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The FISME Factor


President's Message
Dr. Sangam Kurade, President, FISME " International Labour Organization (ILO) reports that in India the gap between the current availability of skilled manpower (3.4 million) and its demand in 2022 (500 million) is gigantic. While the skill development and vocational training efforts have been underway for several years at different levels of the government, for the first time all such initiatives have been now put under one nodal Ministry- Ministry of Skill Development and Entrepreneurship. Thirty one Sectoral Skill Councils have been set-up which are setting the curricula and the standards. Number of private ITIs has exploded and the skills of their students are being assessed by third party assessors. Many states have joined in. The skill development field in India is abuzz with activities. However, MSMEs by and large continue to remain at periphery. Neither the authorities have taken steps to proactively engage the largest private sector employers- MSMEs, nor they themselves have pushed the doors to be opened to them and their specific needs factored in. It is high time MSME sector is accorded priority on this issue. It should and must be a part of skilled development and vocational training policy planning as well as on - the - ground implementation at national and state level across the country. Let us all be involved in creating industry friendly and employable manpower. "
Dr. Sangam Kurade, President, FISME
Vol IV, Issue 81: May 1, 2015
FISME organizes inception workshop in Lahore
Business Banter: Lessons from Entrepreneurs
Cash is king
Macro Metre
Export from India decline by 21% in March Knowledge and News Network (KNN)
Govt relaxes norms for sugar exports to EU, US
India Inc's overseas borrowings down 25 per cent in March
Domestic Digest
Agricultural and Social Infrastructure included in Priority Sector Lending Knowledge and News Network (KNN)
E-commerce portal for SMEs launched
Domestic steel use estimated to grow to 80 million tonne in 2015
State Scan
20,000 persons to get skill training in Haryana
Karnataka to review industrial cluster development activity Knowledge and News Network (KNN)
World Watch
India, Ireland discuss ways to put India-EU FTA on track
India and Jordan to strengthen maritime relationship
Knowledge Store
Marketing: A key to win the game
Hot Startups: Dwingloo, a device that streams video on your smartphone at zero data cost
Father-son duo launch Eazypilot, a customisation platform for drones
...And A Lot More

FISME organizes inception workshop in Lahore

FISME in association with Small and Medium Enterprises Development Authority (SMEDA), has organised inception workshop for Textiles & Garments on 29th April, 2015 at Lahore, Pakistan under the Project “Promotion of Regional Value Chains for SAARC Countries”. The project is supported by German Technical Cooperation, GIZ under SAARC Trade Promotion Network. The project is being implemented by FISME as lead partner and being supported by Small and Medium Enterprises Development Authority (SMEDA), Pakistan, SME Foundation, Bangladesh and The National Chamber of Commerce of Sri Lanka, Sri Lanka. The workshop was attended by around 25 participants comprising diverse stakeholders which include industry associations, SMEs, academia and research & developmental institutes.
Business Banter: Lessons from Entrepreneurs

Cash is king

When you're starting up, passion for your idea and blind belief count for a lot, but only as long as you actually have money in the bank to keep the doors open. "Cash is King. And Queen, Jack, Ace, and Joker. Startups are the quintessential example of 'take care of the pennies and the dollars will take care of themselves,'" writes angel investor David S. Rose, for example. "Don't let visions of being a future billion-dollar company lure you into spending cash recklessly in the beginning. Staying alive is the most important thing for a startup, and cash problems kill more young companies than all other causes put together," he concludes.
Writing on the Wall

Placing the burden of bounced cheques

Amendment approved by the Cabinet in the Negotiable Instruments Act ensures that a cheque bounce case will be tried only by a court in whose jurisdiction the payee’s bank lies. Experts have welcomed the move as it removes the ambiguities on the jurisdictional issue that has plagued cheque bounce cases following a SC ruling.

