President's Message
" In spite of reforms since 1991, the number of check-posts have risen tremendously resulting in greater delays and higher costs of transporting goods. With most departments having powers of search, seizure, detention of goods in transit are vulnerable to extortion across the highways. There is a critical need to create an institutional mechanism to ensure seamless movement of goods across states. "
-Shri D. Gandhikumar, President FISME
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Movie - Indian IPR Exchange
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9th Health Asia 2013
International Exhibition & Conferences
Date: 9-11 Sep 2013
Venue: Karachi Expo Centre, Pakistan
See Details
India Composites Show 2013
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Power shortage contributes max. to additional cost: MSMEs
According to The FISME Factor survey, MSMEs say that power shortage contributes maximum to additional cost to Indian exports apart from inland transports, dealing with inspectors, cost of getting refund of taxes such as draw-back, Value Added Tax (VAT) advance licence, etc.
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HR Heuristics
Challenges that SMEs face when hiring talent from MNCs
 There is a serious problem-despite having many employees, for all practical purposes the SMEs are one-person shows. All processes tend to originate, and be driven, by the entrepreneur.
Finance Fundamentals
Tax collecting - Bangalore style
 The silicon valley of India has adopted a novel way of ensuring that companies pay their taxes. It sends a band of drummers to shame defaulters, according to a BBC report.
Marketing Mantras
Now social media to transform consumer service
In order to boost consumer power in the country, the Ministry of Consumer Affairs is planning to switch to a more convenient platform of social media for modern consumers to register their grievances.
India fares poorly on new female entrepreneurship index
 India lags far behind developed nations when it comes to a healthy ecosystem of woman entrepreneurship, according to the Gender-GEDI Female Entrepreneurship Index.
Policy Polemic
Make way for street vendors
 India’s Bill defining street vendors’ rights is a welcome move.
SME Special
NSIC overseas promotion schemes fall below MSME needs
 From Gunja Intensive campaigns and marketing promotion events of the National Small Industries Corporation (NSIC) need to be analysed as several micro, small and medium enterprises (MSME) do not consider them as of immediate benefit to the industry, said a survey.
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Stockpile
India's industrial production grew less than 2 per cent in April from a year earlier, government data showed recently.
India's annual consumer price inflation slowed for the third straight month in May to 9.31 per cent, government data showed recently. Consumer prices rose an annual 9.39 percent in April.
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Quotable Quotes
" Money is not the motivating force. It's nice to have money, but I don't live high. What I enjoy is running the business. "
-Rupert Murdoch, CEO of News Corporation
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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
Identification & Valuation of IPRs in MSMEs
Identification & Valuation of IPRs in MSMEs - Selected Research Papers.
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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 New tools, instruments, consultancies offering engineering solutions were part of INTEC 2013-the 14th International Industrial Trade Fair organised in Coimbatore with the objective of providing an impetus to industrial growth in Tamil Nadu.
"The main focus is to encourage the usage of energy efficient tools to achieve production in the wake of power shortage in the state,” said Mr D Gandhikumar- President FISME and the Chairman of (INTEC 2013) International Industrial Trade Fair.
United Nations Conference on Trade and Development (UNCTAD) and Commonwealth Secretariat have jointly organized an international regional consultation on "Promoting Regional Supply Chains in Leather and Leather Products in Sub-Saharan Africa" from June 6-7, 2013 at Addis Ababa, Ethiopia.
Mr. Anil Bhardwaj, Secretary General FISME was invited to share South Asian experience of integrating leather supply chains before the representatives of over 15 countries from Sub-Saharan Africa. Under the aegis of UNCTAD, FISME had played a crucial role last year by bringing together warring trade bodies of the South Asian region and facilitating formation of a unified regional trade body – Leather Industries Association of South Asia (LIASA).
 FISME is coming up with a distinctive platform to bring together various MSME Associations and Institutions for sharing knowledge and reaching out to media through ‘Knowledge and News Network (KNN)’. The process of briefing and feedback sessions in major cities for small industries associations, reached to Coimbatore on June 10, 2013.
