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  The FISME Factor  


President's Message
Dr. Sangam Kurade, President, FISME "Finance Minister Jaitley loves Cricket and seems to have delivered a googly prompting one of the leading newspapers to term his Budget: ‘Mr. Right, turns Mr. Left’.While the critiques will have difficulty in picking holes, the Budget 2016-17 walks on two legs: infrastructure and agriculture. For the former direction, what is needed is Investment and for the latter Reforms ! Mobilization of investment in infrastructure- whether roads or power will benefit MSMEs too, albeit indirectly. Similarly, impact of reforms in agriculture through e-marketing and reforming the APMC Acts may have saluting impact on seamless movement of agri produce. Also what should not be missed is the small but number of initiatives to ease taxation processes for the assesses and discouragement to IT department’s propensity for litigation. Many MSMEs will benefit from the move. I feel the Budget proposals are written with steady hand heeding advice of experts including of RBI: there is no reckless spending and budgeting of resources where necessary like recapitalization of banks. Therefore, investment in productive areas and reforms in agri-sector will spruce-up growth, primarily in semi-urban & rural areas, and keep inflation in check. Let’s be hopeful. "
Dr. Sangam Kurade, President, FISME
Vol IV, Issue 101: March 1, 2016
FISME participated in the RBI meeting on MSME credit
Secretary General FISME participated in the Operational Committee Meeting of the SAARC
Business Banter: Lessons from Entrepreneurs
Know the difference between perception and reality
Macro Metre
Budget 2016: Government sets FY17 disinvestment target at Rs 56,500 crore Knowledge and News Network (KNN)
Economic Survey: No great expectations Knowledge and News Network (KNN)
FTA leads more imports than exports: Economic Survey
Domestic Digest
Union Budget 2016-17: Govt allocates Rs 500 cr to support SC/ST, women entrepreneurs
Budget 2016: 100% tax deduction for startups for upto 3 years Knowledge and News Network (KNN)
MSME Ministry to work out strategy for revival of sick units
State Scan
10 MSME clusters will be set up in Haryana: Manohar Lal Khattar Knowledge and News Network (KNN)
Odisha to rely on Digital Infra for economic upliftment
Bengal marches ahead with glory in MSME sector, says WB Govt
World Watch
Sri Lanka trade chamber welcomes ETCA with India
Indian SMEs attend Gulfood 2016 at Dubai World Trade Centre
Knowledge Store
Generating money - Types of funding that an entrepreneur needs and when
...And A Lot More
KNN’s Reports on
Union Budget 2016-17


FISME participated in the RBI meeting on MSME credit

FISME participated in the 34th Meeting of the RBI empowered committee on MSME credit for NCT region on 24th Feb 2016. At the meeting issues related to credit flow to MSMEs were discussed. FISME representative at the meeting requested attention of the Committee to the negative growth rate in credit to Medium enterprise. He also flagged the 20% growth in MSME credit reported by SBI in the NCR. If SBI the prime lender to MSMEs has achieved a credit growth rate of 20% during the year, how the average growth is only 8% as reported by RBI? He questioned. The meeting was attended by senior executives of all scheduled banks and SIDBI.

Secretary General, FISME participates in the OCM of the SAARC-Trade Promotion Network at Colombo, Sri Lanka

Secretary General FISME participated in the Operational Committee Meeting of the SAARC – Trade Promotion Network, at Colombo, Sri Lanka held on 22nd – 23rd Feb 2016. At the meeting the crucial issue of self-sustenance of the Network, post 2016 was discussed. SAARC TPN, an initiative promoted by GIZ, Germany is engaged in promotion of trade among SAARC countries and FISME is one of its founder member.
Business Banter: Lessons from Entrepreneurs

12 Ways To Avoid Startup Mistakes

If you want to spark a lively discussion among a group of entrepreneurs, all you need to do is make a simple request: “Tell me about your mistakes.” Every single entrepreneur has made mistakes, is making mistakes, and will make mistakes. Mistakes and entrepreneurship go together. But thankfully, some mistakes can be prevented. Here are some smart ways to avoid stupid mistakes.
Writing on the Wall

Union Budget 2016-17


Mr Jaitley delivers

Arun Jaitley's third Budget is a masterly combination of good economics and good politics in the face of a challenging fiscal situation. He has delivered his basic objective of observing fiscal discipline for the third year in a row-something that few finance ministers can claim.



