade Agreement (FTA) with UK will be a fresh exercise and work on FTA with EU will continue with a re-calibrated approach.
Sitharaman, held a bilateral meeting with Sajid Javid, Secretary of State for Business, Innovation and Skills, UK, in New Delhi.
During the meeting, both the leaders discussed issues of mutual interest. Both sides expressed hope to take proactive steps to deepen their ties and engagement in near future. Several issues related to bilateral trade and investment were discussed, said an official release.
Indian and Russia on Monday resolved to strengthen bilateral trade ties and enhance cooperation so that the two countries can play a major role in reviving global growth.
Indian Commerce Minister Nirmala Sitharaman met Russian Minister of Trade and Industry Denis Manturov here, the venue of Russia's biggest manufacturing trade fair - Innoprom - where India is the partner country this year. "There is a strong potential for growth in India-Russia bilateral trade. Be it high-end engineering, or manufacturing, India is moving towards being synonymous to quality, reliability and durability," Sitharaman said according to a statement by India's commerce ministry.
Tender on Supply of Advanced Electricity Metering System
It may be of interest to you to know that Uzbekistan’s Joint Stock Company “Uzbekenergo” has released a tender for “supply, installation and implementation of AEM System “. The Notice states that the financing for the project “ Advanced Electricity Metering Project” has been received from the Islamic Development Bank and that a part of it will be utilized for procurement of meters.
According to the FISME Factor, about 25 percent of Micro, Small and Medium Enterprises (MSMEs) think that Brexit will derail India’s Growth Story while 50 percent think that it will not going to affect India’s growth and 25 percent can’t say anything about this.
When the US Army War College coined VUCA (Volatile, Uncertain, Complex and Ambiguous) to describe the post-cold war era, little would they have foreseen the aptness of this term in the 21st century. The chaotic world as we live in today with its rapidly changing business landscape, technological advancements, evolving customer demands and disruption of best practices across domains, makes VUCA an everyday reality.
Taking a loan is never easy, and by that I do not refer to the process. What I refer to is the mind set of both you and the lender. And within that if you are a borrower who also happens to be an entrepreneur -- well that’s another story. So why do lenders approach an entrepreneur with caution? There are a multitude of reasons ranging from fear of the unknown, lenders’ risk appetite and past experiences with entrepreneurs.
100x social media reach by turning your employees into brand ambassadors
So, you have a great social media team, active accounts on all possible social networks, and a big budget for content creation. But the number of retweets or shares your posts get has never exceeded 10. Does that sound familiar? And yet, you have thousands of employees in your offices, many of whom will be more than happy to share your content. This is where Employee Advocacy comes in - a fairly new concept that's taking the world of social media marketing by storm.
TN MSMEs hit by floods last year are yet to receive their insurance claims
Even after months of being badly affected by the devastating floods, the MSME units are yet to receive their due claims from the insurance companies.
More than 14000 MSME units were badly affected by the floods last year and thereafter showed slow signs of recovery.
Talking on this issue to KNN, C. Muthusami, President of Tamil Nadu Small and Tiny Industries Association (TANSTIA) said, “MSMEs have been recovering so far but still a lot has to be done on this respect to bring them back on track immediately.
His office is in a quiet middle-class Chennai neighbourhood that was ravaged by the rains here in December. There was water till this, he points to the door frame and says it took them a month to clean up the place. But all that is behind him now as Sabarinath Nair is working on launching his second product — a simulator for painters in industrial applications.
How Pranava Kumar wants to save trees by making pencils from recycled paper
After working with IBM for sixteen years, senior manager Pranava Kumar quit his job. As he wanted to try his hand at entrepreneurship, the 36-year-old engineer, along with his wife Haripriya, started an organic food store called ShivTat Agro last year.
After a year of thriving business, while on the lookout for a unique eco-friendly product idea to diversify their business, they came across pencils made of recycled paper. It turned out to be a godsend.
