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President's Message
"
It is heartening to see flurry of activity in the Ministries and corridors of power after a period of prolonged lull. Plans are being prepared, presentations are being made and time bound agenda are being adopted. However, what is being discussed largely comprises of system’s thinking. There is a need to engage people from outside the system and the beneficiaries and to ask them what they want as opposed to what was being done for years. We can’t expect different results by doing the same thing over and over again. "
In the first few months of a business, an entrepreneur is likely to face challenges that, if not managed properly, may well sabotage the new venture. Imagine the confidence of that entrepreneur, however, if he or she could have the advice of others who have already met those challenges on the road to their own success. Readers and would-be entrepreneurs will find that advice in this article.
Entrepreneurs who start businesses armed only with ideas and a rough plan – rather than a structured organization backed with capital, talented employees and a full stock of products – face a multitude of unique challenges.
When expectations are strong enough, they become self-fulfilling. The argument that as prime minister Modi would face so many structural barriers that he would not be able to accelerate the economy much in the short run, has become much weaker. Within ten days of the election results, expectations of better days have zoomed so much that they could become self-fulfilling. What economists call “animal spirits” have soared in expectation of quick decisions, better governance, and business-friendly policies.
The MSMEs should get some attention from the new Government at the Centre as indicated by the issues listed by the Finance Ministry received from different sectors of the industry during the pre-Budget consultations done by Finance Minister Arun Jaitley here yesterday.
A host of suggestions and demands were received and discussed during the consultations, according to an official release. These included revision of reservation list of items reserved exclusively for manufacture in MSME Sector, discourage import of items produced by low cost machineries through effective taxation policy, monitoring of items relating to MSME Sector, imported from neighbouring countries under SAFTA and stringent action to discourage the same.
Admitting that some of the Free Trade Agreements allowing unrestricted imports, have resulted in duty inversion, the Commerce Ministry has started conducting “outreach programmes” to inform stakeholders about the benefits of such pacts.
According to a media report quoting an official, the commerce department has conducted outreach programmes on FTAs across the country.
There has been growing concern amongst the Indian MSMEs about the increasing imports of finished goods under free trade agreement.
The economic growth rate will improve to 6.2 per cent in current fiscal and can go up to 8 per cent in the next three years on back of favourable domestic and global environment, tax consultancy firm EY said.
"A combination of structural correction, confidence in new government and favourable global conditions could propel economic growth to beyond 8 per cent in three years," it said.
The economic growth rate remained below 5 per cent for the second year in a row recording 4.7 per cent in 2013-14. In order to boost growth, the tax consultancy firm urged Finance Minister Arun Jaitley to hike income tax exemption limit to Rs 4 lakh and extending additional tax benefits to small investors in the forthcoming budget in July.
In tune with BJP's election manifesto, the Union labour ministry made its first move to reform labour laws for a "conducive environment for investors" through flexible mechanisms like hiring and firing. On its website, the ministry invited comments or suggestions on proposed amendments to the Factories Act, 1948.
Amendments to the Factories Act are pending since 2008. Earlier, the cabinet of Rajasthan's BJP government cleared crucial amendments to Industrial Disputes Act, Contract Labour Act and the Factories Act. The move elicited stiff opposition from central trade unions.
The RBI kept financial markets happy by keeping key policy rates unchanged in its monetary policy on Tuesday. Deposit and lending rates, hence, will not see any significant change for now. But that’s not to say that the RBI did nothing at all.
By reducing the statutory liquidity requirement and funds provided under the export credit refinance (ECR) facility, the RBI has gone a step further to align interest rates across different segments to market-determined rates.
The objective — as stated in the Urjit Patel Committee report — is to facilitate the transmission of policy rates across segments. For borrowers this means quicker pass through of policy action on banks’ lending rates over the long term.
A high-powered team of scientific experts from the European Commission will visit India in September to check measures put in place by the country in order to help lift the EU ban on the import of Indian mangoes.
This was confirmed to Indian-origin Labour MP Keith Vaz, who visited Brussels on Wednesday and met Dacian Ciolos, EU Commissioner for Agriculture, and other senior officials.