GST gets caught in another cycle of birth pangs

by Shailendra Kumar, Editor,
Taxindiaonline (30th April 2015)

IF we go by the latest political events inside and also outside the Parliament, India's biggest indirect taxes reform post-1947 in the shape of Goods & Services Tax (GST) appears to be going through a new cycle of birth pangs. If we go to Bible Prophecy, birth pangs refer to certain convulsive geopolitical, geophysical, astrophysical and worldwide socio-economic events ... Even the evolution of GST, if we look back in hindsight, may appear to be experiencing similar geopolitical, fussy crony-federal and cacophonous constitutional pangs of birth. ...


Media Monitor

Macro Metre

Export from India decline by 21% in March

Exports from India declined by 21.1 per cent to USD 23.9 billion in March 2015 as compared to the same month a year ago. However, the exports were higher than preceding two months. Imports to India also declined by 13.4 per cent to USD 35.74 billion in March 2015 on a y-o-y basis. However, the decline in imports was entirely due to a sharp fall in POL imports. While POL imports declined by 52.7 per cent to USD 7.4 billion, non-POL imports increased by 10.6 per cent to USD 28.33 billion.

Roll out of GST from 1st April, 2016

Finance Minister Arun Jaitley today said that he is optimistic about introduction of GST, which will create a nationwide unified market and remove trade barriers in the form of cascading effects of taxation, from April 1, 2016. A Constitution Amendment Bill for introduction of Goods and Services Tax (GST) will be passed in the current session of Parliament as there is a broad consensus among states on the issue. A single rate GST will replace central excise, state VAT, entertainment tax, octroi, entry tax, luxury tax and purchase tax on goods and services to ensure seamless transfer and end of "inspector raj" as well as "tax on tax.

India needs Retail Trade Policy

While the Retail trade in India has reached an annual turnover of $560 billion, it is still governed under the Shop and Establishment Act. Retailers Association of India has emphasised the need for a national policy on trade for retail. While certain states such as Maharashtra, Andhra Pradesh, Telangana, Rajasthan and Madhya Pradesh evinced interest for creating a Retail Policy, the other States should also take the initiative, commented an Industry insider.

Govt relaxes norms for sugar exports to EU, US

Govt has now decided to liberalise the export policy with a view to extend the benefits of export of preferential quota sugar to EU to the entire sugar industry in the country. With government relaxing norms, any trader or entity can export sugar to the European Union and the US under quota systems, which entitles shipments to enjoy low tariff. Earlier, the government had designated Indian Sugar Exim Corporation, formed by two sugar associations ISMA and NFCSF, to export the sweetener to the EU under CXL quota and the US under the TRQ quota.

Arrears to sugarcane farmers touch Rs 21,000 crore: Govt

However, Paswan said that govt was not currently considering any proposal to provide interest-free working capital loan to sugarcane growers. The arrears to be paid to sugarcane farmers stands at Rs 21,000 crore and all efforts are being made to address the problems, the government said today. Union Minister Ram Vilas Paswan told the Lok Sabha that the government would take "appropriate decision at appropriate time" but said it was not currently considering any proposal to provide interest-free working capital loan to sugarcane growers.

India Inc's overseas borrowings down 25 per cent in March

Indian firms raised over USD 2.66 billion from overseas markets through the external commercial borrowing (ECB) route last month, down 25 per cent, RBI data showed today. The domestic firms had raised USD 3.55 billion in ECBs in March last year. Under the approval route, Rural Electrification Corporation and Indiabulls Housing Finance raised USD 400 million and USD 150 million respectively for the purpose of sub-lending. National carrier Air India raised a total of USD 142.6 million in two tranches for import of capital goods.

Domestic Digest

Agricultural and Social Infrastructure included in Priority Sector Lending

Reserve Bank of India on Thursday revised its norms in the area of Priority Sector Lending (PSL), including bank loans to food and agro processing units as a part of agriculture and dispensing with present distinction between direct and indirect agriculture. Lending to the agriculture sector will include farm credit (which will include short-term crop loans and medium/long-term credit to farmers), agriculture infrastructure and ancillary activities.

