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


The FISME Factor


President's Message
Dr. Sangam Kurade, President, FISME " Dear friends, Namaskar !
At the time of receiving the baton of FISME’s Presidency, I find MSMEs on crossroads. While growth prospects loom, the banks are turning pusillanimous. (Even RBI Governor finds rate reduction useless as Banks fail to transmit reduction to consumers). While the GST still eludes, Service Tax rates are once again increased in its name. Another interesting development when I embark on this journey: burial of reservation policy. By de-reserving 20 remaining items from exclusive manufacture by MSMEs, the last relic of licence permit raj in MSME sector ( erstwhile SSI sector) has been done away with. The policy had become redundant following India’s joining of WTO in 1995 and removal of all the Quantitative Restrictions (QRs) from imports in 2001. In its current shape the policy allowed import of reserved items but restricted their manufacture in India by non-MSMEs which was ridiculous. FISME has been consistent in exposing the false notion of protection that reservation policy gave to many MSMEs after post WTO regime and called for its early scrapping. In today’s time, three critical ways to support MSMEs are through an enabling tax regime, ensuring ease of access to finance and ease of doing business. Let’s hope the gaze of the Government now turns to these more pressing and relevant issues. While we await for the wisdom to be drawn on powers that be entrepreneurs and businesses shall continue to march on with hope in their hearts: Woh subah kabhi to aayegi ! "
Dr. Sangam Kurade, President, FISME
Vol IV, Issue 80: April 15, 2015
FISME organises “Profit Mantras for Business” in Chandigarh
Business Banter: Lessons from Entrepreneurs
31 Business Lessons Every Entrepreneur Needs to Learn
Macro Metre
RBI proposes tough outsourcing guidelines for NBFCs
Foreign Trade Policy announces special schemes to boost merchandise
and services exports
Knowledge and News Network (KNN)
Make in India at Hannover: PM Modi invites global partnership in manufacturing sector Knowledge and News Network (KNN)
Domestic Digest
MUDRA Bank launched; to target 50,000 to 10 lac loan size Knowledge and News Network (KNN)
Business opportunity for Indian artisans in global handicraft trade fair Knowledge and News Network (KNN)
Big companies can now produce 20 items reserved for small industries
State Scan
Gujarat government launches industrial tourism to showcase development
Karnataka minister assures building of helipads at industrial areas Knowledge and News Network (KNN)
Amazon chooses Telangana over Karnataka to set up fulfilment centre; plans to train 1,000 SMEs Knowledge and News Network (KNN)
World Watch
Hannover Fair 2015: 5 things that stood out in PM Modi's 'Make in India' pitch to German investors
Australia keen to ink free trade agreement with India
Knowledge Store
The Best Financial Advice for Small Business Owners Now
Brand building: Impetus for SMEs to gain competitive edge
Reaping a rich, organic harvest
...And A Lot More

FISME invites Participation in Subject Committee

FISME organises “Profit Mantras for Business” in Chandigarh

FISME organised ‘Profit Mantras for Business’, 9th edition in the series, to accelerate the business growth and bringing practical wisdom to entrepreneurs along with Mohali Industries Association (MIA) on 10th April 2015 at Hotel Mountview, Chandigarh. Amongst 150 guests who attended the programme were Mr Gurkirpal Singh – President, Mohali Industries Association, who welcomed the guests, Mr. Gagan Chhabra- General Secretary, MIA, Mr R. K. Garg -Vice President, MIA, Mr Ramesh Chawla- Finance Secretary, MIA. A presentation on Alternate ways of Financing was given by Mr. Vishal Devanath, Founder & CEO, Smergers. This was followed by a presentation on New Style of Information Technology by Mr. Deepak Bajaj, Regional Manager, Hewlett-Packard (HP).
Business Banter: Lessons from Entrepreneurs

31 Business Lessons Every Entrepreneur Needs to Learn

Life is tough. Life as an entrepreneur is tougher. Your safety net is you. No health plan with 47 sick days. No paid vacation. No sabbatical after 10 years of mindbending effort. Speaker and international business strategist, Dan Waldschmidt, knows all about it. He is one of Clarity’s most popular experts when it comes to business and sales strategy, and here are a few reasons why: The Wall Street Journal calls his blog, Edgy Conversations, one of the Top 7 sales blogs anywhere on the internet.
Writing on the Wall

India's economic theory fashion cycles

by Ajit Balakrishnan

'Make in India' could suffer the same fate as did privatisation and the command economy..