Vaz has been spearheading the British Parliament campaign to get the ban overturned. He invited the Commissioners for Agriculture and Trade to visit India to discuss these issues face to face with the Indian government.
The new five-year foreign trade policy will offer greater incentives for services exports while refocusing schemes for merchandise exports to make them more effective, according to top commerce department officials.
The commerce ministry is expected to announce the foreign trade policy 2014-19 after the budget, which is likely in July. Officials said the department of commerce is expected to expand the scope of the 'Serve for India Scheme' (SFIS) in the new policy by making duty credit scrips tradable.
The commerce ministry has asked its finance counterpart to roll back the minimum alternate tax (MAT) imposed on SEZs, saying the levy has "suppressed" the
potential of these zones as a tool to promote exports and generate employment.
"We have been telling the Finance Ministry and we have recommended strongly the withdrawal of MAT and DDT and restoration of the situation as it was," Commerce
Secretary Rajeev Kher told reporters here.
The new government today reinstated the export subsidy at Rs 3,300 per tonne on raw sugar shipments to be undertaken during June-July, a move the industry said would boost exports.
To help the cash-starved industry to pay arrears to sugarcane farmers, the previous government had announced a subsidy for export of raw sugar up to 4 million tonnes during 2013-14 and 2014-15 marketing years (October-September).
The drafting of a new mining policy, which is mandatory to resume iron ore extraction and exports from Goa, should be expedited so that the key industry gets back on its feet, according to stakeholders.
Chief Minister Manohar Parrikar had earlier said that the policy would be drafted by June-end but the stakeholders feel that the government should fast-track the process so that the mining industry, which has been reeling under a Supreme Court ban for the last two years, can resume operations.
To coincide with the visit of Chinese Foreign Minister Wang Yi, representatives of 15 Chinese companies from Wenzhou of Zhejiang province visited Gujarat to scout for opportunities to invest around USD one billion in various projects.
“Chinese companies have a target to invest of USD 1 billion in the state of Gujarat this year,” said interim Secretary General of CITIC (China India Trade and Investment Centre), Jagat Shah.
The West Bengal Small Industries Development Corporation (WBSIDC) today said it intends to create an international standard marketing hub for micro and small enterprises in the handloom sector.
Named as 'Biswa Khudra Bazar’ (BKB), the hub will come up at historic Santiniketan and the focus will be on community-led handicraft and handloom presentation.
Santiniketan is a small town near Bolpur in the Birbhum district of West Bengal.
The main aim of the project is to create an international marketing hub for Micro & Small Enterprises (called Biswa Khudra Bazar in Bengali).
Handling of coal at the Cochin Port will be modernised in Public-Private-Partnership mode at an estimated cost of Rs 198 crore, raising hopes that coal imports for the power plants located on the coasts will be made easier.
The maritime gateway to peninsular India, Cochin is the fastest growing logistic centre emerging in to a major international transhipment terminal. An all-weather natural port, and located strategically close to the busiest international sea routes Cochin is promoting a major liquid terminal, bulk terminal and maritime industries in its port based SEZs .
In a move that could help India clear its pending oil payments to Iran, the Government is planning to allow the sanction hit country to use the money to pay for humanitarian goods such as food and medicines bought in third countries.
The Finance Ministry has asked UCO Bank to put in place the necessary payment arrangements, a Government official told Business Line. This could be done in dollars or euros without attracting any western sanctions.
India owes Iran an estimated $3 billion to $4 billion in pending oil payments as it has not been able to transfer the money in dollars or euros for more than a year. This is due to sanctions put in place by the US and the EU against Iran for its alleged nuclear activities. Once among the largest crude oil supplier to India, Iran has now significantly slipped down the ranks with countries such as Iraq replacing it.
External Affairs Minister Sushma Swaraj held talks with her Omani counterpart Yusuf Bin Alawi Bin Abdullah here today and discussed ways to further consolidate the strong bilateral relations and enhance project exports from India.
Signalling a desire for continued engagement at high levels between the two countries, the Omani leader's visit is the first by any foreign dignitary to India after the Narendra Modi-led dispensation came to power.
India has overtaken Germany and Italy to emerge as the world's second largest textile exporter. But it lags China, whose exports are nearly seven times higher.
