If you are unable to view this mailer, click here.


The FISME Factor


President's Message
" Union Budget 2015 contains many path breaking initiatives such as steps to curb black money, expanding social security coverage by proposing inexpensive health, accident, pension and life insurance for all and addressing concerns of investors in infrastructure.However, once again the largest employment creators in India- the MSMEs, have been relegated to the periphery of Budget pronouncements. Whether it is providing investment allowance or income tax benefit for employing more people or addressing pains of accepting deposits from friends and relatives which the new Companies Act has termed as illegal, MSMEs’ concerns have once again failed to attract the attention of the Finance Minister. "
Dr. D. Gandhikumar, President, FISME
Vol IV, Issue 77: March 1, 2015
FISME organises Awareness Programmes on QMS/QTT in Meerut and Bhiwadi
Business Banter: Lessons from Entrepreneurs
Creative discipline – A responsible entrepreneur is a doer
Macro Metre
FinMin wants PSU banks to consolidate, merge
Govt brings more sectors under priority sector lending
With foreign participation in AIF, entrepreneurs set to get a boost
Domestic Digest
Lower import duties on raw material: AIRIA Knowledge and News Network (KNN)
ZED Model to rate and handhold 1 million Indian SMEs Knowledge and News Network (KNN)
State Scan
Business-to-business meet generates Rs 100 crore orders for Kerala SMEs
100 entrepreneurs participate in Chennai vendor development programme Knowledge and News Network (KNN)
World Watch
India and Myanmar to strengthen bilateral trade and investment ties
Oman keen to boost trade with India to cement strategic ties
Knowledge Store
Ten tips for obtaining financing for your small business
Top tips for SMEs to boost their marketing strategy
Making entrepreneurs out of the rural and urban poor
...And A Lot More

FISME organises Awareness Programmes on QMS/QTT in Meerut and Bhiwadi

FISME organised “Awareness Programmes on Quality Management Standards and Quality Technical Tools” (QMS/QTT) under NMCP scheme sponsored by Development Commissioner, Ministry of MSME, Govt. of India. In a nationwide series of 8 programmes spread across eight states, FISME in association with their industry partners successfully organised Awareness Programmes on 28th February 2015 in Meerut, Uttar Pradesh and on 27th February 2015 in Bhiwadi, Rajasthan. Around 200 participants from Light Engineering/auto components in Bhiwadi and Sports Goods in Meerut, with active cooperation from Meerut Industrial Development Forum (MIDFO) attended these programme.
Business Banter: Lessons from Entrepreneurs

Creative discipline – A responsible entrepreneur is a doer

Entrepreneurs in the current digital generation need to excel in moral, mental behaviour through discipline. We will try and learn in the article that creative discipline helps startups place vision as the first priority before the individual’s own needs. A responsible entrepreneur is a doer, hence he will be a self-disciplined personality. Discipline is all about willpower and self-control. But asking to develop a culture of discipline many times is considered a punishment within young startup teams. Identify and retain individuals who are obedient and follow rules, process in startups. They are valuable assets. To train, inspire and bring the culture of discipline is also part of the job of founders. Every startup works for a singular goal to make the idea successful. Disciplined collaboration is important, if tasks need to be completed to achieve that desired goal. Hence entrepreneurs should be able to articulate the value, meaning and purpose of discipline in relation to success.
Writing on the Wall

Union Budget 2015-16

A big leap forward

(by Subir Gokarn, former Dy. Governor, RBI)

We now see an emerging link between objectives and financial commitments..

Open for business, at last

(by Claude Smadja, former MD,
World Economic Forum from 1995 to 2001)
Foreign investors cannot but appreciate the political thrust of the Budget..

Modi’s Mediocre Budget

India’s new prime minister settles for incremental reform..