The Central Statistics Office (CSO), Ministry of Statistics and Programme Implementation, has released the Quick Estimates of Index of Industrial Production (IIP) with base 2004-05 for the month of September 2015
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
You are receiving this Newsletter because you are included in our mailing list of recipients who are involved or interested in FISME or Indian MSMEs. You are welcome to partly or fully reproduce and disseminate the contents of this publication provided that you acknowledge the source.
This Newsletter is edited by the FISME Secretariat. We welcome contributions as well as comments and suggestions. Please write to newsletter@fisme.org.in
" The quote ‘road to the hell is paved with good intentions’ fits to the Basel accords perfectly. The Basel Committee on Bank Supervision (BCBS) provides recommendations/ norms for banking regulations in regards to capital, market and operational risks. The Basel-I (1998), II (2004) and version III (2013) advocated stricter prudential norms for banks. It may have made the financial system more robust- though sceptics are abound, but had devastating consequences on SME lending worldwide. In India, MSME lending has consistently come down since 2000. The mandatory BLR rating has increased multi fold woes further after 2012. We at FISME have written to Honorable Prime Minister to intervene.
"
The 15th edition of INFOCOM India’s leading business, technology and leadership conference, has been organized in Delhi by ABP group. (ABP- media conglomerate having The Telegraph, Anandabazar Patrika, Fortune India, ABP News, etc). FISME is the partner in organizing INFOCOM facilitating participation of MSMEs.
Prakash Javadekar, who took charge of the Human Resource Development (HRD) Ministry on Thursday, inaugurated “INFOCOM 2016″. The day-long conference themed on “Transform, Disrupt, Transform” witnessed participation of over 300 delegates comprising industry leaders and policymakers, among others.
The opening sessions witnessed keynote addresses by Manoj Chugh, President-Enterprise Business, Tech Mahindra on the theme “Disruption, Innovation and Industry Change” where he spoke about industry change being driven by disruptive innovations and transformations.
So, you want to be an entrepreneur? Great. So did Paritosh Sharma. In fact, he believed he was cut out for it. After completing a bachelor's of computer application (BCA) from Jagannath International Management School in New Delhi in 2006, Sharma joined MindtreeBSE 0.88 % in Bengaluru as a test engineer. He quit after 11 months. Reason: he was inspired by a book written by Mindtree cofounder Subroto Bagchi — The High-Performance Entrepreneur: Golden Rules for Success in Today's World — to start his own venture. One of Bagchi's golden rules was to listen to one's heart.
Industrial production growth unexpectedly recovered into the positive zone in May after shrinking in the previous month, but the muted growth showed just a tepid recovery.
The Index of Industrial Production (IIP) rose 1.2 per cent in May from a year earlier, government data released on Tuesday showed.
The revised reading for April was -1.3 per cent. Manufacturing output grew a marginal 0.7 per cent in May. Electricity generation was up 4.7 per cent, while mining output rose 1.3 per cent.
The Expert Committee, set up to examine the Income Computation and Disclosure Standards (ICDS) notified by the Centre on 31st March, 2015, has recommended to defer by one year the implementation of ICDS commonly referred to as tax standards.
The ICDS-which had earlier come into effect from April 1, 2015 - will now be applicable from April 1, 2016, an official release said on Wednesday.
Hence, financial year 2016-17 would be the first year of ICDS implementation.
Aiming to double farmers' income in the next five years, the Centre is chalking out a national action plan to attract more foreign investment in the dairy sector.
The Department of Animal Husbandry under the aegis of Agriculture Ministry is holding a series of discussion with private players in this regard.
"We are preparing a national action plan to boost FDI in dairy sector. We want FDI in this sector in such a format that our farmers are benefited and their income goes up," Animal Husbandry Secretary Devendra Chaudhury told PTI.
