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Vol III, Issue 35: June 1, 2013 Activities   News   Reader Reactions   Members   Contact     Print Version  

President's Message

President - Mr D. Gandhikumar

"Ironic as it may sound, while competition has become more intense for Indian manufacturers over the last decades, mechanisms to identify and address their grievances have dwindled. It has led to widening of chasm between the policies and ground realities. For revival of manufacturing it is absolutely critical that effective grievance redressal mechanisms are established in all public offices. FISME has conjured up a vision for such a set-up and its attendant processes which we intend to vigorously pursue with powers that be. "

-Shri D. Gandhikumar, President FISME

Movie - Indian IPR Exchange

9th Health Asia 2013
International Exhibition & Conferences

Date: 9-11 Sep 2013
Venue: Karachi Expo Centre, Pakistan

See Details

India Composites Show 2013

Date: 24-26 Oct, 2013
Venue: New Delhi

See Details

RBI’s liberal banking regime may help service sector: MSMEs

FISME survey

According to The FISME Factor survey, the micro and small enterprises think that the recent announcement by Reserve Bank of India (RBI) about liberal banking regime for them to increase loan limit upto Rs 5 crore in the services sector will help them.

HR Heuristics

Be ready for all outcomes

The unexpected happens all the time. We expect events to unfold in a particular way and this gives us a sense of stability and the ability to plan.

Finance Fundamentals

Ombudsman can help resolve income tax problems

As a taxpayer, you may have some very legitimate grievances relating to your income-tax matters of settlement of your claims. You may, for example, feel that the Income Tax Department owes you a certain refund of tax but it is not doing enough to hear your grievance of complaint nor taking action to redress it.

Marketing Mantras

Hey Mr Entrepreneur, What is the value of the "Gyaan" your mentor is giving you?

Incubators, leadership programs, start-up weekends and the like have done a good job in handholding entrepreneurs, but many entrepreneurs still find themselves lost at sea.

Policy Polemic

Small is big business

Near the bustling Sanand, which is considered the next auto hub of India, a small ancillary centre is emerging.

MSME Ministry for easing labour law; will Govt bite the bullet?

From Gunja
Micro and small enterprises (MSEs) employing upto 20 persons with power supply and 50 persons without power connection should be kept out of the labour laws, the MSME Ministry has suggested in the inter-ministerial consultations on the need for relaxing the labour laws.

SME Special

Google makes business apps affordable to SMEs

To ensure that more small and medium units in India can afford to use online business applications to succeed and grow, Google has slashed rates.


A Labour Ministry panel has proposed a tripartite committee to examine all aspects of labour laws affecting the working of micro, small and medium enterprises (MSMEs).

The cloth production by mill sector decreased by five per cent during March 2013 and increased by 19 per cent during year 2012- 13.

The government has released the provisional estimates of national income for the financial year 2012-13 and the quarterly estimates of Gross Domestic Product (GDP) for the fourth quarter (January-March) of 2012-13, both at constant (2004-05) and current prices.

Quotable Quotes

" Hard work certainly goes a long way. These days a lot of people work hard, so you have to make sure you work even harder and really dedicate yourself to what you are doing and setting out to achieve. "

-Lakshmi Mittal, Chairman and CEO of ArcelorMittal

Directory of Testing Laboratories in India

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
Identification & Valuation of IPRs in MSMEs - Selected Research Papers.

Fertilizer quality control in India: Need for change 

Fertilizer Quality Control in India: The need for a systemic change
This monograph argues for a systemic change in fertiliser quality control. Essential reading for those in policy-making positions.
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:

Indian SMEs at low end of technology: Indo German SME Forum

Focusing on promotion policy of Micro, Small and Medium Enterprises (MSMEs) and valuing the importance of cluster-to-cluster networking, Federation of Indian Micro, Small and Medium Enterprises (FISME) participated in a two day international conference “Indo German SME forum” on May 31 and June 1, 2013 in New Delhi. The Forum was organized by SEQUA and GIZ with IGCC to facilitate networking between German and Indian Business Membership Organizations (BMOs). The bilateral trade between India and Germany has come down from euro 18.5 billion in 2011 to euro 17.4 billion in 2012, according to Indo-German Chamber of Commerce (IGCC).