The briefing sessions have already been organised in Ahmedabad, Indore, Kolkata, Bangalore, Hyderabad and Chennai.
KNN will not only be a SME focused news agency but will also run an internet based portal to be information clearing house for small businesses, associations and institutions. It will disseminate information through all formats: text, audio and video (through VoD/IPTV).
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‘The Best Advice I Got’
-Kunal Bahl, CEO Snapdeal
 If you don't do it, it won't get done-the best advice I received from my mother, probably many times over as I grew up, had helped me a lot. She would tell me that I can't let other people carry the responsibility and as an entrepreneur, I found this advice has really helped because it is one’s own initiative and drive that gets you through. I understood, there is limited margin for treating the task at hand with any degree of levity or any value in trying to pass the buck to someone else.
[Adapted from the Best Advice I Ever Got, Business Today]
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Macro Metre
Cigarettes, terry towel, plastic machinery, computers, telephone instruments, sugar machinery , boilers and copper and copper products have shown a big drop in production during April 2013 even as the overall Index of Industrial Production (IIP) managed to show a lacklustre growth of two per cent for the month. While 13 industrial groups managed to show positive growth, nine out of the 22 turned out a pathetic show and several of them continue to reel under slowdown and have witnessed a big drop in production, as per official data released recently. However, apparels, PVC pipes, gems and jewellery, pens, woollen carpets and conductors have come out with positive numbers.
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 The growth in deployment of gross bank credit to the medium scale enterprises was among the lowest in 2013 while for micro and small units, it was among the highest, according to Reserve Bank of India (RBI) data. The micro and small units registered a growth in deployment of gross bank credit by 22.9 per cent in 2013 year-on-year basis. But in case of medium enterprises, it was only 0.9 per cent, RBI data on sectoral deployment of bank credit said.
Though the inflation measured by the Wholesale Price Index (WPI) has come down significantly, consumers continue to pay high prices at the retail level as is reflected in the Consumer Price Index (CPI) data released recently. Retail prices of items such as cereals, eggs, non-alcoholic beverages, vegetables etc. went up by over near about 10 per cent in May 2013 when compared to a year ago. India's annual CPI slowed for the third straight month in May to 9.31 per cent, according to the government data. Consumer prices rose to an annual 9.39 per cent in April. While food prices rose an annual 10.65 per cent in May, slightly faster than an annual rise of 10.61 per cent in April, prices of the vegetables rose sharply to 9.78 per cent in May from 5.43 per cent in April, it said.
 To identify the impediments holding MSME growth and to address some of these concerns, Ministry of Finance in association with Ministry of Micro, Small and Medium Enterprises (MSME) and World Bank organised a one-day workshop titled “Facilitating Small Businesses” here on Monday, 10th June, 2013.
The Workshop was addressed by Dr Arvind Mayaram, Secretary, Department of Economic Affairs, Ministry of Finance, Shri Madhav Lal, Secretary, Department of Micro, Medium and Small Enterprises (MSME), Dr Raghuram Rajan, Chief Economic Adviser (CEA), Ministry of Finance and Ms Sujata Nitin Lamba, Finance and Private Sector Director for South Asia, World Bank and Shri Amrendra Sinha, Development Commissioner MSME among others.
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The domestic car sales in India slid for the seventh consecutive month in May by 12.26 per cent following weak economic queues, the decline starting to hit component manufacturers, especially those in the small segment. The local industry associations fear auto makers and their parts suppliers who directly employ a million workers, including permanent, temporary and contractual ones will cut jobs. Recently, even the bonus of all time high double-digit discounts and cask back schemes failed to attract the customers.
Most states have not done well in the utilisation of Prime Minister’s Employment Generation Programme (PMEGP) funds, contrary to the statement issued by the ministry of MSME patting its back. The four states which were low on utilising funds are Chandigarh, Delhi, UP and Sikkim. The highest allocation was given to Uttar Pradesh at Rs 147.89 crore in 2012-13 out of which it utilised Rs 104.64 crore and created 36091 jobs. Delhi was given Rs 3.68 crore out of which it utilised Rs 1.05 crore to create 1040 jobs.
