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  The FISME Factor  


President's Message
Dr. Sangam Kurade, President, FISME "Curtains fall on the year 2015. For industry it brought mixed results. While the demand has remained sluggish, the business environment also hasn’t improved much for doing business. Bills that were to create business environment more efficient such as of GST and repeal of 1000 old laws have got stuck in the Political logjam and those which added to the woes passed. The case in point is the Payment of Bonus (Amendment) Bill 2015 passed by the Lok Sabha in Dec’15. It awaits assent of the President of India. The Bill makes the compliance effective retrospectively from April 2014. The retrospective clause is going to make life difficult for almost all businesses. (See accompanying KNN news) Different Ministries keep coming with new Bills without realizing the cost the new legislation will put on the business. It is time a constitutional body for Regulatory Impact Assessment is constituted to review all legislation- existing or upcoming. That’s the reform we should all push for on 2016. With you all a very happy and prosperous new year! "
Dr. Sangam Kurade, President, FISME
Vol IV, Issue 97: January 1, 2016
FISME delegation meets ED, Reserve Bank of India
Business Banter: Lessons from Entrepreneurs
Shivpriya Nanda: Starting out - what does an entrepreneur need to have in place?
Macro Metre
Government seeks ideas from public for Budget 2016-17 Knowledge and News Network (KNN)
FDI gets reform push in 2015, Government expects 45% jump in 2016 Knowledge and News Network (KNN)
India Handloom Brand was a boon for Handloom Industry, say manufacturers
Domestic Digest
While India Fast tracks 'Make in India', MSME sector suffers credit squeeze
RBI's financial inclusion report focuses on MSMEs Knowledge and News Network (KNN)
Retrospective applicability of Bonus Bill rattles MSMEs
State Scan
Chennai floods wash out Rs 1700 crore of MSME business Knowledge and News Network (KNN)
Chhattisgarh Govt approves annual plan of Rs. 34715 crore for the year 2016-17
Rs 15 crore project of Mysore Printers Cluster to be developed at Koorgalli Industrial Area
World Watch
Government clears tax information exchange pacts with Maldives, Slovenia
India & Denmark collaborate to take SME's forward
Knowledge Store
How start-ups can hire the right employees
...And A Lot More
Happy New Year 2016

FISME delegation meets ED, Reserve Bank of India

A delegation of Federation of Indian Micro and Small & Medium Enterprises (FISME) led by Chairman, Banking and Finance Committee, Neeraj Kedia met Executive Director of Reserve Bank of India (RBI) U.S. Paliwal in Mumbai recently to highlight rising MSME concerns about the fall out of faulty third party Credit Rating mechanism and increasing demands of collateral securities by banks. The MSME sector has been consistently raising the issue that because of rising NPAs in banks due to their over exposure in sectors such as consumer loans, infrastructure, mining and telecom, banks are demanding additional collateral securities even from the existing MSME borrowers.
Business Banter: Lessons from Entrepreneurs

Shivpriya Nanda: Starting out - what does an entrepreneur need to have in place?

For many young entrepreneurs, the legalese around formally setting up shop in India can be overwhelming. Having a game-changing idea for the next big disruption is great, but for that idea to be executed in business is quite another thing. To that extent, if the idea is the foundation of your business, the legal and commercial tenets are the support structure around which your business will build itself. There is no one size fits all answer to how an entrepreneur should and could get his business off the ground - several factors weigh in while making such a decision.
Writing on the Wall

Insolvency and Bankruptcy Code

A critical building block for a mature market economy

By Abizer Diwanjiy

“Why a new code and what’s wrong with the prevailing framework? How can the proposed code lead towards a robust bankruptcy framework? ”

Insolvency and Bankruptcy Code: A legislation to promote investments, develop credit markets

(Adapted from the Editorial Section, The Indian Express)

Currently, there is no single law dealing with insolvency and bankruptcy in India


Media Monitor

Macro Metre

Government seeks ideas from public for Budget 2016-17

The fate of some of the important Bills is hanging in the Parliament as the Winter Session is witnessing frequent disruptions by the political parties. PM Modi had on Thursday had said that repeated disruption of both houses of Parliament by Opposition was a “matter of sorrow” and that besides the GST Bill, many “pro-poor steps are stuck in Parliament”. Meanwhile, Micro, Small and Medium Enterprises Development (Amendment) Bill, 2015 is one of the 10 most important Bills pending in the Parliament.

