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President's Message |
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Conflicting reports are emerging with regards to economic growth. Based on a new method of decoding statistics, we are told that the Indian economy grew 7.5% in the last quarter- perhaps the fastest in the world. It is also seen growing with the same steam in next quarters. The feel from the ground is not that rosy though. Business sentiments are positive, but most MSMEs are yet to see their order books swelling and their payments flowing in. Statisticians attribute the sudden jump in growth estimates to measurements of improved business efficiency. MSMEs wish they were true! Realistically, their hopes are pinned to budget especially the ease in access to credit.
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Dr. D. Gandhikumar, President, FISME
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Vol IV, Issue 76: February 18, 2015 |
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Activities |
FISME Bangalore Branch office in co-ordination with COWE (Confederation of Women Entrepreneurs conducted an IPR Awareness Programme on Saturday the 14th February 2015 for budding women entrepreneurs. The programme was inaugurated by Ms. Ruparani, Chairperson, COWE, Bangalore.
The programme started off with a welcome speech by Ms Shwetha Rao, Deputy Secretary and brief introduction of FISME by Ms Dorothy Saldanha, FISME, Bangalore branch. This was followed by a knowledge share session on IPR by Ms Poornima Ganesh - IPR consultant, an engineering graduate with a degree in law and experience of nineteen years in the field of IPR, spoke on various topics of IPR - patents , trademarks , Industrial designs , registration of patents , Govt schemes , and IP audit etc .
As it was an interactive session, participants found it very informative and showed keen interest on the subject and wanted the session to be conducted for a whole day.
Ms Dorothy Saldanha and Ms Shwetha Rao form FISME Bangalore branch proposed the vote of thanks to the participants and the speaker.
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Business Banter: Lessons from Entrepreneurs |
As a serial entrepreneur and a co-organiser of a crowd sourced startup ecosystem enabler, I often meet wannabe entrepreneurs who want to quit their jobs and do something cool. They are either bored in their jobs, not paid what they think they deserve, lack work-life balance etc etc. They believe that entrepreneurship provides a romantic path to freedom, an escape from the monotony of being a worker bee. There might be some truth to these visions, but I am not going to dwell on that. The purpose of this article is to share some perspective - based on my own experiences - on what not to do when you are starting up and how not to get carried away. Here are five common fallacies that could spell trouble for your business.
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Writing on the Wall |
IIP numbers (barely 2.2 per cent year-on-year increase during April-November), excise revenue collections (just 0.2 per cent growth in April-December), no signs of an investment revival and a poor year for agriculture. Then where is the 7.4 per cent growth — on top of the 6.9 per cent in 2013-14 — coming from?
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Media Monitor |
Macro Metre
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The roll-out of the Goods and Services Tax regime in 2016 will bring down the manufacturing costs, besides re-defining the logistics landscape of India, say industry and trade leaders.
Although there are still some apprehensions and issues to be sorted out, the Centre is keen on pushing ahead with this major tax reform, which was proposed in 2007, when an initiative was taken to examine the feasibility of replacing the current multiple taxes by a single tax structure.
Trade body Assocham today organised a meeting with stakeholders to clear some of these apprehensions and highlight the major benefits that the proposed GST will provide to the industry.
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Efforts to increase foreign direct investments (FDI) and improve ease of doing business can boost manufacturing only if fundamental aspects of economic development such as infrastructure availability, cost of capital and land acquisition are addressed, Commerce Secretary Rajeev Kher said.
“The first layer of issue that needs to be addressed remains consistent and should be addressed as soon as possible. That is what the government is taking as a challenge,” Kher said speaking at a CII conference on expanding India’s share in the world trade and the role of manufacturing sector in it on Tuesday.
The Commerce Secretary said the revival of manufacturing can’t be pegged to the growth in exports.
He said the prospects of domestic manufacturing have to be connected with the prospects of domestic consumption.
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The economic progress of any nation is closely entwined with the aspirations and capabilities of its corporate sector. That's why the success of India is inseparable from the success of India Inc. Economic juggernauts like the US and Germany owe their prosperity to a cadre of companies that, decade after decade, took the lead in staking out the future.