Counter Point

Budget 2016 shows Modi is a reformer in retreat

The Narendra Modi government’s third Budget confirms that he is a reformer of government and not a liberaliser of economy. The most significant positive aspects of this Budget, for example, all lie in improving government processes.



Media Monitor

Macro Metre

Budget 2016: Government sets FY17 disinvestment target at Rs 56,500 crore

The government aims to collect Rs 56,500 crore through disinvestment in PSUs in the next fiscal, as per the Budget for 2016-17. Of the total budgeted proceeds, Rs 36,000 crore is estimated to come from minority stake sale in PSUs, and the remaining Rs 20,500 crore is projected to come from strategic sale in both profit and loss-making companies. As regards the current year, the government has been able to meet less than half the budget estimates at Rs 25,312 crore as against the target of Rs 69,500 crore.

Economic Survey: No great expectations

The Economic Survey for 2015-16, released on Friday, highlighted the global headwinds faced by the economy, and called for a "recalibration of expectations" about annual Indian growth - which it said would likely remain between seven and 7.5 per cent in the medium term. It enumerated significant downside risks even to that figure. The Survey also called for the Reserve Bank of India (RBI) to ease liquidity conditions and further cut interest rates.

FTA leads more imports than exports: Economic Survey

India's free trade agreement (FTA) has been doubled to 42 after the year 2000. Increased trade has been more on the import than export side, because India maintains relatively high tariffs and hence had larger tariff reductions than its FTA partners. In case of the ASEAN FTA, the country has benefitted on both sides of trade flows with a statistically significant 33 per cent increase in exports and 79 per cent increase in imports, said the economic survey presented in parliament today.

Economic Survey 2016 indicates trillion rupee re- capitalisation of banks

The Economic Survey, placed in the Parliament on Friday, cautions that the burgeoning NPAs of Public Sector Banks (PSB)s is one of the most critical short term challenges confronting the Indian economy. The survey mentions the twin balance sheet problems – the impaired financial positions of the Public Sector Banks (PSBs) and those of some corporate houses. It also says that the twin balance sheet challenge is the major impediment to private investment and a full-fledged economic recovery.

Domestic Digest

Union Budget 2016-17: Govt allocates Rs 500 cr to support SC/ST, women entrepreneurs

Government has allocated Rs 500 crore for scheduled caste, scheduled tribes and women entrepreneur s in the Budget under the Stand Up India scheme. It will also set up a national hub in the Ministry of Micro Small and Medium Enterprises (MSME) in partnership with industry associations to provide professional support to scheduled caste/scheduled tribes (SC/ST) entrepreneurs, Finance Minister Arun Jaitley said while announcing Union Budget 2016-17 in Parliament.

Budget 2016: SMEs got Rs 1 lakh crore under Mudra scheme, says Arun Jaitley

In his Budget speech on Monday, Arun Jaitley reported that an amount of Rs 1 lakh crore was sanctioned to 2.5 crore borrowers by February 2016 under the PM Mudra scheme and has proposed an increased allocation of Rs 1.80 lakh crore for the same. Small and medium enterprises ( SME ) are the backbone of the economy, contributing an estimated 8 percent of GDP, 45 percent of manufacturing output and 40 percent of exports.

Budget 2016: 100% tax deduction for startups for upto 3 years

Finance Minister Arun Jaitley in his budget speech announced a 100 percent tax deduction programme for three years over a period of five years for startups approved before FY2019 under the Startup India scheme. A recent report states that startups in India are expected to raise USD 700 million and 5000 jobs in the next 12 months. The Startup India iniciative, launched in January by Narendra Modi, plans to move in the same direction by providing incentives to startups in the form better incubation, talent and capital.