Media Monitor

Macro Metre

FinMin wants PSU banks to consolidate, merge

In a step towards consolidation, the Government wants banks to consider merger. It has also proposed more transparency in the appointment of independent director on the bank board. “The Government wants to encourage Bank Boards to restructure their business strategy and also suggest a way forward for their consolidation and merger with other banks if it is a win-win for both,” the Finance Ministry said in a statement discussing reform measures for public sector banks. At present, there are 27 public sector banks including State Bank of India and its associate banks. Terming performance of public sector banks as sub-optimal so far, the statement has listed measures taken already and to be taken in near future.

Govt brings more sectors under priority sector lending

The Government has proposed to bring more sectors such as medium enterprises and renewable energy under priority sector lending by banks. The Reserve Bank of Indian has set a target of 40 per cent of total available resources for credit under priority sector loans for public and private sector banks. Priority sector refers to those sectors of the economy which may not get timely and adequate credit in the absence of this special dispensation. Typically, these are small value loans to farmers for agriculture and allied activities, micro and small enterprises, poor people for housing, students for education and other low income groups and weaker sections.

Govt announces details of new insurance, pension schemes

The Finance Ministry has announced detailed guidelines for three social security schemes announced in the Budget. Though anyone can enrol in these schemes, it mainly aims to cover workers of unorganised sectors besides the poor and vulnerable sections of the society. Pradhan Mantri Suraksha Bima Yojana. This scheme is mainly for accidental death insurance cover for up to Rs. 2 lakh. Here are the key details: Eligibility: Available to people in age group 18 to 70 years with bank account. Premium: Rs. 12 per annum.

Prabhu bets big on tech for Railways revamp

Railway Minister Suresh Prabhu is betting big on technology to bring back Indian Railways on track in manifold ways, be it by increasing passenger amenities, safety or efficiency of the national transporter. This was clear from the repeated reference to use of technology as Prabhu read out the Railway Budget for 2015-16 on Thursday and from the slew of technological initiatives that have been announced. This is in line with the bigger agenda of the Narendra Modi-led government at the Centre with its ongoing missions around Digital India and Make in India. From online booking of bed linen and food to a mobile application for passenger complaints to a 24*7 helpline number to bar-coded/RFID tracking of parcels and freight wagons to a train protection warning system and a train collision avoidance system, technology will find use under the watch of Prabhu, whose aim seems to be fixing the broken parts of the railways instead of a radical revamp.

Cabinet nod for 15,000 MW grid-connected solar projects

The government today approved setting up of 15,000 MW grid-connected solar power projects through state-run NTPC under the National Solar Mission. The Cabinet gave its approval for implementation of the scheme for setting up of 15,000 MW of grid-connected solar photo voltaic power projects under the National Solar Mission, an official statement said. They will be executed by NTPC Vidyut Vyapar Nigam (NVVN), an arm of NTPC, in three tranches. The completion of this 15,000 MW capacity projects under the National Solar Mission would accelerate the process of achieving grid tariff parity for solar power and also help reduce consumption of kerosene and diesel, which is presently in use to meet the unmet demand.

With foreign participation in AIF, entrepreneurs set to get a boost

Finance Minister Arun Jaitley handed additional artillery to the investment community by allowing foreign participation in Alternative Investment Funds (AIFs). The funds are a category of pooled-in investment vehicles. This will boost private equity (PE) investments in start-ups. Over the last decade, the PE sector had invested more than $80 billion in several Indian start-up companies. “This is a move that could aid growth of start-ups which often face hiccups in raising working capital,” said Pranav Kumar Suresh, CEO, Startup Village. The Village, which is based in Kochi, aims to launch 1,000 start-ups.

All BRICS members to have equal shareholding in new bank

Each of the five BRICS member countries will have equal shareholding in the New Development Bank and US Dollar will be base currency for the lender, External Affairs Minister Sushma Swaraj said today in Rajya Sabha. "Other BRICS member have accepted India's democratic vision of equal shareholding for all BRICS members...There will be no dominance of anybody," she said responding to questions. "There are no bottlenecks and disagreements in creating the bank jointly. National procedures are underway in the BRICS countries as agreed so that the agreement many come into force," she added.