GE, Ford, Procter & Gamble, Amazon, Apple, Google, Siemens, Airbus, BMW and SAP are just a few of the leading American and European companies that have created enormous wealth for their countries while addressing global needs. In the developing world Haier and Alibaba in China, along with Hyundai and Samsung in Korea, are other examples of ambitious contenders who parlayed national strengths into global success.
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“Creation of job opportunities is vital not only for economic reasons, but politically too. On the social front too, employment generation is a critical factor, and the MSME sector can contribute a lot to attain this target,” said Tom Jose, Additional Chief Secretary, Department of Labour and Skill Development, Government of Kerala. Talking on ‘Issues Concerning MSMEs’ at the Business Standard Smart Business conclave at Thiruvananthapuram, organized in association with the Trivandrum Chamber of Commerce and Industries (TCCI), he said that India could have focussed more on small and micro units.
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Defence manufacturing and airport infrastructure besides aerospace, defence and civil aviation are some of the several sectors which will be a part of Aero India-2015 , the 10th international edition of the aerospace and aviation exhibition in Bengaluru.
AERO India, one of the largest premium airshows in Asia will be inaugurated by Prime Minister Shri Narendra Modi. This will be held from February 18-22. Over 600 companies and CEOs of around 300 Indian and foreign industries are expected to participate in the show.
Besides Karnataka, Gujarat and Andhra Pradesh which will have Special Economic Zone (SEZ) pavilions, heads and representatives from the Indian armed forces and paramilitary forces, a record number of small and medium enterprises are also attending the event.
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At a time when global competition is becoming serious and orders are being lost on razor thin margins the exporters of the country are wishing for some rebate in various taxes including upcoming GST, service tax and on the direct tax front in the forthcoming Union Budget 2015-16, said an apex exporters body, Federation of Indian Export organization (FIEO).
Speaking to SME Times about their wish-list for upcoming Union Budget-2015, the Director General, FIEO, Ajay Sahay said, "We are looking at a road map for GST, which may come in 2016 or 2017. But we want that at least a milestone should be decided for now and we should move towards those rates, which we want to achieve. And from export sector we want that all the state taxes may be brought under the state GST so that there is complete rebating for exports otherwise at the moment the draft, which have been circulated, does not cover all the taxes. for example the electricity duty, the sales tax on diesel and petroleum products these are not covered under the state GST."
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Eyeing a pie of growing e-commerce sector in the country, handicraft exporters are joining hands with big portals to tap the domestic market.
“There is a huge demand of handicraft products in India and e-commerce portals are the best medium to tap those consumers. Several of the handicraft players are joining hands with e-commerce companies,” Export Promotion Council for Handicrafts (EPCH) Vice-Chairman Rajesh Kumar Jain told PTI here.
He said at a time when the global economic situation is not in a healthy state, domestic market offers huge opportunities for exporters.
“Flipkart and Snapdeal are good platforms where we can sell our goods in India,” he said.
India’s handicraft exports declined by about 10 per cent year-on-year in January to $120 million.
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The Committee on developing financial architecture for MSMEs, headed by Chairman of ICICI Bank, KV Kamath has proposed a financial architecture to take MSME lending from the current level of rupees 10 lac crore to 30 lac crore.
The Committee which was set up last year by Department of Financial Services, Ministry of Finance, has submitted its report to the government few days ago.
Besides Kamath as Chairman, the members of the committee included secretaries of DIPP, MSME, Skill Development and Entrepreneurship, CMDs from banks, representatives of FISME among others.
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State Scan |
West Bengal
MSME and T Department, Government of West Bengal has commissioned a study to examine various Acts and Rules and related compliance procedures relevant for the micro, small and medium enterprises (MSMEs) in the state.
“KPMG has been engaged as the advisory consultant for this study, which is aimed to identify redundancy, duplication, overlap and complexity in the existing Acts and Rules and subsequently to simplify the same with a progressive approach suggesting desired amendments leading to improvement in the case of doing business in Bengal,” said a notification from FOSMI.
Uttarakhand
With an aim to end outward migration, encourage entrepreneurship and to effect an inclusive development in the state, specifically in the remote and flood hit hill areas, the Uttarakhand Government announced its first micro, small and medium enterprises policy.