Exporters told to make use of preferential duty tariff under free trade pacts

“Preferential duty tariff that exporters can claim under the FTAs (free trade agreements) is not being fully utilised. Data shows that only 10 to 12 per cent of the entire trade is happening under the FTAs, said Ravi Capoor, Joint Secretary, Ministry of Commerce and Industry. At an awareness programme organised by the Director General of Foreign Trade, Coimbatore in association with the Federation of Indian Export Organisations (FIEO) and EEPC India here, Capoor said “FTAs are the least understood. India has signed 16 trade agreements so far out of the 200 inked by various countries across the world between 2000 and 2015. Most of the agreements signed by India are with countries in the South-East Asian region.”

12 Clusters to develop in North- East States: MSME Minister

Union Minister for Micro, Small and Medium Enterprises (MSME), Kalraj Mishra, said that in the first phase 67 of 71 clusters would be developed across the country which has been already approved. The project involves Rs 149.44 Crore while 12 such proposals are in North-East Region (NER). Addressing Dimapur Regional MSME Conclave 2016, the Minister said in the next phase, 729 more cluster proposals would be taken up for approval to make the SFURTI (Scheme of Fund for Regeneration of Traditional Industries) even more widespread.

MSME Ministry to work out strategy for revival of sick units

The MSME Ministry will work out modalities to revive sick industry soon, Union Minister Kalraj Mishra said today. The MSME minister held first of its kind regional conclave of MSMEs from states of Punjab, Haryana, Chandigarh, Delhi, Uttrakhand, Jammu and Kashmir and Himachal Pradesh. "The idea behind such conclave is to have first-hand account of whether policies and programmes of the centre percolates down the order in the state," he said.
State Scan


10 MSME clusters will be set up in Haryana: Manohar Lal Khattar

Haryana government today said the Centre has given its approval to set up 10 clusters to boost the Micro, Small and Medium Enterprises (MSME) sector in the state. "Special focus is being laid on the traditional clusters, rural functional clusters and thrust or focus clusters," Haryana Chief Minister Manohar Lal Khattar said. The central government has accorded approval for setting up of six clusters and in principal approval has been granted for four clusters of MSMEs, he added.

Madhya Pradesh    

Budget has increased taxes by 14%, complicated ease of doing biz, says MP MSMEs

The Madhya Pradesh State Government presented its budget for the year 2016-17. The Micro, Small and Medium Enterprises (MSMEs) looked disappointed and called it an agriculture focused budget. Talking to KNN, President of Association of Industries Madhya Pradesh (AIMP), O P Dhoot, said, "We have proposed to give some subsidy on few items but the Government has increased the taxes up to 14 percent on them." "We also proposed that ease of doing business should not be complicated and asked to limit it but nothing was done in this regard, he complained adding that "We have do a lot of paper work here." No discounts, no subsidy, no investment allowances, no concessions on purchase are have be3n given to the MSMEs, said the President.


Odisha to rely on Digital Infra for economic upliftment

With a vision to cover the entire state digitally, Chief Minister of Odisha, Naveen Patnaik recently stated that digital competence will be used to improve education, health, agriculture and poverty alleviation programmes. On the inauguration of ‘Advantage Odisha 2016’, a Business-Technology and Leadership conference, Patnaik said, “We have a vision to digitally connect every nook and corner of the state and use our digital infrastructure for a swift service delivery mechanism".

Uttar Pradesh    

Training cum workshop on Essential Oil, Perfumery & Aromatherapy to enhance skill

The MSME Technology Development Centre, Kannauj, is organizing a training cum workshop in March on Essential Oil, Perfumery and Aromatherapy. Fragrance & Flavour Development Centre, under the MSME TDC would be organizing the programme from March 12-14 in the national capital. The training cum workshop would give an overview of the theoretical and practical aspects of essential oils, fragrances and aromatherapy right from natural sources to application stage including quality assessment.

