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Vol III, Issue 43: October 1, 2013 Activities   News   Reader Reactions   Members   Contact     Print Version  

President's Message

President - Mr D. Gandhikumar

" With constitution of a new pay commission, another massive financial burden stares at the country. The central government has not yet recovered from the shocks of the previous pay hike and continues to run in huge deficits since 2008, while finances of most states stands ravaged. It would further suck the resources required to build roads, bridges, schools, hospitals etc. Disproportionately higher salaries in government have a negative fall out on economy and society as whole. The clamor to get into the government by hook or by cook will become even higher among the youth. Although the priority of country is to create opportunities for millions of people who could employ themselves as well others. The country needs MSMEs. "

-Shri D. Gandhikumar, President FISME

Real News of Real Sector, the MSME Sector!

Share your concerns, news, views and success stories

Innovation Mantra

Date: 03rd October 2013
Venue: Hotel Waves, Rohtak, Haryana

See Details

FISME delegation to Metalex 2013 – November 2013

Date: 19-23 November 2013
Venue: Bangkok

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Indian Pharma Expo

Date: 20-21 Sep 2013
Venue: Pragati Maidan, New Delhi

See Details

India Hospitality Expo

Date: 19-21 Sep 2013

See Details

India Composites Show 2013

Date: 24-26 Oct, 2013
Venue: New Delhi

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Date: 01-03 October 2013
Venue: Bombay Convention & Exhibition Centre (BCEC) Mumbai

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Electri Expo

Date: 03 - 05 October 2013
Venue: HITEX Exhibition Centre, Hyderabad

See Details

International Commercial Vehicle Fair

Date: 04 - 06 October 2013
Venue: Chennai Trade Centre, Chennai

See Details

Residential training programme on ‘Effective Office Administration & Management’

Date: November 14-18, 2013
Venue: Port Blair

See Details

New duty drawback rates will help expand exports

FISME survey

According to the FISME Factorsurvey, 54 per cent of the Micro, Small and Medium Enterprises (MSMEs) think that new duty drawback rates will help in expansion of exports.

HR Heuristics

Leadership - a craft or a gift?

Generally, when most people hear the word leadership, they think of it only in the business context. They imagine leaders of companies, inspiring their followers to be more productive and committing themselves to their grand vision of the future.Actually, leadership is much broader than that. The task of the leader is to get his people from where they are to where they have never been .Leadership is really a philosophy for life.

Finance Fundamentals

Does envelope budgeting system help in your finances?

Nowadays, earning more is not the only aspect in the equation of building wealth. As expenses have increased, managing spending patterns has become an even important part of the wealth building exercise. It is often seen that many households are unable to control their expenses on a particular head irrespective of trying hard. A solution to this is to follow the Envelope Budgeting System.

Marketing Mantras

How to master the art of negotiating with clients

Being an entrepreneur means dealing with testy suppliers and pompous clients. It comes with the territory. That's why an entrepreneur has to be a good salesperson. And to make an effective sale or deal of any sort, you have to master the art of negotiation. But before we give you some essential tips about negotiating, let us begin by dispelling a common notion.

Policy Polemic

Noida Engineering cluster losing sheen and steam

Engineering cluster in Noida was constituted with much fanfare in Noida in the late seventies. The industrialists' response to this initiative by the Ministry of MSME was overwhelming and by the beginning of the nineties the cluster was contributing to more than 50 percent of the revenue generated by the Noida-based industries. However, ever since the subsidies have been taken off and tax sops announced by Uttarakhand and MNREGA causing labour crisis, this cluster's share in Noida economy has shrunk to around one third.

SME Special

Excellence in Exports Award

Supreme Plasticizers, an SME enterprise in Mysore, has been awarded Excellence in Exports Award in Mumbai recently. Minister for Commerce Anand Sharma presented the award to Vishal S., Executive Partner of Supreme Plasticizers at the awards ceremony organised by the Export Promotion Council, CHEMEXCIL.

Success Story

Success lies in the ability to reinvent one's venture

Hitesh Doshi was barely 16 years old when he came to the City of Dreams to get an education. But once the lad so much as set foot in Mumbai, all he could think of was running his own business. Although hungry to get started, Doshi first completed his graduation and finally took the plunge in 1989. From being a wide-eyed youngster from Rajkot to becoming chairperson of the Waaree Group has been a long and eventful journey, and one the 46-year-old Doshi cherishes more than anything else.


