As the general elections enter into the final phases, the yearning for the new government is also reaching its peak. Media is full of speculations about the composition of the new government and its economic agenda. However, the MSMEs hardly have the luxury to indulge in speculation. We need to be ready with issues we want the new government- whatever its colour, to address on priority. Ministry of Finance has already sought views on Taxation. I urge you all to send your feedback through an online window
we have created in the current issue of FISME Factor. "
Dr. D. Gandhikumar, President, FISME
In the run up to the Union Budget to be presented by the incoming government, Ministry of Finance has sought specific suggestions in the following three categories:
a. Direct Taxes ( Income Tax, Property tax etc)
b. Indirect taxes (Excise duties, Customs etc)
c. Other suggestions related to Finance, MSMEs or other Ministries.
Kindly key in your comments online by 10th May 2014.
With a view to empowering MSMEs to take advantage of the Competition Laws in India, FISME and Hindustan Unilever Limited have jointly initiated a nationwide campaign to create awareness about the rights and responsibilities of the small businesses under the Act.
FISME organized two sessions on the Competition Law and Compliance here in Bangalore on Friday covering the topics such as unfair trade practices, cartelization, monopolies etc.
The first session of the day was held with the Association of Women Entrepreneurs of Karnataka (AWAKE). While addressing the session, President of Awake, Dhanwanti Jaiin said, “This is a good initiative for the SMEs. They should be aware about the Competition Laws and Compliance as most of them don’t know about this.”
|Business Banter: Lessons from Entrepreneurs
- Resiliency. The ability to weather the ups and downs of any business since it never goes exactly the way the business plan described it.
- Focus. After setting a long term vision, knowing how to “laser focus” on the very next step to get closer to the ultimate goal.
- Invest for the long-term. Most entrepreneurs are not patient and focus only on what comes next, rather than where the company needs to go. Stop, Pause and Plan on a quarterly basis.
- Find and manage people. Only by learning to leverage employees, vendors and other resources will an entrepreneur build a scalable company. They need to learn to network to meet the right people.
- Sell. Every entrepreneur is a sales person whether they want to be or not. They are either selling their ideas, products or services to customers, investors or employees.
- Learn. Successful entrepreneurs stay up to date on new systems, technology, and industry trends. While there is a lot of help for the entrepreneur, in the end, they need to be resourceful enough to depend on themselves.
[Lessons Entrepreneurs Can Learn | Adapted from forbes.com]
|Writing on the Wall
Manufacturing is in trouble in India. The sector’s share of gross domestic product (GDP) reached 16% in 2006-07, then stagnated and has declined since 2010-11, to little more than 15%, a sliver when compared with the shares in Thailand (36%), South Korea (31%), and China (30%). Employment in absolute terms has fallen in the formal manufacturing sector from 55 million in 2004-05 (12.2% of India’s overall workforce) to 50 million in 2010 (10.5%). The sector’s growth rate has been declining for four years, actually falling into negative territory in the first quarters of 2012 and 2013.
India’s development model is largely at fault. In the absence of a well-conceived policy response by the next government, manufacturing will soon be gripped by an even more profound crisis.
[Adapted from a chapter in the book Getting India Back on Track]
In response to a petition by the Indian Banks Association calling for a uniform practice across courts in the country to deal with cheque-bounce cases, the Supreme Court has issued guidelines which are to be followed by all magisterial courts for speedy disposal of such cases.
The guidelines, based on a judgement given by Justice K S Radhakrishnan and Justice Vikramajit Sen here on April-21, include issuance of summons through e-mails and completion of evidence within three months, among others.
These procedures are to be followed for speedy and expeditious disposal of cases falling under Section 138 of the Negotiable Instruments Act, the Supreme Court said.
Manila based multi-lateral funding body Asian Development Bank (ADB) on Thursday said it would realign its operations in the Asia-Pacific region to give a thrust to inclusiveness, saying the region continues to face huge poverty challenges.
The Asia-Pacific region is changing fast- and so must ADB. The challenge for ADB is to help developing member countries eradicate remaining poverty, support greater inclusiveness to address inequalities, and become more relevant and effective in middle-income countries," ADB President Takehiko Nakao said.