Data released by the Apparel Export Promotion Council, the industry body for garment exporters, showed that India's textiles exports were estimated at $40 billion in 2013, compared with China's $274 billion. Textiles includes everything from fibre and yarn to fabric, made-ups and readymade garments made of cotton, silk, wool and synthetic yarn.
Trade officials of India and the US are expected to meet here soon to prepare the groundwork for the ministerial level meeting of Trade Policy Forum (TPF).
"Dy. USTR expected to travel to India to prepare groundwork for upcoming Ministerial Trade Policy Forum meeting," Commerce and Industry Minister Nirmala Sitharaman tweeted. Deputy Unites States Trade Representative (USTR) Wendy Cutler will meet Commerce Secretary Rajeev Kher.
Interactive Session on Intellectual Property Rights (IPRs)
Date: 18 Jun 2014 Venue : Department of Electronics & Information Technology (DeitY)
(Ministry of Communications & Information Technology)
Electronics Niketan, 6, CGO Complex
New Delhi
Time : 1030 to 1300hrs See Details
MSMEs expect a higher Economic Growth in the next two quarters with new government in place
According to the FISME Factor, with new government in place, 89 per cent of the Micro, Small and Medium Enterprises (MSMEs) expect a higher economic growth in the next two quarters.
With organisations become melting pots, human resource officers are finding it tougher to find innovative ways to get employees to be more in tune with the unique needs of diverse groups.
1. Communicate your diversity goals
Make diversity a core pillar of your people strategy, and call out the areas of focus. "Mindtree's diversity focus is based on the EDGES charter, anchored on four aspects of ethnicity or nationality, people with disabilities, gender, and sexual orientation," says Ravi Shankar, chief people officer.
What financiers do when funding an SME, and what they can do better
The micro, small and medium enterprises (MSMEs) are the backbone of economic development in any country and more so in India as we have a huge population to be served. They are the incubators for talent, innovation and entrepreneurial spirit, which is key to a country's development.
Are you going to buy that new toothpaste, or have you forgotten what it’s called already? Crowded categories confuse shoppers. Here’s what brands can do to distinguish their latest product.
Colgate has just announced the launch of one of its most innovative products ever.
Noida MSMEs want overhaul of import laws to avert assault from China-made items
In a bid to save the small and medium enterprises (MSMEs) especially the traditional manufacturers engaged in making earthen pot, candle and other festival items, the Noida-based industry experts have asked for redressal of the import laws, so that such units can be saved from China-made items.
Industry insiders said that liberalisation in import laws have already damaged such traditional units who used to earn their bread and butter for the year during the festive seasons.
The government, with the help of the capital market regulator, is planning to set up a first of its kind co-investment fund to fund small and medium enterprises (SMEs), considered the backbone of the Indian economy.
According to sources, the fund will have an initial corpus of Rs 5,000 crore and anchored by two state-owned financial institutions — insurance behemoth Life Insurance Corporation (LIC) and Small Industries Development Bank of India (Sidbi), an institution set up to provide funding for SMEs.
How Digvijay Dhabriya built Rs 101 cr PVC manufacturing brand with sheer grit
“I just want to make a point that it’s not just great teachers who shape your life. Sometimes it’s the absence of great teachers that shapes your life, and being ignored can be just as good for a person as being lauded,” Julia Roberts.
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.
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.
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"
It is heartening to see flurry of activity in the Ministries and corridors of power after a period of prolonged lull. Plans are being prepared, presentations are being made and time bound agenda are being adopted. However, what is being discussed largely comprises of system’s thinking. There is a need to engage people from outside the system and the beneficiaries and to ask them what they want as opposed to what was being done for years. We can’t expect different results by doing the same thing over and over again. "
When expectations are strong enough, they become self-fulfilling. The argument that as prime minister Modi would face so many structural barriers that he would not be able to accelerate the economy much in the short run, has become much weaker. Within ten days of the election results, expectations of better days have zoomed so much that they could become self-fulfilling. What economists call “animal spirits” have soared in expectation of quick decisions, better governance, and business-friendly policies.
The MSMEs should get some attention from the new Government at the Centre as indicated by the issues listed by the Finance Ministry received from different sectors of the industry during the pre-Budget consultations done by Finance Minister Arun Jaitley here yesterday.