DGFT task force to find reasons for high transaction cost

To identify reasons for high transaction cost in exports, the second task force on transaction cost has been constituted under the chairmanship of Director General of Foreign Trade (DGFT). The task force will identify areas, where Indian exporters face administrative impediments that lead to increase in transaction cost. Further, it will also compare procedural complexities in exports between India and its major competitors and will suggest guidelines for removal of procedural complexities drawing from the global best practices. It will propose steps to move towards transparent and increasingly paperless processing through digital platform. The task force will submit its report in six months. All stakeholders, administrative ministries, departments, state governments and trade and industry bodies are invited to send suggestions for consideration of the task force at It can be sent preferably by June 17, 2013.

‘The Best Advice I Got’

Aim for the sky while keeping your feet grounded

-Gautam Thapar, Chairman & CEO, Avantha Group
The best advice I ever got - to reach for the stars while keeping my feet firmly on the ground from my mentor - the late Mr Brij Mohan Bakshi. He gave me instinctual but insightful advice. He told me to trust my instincts, live by my values, see my own dreams, run my own race, think beyond boundaries and never regret, but to move on to the next thing. At the practical level, he gave intuitive suggestions like: listen more, seek to learn more, always question, and be open to perspectives and multiple what-if scenarios, without being restricted by one single point of view. He also told me that my job as the boss is the loneliest job in the world, as all decisions are, in the final analysis, mine.

[Adapted from the Best Advice I Ever Got, Business Today]

Macro Metre

Non-performing assets in SMEs are a challenge: SBI

The non-performing assets in small and medium enterprises (SMEs) and agriculture are a challenge for State Bank of India (SBI) which has suffered 18.5 per cent drop in its net profit. “We are operating under challenging circumstances and the non-performing assets in agriculture, mid-corporates and small and medium enterprises are still a challenge,” said Chairman SBI, Pratip Chaudhuri recently. Its profit dropped to Rs 3,299 crore during the fourth quarter ended on March 31, 2013 from Rs 4,050 crore a year ago.

Economy down on lack of consumer confidence

Below five per cent (4.8 per cent) growth in India’s economy in the fourth quarter of the financial year 2012-13 reflects lack of consumer confidence who is also grappling with high inflation and high interest rates. In a nutshell, the economic turnaround is far away, though spendings by political parties and the government in an election year (2013-14) may boost the expenditure-led demand in select sectors like road construction, stationery, passenger cars and vehicles and food items.

India poised for gradual economic recovery: OECD

India’s economy is poised for a gradual recovery in 2013, driven by large investment projects and foreign direct investment, after slumping to its slowest pace of growth in a decade in the previous year, the Organisation for Economic Cooperation and Development (OECD) said in its economic outlook recently. OECD projected India’s gross domestic product (GDP), calculated at market prices, to grow at 5.7 per cent in 2013 and 6.6 per cent in 2014, from 3.7 per cent in 2012. These figures are not comparable with Indian government projections as the government measures GDP at factor cost.

Domestic Digest

Unorganised sector may have to give social security to workers

A large number of India’s unorganised businesses may have to provide for social security for their workers implying an increase in cost burden on them. Prime Minister Manmohan Singh told the 45th session of the Indian Labour Conference recently, “Some demands raised by the trade unions are already under an advanced stage of consideration by the government. These include issues like universal social security cover for workers in both the organized and unorganized sectors, creation of a national social security fund, fixing a national floor level minimum wage and provision of minimum pension of Rs 1000 per month under the employees’ pension scheme.”

SMEs briefed about alternative sources of funding

The National Stock Exchange (NSE) organized an “Emerging Businesses Conclave” for the small and medium enterprises (SME) in Indore, to educate them on the availability of alternative sources of finance to fund their growth requirements. The conclave was inaugurated by Minister, Commerce and Industries and Employment, IT, Science and Technology, Madhya Pradesh Government Kailash Vijayvargiya. While Chairman, SEBI U K Sinha, was the chief guest of the event, MD and CEO of NSE Chitra Ramkrishna delivered the opening remarks.

Four lakh new micro enterprises to generate 32 lakh jobs

To create employment opportunities for around 32 lakh unemployed youth, the Ministry of Micro, Small and Medium Enterprises (MSME) has set a target of four lakh new micro enterprises with an outlay of Rs 7,800 crore. “In the 12th Five Year Plan under Prime Minister's Employment Generation Programme (PMEGP), a target of 4 lakh new micro enterprises has been fixed for creation of new employment opportunities for around 32 lakh persons mainly focusing on the unemployed youth throughout the country, with an outlay of Rs 7,800 crore,” said Minister of Micro, Small and Medium Enterprises (MSME) K H Muniyappa at a conference organized by the Confederation of Indian Industry (CII) recently.

