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Vol III, Issue 33: May 1, 2013 Activities   News   Reader Reactions   Members   Contact     Print Version  

President's Message

President - Mr D. Gandhikumar

"In recent weeks Government has expressed remarkable willingness to come up with the grip of the issues which are holding MSME growth- both on domestic as well as export front. The Cabinet Secretariat is leading the initiative and two Inter-Ministerial Committees have been set up for respective issues. Some of you quickly responded to our call for inputs and based on that we have submitted the first draft to the committees. I call upon all my MSME colleagues to review the Discussion Paper FISME has submitted and send your views and suggestions which could be sent as addendum. "

Movie - Indian IPR Exchange

Giving awards create positive impact on buyers, says MSME

FISME survey

According to The FISME Factor survey, MSMEs fully agree that bestowing awards by Ministries or Institutions to small entrepreneurs create a positive image in buyers.

HR Heuristics

Sometimes the best mentor-protege relationships so often end in a break up

Some amount of conflict is actually healthy for a mentor-mentee relationship, as long as things don't get ugly.

Finance Fundamentals

More liquidity to help banks reduce interest rate: India CEO, Deutsche Bank

The Reserve Bank of India recently said foreign banks those have more than 20 branches should have a steeper target for priority sector lending.

Marketing Mantras

What L'Oreal learns from Indian homes

L’Oreal India's Pierre-Yves Arzel says home visits helped him understand Indians' relationship with water, what beauty products they use and why.

How to make a winning idea out of flop shows

At the core of every successful entrepreneurial journey is that one big idea. Passion alone is not enough.

Policy Polemic

Yours, mine and ours

The consumerist model of growth that the modern human society has adopted contains, unfortunately, the seeds of its own destruction.

SME Special

Skill shortages mar automobile industry

From Gunja

The availability of skilled personnel does not match with the growing manpower requirement of the Indian automobile sector, said a report of the government-appointed expert group. “The quality of the personnel employed, both in terms of knowledge and skills is not appropriately matched to the requirements of the automobile industry in India,” said the report on evaluation of the ongoing Assistance to Training Institutions (ATI) scheme of the Ministry of MSME.

Golden fibre making inroads into road construction

From Rohit Kapoor

Images that come to our mind when we hear about coir are traditional items like mats, baskets and ropes; but that is not the case anymore.


The Union Minister for Commerce, Industry and Textiles Anand Sharma recently announced the Annual Supplement 2013-14 to the Foreign Trade Policy 2009-14.

Quotable Quotes

" Think big, think fast, think ahead. Ideas are no one's monopoly. "

-Dhirajlal Hirachand Ambani, Founder of Reliance Industries

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:

FISME submits report to Inter-Ministerial Committee on MSMEs

Following constitution of Inter-Ministerial Committees at the behest of Cabinet Secretary earlier in April, the first meeting of the Inter-Ministerial Committee on ‘Accelerating Manufacturing in MSME Sector’ was held on April 25, 2013 under the chairmanship of Mr Madhav Lal, Secretary MSME. The meeting was attended by Mr Saurav Chandra, Secretary Department of Industrial Policy and Promotion (DIPP), Ministry of Commerce and Industry, Dr. M. Sarangi, Secretary in the Ministry of Labour and Employment, Mrs. Zohra Chatterjee, Secretary Textiles. Mr Amrenda Sinha, Additional. Secretary and DC, MSME, Mr CK Mishra, Joint Secretary MSME among others. FISME- an invitee to the committee, also took part in the meeting and later submitted a detailed discussion paper containing analysis of the constraints- institutional, regulatory and infrastructural and suggestions to resolve them. It has suggested several strategic initiatives for finance, marketing and technology. Specific set of suggestions: one ‘Boosting Exports from MSMEs’ has been sent to the Finance Secretary , who is heading another Inter-Ministerial Committee on the subject and anther one focusing on ‘Labour Reforms’ to the Secretary Labour.

MSMEs trading with Suriname requested to Review Trade Policy

Trade Policy Review Mechanism (TPRM) of World Trade Organization (WTO), Geneva has proposed to conduct the Trade Policy Review (TPR) in respect of Suriname (country on the north-eastern coast of South America) on June 10 and 12, 2013. During the TPR, the member countries may raise questions and concerns on different aspects of policies and practices of the country under review on topics such as economic environment, trade policy regime-framework and objectives, trade policies and practices by measure and trade policy by sector, says an official notice for Micro, Small and Medium Enterprises (MSME) trading with Suriname. All the apex industry body and trade associations are requested to send contentious issues or suggestions or inputs on the topics mentioned with regard to Suriname. The inputs be sent through email to latest by May 5, 2013.