The Indian tax system needs a complete overhaul

In India, no impact assessment is carried out before changing tax laws, says S Mahalingam, member of the tax reforms commission..


Media Monitor

Macro Metre

RBI proposes tough outsourcing guidelines for NBFCs

Proposing tough guidelines for outsourcing of work by Non Banking Finance Companies (NBFCs), Reserve Bank of India (RBI) said NBFCs should ensure that their outsourcing arrangements neither diminish their ability to fulfil their obligations to customers and RBI, nor impede effective supervision by the central bank. The move aims to ensure that their recovery agents do not resort to intimidation or harassment, either verbal or physical of borrowers.

Foreign Trade Policy announces special schemes to boost merchandise and services exports

Commerce Minister Nirmala Sitharaman today unveiled the foreign trade policy (FTP) for five years from 2015 to 2020 launching two new schemes - Merchandise Exports from India Scheme (MEIS) and Services Exports from India Scheme (SEIS). Under MEIS- which replaces five export promotion schemes under operation till now, a specific value of CENVAT/ Drawback Scrips shall be payable as percentage of realized FOB value (in free foreign exchange).

Make in India at Hannover: PM Modi invites global partnership in manufacturing sector

India has a huge potential to become a global manufacturing hub, Prime Minister Narendra Modi said today as he invited the whole world to partner with the fastest growing economy in this endeavour. "The entire world is looking at India. Demography, democracy and demand are attracting the world to India," Modi said as he along with German Chancellor Angela Merkel inaugurated the 'India Pavilion' at the Hannover Messe, the world's largest industrial fair.

PM Modi's Europe visit: India to project design, manufacturing prowess at Hannover fair

India will showcase its design, innovation, manufacturing prowess at Hannover Messe, the world's largest industrial fair, apart from yoga, wellness and culture to woo German business to invest in the country. India will be the partner country at the April 13-17 fair and will project India's brand image by incorporating many of the key core sectors of the Indian portfolio forming part of the 'Make in India' campaign. Prime Minister Narendra Modi, along with Chancellor Merkel, will inaugurate the 'India Pavilion' of the fair tomorrow.

Remove limits on overseas borrowings by corporates, recommends Sahoo committee: Report

A high-level government committee has pitched for a major liberalisation of the overseas debt framework for Indian companies. The panel headed by former Sebi member M S Sahoo has said restrictions on borrowers, lenders, end-uses, amount, maturity, all-in-cost ceiling must be removed as these were product of the time and had outlived their utility. "These must be removed as these do not address now the identified market failure associated with external commercial borrowings that is, systemic risk arising from currency exposure and global risk tolerance", the report made public on Friday said. The ECBs may be allowed to be accessed by any firm for any end use, it said.

Auto sector inclusion in India-EU FTA against 'Make in India'

The proposed India-EU trade liberalisation pact will not benefit domestic automobile firms and runs counter to the government's flagship programme 'Make in India, auto industry body SIAM has said. India should keep the labour intensive sector out of the purview of the free trade agreements particularly the proposed pact with the 28-nation European Union bloc. "FTAs with competing countries do not benefit Indian automobile industry, it is against the concept of 'Make in India' for local value addition and local employment and as such completely built units (CBUs) of vehicles and engines should be kept in India's negative list under India-EU FTA," Society of Indian Automobile Manufacturers (SIAM) said.

NITI Aayog in talks with stakeholder ministries to give shape to National Energy Policy

The government's National Energy Policy will bear a strong imprint of its think tank NITI Aayog, which has already started preliminary discussions with stakeholder ministries to draft a blueprint for India's energy road map to help meet the country's growing demand for solar, wind, gas and coal energy. "My colleagues at NITI Aayog will contribute to the National Energy Policy along with key ministries," Aayog vice chairman Arvind Panagariya said on Monday, adding that discussions are at a preliminary stage.

Domestic Digest

MUDRA Bank launched; to target 50,000 to 10 lac loan size

The Prime Minister Narendra Modi launched the Micro Units Development & Refinance Agency Ltd (MUDRA) to cater to the financial needs of over fifty million self-employed people. ‘Mudra will build on the only capital that fifty million landless self-employed people have: trust’, Modi said. The Initial products launched under the Pradhan Mantri Mudra Youjna are in three categories: Shishu- covering loan size up to Rs. 50,000; Kishore loan sizes from Rs. 50,000 to Rs. 5 lac and Tarun for loan sizes from Rs. 5 lac to Rs. 10 lac. At least 60% of the loans has been earmarked for loans sizes up to Rs. 50,000.