RBI issued circular no. DBOD.Dir.BC.No. 57 /04.02.001/2013-14 dated 25th September 2013 related to Export Credit in Foreign Currency

Quotable Quotes

" It doesn’t matter how many times you fail. It doesn’t matter how many times you almost get it right. No one is going to know or care about your failures, and neither should you. All you have to do is learn from them and those around you because all that matters in business is that you get it right once. Then everyone can tell you how lucky you are. "

- - Mark Cuban, owner of the Dallas Mavericks, co-founder of, founder of HDNet

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.
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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:
Coming August, K J Somaiya Institute of Management Studies and Research located in Vidyavihar, Mumbai is launching a certificate programme on Creating New Ventures.

Foreign Commonwealth Office Team visits FISME

After having set-up three IPR Facilitation Centers at New Delhi, Bangalore and Hyderabad with assistance of DC-MSME to help MSMEs acquire IPRs (Patents, Trademarks, Industrial Designs etc), FISME has set-up the IPR Exchange so that MSMEs can buy, sell or licence IPRs and unlock the hidden value in their intellectual assets. . The Exchange has been created by FISME with resources made available under the aegis of Prosperity Fund through British High Commission in India. On 18th Sept 2013 Mr. Andrew Mitchell, Director (Prosperity ), Foreign Commonwealth Office, London led a team to FISME to witness the progress of IPR Exchange for MSMEs. Mr. C.S. Goel, Treasurer and Mr. Arun Agarwal, Executive Member of FISME, Mr. Tarun Bansal, Member of Advisory Board of IPFC, New Delhi with senior FISME officials interacted with the delegation.

FISME recognises the importance of E-Commerce while unveiling the first eBay India Online Business Index report

E-commerce provides a big opportunity to the micro, small and medium enterprises to expand their reach, said Secretary General of Federation of Indian Micro Small and Medium Enterprises (FISME), Anil Bhardwaj. Urging the entrepreneurs to explore the e-commerce mode more, Bhardwaj revealed that more than 50 per cent of the orders to e-commerce websites come from non-metro cities. Also, more than 9,000 pin codes have been reached through e-commerce, he added. He also highlighted two important findings about e-commerce, “e-commerce that is happening now in India, happened 10 years ago in the US and four years back in China. E-commerce is not only attracting the buyers but also in more than 60 per cent of the cases, it is even influencing the decision of the buyers.

Make your mark with out-of-the-box business solutions

-Priya Nair, Vice President, Detergents, HUL
Last year, while on a visit to a remote village in Tamil Nadu with her CEO Nitin Paranjpe, Priya Nair, Vice President, Detergents, Hindustan Unilever (HUL), got a surprise. She saw a bottle of HUL's Comfort Fabric Conditioner in the house of a poor farmer. Fabric conditioner, by any stretch of the imagination, was not considered a mass-market product. This experience convinced Nair that there was a market for premium products even in rural India. As aspirations begin to change, consumers start upgrading," says Nair. As head of the more than $1 billion detergent business of HUL, the country's largest FMCG company, Nair is now betting on "premiumisation" to fuel further growth in the category. "I see this business moving forward on the premiumisation journey, but we also need to strike a balance between aspirations and reality," she says. Indeed, Nair is known for such out-of-the-box thinking.

[Adapted from the Most Powerful Women in Indian Business, Business Today]

A glass half full

Need for a holistic approach to external stability

The balance of payments numbers for the first quarter (April-June) of the current fiscal year were published on Monday by the Reserve Bank of India (RBI). Unlike in the previous quarter, there was no attempt to surprise the markets with an unscheduled early announcement of good news; the release was on the scheduled date and, as is now the practice, after market closing. One could infer from this that the news wasn't so good and, indeed, this was the case.
(Courtesy: Business Standard, Oct 1, 2013)

Macro Metre

Rs value should be 59-60 to a dollar: Chidambaram

Asserting that the right value of rupee is 59-60 to a dollar, Finance Minister P Chidambaram on Friday said that Government will make all efforts, including extending priority sector status to export credit, to boost shipments. “We think that based on the REER (real effective exchange rate) value that (59-60) is the right level of the rupee and it should not overshoot its mark. “But even at 59-60, I think it is extremely competitive to export to many markets,” the Minister told a gathering of exporters lobbies led by the Federation of Indian Exporters Organisation here.