Domestic Digest

NABARD sanctions Rs 302.87 crore for Odisha

National Bank for Agriculture and Rural Development (NABARD) has sanctioned Rs 302.87 crore for rural infrastructure and warehousing in Odisha. While Rs 280.92 crore were sanctioned for rural infrastructure, an amount of Rs 21.95 crore was sanctioned for warehousing. The amount was sanctioned under the agency's Rural Infrastructure Development Fund (RIDF). NABARD has given up to Rs 2,265.13 crore under RIDF Tranche XX for creation of infrastructure in various sector such as irrigation, rural connectivity (roads & bridges), fisheries, animal husbandry and others.

Lower import duties on raw material: AIRIA

All-India Rubber Industries Association (AIRIA) in its pre-budget discussions with the government has asked for the lowering of import duties on raw material and the raising of duties on the import of finished rubber products. They claim that higher import duties on raw materials such as natural and synthetic rubbers than on finished rubber goods has affected the growth of the rubber sector in India as the country is deficient both in natural rubber and synthetic rubber production which are imported. They emphasised that if this is corrected, the stress on domestic manufacturing and ‘Make in India’ initiative by the Modi govt. could gain further momentum as the sector manufacturing rubber products in the country, with over 6,000 units, mostly micro, small and medium enterprises (MSMEs), has a huge potential for employment generation.

Kerala government to allow self-attestation of documents

Kerala Chief Minister Oommen Chandy today said all government departments in the state will be asked to allow self-attestation of documents, making it a simple affair for people dealing with the public agencies. "My government will soon bring self-attestation system (that will replace the need for attestation by a gazetted officer)," the CM said at the inauguration of a three-day 'exclusive buyer-seller meet' here. It is being done to benefit the people immensely, Chandy said. Recently, Prime Minister Narendra Modi's Office had directed all union ministries and state governments to facilitate self-certification of documents.

ZED Model to rate and handhold 1 million Indian SMEs

In line with the Prime Minister Narendra Modi’s push for high quality local manufacturing and Make in India campaign, the Ministry of Micro, Small and Medium Enterprises, Department of Industrial Policy and Promotion (DIPP) and Quality Council of India (QCI) are jointly working out a ‘ZED maturity model’ which is expected to be finalised within a month. Deriving its name from Prime Minister’s speech ‘zero effect zero defect’, the purpose is to help SMEs progress and grow by providing them with sufficient training and funding to move up the value chain, sensitise them to the importance of packaging, branding leading to quality products with zero defect, hence zero rejection. The process will involve manual skilling, technology upgrade and automation, among others.
State Scan


Business-to-business meet generates Rs 100 crore orders for Kerala SMEs

Confirmed orders worth Rs 100 crore were received by Kerala-based small and medium enterprises from domestic and foreign buyers during the three-day business-to-business meet here that ended today, officials said. "In addition, they (SMEs) also received enquiries for Rs 150 crore, which will be finalised after further discussions," the Department of Industries and Commerce, which organised the meet in association with various others, said. Seven sectors of Kerala's industry - Food Processing (Food and Spices), handlooms, textiles and garments, rubber, wood based industries, ayurveda and herbal, electrical and electronics and traditional sector such as handicrafts and bamboo were showcased at the meet.

Jammu & Kashmir    

Jammu tax commissioner assures resolution to industry related issues

Commissioner, Jammu Commercial Tax Department has assured to resolve the issues related to the industrial sector in the state on priority basis. In a recent meeting with Bari Brahmana Industries Association (BBIA), the commissioner also assured to take up the matter with the concerned Deputy Commissioner to resolve the issues related to the Lakhanpur check post for the speedy clearance of goods. During the discussion, BBIA General Secretary, Lalit Mahajan highlighted various issues like exemption of entry tax on industrial equipment including EOT crane, fork lifts and pallet trucks which are widely used for the material handling in the industrial units, whereas the department has classified these items under earth moving equipment.