Facing a ban on export of select fruits and vegetables like mangoes and bitter gourd from the European Union on the issue of quality, the Indian authorities are tightening the inspection mechanism to reverse the ban that will come into effect from May.
Worried over the increasing number of rejection of consignments at the pack houses, the Commerce Ministry has now imposed stricter inspection and certification process.
The exports of all consumable items to the European Union have to go through recognised pack-houses under the vigilance of plant protection inspectors to improve the quality, reports media.
The finance ministry will make a pitch for infusing another Rs 7,000 crore of capital in state-run banks when the next government readies its budget for this fiscal year, an official with knowledge of the plan said.
In the interim budget presented in February, the government had announced Rs 11,200 crore for bank capitalisation in the fiscal year that started on April 1, less than the Rs 14,000 crore provided in 2013-14. The full budget for the year is expected to be presented in late June or early July.
Global steel demand is likely to grow at a faster pace of 3.3 per cent this year, driven by rising demand for the commodity from India, Brazil, Russia, West Asia and North Africa, according to a report.
“Global steel demand is forecast to grow faster in 2014 at 3.3 per cent, with more demand growth expected outside China, including India, Brazil, and Russia, as well as emerging markets in the West Asia and North Africa,” an EY report said.
It also said growth is likely in key end-use sectors like infrastructure and construction, automotive and oil & gas.
“The Chinese economy continues to be a determining factor for the global steel market in the medium-to-long term,” the report said.
The air bag manufacturers in the small scale sector can seek business from the India Post which is the country's largest network of postal delivery.
The opportunity is open to the MSMEs registered with the District Industries Centre, KVIC, Coir Board, NSIC or Directorate of Handicrafts, DGS&D and Handloom or any other body specified by the Ministry of MSME for the supply of nylon air mail bags oxford blue water repellent to the department of posts at its different postal store depots.
The Quality Council of India (QCI) and the National Accreditation Board for Education and Training (NABET) have been appointed as the National Monitoring and Implementing Units (NMIU) for the government's ambitious project to improve competitiveness of the MSME through a programme called 'Lean manufacturing Competitiveness Scheme' (LMCS).
The scheme will be implemented in 500 mini clusters spread across the country during the 12th Plan period.
A large number of textiles exporters are facing a huge financial crunch due to substantial delay in getting duty drawback since the last five months from all the major ports.
According to Manikam Ramaswami, chairman, The Cotton Textiles Export promotion Council (TEXPROCIL), exporters have been requesting the Customs to release the duty drawback amounts to them, as it is a refund of duties and taxes incurred at the inputs stage on export products. The delay is mainly attributed to non-availability of funds with the customs.
The trend of labourers migrating to urban areas in search of better employment prospects and fulfilment of their dreams remains an ongoing problem even as metropolitan cities are bursting at their seams with the influx of migrant workers. The industrial units which pay more than minimum wage to such labourers are the worst hit in this scenario.
“We feel the severe scarcity of labourers here now. Most of them are migrating either due to the socio-economic conditions or in search of better employment opportunities in the metros without knowing the pros and cons. Also, due to MGNREGA there is scarcity of labourers. The labourers from towns like Motihari and Sitamarhi migrate to Patna. But labourers from Patna and nearby towns move to metro cities. All types of industries, especially MSMEs are facing a huge crisis due to this,” said President of Bihar Industries Association, Arun Aggarwal.
The industrial financing institution, Kerala Financial Corporation (KFC) has extended Rs 989.48 crore as loans to the micro, small and medium (MSME) sectors of the state and achieved a growth of 49 per cent over the previous financial year.
KFC has registered a record growth in critical operational areas like sanction, disbursement, recovery, interest income during 2013-14.
The Punjab Energy Development Agency (PEDA) has announced big plans to set bio-mass energy projects in the state in order to encourage use of green energy.
PEDA is the state nodal agency for the promotion and development of new and renewable energy power projects in the State of Punjab.