 Power shortages in almost all parts of the country which seem to have contributed significantly to the manufacturing sector getting a severe hit in May has been reflected in the HSBC Purchasing Managers Index (PMI). The Hong Kong and Shanghai Banking Corporation (HSBC) PMI has measured the Indian manufacturing at a 50-month low. "Economic activity in the manufacturing sector slowed further in May as output contracted in response to softer domestic orders. In addition, power outages hampered output and led to a jump in backlogs of work as businesses struggled to meet orders,” said Chief Economist for India and Association of Southeast Asian Nations (ASEAN) at HSBC global research, Leif Eskesen.
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Rejecting the reported doubt by Delhi Police over quality of shoes made by the small and medium enterprises (SMEs), the industry body FISME recently said the Indian SMEs are exporting half of their shoes and footwear production to a quality conscious global market.
“India is exporter of good quality leather footwear in the world and most of them are from small industries. Almost 50 per cent of the total domestic production by SMEs is exported,” said Anil Bhardwaj, Secretary General, Federation of Indian Micro, Small and Medium Enterprises (FISME).
Delhi Police personnel are forced to wear shoddy footwear as they have not been given uniform shoes for the last three years. The government had directed them to buy shoes from SMEs, but the police claimed that the footwear supplied by the SMEs did not pass the quality test anytime.
Further, Bhardwaj said, the shoes and footwear made by SMEs are meeting international standards. If Delhi Police says that their quality standards are not met, there must be some other reason for the same.
 The powerloom sector with five lakh units employing over six million workers in different parts of the country faces the threat of extinction, if no immediate steps are taken to improve the lot of weavers, workers and small entrepreneurs, a member of Parliament (MP) from Bhiwandi constituency of Maharashtra, Suresh Kashinath Taware said. “If no concrete remedial measures are taken to save powerloom sector, there is a risk of extinction of this sector in near future,” the MP said in his private member bill which was introduced in the last session of the Parliament.
The falling value of Indian currency is benefiting the cotton traders, who now are exporting more attributing the prices at home. The import orders are coming from neighbouring China and Bangladesh; even countries like Pakistan, Vietnam and Thailand have placed orders. "We expect exports to rise to around 10 million bales (a bale is 170 kg) this year against last year's 12 mn. The Cotton Advisory Board's initial estimate was around 8.5 mn bales. The rise is mainly driven by a weak rupee," said a media report quoting President, North India Cotton Association, Rakesh Rathi.
 Participating in the 102nd session of the on-going International Labour Conference’s at Geneva, India said recently that labour standards should not be used as non-tariff barriers. Non-tariff barriers to trade (NTBs) are trade barriers that restrict imports but are not in the usual form of a tariff. The main focus of the conference is to discuss various issues like employment and social protection in the new demographic context; sustainable development and green jobs; social dialogue, etc.
The government recently urged pharmaceutical companies in India to follow strict production and supplies procedures to ensure that drugs exported from the country are on par with global standards. The new rules come in the wake of some top Indian pharmaceutical companies running into problems over their quality of products in the US, a major market for the domestic generic drugs. The trace and track mandate has been implemented by the government in the pharmaceutical sector to enable monitoring of the supply chain at secondary and tertiary levels to safeguard export of quality drugs.
To equip the sugar and distillery industry with technical manpower, the National Sugar Institute at Kanpur has started various training courses for students. “National Sugar Institute, a premier institute under the Ministry of consumer affairs, food and public distribution at Kanpur has started various training courses to provide technical manpower for sugar and distillery industry,” said an official statement recently. The courses started include associate ship in sugar technology, engineering, and diploma in industrial fermentation and alcohol technology.