FDI gets reform push in 2015, Government expects 45% jump in 2016

Bullish on a series of reforms unveiled in the year passing-by, the government expects FDI inflows to rise by 40-45 per cent in the New Year while further steps could be on anvil to attract foreign capital. As per the latest available figure for 2015, FDI inflows during January-September period has increased by 18 per cent to USD 26.51 billion. In the entire 2014, India had received FDI worth USD 28.78 billion as compared to USD 22 billion in 2013.

Government sets up Rs. 40000 cr. NIIF

In a positive move, the Government has set up a 40000 crore National Investment and Infrastructure Fund (NIIF) and its Chief Executive will be finalised by January end in coming year. Union Finance Minister Arun Jaitley told that several sovereign funds and pension funds from Russia, Singapore, UK and UAE are willing to participate in the fund and cooperate with it at various levels. The NIIF Governing Council will meet again in March to review the progress in the participation of the funds that are willing to invest, Jaitley said.

No crisis in India on export front, no need for alarm: Commerce Ministry

There is no crisis in India on the export front and while there is a need for caution, there is no need for alarm, Commerce & Industry Ministry said. The statement comes at a time when the concerns are being raised by the industry, exporters and the experts over the falling exports. “A general sense of alarm has been generated by the publication of figures of India's exports in recent months,” the Ministry said. During the period April-November 2015 total exports in dollar terms were USD 174.3 billion which shows a decline of 18.5% over corresponding period figure of USD 213.8 billion in 2014. Ironically, the latest Index of Industrial Production (IIP) figures for October 2015 show considerable growth at 9.8% over the previous year. For the cumulative period April - October 2015 growth in IIP was 4.8%, more than double the growth recorded (2.2% during April - October 2014) in corresponding period during 2014.

India Handloom Brand was a boon for Handloom Industry, say manufacturers

Ever since the government has launched the India Handloom brand in the market, it has become a boon for the Handloom Industry. The Government has decided to organize regular exhibitions/sale festivals in large cities across the country, in order to provide regular marketing facilities for promotion of handlooms and handicrafts. KNN caught some Handloom weavers who had come to Delhi to exhibit their products during an exhibition, India Handloom brand has helped them increase their business once which was suffering since long.

Domestic Digest

While India Fast tracks 'Make in India', MSME sector suffers credit squeeze

While the Government is pulling all stops to jumpstart manufacturing in India, the MSME sector, the vast bottom of the manufacturing Pyramid is going through a severe credit squeeze. Recently released RBI data shows, the Micro, Small and Medium Industries gross Bank credit has reduced by nearly 6% between April and October, 2015. If compared with the figures for same period a year back, the situation is nearly same. Between October 2014 and 2015 credit supply to the MSME industries has increased by only 1.2 %, from Rs 4768 billion to Rs 4829 billion, whereas between October 2013 and 2014, the credit growth to the sector was a phenomenal 11.3%.

RBI's financial inclusion report focuses on MSMEs

The Reserve Bank of India (RBI) has released Mohanty panel Report on medium -term path inclusion. Its aim is to deliver the financial services at affordable costs to the weak and low income segment of the society. However, the report also focuses the Micro small and medium enterprises (MSMEs). The report suggested that there should be a system of unique identification for all MSME borrowers and sharing of such information with credit bureaus. Establishing a system of professional credit intermediaries/advisors for MSMEs to help both the sector banks in credit assessment, the report said.

Retrospective applicability of Bonus Bill rattles MSMEs

The Payment of Bonus (Amendment) Bill 2015 passed by the Lok Sabha on 22nd December 2015 has created quite a stir in the industry. The Bill, awaiting assent of the President of India, is slated to be become effective retrospectively on the first day of April 2014. “The applicability of this Act with retrospective effect will have disastrous effect upon industry, particularly MSMEs. Many industries who have already paid bonus by way of ex-gratia or performance bonus or under any other nomenclature, will now be required to pay statutory bonus also’, says Dr. Sangam Kurade President of Federation of Indian Micro and Small & Medium Enterprises (FISME) .