Punjab is predominantly rich in agriculture and contributes the major share to the grain basket of India. It has surplus production of major crops. It produces 25 per cent of country's cotton, 22 per cent of wheat and 55 per cent of rice, even though it has only 1.5 per cent of total country cultivable area.
MSMEs in Uttarakhand face various operational problems pertaining to procuring inputs from domestic and local markets, burdensome interstate taxes, energy deficit, high energy costs and unavailability of skilled workforce, according to a study.
In addition, limited awareness about government schemes, lack of R&D activity and unavailability of finances have hindered progress of the units in the state. However, there has been improvement in the infrastructure facilities in the state in terms of transportation, abundance supply of water, technological advancement during the recent years though further improvement is required at various fronts, the study said.
To their utter shock, entrepreneurs in Noida have been slapped with arrear notices running into lakhs of rupees by the authorities which said that the dues are being collected for the last 20-25 years, as there were miscalculation at the time of land allotment.
In the last three months, more than 50 units in Noida have got such letters from the authorities, President of Noida Entrepreneurs Association (NEA), Vipin Malhan told KNN.
According to Malhan, the Noida authority and electricity departments are sending notices claiming that their past bills were not based on proper calculation and the units would need to pay the outstanding for 20-25 years with interest.
“The Noida Authorities have been sending letter to the units regarding irregularity while issuing no due certificate to them at the time of buying the land decades ago,” NEA President said.
China’s factory activity shrank for the fourth straight month in April, signalling economic weakness into the second quarter, a preliminary survey showed on Wednesday, although the pace of decline eased helped by policy steps to arrest the slowdown.
Analysts see initial signs of stabilisation in the economy due to the government’s targeted measures to underpin growth, but believe more policy support may be needed as structural reforms put additional pressure on activity.
The HSBC/Markit flash Purchasing Managers Index (PMI) for April rose to 48.3 from March’s final reading of 48.0, but was still below the 50 line separating expansion from contraction.
Facing the threat of sanctions by the US for what it terms India’s lax intellectual property (IP) rules, the Commerce Ministry is studying the possible impact on trade with the US if Washington goes ahead with its action.
The Office of the US Trade Representative is to come out with its annual Special 301 report by the month-end on the adequacy and effectiveness of IP rights protection by its trading partners.
If the report classifies India as a ‘priority foreign country’ — as demanded by the US pharmaceutical lobby — Washington could impose economic sanctions against India that will include withdrawal of duty-free benefits or imposition of penal duties.
The USTR’s earlier reports have put India under the ‘priority watch list’, as a country that needs to tighten its IP regime.
Singapore has always considered India as an important trade and business partner and both have been successful in strengthening these ties, Speaker of the island nation's Parliament Halimah Yacob has said.
Addressing the Singapore Indian Chamber of Commerce and Industry (SICCI) members, Yacob said the two countries have good track record of working closely.
She further said that SICCI has always recognised the importance of India as an economic partner for Singapore.
Pakistan has said it will allow imports of all items from India once the on-going election process in the country is over and New Delhi is in a position to implement the "arrangement'' of reducing subsidies on some items of export interest to Pakistan.
"Early this year, both the countries had agreed on an arrangement under which India would reduce subsidies on items that can be exported by Pakistan. But it could not be implemented as the model code of conduct came into play," Pakistan High Commissioner to India Abdul Basit said in an interaction with women journalists on Wednesday.
Basit said that once the new Government is in place in India, the whole issue could be reconsidered.
