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The FISME Factor


President's Message
Dr. Sangam Kurade, President, FISME " The latest numbers of India's Factory output captured by Index of Industrial Production (IIP), show that the challenging times are not over yet for MSMEs. After signs of a pick up in April, the growth has again slowed to 2.7%. While mining and electricity numbers have improved, it is the manufacturing- that grew only 2.2% compared with 4.2% in April, which remains a cause of concern. It corroborates the signals we are getting from ground also. If there is one thing that MSMEs are desperately looking for it is business. Can a rate cut by RBI help improve the scenario? China did same just a fortnight ago. Or can we expect Government to inject a new wave of economic reforms to boost investment and sentiments? Or will propitiation of the rain God help in reviving the consumer buying and economy? Questioning times! "
Dr. Sangam Kurade, President, FISME
Vol IV, Issue 86: July 15, 2015
FISME in SME Forum organized during BRICS Summit (Moscow)
FISME signs MoU with Capital Goods Sector Skill Council
FISME holds brainstorming session on Public Procurement
Business Banter: Lessons from Entrepreneurs
Learn from the past.
Macro Metre
India to beat China in 2016 again as fastest-growing economy: IMF Knowledge and News Network (KNN)
DGFT launches online payment facility for application fees through Credit/ Debit Cards Knowledge and News Network (KNN)
Textiles Minister inaugurates 55th India International Garment Fair Knowledge and News Network (KNN)
Domestic Digest
EPCH to conduct certificate course on how to become successful in handicraft export and domestic trade Knowledge and News Network (KNN)
Government clears integrated national policy for skill development, entrepreneurship
Export-oriented MSMEs perform better than domestic players
State Scan
Assocham to train small entrepreneurs in North East Knowledge and News Network (KNN)
Free wi-fi for tourists in Kurukshetra soon
World Watch
`Indian women major contributors of adventure tourism in S Africa’
India, US launch a new 'Clean Energy' initiative
Knowledge Store
Creating a culture of leadership: How a company can achieve this
...And A Lot More

FISME in SME Forum organized during BRICS Summit (Moscow)

FISME represented Indian MSMEs during SME Forum organized on the side-lines of BRICS Summit in Moscow on 6th July 2015. It was decided during meeting that a BRICS SME Federation would be formed with chief representative bodies of respective BRICS countries. Shri Mohan Suresh, Chairman FISME’s International Trade Committee and its former President, proposed to host the BRICS SME Federation in its Secretariat and also co-organize its launch session with Ministry of MSME. Shri S. N. Tripathi Joint Secretary, Ministry of MSME gave a briefing to the Working Group on Indian MSMEs. Besides, Shri Mohan Suresh of FISME, LBU President and FISME CEC Member Shri H,V.S. Krishna was also present in the meeting.

FISME signs MoU with Capital Goods Sector Skill Council

Upscaling the skill sets of the workers is a major challenge before the MSMEs today. Skill is a core focus area of Federation of Indian Micro and Small & Medium Enterprises (FISME). With this view, FISME signed a MoU with Sector Skill Council for Capital Goods for mapping the skill gaps in the sector as well as ensuring skill development of the existing and would be workers. Towards ensuring ‘Job’ linked skilling of the work force, Government initiated setting up of sector skill councils for developing National Occupation Standards and Qualification Packs for he focused sectors. The Sector Skill Council for Capital Goods is entrusted with standardising the skill sets for workers of the capital goods sector including machine tools, engineering etc which will provide the nuts and bolts to the Make in India drive.

FISME holds brainstorming session on Public Procurement

To kick-start FISME’s initiatives in the space of Public Procurement, a brainstorming session was held on 10th July 20-15 at FISME Secretariat under chairmanship of Shri Anil Agarwal who heads the Defence and public Procurement Committee. Besides noted Indian economist Dr. Laveesh Bhandari, experts from GIZ and Thought arbitrage also shared their views with members of the committee. The objective of FISME’s initiative is to study how quality of procurement could be improved in government as it feels that compromising quality breeds a number of malpractices leaving both the buyers and the genuine suppliers- especially MSMEs, worse off. The second such session would now be held with central buying entities.
Business Banter: Lessons from Entrepreneurs

Learn from the past.

So many people focus on the future, and while having a plan in place is important, it is equally important to never forget to learn from the past. Don’t be afraid to look back. Your past performance actually does reflect future performance. This is something to remember both in your personal ventures and your financial ones. You must make mistakes to build character and to make yourself a better, more rounded individual. Make sure to look back on these mistakes and learn from them.
Writing on the Wall

“Government Intervention Key to Sustain Growth”

A full-blown investment recovery is still some 12-18 months away primarily because of the low capacity utilisation in the manufacturing sector... Policy interventions and public spending are critical to address infrastructural issues.