The Policy includes various incentives like capital investment subsidy, interest subsidy and VAT reimbursement. Sudhir Nautiyal, additional director, department of MSME said that the policy shall remain in force until March 31, 2020, though the incentives can be availed of until March 31, 2025.
Under the policy the state has been divided into four major categories.
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World Watch |
Washington
The US Chamber of Commerce’s Global Intellectual Property Center (GIPC) released its third annual International IP Index, 'UP: Unlimited Potential' which found that 20 of the 30 economies examined in the Index improved their scores from last year.
"Twenty nations improved their score in the 2015 IP index, showing that leaders in both developing and developed economies increasingly recognize the connection between effective intellectual property protection and achieving their greatest economic potential." said president and CEO of GIPC, David Hirschmann.
The 2015 edition of the Index ranks 30 economies around the world, representing 80 percent of the world's gross domestic product (GDP). The index is based on 30 measurable criteria critical to innovation including, patent, copyright and trademark protections, enforcement, and engagement in international treaties.
Canada
A high-level delegation led by Canada's Associate Deputy Minister of Finance Tim Sargent will visit India this week to take part in a bilateral summit aimed at strengthening trade and economic ties between the two nations.
The India-Canada Economic and Financial Sector Policy Dialogue, which will be held on February 13 in New Delhi, will see both countries making joint commitment to building strong bilateral relationship and giving fillip to investments.
From Indian side, Additional Secretary in Department of Economic Affairs Dinesh Sharma will lead the delegation, the High Commission of Canada said in a statement.
Sargent will be joined by high level officials from Finance Canada, the Bank of Canada, the Office of the Superintendent of Financial Institutions (OSFI), the Canada Deposit Insurance Corporation and the Financial Consumer Agency of Canada, it added.
Srilanka
India and Sri Lanka on Monday expressed their commitment to unlocking the vast potential for economic cooperation between the two nations.
The commitment was made after an official meeting between visiting Sri Lankan President Maithripala
Sirisena and Prime Minister Narendra Modi here during which the two nations signed four agreements, including one on ‘Peaceful uses of nuclear energy’.
Addressing the media, Modi expressed his support for a more balanced growth in trade between the two countries.
“I conveyed our readiness to promote greater flow of Indian investment and tourists into Sri Lanka. We discussed expansion of cooperation in the energy sector, both conventional and renewable. Our commerce secretaries will meet soon to review our bilateral commercial relations,” the Prime Minister said.
Maldives
External Affairs Minister Sushma Swaraj today met her Maldivian counterpart Dunya Maumoon today during which they reviewed the developmental projects in the island nation and also the possible agenda for a likely visit of Prime Minister Narendra Modi there.
Maumoon, who is on a private visit here, met Swaraj and discussed ways to boost the bilateral ties and maritime cooperation.
"Ocean diplomacy. Maritime neighbours India-Maldives to strengthen ties as they commemorate 50 years of relations," tweeted the spokesperson of the External Affairs Ministry.
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Upcoming Events |
Intellectual Property - Awareness Programs
Date: December-February
Venue: Hyderabad, Chennai, Bangalore, Lucknow
Awareness Programme on QMS/QTT
24th February, 2015 Meerut
27th February, 2015 Bhiwadi
Delegation to TIMITOS-25th edition, Taipei, Taiwan
Date:2nd – 6th March 2015
Inception Workshops on Promotion of Regional Value Chains in SAARC countries
4th March, Coimbatore
11th March, Colombo, Sri Lanka
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Other Events |
India Software Engineering Conference
Date: 18th -20th February 2015 Venue: Radha Regent, Bangalore, India See Details
Aero India
Date: 18th-22nd February 2015 Venue: Yelahanka Air Base, Bangalore, India See Details
International Industrial Expo & Conferences Chandigarh
Date: 19th-22nd February 2015 Venue: Exhibition Ground Chandigarh, Chandigarh, India See Details
IHGF DELHI FAIR - INDIAN HANDICRAFTS & GIFTS FAIR 2015
Date: 20th-23rd February 2015 Venue: India Expo Centre and Mart, Greater Noida, India See Details
The Furniture Fair Hyderabad
Date: 20th-23rd February 2015 Venue: Hyderabad International Trade Exposition, Hyderabad, India See Details
Surat International Auto Expo
Date: 20th -23rd February 2015 Venue: Surat International Exhibition & Convention, Surat, India See Details
North India Solar Summit NISS2015
Date: 20th -22nd February 2015 Venue: Indian Institute of Sugarcane Research, Lucknow, India See Details
PowerElec-East
Date: 21st-23rd February 2015 Venue: Milan Mela Exhibition Complex, Kolkata, India See Details
India Expo- Hyderabad
Date: 25th February 2015 Venue: Venue to be announced, Hyderabad, India See Details
India India Steel 2015 (2nd International Exhibition & Conference on Steel Industry)
Date: 16th April–18th April 2015 Venue: Mumbai Exhibition Centre, Mumbai, India See Details
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Your Views |
Will the $1 Billion Assistance for Indian MSMEs by the US Government’s business development and finance arm really reach out to the Indian MSMEs ?