RBI-FISME Town-Hall meeting with Entrepreneurs from Badli Ind. Estate
Date : 2nd May 2014
Venue : Hotel Crown Plaza, Near Rithala Metro Station, New Delhi
Time : 3pm to 5pm
FISME Trade Delegation To Taiwan
Date: 06th May 2014 to 11th May 2014
Venue: TAIWAN See Details
Renewable Energy World India
Date: 05th May -07th May 2014
Venue: Pragati Maidan, New Delhi See Details
Led Expo Mumbai
Date: 08th May-10th May 2014
Venue: Bombay Convention & Exhibition Centre, Mumbai, India See Details
Date: 05th May -07th May 2014
Venue: Pragati Maidan, New Delhi See Details
India Knit Fair
Date: 07th May -09th May 2014
Venue: Pragati Maidan, New Delhi See Details
Date: 05th May -07th May 2014
Venue: Pragati Maidan, New Delhi See Details
Cargo Week Americas - Expo Carga 2014
Date: 3rd June – 5th June 2014
Venue: Centro Banamex, Mexico City, Mexico See Details
Central & not local constituency level factors influence elections 2014
According to the FISME Factor
, 80 per cent of the Micro, Small and Medium Enterprises (MSMEs), think that central & not local constituency level factors will influence election 2014.
Managing employee redeployment
Citing "changing market scenario and customer needs" both HCL Infosystems and Wipro shut down their PC manufacturing businesses last year. While the announcement to this effect was made at the fag end of 2013, insiders say the companies were preparing the ground for well over a year. One may argue that their concern was not misplaced since both the companies are listed entities and would have had to deal with the aftermath of such an announcement on their share prices. But it is equally possible that the two companies identified a new opportunity in the imminent closure of a certain division: The opportunity to re-evaluate workforce needs and redeploy talented employees impacted by the change to new roles within the company.
Calcutta-based angels investors seek out miracles outside City of Joy
Angel investors in Kolkata eager to get a slice of the action in India's booming startup scene are looking outwards as they find few opportunities in their city.
The Calcutta Angels, a network of wealthy industrialists, is evaluating young ventures in Mumbai and also Singapore as it looks to close its fourth investment. The group, set up last year, has invested in just one Kolkata-based startup so far.
Who shares Wins
Last month foods giant Nestle celebrated its own joy of sharing moment. With a recent campaign called ‘Share your goodness’, the foods major hopes to motivate consumers to look into their own experiences, share their goodness, recognise the goodness of others, engage with each other and create conversations that bring alive the values and emotions that spread warmth.
In its first phase the campaign launched on digital media with two films that focused upon instinctive human emotions and values. The first film is a story of two siblings and their insecurities, and how they bond with each other over food. The second film expresses its appreciation for the Dabbawalas of Mumbai who deliver home-made food to Mumbaikars every day and thanks them for their values of dedication, punctuality and commitment. Each of the 5,000 Dabbawalas was given a ‘Goodness Box’ filled with Nestle products.
Nasscom fears job & revenue loss as IT start-ups register overseas avoiding barriers
Disappointed with procedural hassles, several start-ups in the IT sector are registering themselves overseas to attract investments to avoid regulatory hindrances and unfavourable tax policies over which the Information technology (IT) industry lobby group Nasscom has expressed concern.
A large number of technology start-ups are registering themselves overseas each month, to save on high taxation and to attract foreign investment.
Women entrepreneurs give back to society
A number of small-scale women entrepreneurs in India are playing a quiet but key a role in empowering their less privileged counterparts, creating earning opportunities for them and enabling them to acquire identities of their own.
Bhagyashri Dixit, a young entrepreneur based in Pune, started SheepStop, an eco-friendly, 'designer T-Shirt' brand that crowd-sources its designs from a large community of artists across the world. The company is based out of Pune, employs an all-woman workforce and sells its products online as well as through select retail outlets across India.
How Shyam Sunder Mundra turned Ujaas Energy into a Rs 500 crore business
After completing my graduation in electrical engineering in 1967, I landed a job with the inspection department of the Madhya Pradesh State Electricity Board in Indore. It was here that I first thought of doing something on my own in the energy sector because I took a liking to it. However, the journey to build the Rs. 500 crore Ujaas Energy was laborious and I had to ensure that I didn't lose focus on my other goals.
The Central Statistical Office (CSO) released the Provisional indices for the month of March 2014 and also final indices for February 2014.
" In the business world, the rear-view mirror is always clearer than the windshield. "
- Warren Buffett, CEO of Berkshire Hathaway
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.
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Identification & Valuation of IPRs in MSMEs
Identification & Valuation of IPRs in MSMEs - Selected Research Papers.
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:
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