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Marketing Mantras
Website design: creating a site for your SME
 Provide your customers a HOME to visit, a place which is open 24/7 and is designed to reach them. The best websites are constructed in such a way to appeal the target audience of the company and there are three steps to formulate the perfect small business website.
Why ICT matters to SMEs?
 New communication technologies like mobile phones and the Internet are increasingly becoming a part of lives and SMEs cannot afford to shut their eyes to these developments, which have potential to dictate success and survival of a small business.
Finance Fundamentals
Simple tips for SMEs to reduce borrowing cost, save money
In today's cut throat competition a rupee saved is a rupee earned and more so for small enterprises that need to fight with global giants. With the following few tips, they can attempt to save some money.
Policy Polemic
Red tape makes India a hell of a place for SMEs to do business
 Governments that love red tape make it sheer hell for businesses, particularly small businesses, to operate. And governments in India, at every level from the Central to the States, appear to love weaving reams of red tape that constrain small businesses from realising their potential.
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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
FISME Policy Paper
FISME Policy Paper SME Exchanges in India: Review and Suggestions
Fertilizer quality control in India: Need for change
This monograph argues for a systemic change in fertiliser quality control. Essential reading for those in policy-making positions.
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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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Activities
Business Banter: Lessons from Entrepreneurs
Macro Metre
Domestic Digest
State Scan
World Watch
Knowledge Store
...And A Lot More
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 Shri R.S. Gujral, Finance Secretary, Govt. of India held a discussion with FISME team on range of issues concerning MSMEs in India including Union Budget 2013-14, SME Exchange, Public Procurement and Revival of sick units. Senior officials present during the meeting which was held in North Block, New Delhi on Nov 1st, 2012 included Shri Anurag Jain, Joint Secretary, Department of Financial Services and Shri P.K. Bagga, OSD, Department of Economic Affairs. FISME delegation was led by Shri V.K. Agarwal, President which included Past Presidents Shri Dinesh Singhal and Shri Neeraj Kedia and Shri Anil Bhardwaj, Secreatry General.
 A Nepalese delegation comprising of officials from the Ministry of Finance, Ministry of Industry and Federation of Nepal Cottage & Small Industries (FNCSI) visited FISME on Nov 6, 2012.GIZ Nepal coordinated the visit. Nepal faces big challenges to alleviate poverty. Starting up of cottage and small enterprises is identified as the most important strategy in this direction. The members of delegation were keen to learn about entrepreneurship and other MSME development institutions, especially the Indian experience in the field of private sector development.
 Reliance Commercial Finance in partnership with FISME and several other associations organised the eleventh India SME Forum on November 3, 2012 in ITC Maratha, Mumbai. The SME Forum is a series of events being organised to select SMEs for the ‘India SME 100 Award’ and ranking them under the India SME Forum & Award. Mr Dinesh Chandra Tripathi, Executive Committee Member, FISME & Managing Director NSD Global Trade Pvt Ltd started the session with the welcome address.
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Are views and concerns of MSMEs adequately reflected in Indian News Papers?
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“Unless there is fear (bhaya), there is no hunger (bhook);
Unless there is sacrifice (bali), there is no food (bhog)”
What do you do when you face tough times due to increased competition, margin pressure, sluggish growth and stagnating profits?
There are two principles that govern nature and the same two principles govern organisations: violence and seduction. How can you shake yourself of lethargy? How to reinvent yourself?