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Andhra Pradesh
Andhra Pradesh will soon enjoy a reduction in power cuts as supply will be increased to all sectors as directed by the chief minister. “Due to several measures taken by the State Government, the Chief Minister N Kiran Kumar Reddy recently directed the officials to reduce the electricity load reliefs and increase power supply to all sectors. It may be stated here that the demand has also come down due to fall in temperature and onset of monsoon,” said an official notification. The move comes after officials from the CM’s office briefed Reddy about the power situation in the state recently.
Assam
 The Government of Assam has undertaken various measures to obtain geographical indication (GI) rights over indigenous handloom products and designs in an attempt to safeguard traditional handloom and bell metal industries in the state. Products for which the government seeks GI rights are Assamese gamocha, dakhona and other tribal ethnic products and the Sarthebari kah (bell metal) industry, according to a media report. Research is underway to facilitate petitions by the Handloom and Textile Directorate and the Industries Department.
Gujarat
In the Ankleshwar region of Gujarat, small and medium units have taken on jobs that are outsourced by larger units and collaborating with them for manufacturing jobs. The move comes in the wake of suspension imposed by the Union Ministry of Environment and Forests (MoEF) on expansion and new projects in Ankleshwar, one of the 18 listed critically polluted industrial regions in the country. According to media reports, although there has been concern about the survival of small units, both small and large players have benefited from the collaboration, albeit consent from the state pollution regulator Gujarat Pollution Control Board (GPCB) is imperative before commencing such work.
Jammu and Kashmir
 In a move to make marginalised carpet weavers self-reliant the Jammu and Kashmir government will provide 8,000 modern carpet looms to them. “As many as 8,000 modern carpet looms are being provided to carpet weavers under mega carpet clusters scheme. Of these 2,000 looms are being provided this year,” said Jammu and Kashmir, Chief Minister, Omar Abdullah. The government is also planning a 24 crore heritage and cluster development programme to help the artisans. The project involves promoting craft clusters in areas like Jamia, Safakadal, Qamarwari, Idgah, Noorbagh, Chattabal, Soura, Zadibal and Botapora which will act as a meeting point between the tourists and manufacturers.
Uttar Pradesh
In a significant decision to promote bee keeping in the state the government has decided to divide honey production into branded and non-branded products to better decide the Value Added Tax (VAT) imposed on them. While non-branded honey having been put under the 2008 tax regime will be non-taxable, a five per cent tax (which includes one per cent extra tax) has been levied on the branded honey. The UP cabinet also removed unprepared tobacco products and tobacco mixtures from schedule 4 of the non VAT goods.
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European Union 
The European Commission last month launched an Export Helpdesk which is a free online, one-stop-shop which would inform businesses in developing countries on how to export to the European Union. “With just a few clicks, businesses can find the EU requirements, taxes, tariffs, preferential arrangements, rules of origin and statistics applying to their case,” said a notification. Originally created in 2004, the revised, resourceful and user friendly version of the Helpdesk demonstrates EU’s commitment to facilitate trade with developing countries.
France 
With unemployment rate in France reaching the highest level in 15 years, the European Central Bank is likely to unveil plans to revive lending in the eurozone, especially to small and medium enterprises. SMEs provide three quarters of jobs in the Eurozone. A BBC report quoting official estimates said that French unemployment rose to 10.8 per cent in the first quarter of the year, its highest level since 1998. The unemployment rate in the last quarter of 2012 was 10.5 per cent.
Myanmar 
 The Minister of Commerce, Industry and Textiles, Anand Sharma said today that India and Myanmar had potential for future collaboration in sectors like information technology, pharmaceutical, manufacturing, etc. “Both the countries have potential for future collaboration in oil and gas exploration, infrastructure, information technology, pharmaceutical, manufacturing and education and skill development,” said Sharma. Further he said over the next few years, “we will see an investment of around USD 2.6 billion from India to Myanmar.” India is the tenth largest investor in Myanmar with an investment estimated at USD 273.5 million.
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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.
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During the period from June 1, 2013 to June 15, 2013 a total of 2 new MSMEs became member of FISME.
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