A host of suggestions and demands were received and discussed during the consultations, according to an official release. These included revision of reservation list of items reserved exclusively for manufacture in MSME Sector, discourage import of items produced by low cost machineries through effective taxation policy, monitoring of items relating to MSME Sector, imported from neighbouring countries under SAFTA and stringent action to discourage the same.
Admitting that some of the Free Trade Agreements allowing unrestricted imports, have resulted in duty inversion, the Commerce Ministry has started conducting “outreach programmes” to inform stakeholders about the benefits of such pacts.
According to a media report quoting an official, the commerce department has conducted outreach programmes on FTAs across the country.
There has been growing concern amongst the Indian MSMEs about the increasing imports of finished goods under free trade agreement.
The economic growth rate will improve to 6.2 per cent in current fiscal and can go up to 8 per cent in the next three years on back of favourable domestic and global environment, tax consultancy firm EY said.
"A combination of structural correction, confidence in new government and favourable global conditions could propel economic growth to beyond 8 per cent in three years," it said.
The economic growth rate remained below 5 per cent for the second year in a row recording 4.7 per cent in 2013-14. In order to boost growth, the tax consultancy firm urged Finance Minister Arun Jaitley to hike income tax exemption limit to Rs 4 lakh and extending additional tax benefits to small investors in the forthcoming budget in July.
In tune with BJP's election manifesto, the Union labour ministry made its first move to reform labour laws for a "conducive environment for investors" through flexible mechanisms like hiring and firing. On its website, the ministry invited comments or suggestions on proposed amendments to the Factories Act, 1948.
Amendments to the Factories Act are pending since 2008. Earlier, the cabinet of Rajasthan's BJP government cleared crucial amendments to Industrial Disputes Act, Contract Labour Act and the Factories Act. The move elicited stiff opposition from central trade unions.
The RBI kept financial markets happy by keeping key policy rates unchanged in its monetary policy on Tuesday. Deposit and lending rates, hence, will not see any significant change for now. But that’s not to say that the RBI did nothing at all.
By reducing the statutory liquidity requirement and funds provided under the export credit refinance (ECR) facility, the RBI has gone a step further to align interest rates across different segments to market-determined rates.
The objective — as stated in the Urjit Patel Committee report — is to facilitate the transmission of policy rates across segments. For borrowers this means quicker pass through of policy action on banks’ lending rates over the long term.
A high-powered team of scientific experts from the European Commission will visit India in September to check measures put in place by the country in order to help lift the EU ban on the import of Indian mangoes.
This was confirmed to Indian-origin Labour MP Keith Vaz, who visited Brussels on Wednesday and met Dacian Ciolos, EU Commissioner for Agriculture, and other senior officials.
Vaz has been spearheading the British Parliament campaign to get the ban overturned. He invited the Commissioners for Agriculture and Trade to visit India to discuss these issues face to face with the Indian government.
The new five-year foreign trade policy will offer greater incentives for services exports while refocusing schemes for merchandise exports to make them more effective, according to top commerce department officials.
The commerce ministry is expected to announce the foreign trade policy 2014-19 after the budget, which is likely in July. Officials said the department of commerce is expected to expand the scope of the 'Serve for India Scheme' (SFIS) in the new policy by making duty credit scrips tradable.
The drafting of a new mining policy, which is mandatory to resume iron ore extraction and exports from Goa, should be expedited so that the key industry gets back on its feet, according to stakeholders.
Chief Minister Manohar Parrikar had earlier said that the policy would be drafted by June-end but the stakeholders feel that the government should fast-track the process so that the mining industry, which has been reeling under a Supreme Court ban for the last two years, can resume operations.
To coincide with the visit of Chinese Foreign Minister Wang Yi, representatives of 15 Chinese companies from Wenzhou of Zhejiang province visited Gujarat to scout for opportunities to invest around USD one billion in various projects.
“Chinese companies have a target to invest of USD 1 billion in the state of Gujarat this year,” said interim Secretary General of CITIC (China India Trade and Investment Centre), Jagat Shah.
The West Bengal Small Industries Development Corporation (WBSIDC) today said it intends to create an international standard marketing hub for micro and small enterprises in the handloom sector.