The next chairperson of the Unique Identification Authority of India (UIDAI) will be selected on the recommendation of a top-level committee headed by the cabinet secretary and will draw a salary of the level of a secretary, the government notified on Tuesday.
The Union Government on Tuesday notified the Aadhaar (Targeted Delivery of Financial and Other Subsidies, Benefits and Services) Act, 2016 and operationalised some of its provisions, giving a legal shape to UIDAI.
Aiming towards generating more employment in the country, NITI Aayog is today holding a meeting with five central trade unions as well as industry chambers to discuss about labour laws and explore ways of improving employment generation in the country.
Vice chairman of the Aayog, Arvind Panagariya, will chair the meeting which will also see participation from industry chambers like CII, Ficci and Assocham, apart from Finance Ministry officials.
The Rural Entrepreneurship Development Scheme, launched in 2015 by PM Modi, will be effective from 2016-17. The objective of pilot studies is to augment knowledge as well as skill as per the requirements of private sector.
It also aims at to create belief and competency amongst undergraduate students so as to initiate their own enterprise.
It is a new programme to impart opportunities for attaining experience as well as entrepreneurship skills on part of agriculture graduates.
Under this scheme, the agriculture graduation students will be granted scholarship at the rate of Rs. 3000 per month.
Central Government has decided to import maize to check prices and hoarding of the important coarse grain, in the wake of fall in domestic production of the crop.
Commerce ministry has tweeted that to check prices and prevent hoarding, Commerce and Industry Minister Nirmala Sitharaman has approved importing 5,00,000 MT of maize under Tariff Rate Quota by a state trading enterprise.
Under Tariff Rate Quota Scheme, Government allows imports of four products, including maize (corn), at concessional rates of customs duty.
In order to increase purchase by PSUs from the MSME suppliers in food sector, Ministry of Micro, Small & Medium Enterprises (MSME) is organizing a two-day National Level Vendor Development Programme cum industrial exhibition in the national capital on July 21-22, 2016.
The Ministry is organizing the programme ‘MSME Food Expo – 2016’ in association with the All India Food Processors Association (AIFPA) to provide marketing opportunity to MSEs engaged in agro and food products procured by PSUs.
The Karnataka Government is taking initiatives to bridge the credit gap in the MSME sector. The Minister for State, Finance & Corporate Affairs of Karnataka, Arjun Mehwal, assured the MSME sector to take up the issues of Non- Performing Asset (NPA) norms and online loan applications with the concerned departments.
Laghu Udyog Bharati (LUB) Karnataka, recently organized a one day Zonal Conference of southern states on ‘ Credit flow to micro , small and medium enterprises’ here.
Tamil Nadu after reserving its position as the energy surplus state in India has become the most conducive place for MSMEs. Few years back Tamil Nadu was one amongst the power deficit regions witnessing huge gaps between power demand and its availability in the state. But the bliss of the state turning to a power surplus ground has proved to be an asset for the industry.
The state being a house of yarn, textiles, automotive or vehicle part manufacturers, metal works, electronics, leather, fireworks etc. had power play its crucial role to keep the industrial setup at place.
More and more MSMEs are keen to explore about usage of Information Technology & Mobile Devices for Business. However, the sector acknowledges that said that though India has large resource of IT professionals yet the penetration of IT applications is very low compared to World’s standards.
A programme on “Use of Information Technology & Mobile Devices for Business” organized by MSME Development Center (IMDC) of Indian Industries Association (IIA) on Sunday.
West Bengal government has taken up a project to set up three Biotechnology hubs across the state which aims at bringing in more biotechnology innovations in the state.
The move intends to improve the socio-economic life of the people.
The Biotechnology department in the state has already taken up an elaborate schemes to not only tie up with other departments like agriculture, fisheries, food processing to increase the productivity and quality of various products, but to also provide germ-free food to the common people, All India Trinamool Congress said today.