[Adapted from ‘Management Mythos’ series Devdutt Pattanaik, Corporate Dossier, The Economic Times]
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Macro Metre
 Belying hopes of an early economic revival, industrial production contracted by 0.4 per cent in September on account of dismal performance of manufacturing and capital goods sectors, prompting India Inc to press for interest rate cut by the Reserve Bank. The industrial output growth rate turned negative in September after showing 2.3 per cent growth in the previous month. The Index of Industrial Production (IIP) was at 2.5 per cent in the corresponding period of last year. The rupee fell by 12 paise to 55 against the American currency in the late morning trade on sustained dollar demand from banks and importers amid weakness in local equities. The rupee resumed lower at 54.98 against dollar from last Monday's closing level of 54.88. It dropped further to 55.08 before quoting at 55 at 1040 hrs. The domestic currency hovered in a range of 54.95-55.08 during the morning deals.  Driven by rising prices of food items such as sugar, pulses and vegetables as well as clothing, retail inflation moved closer to the double digit mark at 9.75 per cent in October. It was 9.73 per cent in the previous month, according to the Consumer Price Index (CPI) data released recently. The highest rise in prices during the month was recorded by sugar, up 19.61 per cent, year-on-year basis. It was followed by edible oil which turned expensive by 17.92 per cent, while pulses were dearer by 14.89 per cent on the annual basis.  Minister for Micro Small Medium Enterprises (MSME), K.H. Muniyappa has inaugurated the MSME Expo-2012, Techmart India 2012 and Khadi Pavilion at The India International Trade Fair (IITF) in New Delhi recently. In his address the minister said, "The objective of this exhibition is to recognize the strength of India's Micro and Small-Scale unit by showcasing the technology adopted by them in manufacturing products and also to provide a suitable platform at reasonable cost to develop a platform for future trade and business not only domestically but globally."
The government has released Rs 1,276 crore in the current fiscal to support 53,826 projects which are expected to generate about 4.31 lakhs jobs, the Minister of Micro, Small and Medium Enterprises (MSME), K H Muniyappa said recently. “During 2012-13, an amount of Rs 1,276 crore for 53,826 projects have been released which are likely to generate jobs for around 4.31 lakh,” he said on the occasion of the inauguration of Techmart at the India International Trade Fair (IITF) 2012 in New Delhi.
The Reserve Bank recently said it has allowed Small Industries Development Bank of India (SIDBI) to raise up to USD 500 million per annum (about Rs 2,700 crore) through External Commercial Borrowing (ECB) to fund small and medium scale industry. "...it has been decided to include SIDBI as an eligible borrower for availing of ECB for on-lending to MSME sector," RBI said in a notification.
 In order to strengthen the relation between the micro, small and medium enterprises (MSMEs) of India and Mozambique, the Minister for MSME, K.H. Muniyappa has recalled the friendly ties that India has historically with Mozambique. Muniyappa welcomed the visiting delegation led by Leda Hugo, Vice Minister of Education, Republic of Mozambique in New Delhi recently.
The Micro, Small, Medium Enterprises (MSME) Ministry will identify five lakh unemployed youths and will train them as entrepreneurs. In turn, they will provide jobs to eight people each who will help to solve the unemployment problem, said MSME Minister K H Muniyappa. He told Express recently that in the 11th financial plan, the Ministry had got Rs 11,000 crore and during the 12th five year plan, the Ministry received Rs 24,000 crore.
 The Ministry of Micro, Small and Medium Enterprises is scrutinizing the MSME schemes in order to take a decision which of them are to be continued during the 12th Five Year Plan period, said MSME Secretary Vivek Rae to SME Times recently. "Since the 11th five year plan has come to an end and the 12th five year plan is starting, we usually review all our schemes and see which are the schemes which are doing well, for which the demand is there and for which we are able to spend money. And, wherever there is a need for cost correction, we make the cost correction. So, we are doing this exercise now," he said on the side-lines of an event in the national capital.
 Merck India, a specialty chemical company, and part of the €10.3-billion Merck Group, plans to renew its focus on small and medium-size (SME) clients to grow its performance material business. The performance materials division of Merck comprises the units of liquid crystals and advanced technologies and effective pigments. Effect pigments is a multi-talented pigment, and finds use in a variety of sectors such as consumer goods, cosmetic, personal care and decorative paints.
Kakrapar Atomic Power Station of Nuclear Power Corporation in Tapi, Gujarat, Lanco Infratech in Korba, Chhattisgarh and Nobel Synthetics, Navi Mumbai, have bagged safety awards for 2011. The awards, instituted by the National Safety Council of India, are given to organisations in the manufacturing, construction and MSME sector.