100 entrepreneurs participate in Chennai vendor development programme

Around 100 entrepreneurs from different parts of Tamil Nadu participated in the first day of the three-day vendor development programme-cum-industrial exhibition started on February 20, 2015. The event was inaugurated by Micro, Small and Medium Enterprises - Development Institute (MSME-DI) Assistant Director, B Packiarajan in Chennai. It aims to educate MSMEs about the requirement, quality, purchase practices and other aspects of companies and familiarise vendors in the southern districts with the procedures to become regular suppliers for PSUs.


Kerala seeks Rs 600 cr to boost farming

Kerala agriculture minister KP Mohanan today called on Union Agriculture Minister Radha Mohan Singh and sought over Rs 600 crore funds to boost the farm sector in the state. Mohanan submitted eight proposals seeking funds for improving irrigation infrastructure, development of ethnic fruit cultivation, promotion of high-yielding dwarf variety of coconut palms, farm mechanisation, rejuvenation of ponds among others. "Kerala is on its way to achieve self-sufficiency in agricultural produce. To achieve this objective, we need to expand area of cultivation in fallow land and irrigation facilities," said Mohanan.

West Bengal    

Bengal tea workers seek tax revision; Tea Board remains firm

Tea companies and workers' unions Wednesday called for revising the tax structures in the sector, even as the Tea Board of India ruled out any modifications in central taxes saying the present system was optimal for the industry. West Bengal Joint Forum of Trade Unions of Tea Industry said the current tax system in the tea industry is burdening the sector, which is affecting the tea workers as well as plantation owners. "The government levies agricultural income tax besides corporate tax which is overlapping," Ziaul Alam, a leader of the trade union consortium, told reporters.
World Watch


India to soon start FTA feasibility process with Russia, Peru

India will soon initiate the feasibility process to launch negotiations for a free trade agreement with Russia and Peru, a move aimed at enhancing economic ties with these nations, Commerce Secretary Rajeev Kher said today. Kher also said the new foreign trade policy (FTP) would be announced after the Budget, that would give a direction to India's efforts to enhance engagements with its trading partners. He said India is in the process of increasing its economic engagement with regions including Latin America, Africa, South Asia, West Asia and Central Asia. India will begin work towards "looking at the feasibility of regional trading arrangements with Peru and Russia very shortly," he said.


Oman keen to boost trade with India to cement strategic ties

Keen to bolster its strategic ties with India, oil-rich Oman has invited Indian industries to establish more joint ventures in sectors like finance, insurance, engineering and telecom as the "politically stable" Gulf nation sought to diversify its economy. Days after the maiden visit of External Affairs Minister Sushma Swaraj to Oman, her Omani counterpart Yousuf bin Alawi bin Abdullah said his country was keen to enhance trade and economic ties with India. "Oman is a strategic and important partner to India in the Gulf region. Indeed, the two-countries are deep-rooted by geopolitical factors and socio-cultural and historical values across the Arabian Sea and the Indian Ocean as well," Abdullah told PTI.


India and Myanmar to strengthen bilateral trade and investment ties

In order to enhance the bilateral trade and investment ties, India and Myanmar agreed to work together to remove the bottlenecks hampering the bilateral trade and investment such as lack of good connectivity, lack of banking arrangement both for regular and border trade. During the fifth India - Myanmar Joint Trade Committee (JTC) meeting held in Naypyidaw on Tuesday, India offered to support Myanmar to develop infrastructure at the border trade points, upgrade trade training institutes in Yangon and also provide training to Myanmar officials on WTO and international trade related issues. India also offered to support subsidized direct shipping links between the two countries to promote bilateral trade.
Upcoming Events

Intellectual Property - Awareness Programs

Date: December-February
Venue: Hyderabad, Chennai, Bangalore, Lucknow

FISME Delegation to TIMTOS, Taiepi,Taiwan

Date: 2nd – 6th March 2015

Awareness Programme on QMS/QTT

Date: 9th March 2015
Venue: Baddi, Himachal Pradesh

Profit Mantras for Business

Date: 12th March 2015
Venue: Kadavanthara, Kochi

Inception Workshops on Promotion of Regional Value Chains in SAARC countries

Date: 4th March 2015, Coimbatore, Tamil Nadu
11th March 2015, Colombo, Sri Lanka
Other Events