CMs discuss promotion of skill development within states

A sub-group consists of 11 chief ministers in the first meeting of the ‘Sub-Group of Chief Ministers on Skill Development’ today discussed various aspects related to promotion of skill development and creation of skilled manpower within the states. “Strengthening the state skill development missions, expanding the outreach of skilling in demographically advantageous states, hilly/ difficult areas, increasing the private sector participation, improving the quality of training, addressing the shortage of trainers, advocacy and awareness generation, improving career guidance, sharing of best practices of States/ UTs were some of the major issues discussed,” stated an official release.

E-commerce portal for SMEs launched

The e-commerce platform will procure raw materials from its suppliers in bulk and will offer it to small buyers at a discounted price. Ahmedabad-based Ingenius e-commerce Private Limited has launched an e-commerce portal - tradohub.com - that will help small and medium enterprises (SMEs) to procure raw materials at cost-effective prices. "This is happening for the first time in India that industrial raw materials and machinery are available online. Raw material will be available to SMEs below market price," said Akash Domadiya, co-founder, tradohub.com.

Domestic steel use estimated to grow to 80 million tonne in 2015

Domestic steel use is estimated to grow by 6.2% to 80 million tonne in 2015 up from 75.3 mt in 2014, bucking the global trend which is expected to post a slower growth in steel demand in 2015 mainly due to lower steel output in China. The World Steel Association has said in its latest forecast that global steel use will go up by 0.5% to 1.55 billion tonne (bt) in 2015, a shade lower than the 0.6% increase shown in 2014 suggesting a slow growth for global steel demand.

Govt working on renewable energy target for 2015-16: Goyal

The Government is still working out a target for renewable energy generation capacity addition for the 2015-16 fiscal, even though it has already announced a long-term target of 175 GW by 2022. “We are still working on the target for this year. But I think the planning phase is more important. We are a Government that doesn’t believe in setting ambitious targets and not achieving it. To achieve those targets, planning has to be thorough,” the Power, Coal and New and Renewable Energy Minister, Piyush Goyal, said on Monday.
State Scan


20,000 persons to get skill training in Haryana

As many as 20,000 persons working in the textiles sector in Haryana will get skill training during 2015-16 and 2016-17 financial years under the Integrated Skill Development Scheme (ISDS). This scheme will be implemented in seven districts of Panipat, Bhiwani, Hisar, Faridabad, Gurgaon, Ambala and Rohtak. The skill training would be provided by the Technical Education Department and also through empanelled training providers in the sectors of weaving, spinning, knitting, garments, dyeing, block printing, embroidery, handloom and carpet, an official release said here today.


KASE Kerala and SES Germany to come together for tech-skill development in Kerala

Kerala Academy of Skills Excellence (KASE), the apex body under the government of Kerala for facilitating and coordinating all skill development initiatives in the state, is entering into a new partnership with four leading German organisations to ensure that the world's best technical training is made available for job aspirants in Kerala. This would be for the first time in India that a state government is entering into a partnership with SES, a non-profit foundation of the German industry for International Cooperation.


Karnataka to review industrial cluster development activity

Karnataka Council for Technical Upgradation (KCTU) will review the progress of Mysore printers cluster, engineering cluster, auto cluster of Mysore and packaging cluster of Mandya district on April 24, said Mysore Industries Association. Managing Director of KCTU, Bengaluru and Additional Director of State Industries and Commerce, Anil A Uppin will asses the delay in implementation of the cluster and interact with SPV members to take firsthand information from them to expedite the formation of cluster, it said.


Odisha may finalise industry policy in two months

Government of Odisha is likely to finalise its Industrial Policy Resolution (IPR), 2015 in next two months, said a BS report. A core committee on IPR 2015 headed by state chief secretary GC Pati on Friday considered on various provisions of the policy and chart a roadmap for its finalisation and subsequent implementation, it said. According to IPR draft, the policy has an aim to create a conducive business climate, enabling environment and effective institutional structure to facilitate and encourage private sector investments.