Media Monitor

Macro Metre

India to beat China in 2016 again as fastest-growing economy: IMF

India will be the world’s fastest growing economy for the second consecutive year in 2016 at 7.5 per cent, even as it lowered its 2015 global economy growth forecast to 3.3 per cent, said IMF has said. In its World Economic Outlook Update released, the IMF retained India’s growth projection for the current year at 7.5 per cent which will be higher than China’s 6.8 per cent. It forecast a growth rate of 7.5 per cent for India in 2016 as well, as against China’s 6.3 per cent.

Microfinance institutions to raise Rs 20,000 cr in 18 months

India’s microfinance institutions planned to raise incremental capital of around Rs 20,000 crore over the next 18 months, according to Microfinance Institutions Network. Vice president of MFIN R Bhaskar Babu on the sidelines of an MFI event on Thursday said that these institutions will be raising around Rs 15,000 through banks in the current fiscal. About Rs 2,000 crore will come from private equity and other multilateral institutions like International Finance Corporation (IFC).

DGFT launches online payment facility for application fees through Credit/ Debit Cards

Taking yet another small but crucial step towards paperless, online functioning in 24x7 environment, Directorate General of Foreign Trade(DGFT) today launched the facility of online payment of application fees through Credit/Debit cards and electronic fund transfer from 53 Banks. With the launch of this new facility applicants can now pay fees online to DGFT through their Credit /Debit Cards or through net banking in a 24x7 environment, from the comfort of their homes/offices or IT kiosks.

Textiles Minister inaugurates 55th India International Garment Fair

The 55th India International Garment Fair, 2015 at Pragati Maidan in the national capital was inaugurated today by Santosh Kumar Gangwar, the Minister of State for Textiles (I/C). Speaking on the occasion, the Minister said that given its employment and export intensity, the apparel industry plays a significant role in realizing the vision of ‘Make in India’. He said that under the leadership of Prime Minister Shri Narendra Modi, the Government has laid a renewed emphasis on boosting manufacturing, growing exports and generating more employment.

Intellectual Property Initiatives to Drive 'Make in India'

Several measures have been taken to ensure continuous and unending improvement of the Indian IP ecosystem in the country. To this effect, Department of Industrial Policy and Planning (DIPP) has formulated a multipronged strategy to develop an Intellectual Property regime in the country to promote creativity and to develop the culture of respect for innovations and creativity. During the year, the Intellectual Property Office has been radically transformed through numerous initiatives that have contributed tremendously to easing of access to the IP system, efficiency in processing of IP applications, uniformity and consistency in the examination of applications, transparency and dissemination of IP information, bilateral cooperation at the international level, and raising the awareness level of the public, Ministry of Commerce today said in a release.

Domestic Digest

EPCH to conduct certificate course on how to become successful in handicraft export and domestic trade

The Export Promotion Council for Handicraft (EPCH) will conduct a certificate course to provide an excellent opportunity for MSME entrepreneurs in developing value added product for international markets and for our Indian domestic markets. The course has been designed to educate first and second generation entrepreneurs and exporters in handicraft sectors to set up a business of their own and manage it successfully. The three month training programme will be started from August 1, 2015 at the premises of EPCH, Kolkata. The course content includes the topics like Foreign Trade Policy and Procedure in details, rules governing international trade, various procedures and issues relating to customs, central excise, service tax, banking, export finance, insurance and risk coverage.

Listing cost for SMEs among lowest in India, says IOSCO

Listing expenses for small and medium enterprises in India is among the lowest worldwide and the country has seen "significant" changes with respect to such entities tapping the capital market, according to IOSCO. The report from the global groupings of securities regulators also comes at a time when many small and medium sized enterprises (SMEs) are looking to get listed in India. In its detailed report on 'SME Financing through Capital Markets', IOSCO said these entities continue to face impediments in many jurisdictions.

Government clears integrated national policy for skill development, entrepreneurship

Government today said it has approved the first integrated national policy for developing skills and promoting entrepreneurship at a large scale with speed and quality. "The policy aims to align supply with demand, bridging existing skill gaps, promoting industry engagement, operationalise a quality assurance framework, leveraging technology and promoting apprenticeship to tackle the identified issues," Finance Minister Arun Jaitley told reporters here. The government has also approved common norms for Skill Development Schemes being implemented by the Centre as well as an institutional framework for the National Skill Development Mission.