‘The Best Advice I Got’

Happy decision making - life is all about choices!

-Shivinder Singh, Vice Chairman, Fortis Healthcare
“What I am going to share is not necessarily the best advice I got, but the one I didn't notice initially and which life beat me into realising I must follow, said Shivinder Singh,” Vice Chairman, Fortis Healthcare. Suppose if all predictions and analysis point you in one direction, but your deep inner core is not comfortable - DON'T DO IT! Similarly, if most people tell you it's not a good idea, or too risky a move, but you deeply feel it is the right thing to do - Listen to your inner voice. Trust your judgment. The only thing important is don't be foolish, and use this as an excuse to shoot from the hip - "Oh! I just felt like this was the right thing to do."

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

Macro Metre

RBI likely to lower cash reserve ratio to complement rate cut

With all signs pointing to inflation coming down, the Reserve Bank of India (RBI) is expected to cut interest rate by 0.25 percentage points and inject extra cash into the banking system by reducing the cash reserve ratio (CRR) for banks. The RBI will do a credit policy review on Friday. Experts believe the central bank has every reason to go for rate cut as the fall in crude oil, gold prices and global commodity prices are bound to have a positive impact on the current account deficit. India’s headline measured by the whole sale price index inflation dropped to 5.96 per cent in March compared to 6.84 in February, the lowest recorded inflation data in 40 months. This will give the RBI Governor Duvvuri Subbarao more room than before to cut rates to boost both economic and industrial growth.

CAD to be below 5% this year: Rajan

Chief Economic Advisor Raghuram Rajan recently said the Centre’s current account deficit in the fourth quarter (January-March) of 2012-13 would be below four per cent of the gross domestic product, helped by softening gold and crude oil prices. He said CAD was likely to be five per cent in 2013-14. “First, it will come below five per cent this year. We have to bring it below four per cent next year, and even lower in the coming years,” Rajan said during an interaction with reporters. CAD touched an all-time high of 6.7 per cent during the third quarter of 2012-13. It stood at 5.4 per cent, or $71.7 billion, in the first nine months of the year.

Domestic Digest

MSME Ministry ask PSUs to give details of purchases from SMEs

The Ministry of Micro, Small and Medium Enterprises (MSME) has asked PSUs and other departments to furnish details with regard to purchases made from small units in 2012-13. The details of annual procurement for the current fiscal have also been sought from PSUs and ministerial departments, Parliament was informed recently. "The government ministries/departments/PSUs have been requested to provide details of procurement made from Micro and Small Enterprises (MSEs) owned by SC/ST in 2012-13 and details of annual procurement plan for 2013-14," Minister of State (Independent Charge) for MSME K H Muniyappa said in a written reply to the Rajya Sabha.

Govt sets up committee to boost exports from MSMEs

Worried over widening trade gap, the government has set up a six-member inter-ministerial committee under the chairmanship of Finance Secretary R S Gujral that will suggest measures to boost MSME exports. Micro, Small and Medium Enterprises (MSME) sector contributes about 40 per cent in the country's total exports and over 8 per cent to India's Gross Domestic Product (GDP). "The committee will suggest short and long term measures to enhance exports from MSME sector. It will submit its recommendations by mid-May," an official said.

No decline in MSME exports in FY 2011-12: Muniyappa

The total exports from Micro, Small and Medium Enterprises (MSME) sector rose to USD 131 Billion in Financial Year (FY) 2011-12 from USD 111 Billion in the previous year. In 2009-10 the MSME exports were at USD 82.5 Billion. The main markets of 20 most exported MSME product groups, which constituted more than 90 per cent of MSME exports during 2009-12 included USA, European Union (EU), UAE, Turkey, Singapore, Hong Kong, Israel and Saudi Arabia, MSME Minister K H Muniyappa said. “The exports of 20 most exported MSME product groups did not decline during 2009-10 to 2011-12,” he said in Parliament earlier this week.