According to the FISME Factor, 44% of MSMEs think that the $1 Billion Assistance for Indian MSMEs by the US Government’s business development and finance arm will reach out to the Indian MSMEs while an equal number are apprehensive about it. The rest 12% disagree with this.
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Knowledge Store |
HR Heuristics
Managing Your Greatest Asset: HR Principles for Small Business
We’re all busy people, which is why the Small Business Success Library of books is a great way to get your hands on a lot of information vital to your success in easy bite-sized pieces. If you’ve been in business for any length of time, you’ve likely heard it said that your people are your most important asset.
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Finance Fundamentals
Ten ways small business owners can improve their financial literacy
As a small business owner, a deep understanding of your company’s financial situation drastically improves your chance of long-term success. When you know exactly where you stand in terms of your financials, you can plan for the future and avoid common financial management pitfalls.
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Marketing Mantras
Test. Analyze. Optimize. Maximize. Repeat. A Marketing Mantra for Small Business
Successful marketing campaigns are nurtured, not born. Luckily, there are unprecedented resources and technology available for small and medium-sized businesses (SMBs) like yours to make the most of your advertising and marketing investments.
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Policy Polemic
Interim report of Vishwanathan Committee on bankruptcy; MSMEs disappointed
The Bankruptcy Law Reform Committee (BLRC), set up by the Department of Economic Affairs, Ministry of Finance, under the Chairmanship of Mr T K Vishwanathan, has proposed setting up Committees for distressed Micro, Small and Medium Enterprises (MSMEs).
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SME Special
Two bankers from IIT Kanpur create a Mandii for SME financing
According to a study conducted by the International Finance Corporation, access to finance remains a key constraint to SME development in emerging economies. Small firms rely on internal financing much more than large firms and the likelihood of small firms having access to a bank loan in low-income countries is about a third of what it is for a medium-sized firm and less than half of what it is for a larger firm.
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Success Story
‘When I had no food and only Rs 50 in my pocket’ – a moving story of an entrepreneur
Whenever I close my eyes and think back, there is one memory that takes me down a lane in my past. I am sitting in my room in a flat in Zirakpur and have no money for dinner. In my pocket there is a Rs 50 note, which is all I have.
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Stockpile
The Central Statistical Office (CSO) released the Provisional indices for the month of January 2015 and also the final indices for December 2014.
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Quotable Quotes
“Mom & pop stores are not about something small; they are about something big. Ninety percent of all U.S. businesses are family owned or controlled. They are important not only for the food, drink, clothing, and tools they sell us, but also for providing us with intellectual stimulation, social interaction, and connection to our communities. We must have mom & pop stores because we are social animals. We crave to be part of the marketplace. ”
- Robert Spector, Author of business books, Consultant and Motivational Speaker
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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:
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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
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New Members |
During the period from 1st to 15th February 2015 a total of 5 new MSME became members of FISME.
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Editorial Team: |
Hon. Editor: Anil Bhardwaj
Asstt. Editor: Sunila Sharma
Ediotrial Assistant: Kalpana Sharma
Types setting & websdesigning: Sanjay Sachan
Video & Photography: Pramod Poddar
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