Export-oriented MSMEs perform better than domestic players

CRISIL has analysed the performance of about 6,900 micro, small, and medium enterprises (MSMEs) which were rated on the basis of their 2013-14 (April 1 to March 31) financials. The study reveals that the average sales of MSMEs that have export presence grew by 26 per cent in 2013-14, as against 17 per cent for domestic players during the year. Currently, MSMEs contribute about 40 per cent of the country's total exports. Exporters in the CRISIL sample also performed better than the domestic players in terms of operating profit margins. The export-based units registered an average operating profit margin of 9.14 per cent in 2013-14, up from 8.62 per cent during the previous year.

Catching them young: Here's a course to train teens on starting up

Even for a city that boasts of a wide catch of entrepreneurs in their early 20s, the likes of Bhavana Sinha stand out. She's 14, and working on a plan for a beauty startup. Sinha, a student of National Public School, Koramangala, has enrolled in one of the few entrepreneurship courses in the country for school and college students, Espire. Students of ages 14-22 who have joined the sixmonth virtual course will learn how to launch and run a startup through webinars by alumni of Stanford, Harvard Business School and London School of Economics, as well as lawyers, marketing experts and venture capital investors. As part of the course, they will be required to draw up business plans for a startup.
State Scan


Assocham to train small entrepreneurs in North East

Industry body Assocham is planning to set up a training institute in Guwahati to train the small entrepreneurs of the region, facilitate finances and provide market linkages for them. Assocham's secretary general DS Rawat has said that the focus would be on employment generation, skill development and promotion of organic farming for farmers to enhance their income. Rawat said that lack of skilled manpower, high unemployment rate and high land prices are other major hurdles in the region.


Bengaluru to be revamped into five civic bodies

The three-member Bruhat Bangalore Mahanagara Palike (BBMP) Restructuring Committee constituted by the State government has recommended a three-tier structure and creation of five smaller corporations. As per the recommendation, the three-tier structure will be ward committees at tier I, five small corporations as tier II and finally the Greater Bengaluru Authority at the top as tier III. The five small corporations will be based on five zones – Central, North, South, East and West.

Jammu & Kashmir    

MSMEs in J&K boost rural employment

Small scale industries in Jammu and Kashmir which are promoted by the central government helped in creating jobs among unemployed rural youth of the state. Scores of unemployed youngsters in the rural sector of Poonch district are earning a living by way of industrial units established by locals under the Prime Minister's Employment Generation Programme (PMEGP). Under this scheme, individuals are provided bank loans to start their own businesses. PMEGP, a credit-based subsidy programme, is administered by the Ministry of Micro, Small and Medium Enterprises is run by district industries centres in urban and rural areas.


Free wi-fi for tourists in Kurukshetra soon

Free wi-fi facility will be soon available to tourists at prominent places in Kurukshetra district of Haryana. The district administration has decided to introduce the free wi-fi facility for tourists in a phased manner, a spokesperson said today. In the first phase, the wi-fi system will be introduced at Kurukshetra Panorama and Science Centre and Shri Krishna Museum, he said. Later, after reviewing the results of the system, it will be introduced at other places, including Sannihit Sarovar, Brahma Sarovar, Kalpana Chawla Planetarium, Shekh Chili Maqbara, Jyotisar and Saraswati pilgrimage in Pehowa, he added.

Uttar Pradesh    

MSME-Technology Development Centre to set up metallurgy school in Agra

City based MSME-Technology Development Centre, a national level institute for foundry and forge technology, has proposed to run metallurgy school across country to will enable the 10th pass and school dropout students to develop skill in foundry technology and make them employable. The school aims to serve as a motivation for student, artist, sculpts, blacksmith, metal worker, metal designer to add the casting of metals to their sphere of activity.
World Watch


Sitharaman invites Malaysian businesses to be a part of India's growth story

Inviting the Malaysian business community to participate in India’s growth story, India’s Commerce Minister Nirmala Sitharaman said the country is committed to work with other countries for early conclusion of mutually acceptable RCEP agreement - a mega trade deal of 16 countries. Sitharaman is currently on an official visit to Kuala Lumpur from July 12-14, 2015. She is leading the Indian delegation to attend the Regional Comprehensive Economic Partnership (RCEP) Inter-Sessional Ministerial Meetings and related meetings.

South Africa    

`Indian women major contributors of adventure tourism in S Africa’

Indian women are the biggest participants of adventure tourism sector in South Africa with a majority of them taking part in sports like bungee jumping, sky diving, shark diving and mountain trail, a senior country official said today. “The adventure tourism in South Africa is driven by Indian women. We sell more hardcore adventure to Indian women than any other segment,” Country Head, South African Tourism, Hanneli Slabber, said here. The Bungee jumping activity in Cape Town has been visited by 20,000 Indian women during the last year, she said, adding that majority of the adventure sports like sky diving, shark diving and mountain trail has Indian women as the biggest takers.