Cab Secy reviews apparel sector problems

Cabinet Secretary Ajit Kumar Seth along with secretaries of key ministries from the Commerce and Finance reviewed the performance of the Indian apparel industry particularly with regard to exports in New Delhi on May 17 while exporters sought relaxation in policy parameters including those relating to labour issues. Chairman of the Apparel Export Promotion Council (AEPC) A Sakthivel placed before the meeting several proposals which included enlargement of the garment export basket , fund allocation to AEPC for setting up resource centres at Tirupur in Tamil Nadu and Kolkata.

India wants Japan to remove trade barriers on pharmaceuticals

India recently sought the removal of trade barriers in export of pharmaceuticals to Japan with which New Delhi runs a trade deficit of USD 6.23 billion. The issue was raised by Commerce Minister Anand Sharma in Tokyo when he called on Japanese Prime Minister Shinzo Abe. “The Commerce Minister flagged concerns of India relating to mounting trade deficit and specially urged for market access for Indian agricultural and marine produce and Indian pharmaceuticals. The Japanese pharma market is projected to grow to USD 100 billion and Indian generics can play a key role in providing affordable healthcare,” a Commerce Ministry statement said.

RBI to relax norms for hedging by exporter, importers

Reserve Bank of India (RBI) plans to allow exporters and importers to rebook and cancel up to 50 per cent of their total hedged exposure from the present cap of 25 per cent, Executive Director of RBI G Padmanabhan said in a speech in Singapore recently. In July, RBI had allowed only exporters to cancel and rebook forward contracts up to 25 per cent of hedged exposure.

Andhra Pradesh    

Move to boost manufacturing of electronic hardware items in AP

In an effort to boost manufacturing of electronic hardware items, particularly among small units, the state government is keen to exploit market potential, raise industry capabilities and provide world class skills. “The state government attempts to provide strategic impetus into the electronic hardware and design industry. This is expected to reinvent the business propositions and incentivize the sector so that the industry can penetrate the global markets not only on value and cost factors, but also on customization,” said an official notification from the state government.


Gujarat power corp calls for wind mill consultants

Gujarat Power Corporation Ltd (GPCL) has invited proposals from consultants for their wind mill projects. The wind mill consultant will be required to perform primary assessment, preparation of detailed project report, preparation of tender document and bid evaluation services for wind mill project at Gujarat Solar Park, according to an official notice. The scope of work would be preliminary assessment and study by collection and analysis of energy generation and wind data for existing wind turbines at Charanka solar park site.


Textile park costing Rs 1000 cr to come up in Karnataka

The Karnataka government has announced its plan to set up a 1,000-acre textile park at a cost of Rs 1,000 crore in the assembly constituency of Gurmitkal in Yadgir district, said state Textile Minister Baburao Chinchanasoor recently. He also said that the Karnataka Industrial Area Development Board (KIADB) has been asked to release land for the park which would be developed on the lines of an international model. In this context, the state textile department has been asked to submit a proposal to KIADB to earmark 1,000 acres of the total 3,500 acres acquired for industrial development for the proposed project at Kadechoor, said a media report quoting the Minister.

Madhya Pradesh    

UN honours MP's cottage and village industry

The Department of cottage and rural industry of Madhya Pradesh has been selected to receive the United Nations Public Service Award for the year 2013 for promoting gender responsive delivery of public services. In MP, women’s self-help groups manage rural haats or weekly markets and it was this novel initiative that helped bag the award. Management of the markets has not only empowered the women and strengthened the groups but has also helped them to access resources. The decision to hand over management of rural "haats" to women’s self-help groups (SHGs) according to a report has increased their economic self-reliance and participation in social decisions.

Tamil Nadu    

Four courses in footwear design and production

The Central Footwear Training Institute (CFTI), Chennai, functioning under the Micro Small and Medium Enterprises (MSME)-Technology Development Centre, Ministry of MSME, Chennai, is offering four different courses, including two for the X standard passed and XII passed students. According to a pamphlet distributed to the visitors at the photo exhibition organised by the Department of Information and Public Relations at the Chittoor Bus Stand here on Saturday, the CFTI offered a 2-year Diploma in Footwear Design and Production (DFDP), for which the minimum eligibility is a XII standard pass (any subject).


Tripura government demands gas supply to SS industries

Tripura government has sought the intervention of Union minister for Petroleum and Natural gas, M Veerappa Moily for continuing the supply of natural gas to the small scale industries in the state in Administered Price Mechanism (APM) rate of natural gas. Industries and Commerce Minister Jitendra Chowdhury, in a letter to the union minister recently, expressed fear that small scale industries in the state would be closed unless Oil & Natural Gas Corporation (ONGC) supply natural gas from their nomination blocks at APM price, which is substantially lesser than the price sold at commercial rates.