Seeking to bolster their ties, India and Kenya today decided to deepen and expand cooperation in a wide range of areas as they signed seven pacts, including in the field of defence and security and avoidance of double taxation.
Prime Minister Narendra Modi, after his talks with Kenyan President Uhuru Kenyatta here, also announced extension of concessional Line of Credit (LOC) of $44.95 million to the African nation to help it in development of small and medium enterprises and textiles.
Commerce and Industry Minister Nirmala Sitharaman said that post Brexit, Free Trade Agreement (FTA) with UK will be a fresh exercise and work on FTA with EU will continue with a re-calibrated approach.
Sitharaman, held a bilateral meeting with Sajid Javid, Secretary of State for Business, Innovation and Skills, UK, in New Delhi.
During the meeting, both the leaders discussed issues of mutual interest. Both sides expressed hope to take proactive steps to deepen their ties and engagement in near future. Several issues related to bilateral trade and investment were discussed, said an official release.
Indian and Russia on Monday resolved to strengthen bilateral trade ties and enhance cooperation so that the two countries can play a major role in reviving global growth.
Indian Commerce Minister Nirmala Sitharaman met Russian Minister of Trade and Industry Denis Manturov here, the venue of Russia's biggest manufacturing trade fair - Innoprom - where India is the partner country this year. "There is a strong potential for growth in India-Russia bilateral trade. Be it high-end engineering, or manufacturing, India is moving towards being synonymous to quality, reliability and durability," Sitharaman said according to a statement by India's commerce ministry.
According to the FISME Factor, about 25 percent of Micro, Small and Medium Enterprises (MSMEs) think that Brexit will derail India’s Growth Story while 50 percent think that it will not going to affect India’s growth and 25 percent can’t say anything about this. 
When the US Army War College coined VUCA (Volatile, Uncertain, Complex and Ambiguous) to describe the post-cold war era, little would they have foreseen the aptness of this term in the 21st century. The chaotic world as we live in today with its rapidly changing business landscape, technological advancements, evolving customer demands and disruption of best practices across domains, makes VUCA an everyday reality.
Taking a loan is never easy, and by that I do not refer to the process. What I refer to is the mind set of both you and the lender. And within that if you are a borrower who also happens to be an entrepreneur -- well that’s another story. So why do lenders approach an entrepreneur with caution? There are a multitude of reasons ranging from fear of the unknown, lenders’ risk appetite and past experiences with entrepreneurs.
So, you have a great social media team, active accounts on all possible social networks, and a big budget for content creation. But the number of retweets or shares your posts get has never exceeded 10. Does that sound familiar? And yet, you have thousands of employees in your offices, many of whom will be more than happy to share your content. This is where Employee Advocacy comes in - a fairly new concept that's taking the world of social media marketing by storm.
Even after months of being badly affected by the devastating floods, the MSME units are yet to receive their due claims from the insurance companies.
More than 14000 MSME units were badly affected by the floods last year and thereafter showed slow signs of recovery.
Talking on this issue to KNN, C. Muthusami, President of Tamil Nadu Small and Tiny Industries Association (TANSTIA) said, “MSMEs have been recovering so far but still a lot has to be done on this respect to bring them back on track immediately.
His office is in a quiet middle-class Chennai neighbourhood that was ravaged by the rains here in December. There was water till this, he points to the door frame and says it took them a month to clean up the place. But all that is behind him now as Sabarinath Nair is working on launching his second product — a simulator for painters in industrial applications.
After working with IBM for sixteen years, senior manager Pranava Kumar quit his job. As he wanted to try his hand at entrepreneurship, the 36-year-old engineer, along with his wife Haripriya, started an organic food store called ShivTat Agro last year.
After a year of thriving business, while on the lookout for a unique eco-friendly product idea to diversify their business, they came across pencils made of recycled paper. It turned out to be a godsend.
“ Be patient with yourself. Self-growth is tender, it’s holy ground. There’s no greater investment ”