Interior & Exterior Show Mumbai

Date: 27th February-2nd March 2015
Venue: Bombay Exhibition Centre, Mumbai, India
See Details

Garment Technology Expo

Date: 28th February-3rd March 2015
Venue: NSIC Exhibition Complex, New Delhi, India
See Details

AgriTalk India

Date: 1st March-4th March 2015
Venue: Shastri Maidan, Rajkot, India
See Details

World of Concrete India

Date: 2nd March-4th March 2015
Venue: HITEX International Exhibition Centre, Hyderabad, India
See Details

International Battery Expo & Recycling Conference

Date: 3rd March-5th March 2015
Venue: The Goa Marriott, Goa, India
See Details

International Conference on Cognitive Behavioral Interventions

Date: 5th March-6th March 2015
Venue: JLN Auditorium, New Delhi, India
See Details

The Interior Show Chennai

Date: 6th March-9th March 2015
Venue: Chennai Trade Centre, Chennai, India
See Details

FRO Hyderabad

Date: 7th March-8th March 2015
Venue: Hyderabad International Convention Centre.., Hyderabad, India
See Details

The Haat

Date: 7th-9th March 2015
Venue: Kolkata Ice Skating Rink, Kolkata, India
See Details

Agriculture Machinery Expo

Date: 10th-12th March 2015
Venue: HUDA Ground, Karnal, India
See Details

Fabrics & Accessories Trade Show

Date: 12th -14th March 2015
Venue: Bangalore KTPO Trade Centre, Bangalore, India
See Details

India International Home Textile Exhibition

Date: 12th March-14th March 2015
Venue: Bangalore KTPO Trade Centre, Bangalore, India
See Details

Cbrne India

Date: 12th March-13th March 2015
Venue: Kothari Auditorium, New Delhi, India
See Details

International Industrial Expo-Uttarakhand

Date: 13th March-15th March 2015
Venue: Gandhi Maidan Rudrapur, Rudrapur, India
See Details

India Steel 2015 (2nd International Exhibition & Conference on Steel Industry)

Date: 16th April–18th April 2015
Venue: Mumbai Exhibition Centre, Mumbai, India
See Details

World of Concrete India

Date: 2nd March-4th March 2015
Venue: HITEX International Exhibition Centre, Hyderabad, India

Opex The World of Operational Excellence Lean Six Sigma and its Success

Date: 11th March 2015
Venue: To be announced, New Delhi, India

International Conference On Advances In Electrical, Power Control, Electronics Engineering and Applied Communication Technology

Date: 14th March-15th March 2015
Venue: JNU, New Delhi, India
Your Views

What support do the MSMEs expect from the forthcoming Budget?

According to the FISME Factor, 30% of MSMEs expected access to finance, 33% infrastructure development, 24% tax rebate, 13% skill development from the Union Budget 2015-16.
Knowledge Store

HR Heuristics

5 Tips for HR to Motivate Employees in Startups & Small Businesses

Employee motivation is a very important aspect in getting the best out of the workforce. One must remember the basic, which is, better input results in better output. In order to get a better input, one but obviously needs to motivate their employees.

Finance Fundamentals

Ten tips for obtaining financing for your small business

While new business ideas can abound, finding the proper financing to bring them to fruition is hard to find. According to Statistics Canada, small and medium sized businesses with one to four employees have the lowest loan approval rate. The challenge is that these businesses traditionally have less of a performance history and limited resources to grow their business, which makes it a riskier proposition for the lender.

Marketing Mantras

Top tips for SMEs to boost their marketing strategy

Small-to-medium enterprises (SMEs) are great when it comes to creative and innovative ideas. But their main challenge is effective marketing on what is typically a shoestring budget. The acronym REFERENCES best sums up the approach SMEs can take in today's marketplace to grow their business. Here's how it can work wonders for you.

