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  The FISME Factor  


President's Message
Dr. Sangam Kurade, President, FISME " Two reports have come simultaneously which are a cause of concern. First, imports from China have risen significantly in 12 major MSME dominated product categories, between 2011-12 to 2014-15 (see KNN news). Secondly, China has devalued its currency to make its exports cheaper. This could exacerbate the already precarious conditions MSMEs face while competing with Chinese imports. On top of it our exports are also plunging. There is no respite, neither at home nor abroad. Amidst this, a delegation met Minister of State for Commerce and Industry, Smt. Nirmala Sitharaman recently. We presented a set of suggestions to augment MSME exports by rejigging the export promotion set-up so that larger number of MSMEs are enabled to explore niche markets. We also emphasized the need for regulatory bodies such as DGFT, RBI etc to adopt a more pragmatic approach while dealing with MSMEs. What is obvious is that ’business-as-usual’ approach would not suffice. Odds are stacked against MSMEs when they compete with foreign firms or large corporates. The need to have access to efficient infrastructure (industrial space, electricity, ports), adequate finance at competitive prices and ease in doing business. It’s time we acted. "
Dr. Sangam Kurade, President, FISME
Vol IV, Issue 87: August 15, 2015
FISME delegation meets Sitharaman to discuss declining MSME exports
Delegation from Dungguan (Guangdong China) visits FISME
Business Banter: Lessons from Entrepreneurs
Be kinder to yourself
Macro Metre
Industry body says China's currency war not double but triple whammy for India Knowledge and News Network (KNN)
NITI plans to improve governance in states Knowledge and News Network (KNN)
Govt launches mission 'Indradhanush' to revamp PSU banks Knowledge and News Network (KNN)
Domestic Digest
Devaluation Of Chinese Currency Rings Warning Bells Amongst Indian MSMEs
FISME demands empowered grievance redressal mechanism from
DIPP Expert Committee
Knowledge and News Network (KNN)
India MSME Expo to begin August 28
Commerce Ministry allows bulk exports of Rice Bran Oil
State Scan
Odisha Youth Innovation Fund Scheme launched Knowledge and News Network (KNN)
Over 5,000 international buyers to visit India industrial fair at Jodhpur
World Watch
China's yuan devaluation may hurt 'Make in India'
Indian SMEs has much to gain with country's increasing trade with Africa: ITC
Knowledge Store
US stint makes Kolkata street kid Ashok Pal an IT entrepreneur
...And A Lot More
FISME’s official Twitter handle
Anil Bhardwaj, Secretary General

FISME delegation meets Sitharaman to discuss declining MSME exports

In the wake of falling trends in Indian exports for the last few months, a delegation from Federation of Indian Micro and Small & Medium Enterprises (FISME) met Union Commerce Minister Nirmala Sitharaman to apprise her about the constraints faced by the MSMEs responsible for the decline in exports. FISME, which has a network of around 750 MSME associations, also suggested measures to the Minister for enhancing MSME exports. Some of the important issues discussed by the FISME’s Senior Vice President Anil Agarwal and Past President V K Aggarwal included Advance Licence period which has been reduced to 18 months; rigid provisions of the EPCH scheme; duty drawback scheme and more.

Delegation from Dungguan (Guangdong China) visits FISME

An official delegation from the People’s Government of Dongguan City led by Deputy Mayor of Dungguan, visited FISME on 3rd Aug 2015 to invite participation of Indian MSMEs under FISME-ICEC umbrella in Guangdon 21st Century Maritime Silk Road International Expo. Dungguan- the host city. is situated in the Guangdon province of China. It is a large and one of the fastest growing cities in China. FISME and ICEC are jointly facilitating participation of more than 50 MSMEs the 2015 Guangdong 21st Century Maritime Silk Road International Expo which will be held from October 29 to 31, 2015. The focused themes of the Expo are: Tourism, Building decoration material, Engineering, Food, Tea, Ceramics, Silk among others.
Business Banter: Lessons from Entrepreneurs

Be kinder to yourself

Should you insist on sky-high standards and be ruthless about improving your product? Yup, but balance that drive with a little gentleness toward yourself. Starting up is hard, so you won't make it through unless you keep your spirits up, suggest several entrepreneurial veterans. "Mistakes will be made so don't beat yourself up over these but learn, adapt, move forward and persevere with your vision and those lessons learned," Liu reminds founders.
Writing on the Wall

Devaluation deconstructed

China's move to devalue its currency last week has become the driving factor for global financial markets, overshadowing the US Federal Reserve's expected interest rate hike. In fact, the Fed may reconsider a September rate hike if the dollar appreciates further and the resulting increase in deflationary pressure is significant.