Karnataka Bank has reduced its base rate by 25 basis points with effect from November 10. The bank’s base rate now stands reduced to 10.75 per cent from the earlier 11 per cent. As a result, all its base rate linked loans get cheaper by 25 basis points. A bank release said recently that the reduction is applicable to the existing loans and also for the future loans. This will enable retail and MSME customers to avail funds at reduced rates.
The net profit growth of State Bank of India was driven by one-off items even as asset quality stress continues unabated. Muted net interest income growth due to fall in margins also took a toll on the profitability. SBI wrote provisions worth Rs 260 crore back, which it had set aside for investment depreciation. This coupled with Rs 230 crore profits on sale of investments led to a net profit growth of 30 per cent. Hit by a slowdown in steel demand from auto makers, Tata Steel is looking at new avenues and is targeting the small and medium enterprises (SME) sector. At the launch of its Astrum brand of hot-rolled steel, T.V. Narendran, the head for flat steel in the company, said the company is planning to sell 1 million tonnes of the product next year, generating Rs. 4,000 crore in revenue.
Infrastructure firm Bronze Infra-Tech recently surged by seven per cent over its initial public offering (IPO) price on its debut trade on the BSE's SME platform. The company has become the 11th firms to get listed on the BSE's Small and Medium Enterprises (SME) exchange. Bronze Infra-Tech attracted robust investor demand for its shares and saw its stock opening at Rs 16.70 per share -- 11.33 per cent above its IPO price of Rs 15.
SMEs are adopting automation solutions to ensure high quality products, enabling them to be competitive and face multiple challenges. eProcBay Services provide simple, yet powerful, solutions to ensure success for SMEs. Edge Business Solutions Private Limited has especially designed the services to suit the Indian working environment.
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Andhra Pradesh
MSMEs are the engine of economic growth: official
 Krishna District Industries Centre General Manager G. Rajendra Prasad recently said micro, small and medium enterprises (MSMEs) were the engine of economic growth and for promoting equitable development. Addressing a meeting organised in connection with the MSME Day celebrations at the Automobile Technicians Association Hall in Autonagar, organised by the Andhra Pradesh Small Industries Association and the DIC, Mr. Rajendra Prasad said a major advantage of this sector was its employment potential.
Punjab
Road show held to promote engg expo
The association of Ludhiana Machine tools industries recently organised a road show to promote the upcoming Engineering Expo which will be organised from December 20 to 24 at Greater Ludhiana area development authority (GLADA) grounds. The show was flagged off from district industry centre (DIC) by GM Mahesh Khanna and Director of Micro small and medium enterprises (MSME) B S Dhillon.
Maharashtra
Andheri SMEs welcome CRR cut by RBI
Last month the Reserve Bank of India (RBI) slashed the cash reserve ratio (CRR) - the minimum amount banks have to keep with RBI - by 25bps to 4.50 percent, while keeping the interest rates unchanged. The move is still causing ripple effects within the government. The SME sectors from Andheri East are happy with the RBI move. "RBI intends to keep the liquidity easy and support growth," D Subbarao, RBI governor said earlier.
Madhya Pradesh
RBI Deputy Gov concerned about shrinking credit to MSMEs
Reserve Bank Deputy Governor K C Chakrabarty recently said MSMEs (micro, small and medium enterprises) play a major role in employment generation and economic growth and expressed concerns over declining credit to the sector in Madhya Pradesh. "The MSMEs play important role in employment generation and contribution to economic growth," he said addressing a seminar on 'Issues and Challenges in Micro Small and Medium Enterprises Financing' in Bhopal.
Uttar Pradesh
Proposals invited for industrial clusters
In a bid to boost small scale industrial investment, the state government has decided to invite proposals for developing two industrial clusters in each district, a government spokesperson said recently. The decision was taken at a review meeting presided over by small scale industry minister Bhagwat Charan Gangwar recntly. Gangwar said that such proposals should reach Udyog Bandhu by December.