Policy Polemic

Qualifying norms for start-up patent subsidy scheme now relaxed

Many technology start-ups and small and medium enterprises could benefit from a government initiative that provides financial assistance to file global patents, as the Centre has eased the qualifying norms. The move came after the funds allocated under the first phase of the policy remained under-used because of the strict eligibility criteria. Earlier, only those firms whose research and development was recognised by the department of scientific and industrial research were eligible. But the government has done away with this requirement.

SME Special

Making entrepreneurs out of the rural and urban poor

Some years ago, 44-year-old Pushpal Shinde sold artificial jewellery in Nagpur and earned about Rs 15,000 a month, but it was not enough to pay for household expenses and still give her children a proper education. She now earns some Rs 50,000 a month by selling washing powders under the brand SARA. She also employs four persons. K Ratna, 35, living on the outskirts of Chennai, traded in textiles in a small way. Her business was funded by the money she borrowed from an individual who charged her an exorbitant rate of interest. The business failed and she was saddled with huge debts. Now, she proudly says, she has not only paid off the debts but runs her own business (manufacturing and selling agarbattis, or incense sticks) and can also afford to educate her daughter. Her dream is to have her own brand, just like Shinde.

Success Story

Patriotism plus passion: stories of 20 entrepreneurs from small towns in India

Guess what? The world’s largest company in value-added spices, one of the world’s Top 10 publishing BPOs, India’s biggest exporter of hand-knotted carpets, largest machine tool manufacturer, largest honey exporter, and largest leather exporter all started up in small towns in India, not the big metros. Over the decades, big ideas and successful entrepreneurs have made a mark in small-town India, as shown by the 20 profiles in the new book by Rashmi Bansal, Take Me Home.


The Central Statistical Office (CSO) released the Provisional indices for the month of January 2015 and also the final indices for December 2014.

Quotable Quotes

Every small business will give you an entrepreneurial way of looking at things. I guarantee you that for every plant that closes, if you gave it to one small-business person in that community, he or she would find a way to make it work. The small-business attitude is you always find a way to make it work.
-Hamdi Ulukaya, Turkish American entrepreneur and businessmanSpeaker
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.
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.
send mail to: newsletter@fisme.org.in
   Bach to Top
Editorial Team:
Hon. Editor: Anil Bhardwaj
Asstt. Editor: Sunila Sharma
Ediotrial Assistant: Kalpana Sharma
Types setting & websdesigning: Sanjay Sachan  
Video & Photography:  Pramod Poddar


You are receiving this Newsletter because you are included in our mailing list of recipients who are involved or interested in FISME or Indian MSMEs. You are welcome to partly or fully reproduce and disseminate the contents of this publication provided that you acknowledge the source.

To subscribe/unsubscribe to this Newsletter
click subscribe or unsubscribe

This Newsletter is edited by the FISME Secretariat. We welcome contributions as well as comments and suggestions. Please write to newsletter@fisme.org.in
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
Email: info@fisme.org.in ,   Website: www.fisme.org.in
57/5, Family YMCA Building,
Millers Road, Benson Town,
Bangalore - 560046
Tel: +91-80-23543589
Email: bangalore@fisme.org.in
H. No. 6-3-569 / 1/2/4
2nd floor, Rockdale Compound, Somajiguda
Hyderabad – 500082
Tel: +91- 40- 23322117 Fax: +91 -40- 23312116
Email: hyderabad@fisme.org.in
No. 17/22, 1st floor,
4th Main Road, New Colony, Chromepet
Chennai – 600044
Tel: +91-44-43848805
Email: chennai@fisme.org.in
Tel: +91- 11- 4364 2013
Email: chamber.jw@fisme.org.in
Tel: +91 -11- 46035866
Email: chamber.mpur@fisme.org.in
Tel: +91 -11- 4106 8644
Email: kalkaji@fisme.org.in