Big companies can now produce 20 items reserved for small industries

Big companies can now produce bread, pickles and chutneys, wooden furniture, fireworks, glass bangles and other things that had been reserved for small units. The government has lifted curbs on making 20 items that had been exclusively meant for micro and small enterprises, dropping one of the last remaining industrial production controls and opening the way for their manufacture on a large scale. In keeping with the various ease-of-doing business measures, the government said the move will encourage greater investment to upgrade technology and standards towards enhancing competition.

Business opportunity for Indian artisans in global handicraft trade fair

Indian artisans will get business opportunity by showcasing their products in the upcoming Art International Handicraft Trade Fair to be held from April 24 to May 3, 2015 at Fortezza de Basso, Florence, Italy. Office of DC (MSME) is participating in the 79th edition of the global event being organised by the Federation of Indian Export Organisation (FIEO). “The objectives of O/o DC (MSME)'s participation in this fair are to strengthen bilateral trade and promote Indian products and technologies and also identifying areas of exports in Italy,” said the Ministry of MSME.

Nasscom to bring SMEs onto executive council in inclusiveness push

In a move to become more inclusive, the National Association for Software and Services Companies will invite leaders of smaller-and-medium-sized companies to sit on its executive board and on the boards of its sectoral councils, BVR Mohan Reddy, chairman of the industry body, said. Inclusiveness is one of Mohan Reddy's key priorities as he takes over as Chairman of Nasscom for 2015-2016. Reddy's role as Vice Chairman has been filled by Tech Mahindra BSE 0.34 % Chief Executive C P Gurnani.

GST should address issues faced by etailers: study

Tax laws need to keep pace with the challenge posed by e-commerce to ensure appropriate taxation, said a joint study released by Assocham and Deloitte India. The report said that the government’s proposed Goods and Service Tax (to be introduced by April 2016), should be a modern tax to cover additive manufacturing, eliminate the anomaly of double taxation on software and address issues faced by e-commerce companies. Some of the other key challenges for e-commerce businesses include supply chain.

India's first IFSC becomes operational at GIFT City

India's first International Financial Services Centre (IFSC) at GIFT City near here became operational today and Finance Minister Arun Jaitley unveiled rules and regulations for this global financial hub. Jaitley also attacked the previous UPA government for being "lethargic" in giving permission to the IFSC. "Luckily, as soon as the government changed, things started moving fast and the new government has given all the due permissions. As a result, IFSC has now formally become operational from today. I am confident it will provide a huge lift to the economy of Gujarat as well as of the country," he said.
State Scan


Gujarat government launches industrial tourism to showcase development

In a first of its kind initiative in the country, Gujarat government is promoting a tour package covering major industrial installations which have earned global acclaim for the state. Some of the major attractions of this recently launched tour package include a visit to Tata Nano plant in Sanand, Pipavav port near Amreli, Alang ship breaking yard in Bhavnagar and Amul Dairy in Anand. The package, called Industrial Tour of Gujarat, has been offered by city-based Akshar Travels Pvt Ltd, official partner of state-run tourism agency Tourism Corporation of Gujarat Ltd (TCGL), which is promoting the tour on its website.


Karnataka minister assures building of helipads at industrial areas

Karnataka Small Industries Minister Sathish Jarakiholi on Sunday said measures will be taken to build helipads at the industrial areas in the state. Presiding over the progress review meeting at the Government Guest House here, Jarakiholi said that a survey of sick industries is planned. It could be taken up with the help of non-governmental organisations. Divisional level industrial adalats will be conducted next month.


Amazon chooses Telangana over Karnataka to set up fulfilment centre; plans to train 1,000 SMEs

E-retail giant Amazon has signed a memorandum of understanding with the Telangana government to help the small and medium enterprises take advantage of the digital economy. With this view, Amazon will teach as many as 1,000 SMEs based in the state to leverage the full benefits of e-commerce platform. The e-commerce giant will help them through seminars, workshops, video aids and ready reckoners on “how to list and manage inventory for an ecommerce business.”


BHEL commissions 600-MW thermal unit in Chhattisgarh

Bharat Heavy Electricals LtdBSE 2.98 % (BHEL) today said it has commissioned another 600 MW unit of a thermal power project in Chhattisgarh. The unit was commissioned at Dainik Bhaskar Power Ltd's (DBPL) upcoming 2x600 MW thermal power project located at Dhabra in Janjgir Champa district of Chhattisgarh, BHELBSE 2.98 % said in a statement. This is the second unit of the power project, commissioned by BHEL, it added. The first 600 MW unit was commissioned by the company last year.