Uttar Pradesh    

Govt depts in UP to buy listed items from MSMEs

The various government departments in the state of Uttar Pradesh will now be required to buy 358 listed items including handicrafts solely from micro, small and medium enterprises. Officiating chief secretary Alok Ranjan issued the order which exempts MSMEs from depositing any earnest money to participate in tenders issued by various government departments. The government also directed the departments not to put any such conditions in the tenders that may deny MSMEs an opportunity to take part in the process.

TN targets inclusive industrialisation

The Tamil Nadu government has announced a set of incentives aimed at boosting industrialisation in the southern part to ensure uniform industrial development across the state. Accordingly, the state would soon acquire around 2,000 acres of land in a phased manner to set up nine new industrial parks. It is expecting greater flow of investments from the private sector to achieve inclusiveness in industrialisation. The state would offer 75 per cent subsidy for investments in the proposed industrial parks. However, maximum investment amount has been fixed at Rs 15 crore and it would give 50 per cent subsidy to companies that set up units in these parks.

West Bengal    

West Bengal to launch BENCRAFT brand for handicrafts

The Government of West Bengal proposes to open sales outlet under the ‘BENCRAFT’ brand for marketing of handicrafts and other handmade products. It will also build urban and rural haats for extending direct marketing facilities to artisans and weavers. “The state government will open sales outlet under the brand name BENCRAFT for the marketing support to the artisans of handicrafts, handloom weavers, silk and khadi weavers,” said the draft investment and industrial policy of West Bengal 2013.


Walmart to check Bangladesh factory safety protocols itself

Rather than join other retailers in an industry-wide safety deal following Bangladesh’s worst industrial disaster, Walmart has chosen to go solo, choosing to conduct its own safety inspections in Bangladesh factories, said a BBC report. Several other US retailers too have refrained from joining the deal, even though European retailers, including Hennes & Mauritz and Inditex which owns Zara have said they would sign an accord to improve safety conditions in factories in Bangladesh.


India showcases textiles in Tehran

The entire range of Indian textile items are currently being exhibited at INTEXPO, an exclusive exhibition in Tehran, the capital city of Iran until May-21. All types of fibres, yarns, fabrics, made-ups, accessories, and jute items are being showcased in the biggest and first-ever exclusive exhibition of Indian textiles in Iran, according to a media report. Approximately 60 leading companies have been featured in INTEXPO. For the Iranian textile community, it has presented a unique opportunity to see first-hand the craftsmanship of Indian fabric, view the latest range as well as meet with representatives from the textile companies to strike deals.

United Arab Emirates    

Dubai SME Launches ‘SeedApp’ to promote mobile applications

His Highness Sheikh Hamdan Bin Rashid Al Maktoum, Dubai Crown Prince and Chairman of the Executive Council of Dubai, has instructed Dubai SME, the agency of the Department of Economic Development in Dubai mandated to develop the small and medium enterprise (SME) sector, to set up a sub-fund to support UAE nationals developing mobile applications focused on facilitating people’s access to government services. The ‘SeedApp’ fund is intended to support UAE nationals who develop user-friendly and commercially-driven mobile applications that would support the initiative announced recently by His Highness Sheikh Mohammed Bin Rashid Al Maktoum, UAE Vice President and Prime Minister and Ruler of Dubai, to fully transform the UAE into a Mobile Government (m-government) from an e-government within two years.

United Kingdom    

Weak UK economy a barrier to SMEs financing plans

The weak UK economy remains the biggest barrier to accessing finance among small- and medium-sized businesses, a survey showed recently. The quarterly SME Finance Monitor from independent research firm bdrc continental shows that 12 per cent of the companies surveyed said the economic climate is the main disincentive to applying for credit, a figure that has barely changed over the past two years. However, the survey also shows that the number of firms choosing to shun use of external finance has increased to 41 per cent from 37 per cent.

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Business Opportunities for India in Canada

There are business opportunities available for Indian companies in Canada. The interested MSMEs can check details.

4 New Members Join FISME

During the period from May 15, 2013 to May 31, 2013 a total of 4 new MSMEs became member of FISME.

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This Newsletter is edited by the FISME Secretariat. We welcome contributions as well as comments and suggestions. Please write to

Federation of Indian Micro and Small & Medium Enterprises (FISME)
Headquarter: B – 4 / 161, Safdarjung Enclave, New Delhi – 110029
Telephone: +91 11 26187948, +91 11 26712064, +91 11 46023157   Fax: +91 – 11 – 26109470
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