Media Monitor

Macro Metre

Industry body says China's currency war not double but triple whammy for India

The back to back depreciation of Yuan by China’s Central Bank for two days in a row, is the portent full-fledged currency war between competing and powerful economies of the world, said a study. According to a "Quick Check" analysis by the ASSOCHAM, sharp currency depreciation, the steepest by over two decades, will have a three-fold impact for India. Commenting on the surprise move by China which has spooked the global currency and stock markets, the chamber said that ironically this war would catch emerging economies like India in the middle.

Government offers seed, diesel subsidies to farmers hit by patchy monsoon

The government will offer subsidies on seeds and diesel to help farmers facing patchy monsoon rains in some key growing states, a government statement said on Wednesday. The government, which has earmarked 1 billion Indian rupees ($15.4 million) for diesel subsidies, will also ensure subsidised seeds are available in case farmers need to plant their crops again, the statement said after a cabinet meeting chaired by Prime Minister Narendra Modi.

NITI plans to improve governance in states

Almost a year after the announcement of its formation, NITI (National Institution for Transforming India) Aayog has come out with an initiative to improve governance in states. The Aayog will advise states to reduce the number of ministries and departments, rationalise schemes, revamp laws, and improve social indicators. The initiative is called Niyatam - NITI initiative to yield aspirational targets and actionable means. It will begin with Kerala, Rajasthan, Jharkhand, and Uttar Pradesh.

Govt launches mission 'Indradhanush' to revamp PSU banks

Finance minister Arun Jaitley on Friday launched a seven pronged plan-- Indradhanush--to revamp functioning of public sector banks. The seven elements include appointments, board of bureau, capitalisation, de-stressing, empowerment, framework of accountability and governance reforms. Banks board of bureau will replace existing appointments board. Its members would be appointed in the next six months to be headed by the RBI governor. Banks board bureau would also hold bad assets of public sector banks.

Domestic Digest

Devaluation Of Chinese Currency Rings Warning Bells Amongst Indian MSMEs

China, which tightly controls the value of its currency by setting a daily rate for Yuan versus US Dollars, on Tuesday devalued its currency by nearly 2 per cent, which certainly is not a good news for the Indian MSME sector. China's central bank announced a 2 per cent devaluation of its currency, following which Yuan witnessed its biggest one day fall in a decade. Currencies across the world have been impacted by China's surprise move. The move is likely to have a ripple effect on imports and exports as China is world's biggest trader and the Yuan is largely used overseas. The MSME sector in India, who are already the victims of cheap Chinese imports, are more worried by the move as the depreciated currency would make the already cheap products more cheaper, leading to increase in dumping.

FISME demands empowered grievance redressal mechanism from DIPP Expert Committee

Ease of doing business can never be achieved without putting in place an empowered mechanism for feedback and grievance redressal at all the three tiers of administration centre, state and districts. “A hapless MSME is nobody’s priority in the current scheme of things for various arms of administration which at times work at cross purposes,” said the delegation from Federation of Indian Micro and Small & Medium Enterprises (FISME) before the Chairman of DIPP Expert Committee. Government of India has constituted an expert committee to examine the possibility of replacing multiple prior permissions with pre-existing regulatory mechanism with a view to ease the process of getting clearances for setting up industries and businesses.

India MSME Expo to begin August 28

India MSME Expo and Summit, which is scheduled to be held here from August 28-30, will have more than 150 exhibitors from several Central and state PSUs, along with banks, private firms, service providers and innovators. The three-day event will focus on business and vendor development, drawing support from service providers for MSMEs, and explore avenues for government and financial support for MSME units. Rajnish Goenka, Member, National Board, Ministry of MSMEs, said: "Events like these are beneficial for the MSME sector, start-up entrepreneurs, innovators and service support providers. The MSME Sector has 94 per cent micro units most of which are not registered and hence are unable to take the benefits of various government schemes and promotions".

Commerce Ministry allows bulk exports of Rice Bran Oil

Commerce Ministry, on Thursday, allowed bulk exports of rice bran oil from India and has also removed the quantity ceiling on export of organic edible oils. Export of Rice Bran oil in bulk has been exempted from the prohibition on export of edible oils, Directorate General of Foreign Trade (DGFT) said in a notification. Also, the quantity ceiling on export of organic edible oils has been removed, the notification added. Export of edible oils was initially prohibited for a period of one year with effect from March 17, 2008 which was extended from time to time.