Sickness in medium scale firms on rise

The number of medium firms that became sick during 2011-12 rose sharply by 44 per cent, although micro and small units witnessed a decline of 5 per cent. “The number of sick units in the medium category rose to 3,044 in 2011-12, from 2,117 units in the previous year,” Minister of State for Micro, Small and Medium Enterprises (MSME) K H Muniyappa said in the Rajya Sabha recently. However, Muniyappa said the number of sick micro and small units declined to 85,591 in 2011-12, compared to 90,141 enterprises a year-ago, referring to Reserve Bank data.

BSE's SME platform stocks post robust gains

Investors seem to be reaping rich returns from the stocks that got listed on the leading bourse BSE's SME platform, as 18 out of a total of 22 such stocks are trading above their public issue prices. BSE launched its SME platform for small and medium enterprises in March last year and since then 22 companies have got listed in this segment, while six more are in the pipeline. The SME platform of BSE's larger rival NSE also became operational in September 2012, but only three companies have got listed on it. The shares of two of these three companies are trading almost near their respective issue prices, while the third is trading with a considerable discount.

Procurement policy gets desi pitch

The government has approved sweeping changes to defence procurement procedure to initiate a possible sudden turnaround in favour of domestic manufacturers and to end India's over-dependence on imports. India enjoys the dubious distinction as the world's biggest importer of military equipment, with over 65 per cent of its annual requirement coming from foreign suppliers. The significant changes were prompted by the government's realization that the huge kickbacks and massive corruption in defence procurement was largely due to huge imports that attracts a powerful clique of middlemen, who operate across the globe, bribing politicians, military and bureaucracy.

Govt unveils 21 textile parks to promote job creation

The government recently launched 21 textile parks for job creation under the Scheme for Integrated Textile Parks (SITP). “Under the scheme, 61 parks have been sanctioned – 40 projects were started in the 11th Plan and another 21 projects are to be implemented in the 12th Plan. Out of the 40 parks sanctioned earlier, a total of 25 Parks are already operational. Most of the balance parks are expected to be completed during this financial year. The estimated employment generation is over 10 lakh persons with a total estimated investment of Rs. 27, 562 crore,” said an official statement.

Vaishya Gaurav award for one of the FISME members

Mr Mahipal Gupta, Chairman and Managing Director of Autolite India Ltd and member of CEC of FISME has been honoured with Vaishya Gaurav Award for valuable services in the social sectors and achievements in business by Mr Ramdas Agarwal, President of International Vaishya Sammelan and former Member of Parliament and Mr Ramesh Chandra Agarwal, Chairman of Bhaskar Group. Autolite India Ltd is member of FISME. Rajasthan Pradesh Vaishya Mahasammelan was held on April 21, 2013 in Jaipur.

Industrial package for HP, Uttarakhand under consideration: Sharma

The issue relating to the extension of the industrial tax package to Himachal Pradesh and Uttarakhand “is under consideration of the Government,” Commerce and Industry Minister Anand Sharma said in Parliament. The special industrial package was under implementation for the two states since 2003 and has ended on January 6, 2013. Sharma who hails from Himachal Pradesh, said his ministry had supported the requests from the hilly states for extension of special package to the industries.


Training institute guiding youth towards better future in northeast

With the government laying emphasis on empowerment of youth in the northeast, the Micro, Small and Medium Enterprises (MSME) Development Institute in Assam has organized a number of training programmes to motivate and guide youth towards a better future. Hundreds of youth have joined the institute for a year-long skill development course in various streams. A majority of the students at MSME are uneducated or school dropouts, who are willing to start their own ventures and are also in search of a job.


Small enterprises get a designer touch

Corporates have all along looked at micro, small, and medium enterprises (MSMEs) with a smirk — they cannot digest their presence nor do they allow the latter to make their presence felt in the market. Although 50 per cent of the industrial sector in the country comprises MSMEs, their contribution to productivity is negligible — less than 0.5 per cent. The corporates easily hold sway in the market because the MSMEs cannot afford to hire talented designers whose expertise is paramount in making the products look attractive and trendy. It is in such a scenario that the Ministry of Micro, Small and Medium Enterprises has stepped in to offer a helping hand to the MSMEs. The MSMEs, through the Ministry’s Design Clinic Scheme (DCS), can now approach good designers to give a facelift to their products. The Ministry will meet 60 per cent of the expense for the exercise.


State to take back leased land not put to use

The State government has decided to cancel land leased out, but not put to proper use in industrial estates created to give a boost to micro, small and medium enterprises in capital city. The decision was taken in the State Land Allotment Committee chaired by Bijay Kumar Patnaik recently. The committee reviewed the present position of land allotted in industrial areas of Mancheswar, Rasulgarh and Chandka. Odisha Industrial Infrastructure Development Corporation (IDCO) officials were directed to identify non-performing units.