Five Goa rivers to be developed for inland waterways

Union Minister for Road Transport, Highways and Shipping Nitin Gadkari today said that inland waterways would be developed through five rivers in Goa. "We have decided to develop 101 rivers for inland waterways, of which five are in Goa. We will take up the work in a phased manner," Gadkari told reporters here in the presence of Defence Minister Manohar Parrikar and Chief Minister Laxmikant Parsekar.Gadkari said that in the first phase, two rivers -- Mandovi and Zuari -- will be taken up for development. Chapora, Mapusa and Sal rivers would be taken up later.
World Watch


Hannover Fair 2015: 5 things that stood out in PM Modi's 'Make in India' pitch to German investors

With special emphasis on making India a manufacturing hub, Prime Minister Narendra Modi on Monday listed out multiple initiatives by the government to make the country investor friendly and pitched for his pet 'Make in India' initiative. Modi's pitch for attracting foreign investors to boost his 'Make In India' initiative came at the inauguration of the Indo-German Business Summit at the Hannover Fair where he and Chancellor Angela Merkel opened the India Pavillion. "Low-cost manufacturing, efficient governance and no-defect manufacturing makes India a global engine in the manufacturing centre," he said, adding there is a huge potential of India becoming a manufacturing hub.


Australia keen to ink free trade agreement with India

Australia has reiterated its desire to conclude a free trade agreement (FTA) with India by the end of the current year. This issue (FTA) was the main subject of discussion at a meeting between Australia’s Foreign Minister Julie Bishop and Finance Minister Arun Jaitley here on Monday. Both Prime Minister Narendra Modi and his Australian counterpart Tony Abbott had last year approved of such an agreement, signalling that political will existed at the top for the FTA. The interest on signing a FTA had gathered momentum since last year after Modi-led Government assumed power in May 2014 and Abbott taking steps to strengthen Australia’s relations with India.


Iran talks free trade, basmati imports with India while hosting Commerce Secretary Rajeev Kher

Expecting the removal of trade sanctions imposed on it by western nations, Iran has proposed a free trade agreement with India to boost bilateral trade and investment. The matter came up for discussion during the recent visit of Commerce Secretary, Rajeev Kher to Tehran. He was there for the first meeting of the joint working group (JWG) of the two countries. "Iran is very keen to enhance its trade relations with India. It wants to increase its share in the global trade and they said that India can play a very major role in fulfilling that ambition," Kher said.
Upcoming Events

Inception Workshops on Promotion of Regional Value Chains in SAARC countries

Date: 29th April 2015, Lahore, Pakistan
Other Events


Date: 16th -20th April 2015
Venue: SABARMATI RIVERFRONT, Ahmedabad, India
See Details

Zak Interior Exterior Expo

Date: 16th -19th April 2015
Venue: Chennai Trade Centre, Chennai, India
See Details


Date: 17th -26th April 2015
Venue: Bandra Kurla Complex, Mumbai, India
See Details

Ceramic, Tiles & Sanitary Ware Expo Jalandhar

Date: 17th -19th April 2015
Venue: Holly Hock Gardens, Jalandhar, India
See Details

National Seminar & Exhibition on Spices & Herbs

Date: 18th April 2015
Venue: NDMC - Convention Centre, New Delhi, India
See Details

Business Opportunities Show Noida

Date: 19th April 2015
Venue: Radission Blu, Noida, India
See Details

Blech India

Date: 22nd -25th April 2015
Venue: Bombay Convention & Exhibition Centre.., Mumbai, India
See Details

Role of IT in Logistics and Supply Chain

Date: 23rd April 2015
Venue: Hotel Palladium, Mumbai, India
See Details

Buildconstruct India + Interiors International

Date: 23rd -26th April 2015
Venue: Manpho Convention Center, Bangalore, India
See Details

Fresh Produce India

Date: 23rd -25th April 2015
Venue: Trident Hotel, Mumbai, India
See Details

NASSCOM’s Global In-house Centres Conclave

Date: 23rd – 24th April 2015
Venue: Hotel ITC Grand Chola, Chennai, India
See Details

Hi Tech Office Expo Noida

Date: 24th -26th April 2015
Venue: International Trade Expo Centre, Noida, India
See Details