Govt approves plan for restructuring of Jute Corporation

The government has given nod to the plan for restructuring Jute Corporation of India to enhance its efficiency and capacity to handle huge quantity of jute to be procured from growers in the country, Parliament was informed today. "Based on the study done by Deloitte Touche Tohmatsu India Pvt Ltd, a restructuring plan has been finalised and approved with the objectives of reducing fixed costs and implementing methods of alternative revenue generation, Union Textiles Minister Santosh Gangwar said in a written reply to Lok Sabha.
State Scan

West Bengal    

IIT Kharagpur ties up with UK's to set up 'centre of manufacturing'

IIT-Kharagpur and UK based Warwick Manufacturing Group (WMG) joined hands to establish a centre of manufacturing in collaboration on the lines of 'Make in India' programme. Addressing the media persons after the 61st convocation of the premier institute, IIT-Kharagpur Director, Partha Pratim Chakrabarti said the institute is tying up with WMG to do research and development work in various manufacturing segments with industrial houses sponsoring the projects.


Odisha Youth Innovation Fund Scheme launched

To motivate and encourage young minds for innovative ideas, the state government today launched the Odisha Youth Innovation Fund Scheme. The scheme was being implemented by the Micro, Small and Medium Enterprises Department and aimed at inculcating creativity and spirit of innovation among the youth for the cause of the socio-economic growth. Launching the scheme, Chief Minister Naveen Patnaik said "The role of youth entrepreneurship has not been confined only to create enterprises, but also includes creation of the capacity to produce wealth, jobs and income, which are the most direct indicators of economic development."


Karnataka MP urges commerce minister to ban import of natural rubber

Dakshina Kannada MP, Nalin Kumar Kateel has urged the Union Minister of State for Commerce and Industry, Nirmala Sitharaman to consider banning import of natural rubber and address other issues of rubber growers. A delegation of Karnataka State Rubber Cultivators Hitarakshana Vedike (KSRCHV) presented a copy of the memorandum to the minister here on Wednesday. According to the memorandum, Rubber Board’s statistics reveals that there is a shortage of Rs 50,000 to 60,000 metric tons of natural rubber production in India as against the industrial requirement of the country. At the same time, the price of NR has crashed by one third compared with the price in 2012.


Over 5,000 international buyers to visit India industrial fair at Jodhpur

More than 5,000 international buyers will be participating in the India Industrial Fair (II Fair) to be held here from October 2 to 5. Manufacturers, suppliers and traders from various economic sectors will get business opportunity in the four day mega event being organised by Laghu Udyog Bharti. II Fair 2015 will be an expansive showcase of India's capabilities in the industry to an international audience. Industrial is closely working with trade associations and chambers to promote the event globally.
World Watch


China's yuan devaluation may hurt 'Make in India'

A sharp slowdown in exports is forcing China to revalue the yuan to improve competitiveness. Tuesday's devaluation was seen as an adjustment to match the devaluation of the Japanese yen and the euro, which had depreciated sharply against the dollar. But with China continuing to peg the yuan lower on Wednesday, dealers now see this as part of a series of moves to devalue it. Some experts see this as triggering off a currency war where exporting nations outdo each other in devaluing their currency.
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India, Egypt to enhance ties in waterways development

Union Minister of Shipping, Road Transport and Highways, Nitin Gadkari has called up on the Egyptian Transport Minister, Hany Dahy in Cairo to improve bilateral ties in waterways and port sectors. Gadkari is in Egypt to represent India at the inaugural ceremony of New Suez Canal on behalf of Prime Minister Narendra Modi. Egyptian minister Dahy expressed keen interest in India's ambitious plans for infrastructure development.
Read More    Back to Top


US seeks more clarity on India's FDI stance in e-commerce, defence

Making a pitch for foreign direct investment in multi-brand retail and ecommerce sectors, the US said it expected India to show more progress on these issues. "There has not been progress in FDI in multi-channel retail as well as web-based retailing in which we hope to see more progress on," US Under Secretary of Commerce for International Trade Stefan M Selig said on Wednesday. "In particular, even in those areas in which we have seen increase in investment caps, there is still hope that we can have some more clarification on what those caps will ultimately mean to the business and investors community," he told reporters here.
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Iran welcomes Indian private investment for Chabahar port project

Iran is open to Indian private companies investing in the development of Chabahar port, its foreign minister said on Friday. "We both, India and Iran, are eager to engage in this. I believe sooner rather than later we will start serious work," Javad Zarif told reporters in New Delhi, adding that the two countries have an agreement in place. India and Iran had signed a deal in May to develop the Chabahar port in southeast Iran.
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Indian SMEs has much to gain with country's increasing trade with Africa: ITC

According to the UN's International Trade Centre (ITC), Indian small and medium enterprises has much to gain with the country's increasing trade with Africa. "India has much to gain from increasing its share in the African market, ITC said adding that "Africa remains poised to be the growth miracle of this century.” “The statistics increasingly show that with the rise of the middle class in Africa, the youth-leaning demography, the technological leap-frogging which has been occurring and the tentative steps into global value chains, Africa is the market place and could be in some respects the supplier of the future," ITC said.
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Other Events