RBI asks banks to open more MSE branches

The Reserve Bank of India (RBI) has advised banks to improve credit flow to micro, small and medium Enterprises (MSMEs) with focus on entrepreneurs from minorities. Towards this, it has directed banks to open more branches dedicated to small and medium enterprises (SMEs) in different micro, small enterprises clusters (MSE). “Banks have been advised to take appropriate measures to improve the credit flow to the identified clusters of micro and small entrepreneurs from the minority communities residing in the minority concentrated districts of the country.

TRAI against use of unregistered telecallers by leading banks; gives disconnection warning

The Telecom Regulatory Authority of India (TRAI) has warned leading banks and financial institutions against use of unregistered telemarketers for promoting their business in violation of provisions of “The Telecom Commercial Communications Customer Preference (Thirteenth Amendment) Regulations, 2010”. The banks/ financial institutions which have been flouting the aforesaid regulation by marketing their products and services through unregistered telemarketers are- Axis Bank; Citi Bank; HDFC Bank; ICICI Bank; Kotak Mahindra; PNB; and SBI.

Short takes: Monetary Policy: Sweet and sour

The unexpected repo rate hike announced by the new RBI governor Raghuram Rajan in the monetary policy on Friday spooked the markets. The hike to combat inflation overshadowed the moves to ease liquidity tightening measures imposed earlier. The rate of the Marginal Standing Facility (MSF), at which banks borrow overnight from the RBI, was lowered by 75 basis points to 9.5 per cent. This means lower short-term borrowing rates, and should see interest rates on one-year commercial paper settle at 9.5 per cent from 10.5 per cent currently.

Domestic Digest

Rehabilitation mechanism for sick MSMEs in Tamil Nadu

To address the persisting problem of sick micro, small and medium enterprises (MSMEs), Tamil Nadu has constituted a State Level Rehabilitation Committee (SLRC) which will look into the problems and the extent of sickness among MSMEs, suggest and implement measures for their rehabilitation. The Committee headed by Secretary, Department of MSME of the State and having representations of associations will formulate and approve the package of incentive schemes to sick MSMEs and issue guidelines for their implementation. It can also take over the assets of the sick MSMEs to discharge the liabilities thereof; reopen the closed enterprises; produce evidence of a suitable arrangement with the bankers in respect of repayment of outstanding dues of the taken-over enterprise.

Banks urged to ensure large firms make payments to SMEs on time

The perennial problem of delayed payments to small and medium enterprises by large Indian corporates was highlighted by a senior official of the Reserve Bank of India in Bangalore on Thursday. Delivering the keynote address at the SME CEO Knowledge Forum organised by The Hindu Business Line , in association with UTI Mutual Fund and Karnataka Small Scale Industries Association, RBI Regional Director Uma Shankar said banks must “exert (the) influence” that they enjoy with large industrial houses to ensure prompt payments to their SME clients. SIDBI and KPMG were associated with the event as “knowledge partners.”

eBay India seeks 'exporter' status and tax benefits for SMEs selling globally through eCommerce

eBay India has sought an 'exporter' status from the government for its retailers selling their products globally through ecommerce. Online marketplace eBay India said that the government should grant 'exporter' status to its retailers selling their products abroad and give them the same benefits as given to domestic exporters. Managing Director of eBay India Latif Nathani said this while unveiling the online business index report here. According to Nathani 21 per cent of retail export sellers are asking for such a status while 20 per cent demand customs exemption on retail exports below USD 25,000.

Rupee hits hard times: India woos offshore currency players

Stung by the rupee's recent collapse, the Reserve Bank of India (RBI) is taking a carrot-and-stick approach to curb trade in the offshore forwards market that is seen as a key source of wrenching currency volatility. However, with no viable alternative to trading in non-deliverable forwards (NDF) involving the rupee, the strategy is likely to have only a limited impact. The RBI recently met with a handful of foreign banks and asked them to stop acting as market-makers for rupee NDFs, according to three bankers involved in the discussions.