Gujarat Expo 2015

Date: 24th -27th April 2015
Venue: Akota Stadium, Vadodara, India
See Details

India Auto Fair Noida

Date: 24th -26th April 2015
Venue: Expo Centre Noida, Noida, India
See Details

North India Solar Summit NISS2015

Date: 24th -26th April 2015
Venue: IIA Ground, Lucknow, India
See Details

Make In India: Vision 2022 for Non-Ferrous Metal Industry

Date: 25th April 2015
Venue: Hotel Vivanta by Taj President, Mumbai, India
See Details

Powertech India

Date: 28th – 30th April 2015
Venue: Bombay Convention and Exhibition Centre, Mumbai, India
See Details

Industrial Instrumentation and Control

Date: 28th – 30th April 2015
Venue: Pune College of Engineering Ground, Pune, India

National Conference on Advances in Mechanical Engineering

Date: 1st – 2nd May 2015
Venue: Vasavi College of Engineering, Hyderabad, India
See Details
Your Views

Will the opening of MUDRA Bank ease access to finance for MSMEs?

According to the FISME Factor, 89 per cent of Micro, Small and Medium Enterprises (MSMEs) think that the opening of MUDRA Bank will ease access to finance for MSMEs, while 11 per cent disagree.
Knowledge Store

HR Heuristics

10 Unusual Ways to Improve Employee Productivity

Employee happiness is not a myth; it can and does exist. There are number of quick, easy and low-cost ways companies can start boosting employee happiness and productivity. With employee productivity so crucial to business growth, it should be encouraging to companies to learn that employee happiness is so closely connected to their performance, because employee happiness is not a myth; it can and does exist.

Finance Fundamentals

The Best Financial Advice for Small Business Owners Now

More than a few of our clients at Glassman Wealth Services are small business owners and entrepreneurs, so I’m often asked to give advice on ways to improve their businesses or share ideas that will give them a competitive edge. As a small business owner myself, I know first-hand the challenges that many of my fellow small business owners face. But there are some smart things that small business owners should consider doing now. Here’s my top 3 tips:

Marketing Mantras

Brand building: Impetus for SMEs to gain competitive edge

Brand recognition is the keystone of any successful business, irrespective of its size. While multinationals see branding as an integral part of their business tactics, Small and Medium Enterprises (SMEs), which operate on shoestring budgets, often stand at a critical crossroads when it comes to marketing and brand building. However, there is a growing realization among Indian SMEs exhibiting a robust entrepreneurial spirit, that marketing and an effective brand strategy can rev up the revenue cycle and increase sales.

Policy Polemic

Govt mulls steps to encourage use of Jan Dhan accounts

Having opened over 12 crore Jan Dhan bank accounts under its flagship financial inclusion programme, the government is now mulling over ways to step up the utilisation of these accounts, including through POS transactions and the Business Correspondents. A meeting has been called by the Finance Ministry on Tuesday, April 7, of representatives from public sector banks and the business correspondents (BCs) of the banks, who can help in last-mile implementation of the inclusion efforts.

SME Special

"Quality Work Will on its Own Translate into Monetary Gains"

InfraBuild Venture Partners (IVP) was incorporated in early 2012 after working on the concept for almost three years. The journey has been exciting, but not without our share of struggle, setbacks and failures. Initially, the market was skeptical of our survival because of the high barriers of entry that exists in the sectors we decided to operate in - energy, defence, healthcare, financial services and trading. We in our endeavour also made some mistakes along the way, which is a part of the learning curve. However, the experience had ensured that now we have a clear vision and have made our own niche space. It took us more than a year and half to establish our credibility and get our feet firmly planted on the ground.

Success Story

Reaping a rich, organic harvest

Set up in 2012, ‘I Say Organic’ (ISO), a Delhi-based organic food retailer, envisages making organic produce a norm rather than an exception in the country. Ashmeet Kapoor, the firm’s 28-year-old founder, has been influenced by a healthy way of life. After graduating as an engineer from the University of British Columbia, he undertook entrepreneurship studies at Brown University. “I was too young to think about what I wanted to do,” quipped Kapoor when asked about his departure from engineering to agriculture. ISO liaises with farmer groups through an established network of partner associations. Most of the 3,000 farmers across 10 States engaged with these partners practise organic farming.


The Central Statistical Office (CSO) released the Provisional indices for the month of March 2015 and also the final indices for February 2015.

Quotable Quotes

If ethics are poor at the top, that behavior is copied down through the organization
— Robert Noyce, inventor of the silicon chip, Co-founder of Fairchild Semiconductor and Intel Corporation
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.
New Members

12 New Members Join FISME

During the period from 1st April to 15th April, 2015 a total of 12 new MSME became members of FISME.
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