Named as 'Biswa Khudra Bazar’ (BKB), the hub will come up at historic Santiniketan and the focus will be on community-led handicraft and handloom presentation.
Santiniketan is a small town near Bolpur in the Birbhum district of West Bengal.
The main aim of the project is to create an international marketing hub for Micro & Small Enterprises (called Biswa Khudra Bazar in Bengali).
Handling of coal at the Cochin Port will be modernised in Public-Private-Partnership mode at an estimated cost of Rs 198 crore, raising hopes that coal imports for the power plants located on the coasts will be made easier.
The maritime gateway to peninsular India, Cochin is the fastest growing logistic centre emerging in to a major international transhipment terminal. An all-weather natural port, and located strategically close to the busiest international sea routes Cochin is promoting a major liquid terminal, bulk terminal and maritime industries in its port based SEZs .
External Affairs Minister Sushma Swaraj held talks with her Omani counterpart Yusuf Bin Alawi Bin Abdullah here today and discussed ways to further consolidate the strong bilateral relations and enhance project exports from India.
Signalling a desire for continued engagement at high levels between the two countries, the Omani leader's visit is the first by any foreign dignitary to India after the Narendra Modi-led dispensation came to power.
India has overtaken Germany and Italy to emerge as the world's second largest textile exporter. But it lags China, whose exports are nearly seven times higher.
Data released by the Apparel Export Promotion Council, the industry body for garment exporters, showed that India's textiles exports were estimated at $40 billion in 2013, compared with China's $274 billion. Textiles includes everything from fibre and yarn to fabric, made-ups and readymade garments made of cotton, silk, wool and synthetic yarn.
Trade officials of India and the US are expected to meet here soon to prepare the groundwork for the ministerial level meeting of Trade Policy Forum (TPF).
"Dy. USTR expected to travel to India to prepare groundwork for upcoming Ministerial Trade Policy Forum meeting," Commerce and Industry Minister Nirmala Sitharaman tweeted. Deputy Unites States Trade Representative (USTR) Wendy Cutler will meet Commerce Secretary Rajeev Kher.
According to the FISME Factor, with new government in place, 89 per cent of the Micro, Small and Medium Enterprises (MSMEs) expect a higher economic growth in the next two quarters.
With organisations become melting pots, human resource officers are finding it tougher to find innovative ways to get employees to be more in tune with the unique needs of diverse groups.
1. Communicate your diversity goals
Make diversity a core pillar of your people strategy, and call out the areas of focus. "Mindtree's diversity focus is based on the EDGES charter, anchored on four aspects of ethnicity or nationality, people with disabilities, gender, and sexual orientation," says Ravi Shankar, chief people officer.
The micro, small and medium enterprises (MSMEs) are the backbone of economic development in any country and more so in India as we have a huge population to be served. They are the incubators for talent, innovation and entrepreneurial spirit, which is key to a country's development.
Are you going to buy that new toothpaste, or have you forgotten what it’s called already? Crowded categories confuse shoppers. Here’s what brands can do to distinguish their latest product.
Colgate has just announced the launch of one of its most innovative products ever.
In a bid to save the small and medium enterprises (MSMEs) especially the traditional manufacturers engaged in making earthen pot, candle and other festival items, the Noida-based industry experts have asked for redressal of the import laws, so that such units can be saved from China-made items.
Industry insiders said that liberalisation in import laws have already damaged such traditional units who used to earn their bread and butter for the year during the festive seasons.
The government, with the help of the capital market regulator, is planning to set up a first of its kind co-investment fund to fund small and medium enterprises (SMEs), considered the backbone of the Indian economy.
According to sources, the fund will have an initial corpus of Rs 5,000 crore and anchored by two state-owned financial institutions — insurance behemoth Life Insurance Corporation (LIC) and Small Industries Development Bank of India (Sidbi), an institution set up to provide funding for SMEs.
“I just want to make a point that it’s not just great teachers who shape your life. Sometimes it’s the absence of great teachers that shapes your life, and being ignored can be just as good for a person as being lauded,” Julia Roberts.
" A leader is one who knows the way, goes the way, and shows the way. " 
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.