Bihar government sanctions Rs 1,750 crore for input subsidy to farmers amid damage of crops

The Bihar government today sanctioned Rs 1,750 crore to be withdrawn from the contingency fund as input subsidy to farmers whose crops were damaged in storm two days ago besides unseasonal rain and hailstorm in the past few months. The decision was taken at a cabinet meeting presided over by the Chief Minister Nitish Kumar, the Principal Secretary (Cabinet Coordination) B Pradhan told reporters. To facilitate withdrawal of Rs 1,750 crore from the contingency fund, the state government has enhanced the permanent corpus under the said fund from the earlier limit at Rs 350 crore to Rs 4,827.21 crore till March 30, 2016, he said.

West Bengal    

Bengal govt auctions tea gardens under West Bengal Tea Development Coporation

Taking a leaf out of the Left Front’s book, the Trinamool Congress-led West Bengal government has divested its stakes in five tea gardens under the West Bengal Tea Development Corporation. The divestment of the state undertaking looks in sharp contrast to the ruling Trinamool Congress’ stance on central public sector units. Chief Minister Mamata Banerjee had raised red flag against the divestment of Coal India and Hindustan Copper in 2010 when it was first taken up by the previous United Progressive Alliance government. Sanjay Bansal-controlled Ambootia group bagged three Darjeeling gardens, while the two in Dooars were won by the Ashok Garg family, having diverse business interests, including tea.
World Watch


Japan's delegation to present paper on doubling FDI to PM Narendra Modi

A Japanese delegation led by Minister for Economy, Trade and Industry Yoichi Miyazawa and comprising top executives of companies such as Suzuki, Toyo ta, Honda, Toshiba, Hitachi Tsumitomo, Mitsui and Mitsubishi are set to meet Prime Minister Narendra Modi this week to present a paper on doubling that country's di rect investment in India. This is the first such mission to seek an audience with Modi, after both nations made an announcement las September to double Japa nese business enterprises as well as investment in India in five years, governmen sources told ET. The paper that the group of more than 20 Japanese business hon chos is set to present wil highlight their business plans in India, the sources said. Some of these business men had met the PM sepa rately over the past year.

Republic of Ireland    

India, Ireland discuss ways to put India-EU FTA on track

Ireland is hopeful that conclusion of the free trade pact between India and the EU would be mutually beneficial and would provide greater market access to Indian firms in the 28-nation bloc. The issue came up for discussion during the meeting of Commerce and Industry Minister Nirmala Sitharaman and Ireland's Minister for Jobs, Enterprise and Innovation Richard Bruton here. Both ministers discussed the "prospects for the resumption of talks on the EU-India free trade agreement", IDA, Ireland's investment promotion agency, said in a statement.


India and Jordan to strengthen maritime relationship

India and Jordan signed an agreement to strengthening their cooperation and to provide sustained mutual assistance and advice on merchant shipping. Mutual benefit can be derived from the cooperation in the area of shipping between the two countries. Chaired by the Prime Minister Narendra Modi, the Union Cabinet on Tuesday gave its approval for signing of a shipping agreement between India and Jordan. “Signing of the Agreement will help both countries in encouraging and facilitating development of their maritime relationship and cooperation in the task of enhancing and stimulating steady growth of maritime traffic,” the release mentioned.
Upcoming Events

“Gaining the Edge: Insights for SMEs”

Date: 22nd of May 2015
Venue: India Habitat Centre, New Delhi
See Details
Other Events

Isrmax Rice and Grain Expo

Date: 03rd -05th May 2015
Venue: Pragati Maidan, New Delhi
See Details

Agro India

Date: 06th – 09th May 2015
Venue: College of Agriculture Ground, Indore, India
See Details

India Knit Fair

Date: 06th – 08th May 2015
Venue: IKF Complex, Tirupur, India
See Details

Led Expo Mumbai

Date: 07th – 09th May 2015
Venue: Bombay Convention & Exhibition Centre, Mumbai, India
See Details

Cable Net Expo Vision

Date: 13th – 15th May 2015
Venue: Hitex Exhibition Center, Hitech City Road, Izzat Nagar, Madhapur, Hyderabad, India
See Details
Your Views

Has the recently announced Foreign Trade Policy 2015-20 brought in enough measures to promote exports?