Pay panel for Govt employees to hit pvt sector; SMEs to get squeezed

Simplified regulations are needed to ensure more small and medium enterprises get aligned to the formal sector which will enable them to access bank finances on beneficial terms, a top government official said today. Absence of conducive regulatory environment and improper implementation of laws are acting as stumbling blocks for the sector to enter into formal segment, Micro, Small & Medium Enterprises (MSME) Secretary Madhav Lal said. “It’s high time that local authorities simplified the laws and regulation regarding MSMEs. We need an ecosystem in which MSME units are encouraged to come into the organised space,” he said.

BHEL ancillaries fighting for their share of work

Small industries in Vishakhapatnam have asked BHPV, a subsidiary unit of BHEL to provide them regular orders of components and other equipment. “BHPV has not been giving us regular orders and we are fighting for our share of work. We want 20 per cent of the work to be given to local SMEs on a regular basis,” said Visakha Autonagar Small Scale Industrialists Welfare Association (VASSIWA) President, Ramakrishna Narappareddy. VASSIWA is an association of BHEL ancillaries. Heavy Plates and Vessels Plant (HPVP) merged with BHEL in 2008 to become BHPV, the 17th division of BHEL. Narappareddy also said that delivery of raw material was always delayed, as also payment after submission of invoices.

KVIC seeks suppliers of fresh cotton bales and polyester

The Khadi and Village Industries Commission (KVIC) is keen to buy cotton bales of different varieties and seasons for the Central Silver Plants in Sehore, 39 kms from the state capital, Rae Bareli in UP and Hajipur near Patna in Bihar.The Centre also plans to buy fresh Polyester staple fibre for Sehore and Rae Bareli from the manufacturers.In this context, KVIC had invited bids from suppliers earlier this month and now have extended the date of applying for the bids from September 27 to October 7.

RBI appoints committee on credit to small businesses; Vikram Pandit on panel

The Reserve Bank of India (RBI) announced the appointment of a committee which will frame a clear vision for improving comprehensive finance services for small businesses and low income households. The announcement of the committee headed by Nachiket Mor, Member on the Central Board of Directors, RBI comes in less than three weeks of Raghuram Rajan taking over as RBI Governor. The 13 member committee includes former high profile CEO of Citi Group, Vikram Pandit. D Gandhikumar, President of Federation of Indian Micro and Small & Medium Enterprises (FISME) - the largest national MSME body, wholeheartedly welcomed the setting up of the Committee for Small Businesses and low income households

Proposal to revise wage of industrial workers to adversely affect MSME units

The Minimum Wages Advisory Committee has recommended revision of wages for industry workers, a move if approved by the government would hurt MSME units in the state, according to the Association of Industries Madhya Pradesh (AIMP). Given the economic slowdown and inflation which have led to high cost of production, the proposal will affect the industry, especially those is the steel sector, said Acting President of the Association of Industries Madhya Pradesh (AIMP), Vinay Kalan. Over the last five years, according to him, wages for industrial workers had already been increased for skilled, semi-skilled and unskilled workers by about 50 to 65 per cent in the state, which he claims is the highest in the country.

15 Indian and Chinese companies sign MoUs worth USD 338 million; SMEs also amongst them

Companies from India and China, including small and medium enterprises (SMEs) today signed 15 MoUs in different sectors involving purchase of industrial products worth USD 338 million by Chinese firms from their Indian counterparts. “India China Business Matchmaking Symposium”, organized jointly by Confederation of Indian Industry and Trade Development Bureau of China, welcomed the initiative of Chinese government to send a buyers’ delegation to India to encourage imports from India,” said Chairman, CII National Committee on MSME and Chairman, Deep Kapuria.

Andhra Pradesh    

New SBI branch in old Hyderabad to cater to SMEs

Small and medium units in the old city of Hyderabad will now have a dedicated branch of the State Bank of India to service them. The old city of Hyderabad, known for the historic Charminar is a hub of trading activity. In fact, a thriving market surrounds the market. While the Laad Baazar is known or jewellery, especially the stone encrusted bangles, the Pather Gatti is famous for strings of Hyderabadi pearls.

Life comes to a halt in Vizag

The bandh observed in the city on Tuesday in response to the call given by the Samaikhya Raashtra Parirakshana Vedika was near total and peaceful. Most of the shops downed their shutters voluntarily while a few traders, who chose to make a fast buck, were forced to close as protesters went around and sought their closure. Most of the shops and establishments in areas like Dwarakanagar, Jagadamba, Railway New Colony, Maddilapalem were closed voluntarily but those on the outskirts like Madhurawada remained open.