Exports crisis is for real, seeping into entire agri, leather, marine sectors; not limited to petro products: India Inc

Lowering the export target in the current fiscal to USD 255-260 billion, industry body Assocham said the November data released by the government clearly showed a crisis like situation in host of areas like marine products, leather and leather products, coffee, spices, cotton yarn-fabs-made ups, meat and dairy products, rice and chemicals, which are mostly the MSME run sectors. Assocham maintained that the export sector is in real crisis which goes well beyond petroleum products, gems and jewellery to highly job-oriented leather and leather products and has engulfed the entire agri exports witnessing sharp falls.
State Scan


Chennai floods wash out Rs 1700 crore of MSME business

Of the estimated Rs 15,000 crore losses due to the recent devastating floods in Chennai, coastal Tamil Nadu and the neighbouring Puducherry, MSMEs bore the maximum brunt of about Rs 1,700 crore, says a report. On a most conservative side, MSME sector has lost nearly Rs 1,700 crore to the calamity in just two peak weeks of the flooding," SMERA Ratings lead economist Karan Mehrishi told PTI. This is a very conservative estimate and the actual financial losses in terms of lost opportunities and job losses could be much higher, he added.


Chhattisgarh Govt approves annual plan of Rs. 34715 crore for the year 2016-17

Focussing to boost agriculture production, maximum use of irrigation capacity, better road connectivity and quality education, Chhattisgarh State Planning Commission has approved the annual plan worth Rs. 34715 crore for the year 2016-17. Chief minister Raman Singh presided over a meeting of the Chhattisgarh State Planning Commission to approve the plan, said the spokesperson. During the meeting, Singh said the state government is keen on improving the lot of the last person in the remotest village.


Rs 15 crore project of Mysore Printers Cluster to be developed at Koorgalli Industrial Area

Rupees 15 crore project of Mysore Printers Cluster will be developed at Koorgalli Industrial Area in Mysore with the financial assistance of Union Ministry of MSME and State Ministry of Industries & Commerce. The project would include Rs 10 crore industrial area project housing 30 printing units and one Common Facility Centre. “This project is already submitted to Government of India for approval through Government of Karnataka,” said Suresh Kumar Jain, General Secretary, Mysore Industries Association.


Annual MSME trade fair in Odisha from January 8 to 14

In a bid to boost start-ups and innovators and showcase micro small and medium enterprises (MSME) products, the Odisha government is organising a trade fair from January 8 to 14 next year. State Capital Bhubneswar will host the fair at IDCO Exhibition ground here. The fair will focus on tourism, textiles, handlooms, handicrafts, agro-industries, food processing, marine products and renewable energy, as the state has greater potential and strength in these sectors.
Bach to Top


Microsoft targets 20,000 MSMEs in UP under its Cloud tech

Global IT major Microsoft has set its eyes on the large Micro, Small and Medium Enterprises (MSME) base in Uttar Pradesh and targetting to cover 20,000 units under its Cloud technology. UP is home to over 3 million MSMEs across verticals, including product and region specific industrial clusters spread across the state. Pan India, there are about 51 million MSMEs. Microsoft has planned to work in consort with industry associations in UP to reach out to the MSMEs for offering cloud services. Cloud allows companies to store data at remote location and access it when needed in a secure environment.
Bach to Top
World Watch


Government clears tax information exchange pacts with Maldives, Slovenia

The Cabinet today approved the signing and ratification of an agreement between India and Maldives for exchange of information aimed at curbing tax evasion and avoidance. The approval was given by the Union Cabinet chaired by Prime Minister Narendra Modi here today. "The Agreement will stimulate effective exchange of information between the two countries which will help curb tax evasion and tax avoidance," said an official statement.
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Cabinet nod for Indo-Australian civil nuclear cooperation deal

The Indo-Australian civil nuclear cooperation agreement, which came into force last month, today received the stamp of approval of the Union Cabinet. The civil nuclear cooperation agreement with Australia was brought into force on November 13 along with the administrative arrangement for implementing the accord. "The fuel supply arrangements with Australia will bolster energy security by supporting the expansion of nuclear power in India," an official statement said.
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Nepal is not a preferred biz partner for handicraft raw material exporters in India

Handicraft sector in Nepal, which is the source of livelihood for a major fraction of the population there, has been suffering tremendously due to acute shortage in the raw materials required for the handicrafts. All the more, the raw material suppliers from India feel reluctant to export to Nepal mainly due to the poor economic conditions of the country. A Nepal based handicraft association told KNN that a lack of necessary materials has led to a complete pause in the handicraft exports in Nepal.
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India & Denmark collaborate to take SME's forward

“As a part of Denmark Innovation Centre in India, we are trying to create collaborations between Indian and Danish SME’s. We will be focusing highly on getting the right technology in both the countries, and try to put the available resources into good use at both the places” says Kristoffer Bertelson, Deputy Head of Innovation Centre, Denmark in an interview with Archana Tiwari Nayudu, Editor- SME , Moneycontrol.com.
Read More    Back to Top
FISME’s official Twitter handle
Knowledge and News Network (KNN)
KNN India’s official Twitter handle
Anil Bhardwaj, Secretary General
Other Events