According to the FISME Factor, 50 percent of Micro, Small and Medium Enterprises (MSMEs) think that the recently announced foreign policy will certainly be beneficial to promote exports while 30 per cent think otherwise and 20 percent can’t say that how it will be going to affect exports.
Knowledge Store

HR Heuristics

Traditional recruiters will be out of business; people are going to act as recruiters: Kartik Mandaville

A personal experience of the co-founders (which was quite hectic), when recruiting suitable employees for his company, Science Inc, led Kartik Mandaville and his colleagues to make a employee hiring platform for it. He says SpringRole community is growing by over 20,000 candidates per day. SpringRole is a recruitment marketplace powered by referrals.

Finance Fundamentals

How $450-million Snapdeal-Freecharge deal was clinched

The number three seems to be a recurrent theme in this narrative — three tables, three meetings, three cities, three weeks. There were three tables at the start, three meetings that took place in three cities and at the end of three weeks, Snapdeal agreed to buy Freecharge for $450 million.

Marketing Mantras

Marketing: A key to win the game

Starting a business is not enough, entrepreneurs should sell their business ideas to the targeted audiences properly in order to gain market share in a short time. There are only few ideas that attract potential customers and create sufficient value in the market. Companies like Zomato, Paper Boat, OLX, Flipkart and Snapdeal marketed their concepts/products keeping in mind the current market requirements. They chose the business model that made them stand out among others.

Policy Polemic

Why crop insurance schemes fail poor farmers when they are needed the most

If the image of a farmer hanging himself from a tree at Jantar Mantar in the Capital haunts India, it is because perhaps for the first time urban India came face to face with self-destruction that so far appeared to be happening thousands of miles away in a Bharat cityslickers found difficult to put a finger on. And if thousands of farmers are killing themselves on their ravaged fields, it's not just because the weather gods have been brutal; it's also because the protection from such ..

SME Special

Hot Startups: Dwingloo, a device that streams video on your smartphone at zero data cost

If you have travelled from Bengaluru to Mumbai by SRS or VRL Scania bus recently, you may have noticed a small white box behind the driver. The box, called Dwingloo, acts as a modem and streams videos into your smartphone at zero data cost. In-flight entertainment is no longer a privilege of just the high flier. With the country's road networks making long-distance bus travel a viable option for many, transport operators are now providing in-coach entertainment to keep travellers hooked.

Success Story

Father-son duo launch Eazypilot, a customisation platform for drones

Long before drones were popularised by the Bollywood mega hit 3 Idiots, Venkatesh and his father were deeply passionate about these mechanical marvels. Venkatesh would enjoy long sessions of aero modelling with his father even before he stepped into an engineering college. In 2007, when Venkatesh was 13 years old, and still in school, the father-son team decided to turn their hobby into a full-fledged venture named Sree Sai Aerotech Innovations Pvt Ltd. (SSAI). Since then, there has been no turning back.


The Central Statistical Office (CSO) released the Provisional indices for the month of December 2014 and also final indices for November 2014.

Quotable Quotes

“You don’t learn to walk by following rules. You learn by doing and falling over.”
— Richard Branson, Sir Richard Charles Nicholas Branson is best known as the founder of Virgin Group, which comprises more than 400 companies
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 15th April to 30th April, 2015 a total of 2 new MSME became members of FISME.
Reader Reactions

Write and Win prize!

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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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