Haryana invites applications for energy conservation awards

The Haryana Renewable Energy Department has invited applications for state level energy conservation awards-2012-13 by october 11. While stating this here today, Renewable Energy Minister, Harmohinder Singh Chattha said that these awards would be given to the consumers of various categories who have made significant contribution in energy saving by adopting various energy conservation measures in their units and buildings during the year 2012.

Jammu & Kashmir    

J&K Bank plans to use technology for extending reach

J&K Bank is working out a plan to reach out to the areas and those sections of the societies which remain uncovered by banking including small and medium enterprises. In this context, the bank plans to use information technology and develop a core banking solution. J&K Bank intends to implement an online solution for financial inclusion in J&K state, the bank said in a notification. “The solution should be based on an online web application and should comply with the standards in terms of biometric (fingerprint) authentication at the end user,” the notification added.


KVIC offers month long agarbatti artisan course

To offer employment opportunities to unemployed youth and housewives, the Khadi and Village Industries Commission (KVIC) is offering a free month long agarbatti artisan course here from October-1. The Multi-Disciplinary Training Centre of KVIC will implement the programme. During the course, participants will be provided free hostel accommodation and will also receive a stipend of Rs 800 per month for residential trainees and Rs 500 for non-residential trainees.


Seminar on Anti-Dumping Duty on Bicycle and Bicycle parts in UCPMA

The newly elected team of the office bearers of United Cycle and Parts Manufacturers Association held a seminar with National Small Industries Corporation Limited regarding "Impact of Chinese Import on Indian Bicycle Industry". Rajesh Jain, Deputy General Manager, NSIC appraised the willingness of the MSME ministry to study the negative impact to Micro Small and Medium Enterprises (MSME) industry from the Chinese bicycle parts.

West Bengal    

State launches Shilpa Abhijan for budding rural entrepreneurs

The state government has initiated a unique entrepreneur development scheme for budding rural entrepreneurs with the department of micro and small-scale enterprises (MSSE) tying up with the Indian Institute of Management, Calcutta (IIM-C) at the ongoing Synergy MSME 2013 at Milan Mela. The scheme christened Shilpa Abhijan with the slogan ‘Shilpa Korun, Bangla Gorun’ (Create Handicrafts, Develop Bengal) would see the government reaching out to rural artisans across the state and make them self-dependent and economically stable.


Smeda trains 3,700 people to start own businesses

The Small and Medium Enterprises Development Authority (Smeda), under Pakhtunkhwa Hunarmand Rozgar Scheme (PHRS), has trained 3700 people to start their own businesses. Women and men having skills in different trades have participated in the training sessions, said a press release on Wednesday. Through the training, the participants have been imparted useful training relating to initiating own businesses, marketing of products, accounting and important role of entrepreneurship in economic development of the country.


Nigeria Launches Diaspora Export Programme

Cotton yarn, frozen fish, castor oil, and gaur gum are some of the most sought items of export from India which have generated interest among Chinese businessmen during the India-China Business Matchmaking Symposium. “Purchase of cotton yarn and cotton linter worth USD 93 million, frozen fish and linter worth USD 68 million are the prominent products for which Memorandums of Understanding (MoUs) were signed during the India-China Business Matchmaking Symposium for boosting exports from India to China,” said the Ministry of Commerce and Industry today.


Mr. Saumitra Chaudhuri, Member Planning Commission led an 8 member delegation to Canada

Bringing great relief to the Indian shrimp industry and its exports, the US Department of Commerce has decided not to issue countervailing duty (CVD) orders on imports of these products from India, China, Ecuador, Malaysia, and Vietnam. “United States International Trade Commission (USITC) determined that the US industry is neither materially injured nor threatened with material injury by reason of imports of frozen warm water shrimp from India, China, Ecuador, Malaysia, and Vietnam,” Ministry of Commerce and Industry said in an official statement.

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Business opportunities for India in Sri Lanka

There are business opportunities available for Indian companies in Sri Lanka. 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.

4 New Members Join FISME

During the period from 15th September 2013 to 30th September 2013 a total of 12 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
Email: ,   Mobile: +91 9312274911,   Website:
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Tel: +91- 40- 23322117 Fax: +91 -40- 23312116

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