Uttarkhand
The Uttarakhand government has decided to set up a separate department of micro, small and medium enterprises (MSMEs) in the hill state. The new department is likely to benefit nearly 40,000 MSMEs, which have mushroomed in the state. “This is a unique experiment through which we are setting up a separate department of MSMEs, to strengthen industries, especially khadi and village industries,” said Chief Minister Vijay Bahuguna.
Orissa
Government urged to promote sale of MSME products
Micro, small and medium enterprises (MSMEs) have called upon the Government to come out with a reservation policy for procurement of MSME products manufactured in the State by the large- scale industries, PSUs and Government departments. The Centre, in its Public Procurement Policy for MSME-2012, provides for procurement of 20 per cent of the requirement of the Central Government departments and PSUs from the MSME sector.
Tamil Nadu
Subsidy must be given to low-power generators: trade body
The Tamil Nadu Small and Tiny Industries Association (TANSTIA) has called upon the State government to give subsidy being given to high-power generators to the smaller genets also as they are used largely by the micro, small and medium enterprises (MSMEs). While thanking the government for enhancing the capacity of generators eligible for subsidy from 125 KVA to 320 KVA and increasing the ceiling of subsidy to Rs. 5 lakh from Rs.1.50 lakh with effect from November 11, 2008, the trade body said that most of the small units used only smaller generator sets with a capacity of 10 KVA to 30 KVA and will not benefit from the subsidy.
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Europe 
 The banking and debt crisis is increasingly restricting access to credit by the euro zone's small and mid-size firms, according to a study released recently by the European Central Bank. The report is based on a survey carried out between Sep 3 and Oct 11 among 7,514 companies in the euro area. "Access to bank loans continued to deteriorate," the text said, citing a 22 percent worsening in the availability of credit.
China 
 Private funding is no longer the only way small companies can raise capital in Wenzhou as the city moves toward financial reform that will inject more money into the system to help small and medium-sized enterprises. In March, Wenzhou was selected by the State Council as the nation's first lending pilot project after a number of local entrepreneurs failed to repay their debts last year and fled.
UAE 
As part of efforts to assist SME growth in the emirates, Dubai Chamber of Commerce and Industry launched its ‘Guidelines for Enhancing SME Finance’ during a seminar held at its head office recently. The seminar, held in cooperation with the Ministry of Economy, sought to highlight efforts aimed at reducing the gap between supply and demand of SME finance. It provided SMEs with a unique opportunity to learn what essentials are required when applying for financing, how to maximise the effectiveness of an application, and speak to bank representatives on the spot.
Indonesia 
Participants in the 13th Asia-Europe Business Forum (AEBF) paid particular attention to small and medium enterprises (SMEs) during the two-day meeting that ended recently. Held back-to-back with the ninth Asia-Europe Meeting (ASEM) Summit in the capital of Laos, the forum recommended, among other things, the need to establish specific credit guarantee funds with financial and technical assistance from international development banks.
Ireland 
SMEs accounted for almost all businesses in the Republic in 2010 but generated just half of turnover, according to a new analysis from the Central Statistics Office. The Business in Ireland 2010 study also found that SMEs, which represented 99.8 per cent of enterprises, accounted for 46.8 per cent of gross value added, a key measure of business income.
U S 
 The American Chamber of Commerce in Shanghai (AmCham Shanghai) launched its SME Center recently, an initiative dedicated to boosting the competitiveness of U.S. small- and medium-sized enterprises (SMEs) competing in China. Located in the Chamber’s Shanghai office, the SME Centre will provide services and resources tailored to the needs of American small businesses exporting to China and those considering the China market as a destination for investment and business expansion, according to Brenda Foster, president of AmCham Shanghai.
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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
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TThere are business opportunities available for Indian companies in Turkey. The interested candidates can check details.
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During the period from November 1 to November 15, 2012 a total of 4 new MSMEs became members of FISME.
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