Tamil Nadu    

Entire power from Kudankulam sought for State

The Madurai District Tiny and Small Scale Industries Association (MADITSSIA) has demanded that the 2,000 megawatt power to be generated from the Kudankulam Nuclear Power Plant should be allotted exclusively to Tamil Nadu for the first two years. It has condemned the Central Government’s decision to allot only 925 MW power to the State, despite several appeals.


ASSOCHAM demands Rs 1,000 cr fund for MSMEs in Uttarakhand

The national industry body, Associated Chamber of Commerce and Industry of India (ASSOCHAM) has sought the creation of a Rs 1,000 crore fund to help micro, small and medium enterprises (MSMEs) in Uttarakhand to access affordable credit, vital for their survival in difficult business conditions. Batting for the credit policy for SMEs in the state at the ASSOCHAM 7th SME Sammelan “Banking and Finance Solutions for Sustainable Growth” in Dehradun yesterday, ASSOCHAM’s General Secretary D S Rawat demanded the creation of a Rs 1,000 crore fund exclusively for SMEs to drag them out of the red.

Uttar Pradesh    

UP rich in crafts, poor in GI status

Uttar Pradesh glitters when it comes to traditional skills but appears faded in terms of geographical indication (GI) status of its products. The state ranks sixth in the country with only seven products enjoying the GI tag. Nearly 20 GI applications of UP have been pending for long and officials say that the state has not been active enough in pursuing its applications. Apart from Zardozi that became a brand recently, the other GI products of the state include Dussehri mango, Chikankari, Varanasi silk weaves, Bhadohi carpets, Allahabad’s red guavas and prints of Farukkhabad.

West Bengal    

Bengal has appetite for credit: RBI

Despite banks attributing West Bengal's low credit-deposit ratio to lack of demand, Reserve Bank of India (RBI) views the state has a reasonable appetite for credit. "I do not agree to the banks maintaining that credit absorption in low in West Bengal due to lack of growth, the state has a good appetite for credit", regional director (east) of RBI B P Kanungo said. Banks should now focus more on priority sector and MSME advances instead of eyeing big borrowers where advancing credit was more risky, Kanungo said at an interaction at BNCCI in Kolkata recently.


Portugal works with EIB to boost SME financing

Portugal has teamed up with the European Investment Bank (EIB) to facilitate funding for the country's small companies, the country's finance minister said recently. Small- and medium-sized enterprises (SMEs) in some euro zone countries are struggling to get funding from banks, which are reluctant to take on further credit risk as they try to adapt to new regulatory standards for capital and liquidity levels.


Pak SMEs save Rs 6 crore by energy efficiency

Small and medium sized enterprises (SMEs) in Pakistan mostly from textile sector saved about Rs 6 crore in one year, thanks to an energy saving project being implemented by a German outfit. These measures were adapted by 22 companies since the beginning of 2012 which saved on an average nine per cent of their energy costs, according to report published in Pakistan media. Under the project ‘ESPIRE’, a cooperation project of bfzgGmbH (Germany) Pakistani business associations and small and medium enterprises development authority (Smeda), the energy saving measures were implemented.

United Kingdom    

Fears over extension to Bank’s SME credit project

The £80bn Funding for Lending Scheme (FLS) is due to be expanded to include asset-based lenders and leasing firms in an attempt to assist credit-starved small businesses. The FLS, which was launched last August to provide subsidised credit to high street banks, has boosted mortgage lending but has had little impact on the impasse over lending to small and medium-sized companies.

United States of America    

Obama proposes a slew of measures for small businesses

Now its NASA, one of the world’s biggest space centres which has selected small businesses for innovative research and technology projects. The National Aeronautics and Space Administration (NASA) has selected 44 additional proposals from 42 small high-technology companies to enter into negotiations for Phase 2 contract awards through the agency's Small Business Innovation Research (SBIR) Program, according to NASA’s official release. Valued at about USD 30.7 million, these selections complement 39 Phase 2 proposals announced in November.

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Business Opportunities for India in Srilanka

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

Business Opportunities for India in Turkey

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

3 New Members Join FISME

During the period from April 15, 2013 to April 30, 2013 a total of 3 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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Tel: +91- 40- 23322117 Fax: +91 -40- 23312116

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