West Bengal    

Bengal marches ahead with glory in MSME sector, says WB Govt

West Bengal Government today said that the MSME (medium, small and micro enterprises) is one of the sectors in the state which has done particularly well. There are about 50,850 MSME units in the State, employing about 5,45,000 people. Chief Minister Mamata Banerjee created the Biswa Bangla brand and store chain for promoting products from these units, among others. The brand has been successful in reviving traditional handicfrafts and handloom products, and has made livelihoods possible. To bring together the units under one roof a series of district-level events called Synergy has been organised, said All India Trinamool Congress.
World Watch

Sri Lanka    

Sri Lanka trade chamber welcomes ETCA with India

A leading Sri Lankan trade chamber has welcomed the proposed Economic and Technology Cooperation Agreement with India, saying it will widen bilateral economic engagement but underlined the need for clear communications in tackling issues faced by businesses here. The Ceylon Chamber of Commerce reaffirmed their complete support towards the agreement that "widens and deepens our economic engagement with India," while reiterating the need for systematic stakeholder consultations, clear and coherent communications, and firm commitment to tackling issues faced by businesses.
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United Arab Emirates    

Indian SMEs attend Gulfood 2016 at Dubai World Trade Centre

Gulfood 2016, a major food and hospitality trade event in the region, kicked off at the Dubai World Trade Centre (DWTC) on Sunday which is being attended by small and medium entrepreneurs from India. Food Processing Minister Harsimrat Kaur Badal inaugurated the event on Sunday. The Minister was also accompanied by the industrialists from India. Dr Sangam Kurade, President of Federation of Indian Micro and Small & Medium Enterprises (FISME) is also a part of the visiting delegation.
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Nepal to establish SEZs, industrial estates near Nepal-India border: Prime Minister of Nepal

Nepal is keen to set up Special Economic Zones and Industrial Estates in major business hubs of the country in the plain land next to Nepal-India border, said Khadga Prasad Sharma Oli, Prime Minister of the Federal Democratic Republic of Nepal said. “We have planned to set up Special Economic Zones and Industrial Estates in major business hubs of the country. Most of these will be established in the plain land next to Nepal-India border. Investing within SEZ has multiple benefits that include flexible and investment friendly labour laws,” he said at a business meeting organized by industry bodies FICCI, CII and ASSOCHAM.
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Exporters happy with broad Budget 2016 thrust, though wanted specific steps for relief

Welcoming the broad thrust of the Budget which realises the headwinds faced by Indian exporters in the global markets, EEPC India Chairman TS Bhasin today said emphasis on rail and road by increased investment along with better port connectivity should help the foreign trade in the long run. Ease of doing business for the SMEs as also in the procedures for Advance Licence and Duty Free Import Authorization Schemes retrospectively should help the engineering manufacturer exporters importing steel. Bhasin said changes in customs rates on certain inputs to reduce costs and improve competitiveness of industry in sectors like Information technology hardware, capital goods, defence production, textiles, mineral fuels & mineral oils, chemicals & petrochemicals, paper, paperboard & newsprint, Maintenance repair and overhauling [MRO] of aircrafts and ship repair are positive for the exporters.
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FISME’s official Twitter handle
Knowledge and News Network (KNN)
KNN India’s official Twitter handle
Anil Bhardwaj, Secretary General
Other Events

IndiaSoft - The India Showw

Date: 03rd – 04th March 2016
Place: Renaissance Convention Centre, Mumbai
See Details

FoodPro Tech Asia

Date: 03rd – 05th March 2016
Place: Bombay Exhibition Centre, Mumbai
See Details


Date: 03rd – 06th March 2016
Place: Pragati Maidan, New Delhi
See Details

India International Handwoven Fair Chennai

Date: 09th – 11th March 2016
Place: Chennai Trade Centre, Chennai
See Details

India International Mega Trade Fair

Date: 27th Feb – 07th March 2016
Place: Morabadi Ground, Ranchi
See Details

Business Opportunities Show Delhi

Date: 20th March 2016
Place: Hotel The Lalit, New Delhi
See Details
Your Views

Will the 'Make in India' week be a turning point for the manufacturing sector?