Machine Tool Expo Delhi

Date: 20th – 23rd Aug 2015
Venue: Pragati Maidan, New Delhi
See Details

IPCA Electronics Expo

Date: 20th – 22nd Aug 2015
Venue: Pragati Maidan, New Delhi
See Details

GrainTech India

Date: 21st – 23rd Aug 2015
Venue: Bangalore International Exhibition Centre, Bangalore
See Details

Gifts India Stationary Asia Write Show

Date: 21st – 24th Aug 2015
Venue: Nehru Centre, Mumbai
See Details

Dairybiz India

Date: 11th Sept 2015
Venue: Fortune Murli Park, Vijayawada
See Details


Date: 28th – 30th Aug 2015
Venue: Chennai Trade Centre, Chennai
See Details
Your Views

Does Skill India do enough to improve employment prospects of unskilled ?

According to the FISME Factor, 45.5 percent of Micro, Small and Medium Enterprises (MSMEs) think that skill India has improved employment prospects of the unskilled while 27.3 percent are not agreed with it and 27.3 percent can’t say anything
Knowledge Store

HR Heuristics

What Distinguishes a True Leader?

Leadership as a subject is taught in business schools globally. However, a fundamental question continues to be asked - Is the capacity to lead an innate trait or can it be acquired? I would say the answer lies in a combination of the two. People need to feel driven to lead. At least a part of their ability to be effective leaders comes from hands-on experience in meeting set goals, or while overcoming hurdles to achieve them. I strongly believe that an organization's success depends on the quality of its leadership. How it motivates its teams, handles challenges, or engages with stakeholders define that leadership. In this blog, I'd like to dwell on some of the behavioral traits that distinguish true leaders. They can serve as pointers for anyone in an organization aspiring to lead.

Finance Fundamentals

3 day disbursement to provide quick capital to SMEs

Capital Float, India's leading digital financing platform, and eBay India announced a premier partnership to provide quick and easy finance to e-commerce sellers across the country, in just under three days. eBay India is a leading online marketplace and together with Capital Float, it hopes to provide its seller-partners with that much needed shot of capital to help them win in a highly competitive market.

Marketing Mantras

Localize your small business market strategies

Small businesses often feel they can’t compete against larger companies with unlimited marketing resources. They overlook the potential marketing opportunities that come from reaching out to the community in which they’re located. A wide range of marketing strategies can help you connect with would-be customers in your local community. Here are tips to localize your marketing campaigns and boost your small-business profile in unexpected ways.

Policy Polemic

Govt to finalise national IPR policy in 3-4 months

The Centre is likely to finalise the policy on intellectual property rights (IPR) in the next 3-4 months and will come out with clarification on FDI in the e-commerce space, a senior government official said today. "We are in the final stages of drafting the national IPR policy. We expect it to be finalised in the next 3-4 months," Amitabh Kant, Secretary, Department of Industrial Policy and Promotion, told reporters here on the sidelines of a CII event.

SME Special

Innovative unique cold cube containers launched

Thermo King, a manufacturer of transport temperature control systems for a variety of mobile applications and a brand of Ingersoll Rand,announced the launch of its new innovative and unique Cold cube containers. The portable Cold cube containers equipped with adaptable cooling and freezing can be used for a variety of applications in the Indian market. Thermo King new Cold cube containers are specifically designed for transport refrigeration will be available in 6 different options and capacity ranging 140L, 330L, 915L. This unique product will give flexibility to customers to use it in multiple vehicle as per their need.

Success Story

US stint makes Kolkata street kid Ashok Pal an IT entrepreneur

Brought up on the streets and railway stations of Kolkata, youngster Ashok Pal is now a budding IT entrepreneur after winning a scholarship to study at a USA community college in Miami. Operating out of his modest rented room in Park Circus area, the 21-year-old's start-up " Sky Cursor" boasts of overseas clients for website development. "I started it this year in June after coming back for a year-long course in IT at the Miami Dade College. It was during my study there that I got the inspiration and the knowhow on how to start my own unit without being dependent on others," Pal told PTI.


The Central Statistics Office (CSO), Ministry of Statistics and Programme Implementation, has released the Quick Estimates of Index of Industrial Production (IIP) with base 2004-05 for the month of April 2015.

Quotable Quotes

“ Running a start-up is like eating glass. You just start to like the taste of your own blood. ”
– Sean Parker, Napster
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

5 New Members Join FISME

During the period from 01st Aug to 15th Aug 2015 a total of 5 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.
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Editorial Team:
Hon. Editor: Anil Bhardwaj
Asstt. Editor: Simmi Nagpal
Types setting & websdesigning: Sanjay Sachan  
Video & Photography:  Pramod Poddar


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