United States of America    

India, US launch a new 'Clean Energy' initiative

India and the United States of America signed a Memorandum of Understanding (MoU) on cooperation to establish the PACESetter Fund. The Fund will support the Promoting Energy Access Through Clean Energy (PEACE) track of the US-India Partnership to Advance Clean Energy (PACE) and to accelerate the commercialization of off-grid clean energy through early-stage grant funding grants. It will also help to develop and test innovative products, systems, and business models.


Doha Bank woos Indian SMEs with cheap loans

Qatar based Doha Bank is keen to take Indian small and medium enterprises with lower interest rates for loans to expand its operations in in the country. In an interactive session at the Bengal Chamber of Commerce here on Friday, Chief Executive Officer, Doha Bank, R Seetharaman said that they want the Indian SMEs to come to the Gulf state to set up their business. He added that 87 per cent of the bank’s lending is guaranteed by the Qatar government and also it is an ‘A+’ rated bank. It charges interest rate between six and nine per cent for the SMEs.
Other Events

Cosmo Tech Expo India 2015

Date: 21st – 22nd July 2015
Venue: Pragati Maidan, New Delhi
See Details

International Conference & Exposition on Indian Steel Industry: Going Global & Sustainable

Date: 22nd – 23rd July 2015
Venue: CII Northern Region Headquarters, Chandigarh
See Details

Indo-Global Healthcare Summit & Expo

Date: 23rd July – 26th July 2015
Venue: Green Park Hotel, Hyderabad
See Details

Food and Technology Expo

Date: 29th – 31st July 2015
Venue: Pragati Maidan, New Delhi
See Details
Your Views

Do you agree with RBI Governor that World may slip into 1930 depression problems?

According to the FISME Factor, 33.3% percent of Micro, Small and Medium Enterprises (MSMEs) agree with RBI Governor that World may slip into 1930 depression problems while same percent of MSMEs think otherwise and the equal percent of MSMEs can’t give their opinion on the same.
Knowledge Store

HR Heuristics

Creating a culture of leadership: How a company can achieve this

Culture is a composition of 'Intellectual Activity'. In this competitive world, a key factor behind a company's success, apart from product differentiation and quality of service, is its culture. One of the most important aspects of culture is the pursuit of transforming employees into leaders. So, how does a company go about achieving this?

Finance Fundamentals

How banks can turn SME financing into a profit

Small businesses have always had trouble managing cash flow. An inability to adequately manage funds certainly plays a role in why 90 percent of all startups go kaput. If a business can survive the pre-seed stage, cash flow management still remains a critical priority, with cash flow found to be a constant struggle for small business owners. Even for larger corporations, research shows, cash flow management is the most commonly cited aspect of a treasurer’s job that keeps them awake at night.

Marketing Mantras

The need to have a marketing blueprint

A successful idea always has a blueprint to support it. It's the only way to keep moving forward with the idea, without hitting a road-block that can cost you time, money and wasted efforts. The same holds true for an effective marketing campaign as well. The right marketing blueprint helps you create a brand identity and then fortify it for maximized gains.

Policy Polemic

Time for SMEs to scale up with skill development

The ‘Great Indian Talent Conundrum’ that can easily transport us from the stage of ‘Reaping Demographic Dividend’ to a stage of facing the ‘Demographic disaster’. With a manpower of 1.2437 billion, it is ironic that we suffer from dearth of talent. It is time for SMEs to scale up with Skill building solutions was the message that came out loud and clear during the SME chat at Money Control where we had Mr. Atul Bhatnagar, COO of National Skill Development Corporation (NSDC).

SME Special

Delhi-based startup Postergully helps artists monetise their work

Artists usually find it hard to sell their work. Often, it is a result of inadequate sales and marketing skills. Spotting a business opportunity in the unorganised art market, Bharat Sethi, 25, a Delhi university economics graduate, founded ecommerce startup Postergully. It allows artists to just focus on being creative while Sethi and his team take care of business.

Success Story

MySmartPrice raises $10 mn from Accel, Helion Ventures in series-B round

MySmartPrice, a Hyderabad-based price comparison shopping and product discovery service portal, has raised $10 million (around Rs 64 crore) in a Series-B round of funding led by its existing investors Accel Partners and Helion Venture Partners.


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

“Embrace what you don’t know, especially in the beginning, because what you don’t know can become your greatest asset. It ensures that you will absolutely be doing things different from everybody else.”
— Sara Blakely, founder SPANX.
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

7 New Members Join FISME

During the period from 01st July 2015 to 15th July 2015 a total of 7 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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