According to the FISME Factor, about 50 percent of Micro, Small and Medium Enterprises (MSMEs) think that ‘Make in India’ week will be a turning point for the manufacturing sector while 42 percent think otherwise.
Knowledge Store

HR Heuristics

Why it is more important to build organizations, not valuations

Recently I read two articles - one was about the four-month old Alphabet, valued at $554 billion (Google's holding company). The other was about a food startup that raised over $300million last year but is now unable to find a buyer for even 5% of that money. The dichotomy of these two situations is telling of our business environment. There's a lot of capital, but no money too. There's endless room for creating value, but value on paper can dissipate quickly too. There's ever-growing appetite for more products and services, but consumers can be fickle too. So what must entrepreneurs and their investors do?

Finance Fundamentals

Generating money - Types of funding that an entrepreneur needs and when

Once a start-up reaches a certain size, it cannot grow further without raising capital. While most entrepreneurswill know in advance when such a stage is about to be reached, it is important to know what level and kind of funding is required. While too little money has obvious consequences, too much money (or a valuation that seems too high) can result in subsequent rounds of investment becoming difficult. This article discusses the different stages and types of investment in a start-up, and how and when an entrepreneur can go about seeking it.

Marketing Mantras

Thanks to food startups, it's an e-spread for small hotels

Food delivery startups are helping small and mid-sized restaurants across the country expand their business online, reduce their marketing budgets and focus on lean hiring. Many such restaurants are now focusing on opening new kitchens rather than full-fledged outlets to be able to me et the growing online demand and save on high rental costs as well.Leon Grill, a fast-food restaurant launched just a year ago, gets more than 55% of its orders from the online platform.

Policy Polemic

Even after 60 yrs of establishment, infrastructure remains core issue for Faridabad Industries

Faridabad industrial area is called the Manchester of India and was established 60 years ago, but poor infrastructure remains a biggest hurdle for the industries in the area. Ridden with power cuts, faulty drains and bad roads, Faridabad MSMEs find it difficult to sustain growth with challenges on infrastructure front. Talking to KNN, Executive Director of the Faridabad Industries Association (FIA) Col. S Kapoor said infrastructure is the main issue for businesses here. He, however, said that the present Government is taking initiatives and concentrating on industrial sector but the pace is still slow.

SME Special

Now, a clinic to offer legal advice to start-ups

Sometime in 2014 as he was getting ready for the funding round, Sameer Grover, the founder of consumer cashback app Crown-it faced an unexpected hurdle. He was completely unaware that a key feature in the app was unlawful and could lead to litigation until a visiting lawyer friend told him about it.

Success Story

Think7 - a smart manufacturing unit made in India

Zubin Jagtiani has always been an integral part of the shop floor - area in a factory where the production happens - thanks to his family's business. Over a period of time, he felt the need to solve a simple problem: How to give the right instructions to the right people at the right time? He searched the existing market for a solution, but found none. He finally decided to take the plunge and build one along with Raghu Shenoy, a friend of his brother-in-law. Thus began the journey of Think7, a shop-floor management solutions start up.


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

Quotable Quotes

“ There’s nothing wrong with staying small. You can do big things with a small team. ”
– – Jason Fried, founder of 37signal.
Country Chronicles
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:
Starting a New Venture
Coming August, K J Somaiya Institute of Management Studies and Research located in Vidyavihar, Mumbai is launching a certificate programme on Creating New Ventures.
New Members

2 New Members Join FISME

During the period from 15th Feb 2016 to 29th Feb 2016 a total of 2 new MSME became members of FISME.
Reader Reactions

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.
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Book Store

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.
Free Publications

Identification & Valuation of IPRs in MSMEs  

Identification & Valuation of IPRs in MSMEs
Identification & Valuation of IPRs in MSMEs - Selected Research Papers.
Editorial Team:
Hon. Editor: Anil Bhardwaj
Asstt. Editor: Simmi Nagpal
Types setting & websdesigning: Sanjay Sachan  
Video & Photography:  Pramod Poddar


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