Industrial Expo Ankleshwar

Date: 08th – 10th January 2016
Venue: D.A. Anandpura Sports Complex, Ankleshwar
See Details

Electromation India 2016

Date: 07th – 09th January 2016
Venue: Akota Stadium, Vadodara
See Details

New Delhi Fair

Date: 10th January 2016
Venue: Hotel Shangri-La, New Delhi
See Details

Power On Exhibition And Seminar

Date: 08th – 10th January 2016
Venue: Mahatma Mandir Exhibition Centre, Gandhinagar
See Details

Vibrant Saurashtra Expo & Summit

Date: 08th – 10th January 2016
Venue: Race Course Ground, Rajkot
See Details

LED Asia

Date: 11th – 13th January 2016
Venue: Bangalore International Exhibition Centre (BIEC), Bangalore
See Details
Your Views

Will recent steps to reduce Delhi’s pollution levels be fruitful?

According to the FISME Factor, about 43 percent of Micro, Small and Medium Enterprises (MSMEs) think that the recent steps to reduce Delhi’s pollution levels will be fruitful while 28.6 percent think that it will not going to effect Delhi’s pollution levels.
Knowledge Store

HR Heuristics

How start-ups can hire the right employees

There’s no doubt that the journey to be a successfulentrepreneur and build a world-class company starts from the idea. But no start-up is a one-man show. Forcompanies to truly make it big and leave behind a lasting legacy, it’s pivotal to invest in and build world-class teams. Finding the right team is easier said than done. One of the biggest mistakes a start-up founder can make, especially in the early stages of the company, is to hire the wrong person. Don’t hire for the sake of hiring, or because you’re desperate to fill the position. Here are five qualities you should look to find in a candidate before making them an offer.

Finance Fundamentals

SEBI to finalise crowd funding norms for entrepreneurs

Capital markets regulator Sebi will put in place norms to help entrepreneur s raise funds through crowd-funding in a few months, Sebi chairman UK Sinha said. "We have still not been able to finalise it because there were a lot of divergent views," Sinha told reporters here. "We hope to finalise it in a couple of months." Sinha was speaking on the sidelines of the inauguration of private lender Bandhan bank's 600th branch in Mumbai.

Marketing Mantras

With exponential growth of technology, is traditional marketing dead?

Marketing as a principle to communicate the value of a product, service or brand to customers or consumers has been around from the very start of the civilization in one form or another. As the environmental factors evolve and technologies advance at an exponential rate, the marketing paradigm has shifted to newer more customer and content centric approaches being delivered on the digital platform.

Policy Polemic

Lack of industry friendly policies making MSMEs incompetent

Owing to the cut throat competition from the neighbouring countries, especially China, Indian micro small and medium enterprises are crying for the pro-industry measures from the government to protect them. The industrialists have been complaining since long about the complex tax structure in the country. To add to their problems, the much awaited Goods & Services Tax (GST) Bill failed to get passed in the Rajya Sabha in this winter session too. GST Bill is expected to bring some uniformity in the tax structure for the MSMEs.

SME Special

Key abilities of long-term entrepreneurs

Depending on the stage of growth of the company, an entrepreneur needs to skillfully adapt herself to changing needs. People who startup and sustain themselves for the long-term usually have certain traits - an ability to stomach risk, to visualize solutions when there are problems, to attract people to pursue a common objective, to enjoy change and so on.

Success Story

Starting up? Embark on entrepreneurial journey of Jagriti Yatra

Gaurav Dahake undertook a 15-day train journey across 12 places in the country and met some of the most-successful organisations and entrepreneurs before he founded well-known startup Buyhatke in 2013. As many as 475 aspiring entrepreneurs are on a similar journey, and were in the city on Sunday as part of their learning experience. Jagriti Yatra, a non-profit that calls itself a national enterprise ecosystem, takes selected youngsters to different parts of India annually to interact with organisations and meet role models of enterprise-building.


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 September 2015

Quotable Quotes

“There’s nothing wrong with staying small. You can do big things with a small team. ”
– Jason Fried, founder of 37signal, a Chicago-based company that builds web-based productivity tools
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

2 New Members Join FISME

During the period from 01st Dec 2015 to 15th Dec 2015 a total of 2 new MSME became member 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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