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  The FISME Factor  


President's Message
Dr. Sangam Kurade, President, FISME " Among the top 28 economies (G-20 and OECD countries), India’s central bank rates are among the highest. The unsavory company we have for offering the most expensive capital comprises of: Argentina , Brazil , Indonesia, Russia and Turkey. The problem is compounded- as thanks to near monopoly of public sector banks in India, as they corner over two third of banking and also enjoy the highest spreads between deposit rates and lending rates. Even old MSME customers are paying interest rates to the tune of 16% !. A country aspiring to be the global power needing to massively upgrade its industrial and physical infrastructure, this is too expensive a capital to encourage to take risk and manufacture competitively. Recent minor reductions by RBI, which Banks have further reduced and extended to MSMEs, is only leading to approximately 0.5% net reduction. These are just piece meal reductions, whereas China at the same time has induced drastic reductions to make their manufacturing more competitive globally. Therefore, Government of India must usher in urgent reforms to induce competition in financial markets to make capital available at lower cost for productive purpose This is most essential to "Make-in-India" a success. "
Dr. Sangam Kurade, President, FISME
Vol IV, Issue 90: September 15, 2015
NITI Aayog invited FISME to discuss employment generation
Business Banter: Lessons from Entrepreneurs
Your price and their value are not the same thing.
Macro Metre
WPI inflation contracts further to (-) 4.95% in Aug Knowledge and News Network (KNN)
National web portal for Apprenticeship Training launched Knowledge and News Network (KNN)
Narendra Modi government may announce big-ticket investments Knowledge and News Network (KNN)
Domestic Digest
100 MSMEs to participate in CeBIT India Expo-2015
Summit on Emerging Business Opportunities in India Knowledge and News Network (KNN)
Twitter launches self-service ads platform for SMBs in India
DGFT eases norms for sugar exports
State Scan
AP tourism policy aims at 10,000-cr investment, creation of 5 lakh jobs Knowledge and News Network (KNN)
Gujarat ranked first in ease of doing business
Karnataka to have country's first startup council
3-day platform for buyers and sellers in MSME sector to begin from September 25
World Watch
India likely to sign FTA with Australia, Chile soon
China seeks government help to build mega township by realty major Dalian Wanda Group in Haryana
Knowledge Store
Digital Chaos' may create business disruptions
Best Time To Be An Entrepreneur in India!
...And A Lot More

NITI Aayog invited FISME to discuss employment generation

Prof. Bibek Debroy, Member NITI Aayog held a meeting with two key representatives of the MSME sector: the Ministry of MSME and Federation of Indian Micro and Small & Medium Enterprises (FISME), on the measures that could be taken to give impetus to employment generation in the MSME sector on Tuesday in New Delhi. To spur employment generation, a Working Group has been set up at the highest level in the Prime Minister’s Office of which Prof. Debroy is a member. The meeting was part of the process of engaging the important sectors of Indian economy which are likely to contribute to employment significantly. Additional Secretary in the Ministry of MSME, S.N. Tripathi, President FISME Dr. Sangam Kurade and FISME Secretary General Anil Bhardwaj were present.
Business Banter: Lessons from Entrepreneurs

Your price and their value are not the same thing.

Entrepreneurs set the price of their solution based on their costs, and their perception of value. Customers set value based on similar products found. For example, with smartphone apps, most are free. Thus, no matter what your value, it’s hard to build an app business that makes money today.
Writing on the Wall

Can India join China as an economic superpower?

(World Economic Forum Report )
There’s no reason why India shouldn’t achieve double-digit annual growth rates and join China as an Asian superpower, writes Steve Forbes. Miles Kimball of Quartz even argued we should all “really want India to join the US and China as a superpower”. But in what economic areas could India catch up China in the next few years?


Media Monitor

Macro Metre

WPI inflation contracts further to (-) 4.95% in Aug

Two crucial inflation data points released on Monday presented a mixed picture, placing the Reserve Bank of India (RBI) in a difficultposition on the policy rate front. While the Wholesale Price Index-based inflation continued to positively surprise with the August print contracting further to (-) 4.95 per cent, retail inflation, based on the Consumer Price Index, came in a tad higher than market expectations at 3.66 per cent. Reacting to the two sets of inflation numbers, Finance Minister Arun Jaitley told newspersons that overall inflation continues to moderate and seems to be under control. He, however, admitted that some products saw an increase in prices mainly due to seasonal variations and the monsoon.

Narendra Modi government may announce big-ticket investments

The government plans to mark the first anniversary of its flagship 'Make in India' initiative by launching a digital campaign that will highlight the success of the programme so far. It may also announce some big-ticket investments on the occasion. Although Make in India was launched on September 25 last year, the Department of Industrial Policy and Promotion (DIPP), which is organising the anniversary celebrations, will not hold be the event until November "due to a packed schedule and paucity of time", a senior official told ET.

Cooling inflation in India to fuel calls for lower interest rates

India's inflation probably cooled further in August, data on Monday is expected to show, adding pressure on its cautious central bank to cut interest rates again as soon as this month to spur economic growth. With price pressures at record lows, expectations are building that the Reserve Bank of India will lower borrowing costs by at least 25 basis points (bps) at its next policy review on Sept. 29, after three cuts earlier this year. Calls for a rate cut have grown louder after annual economic growth slowed to 7 percent in the April-June quarter from 7.5 percent in the previous quarter. And some economists fear real growth is more sluggish than official figures suggest.

National web portal for Apprenticeship Training launched

With the view to bridge the gap between industry and students, Smriti Irani, Union Human Resource Development Minister launched the National Web Portal for promotion of National Apprenticeship Scheme for Graduates, Diploma holders and 10+2 pass-outs vocational certificate holders. The Union Minister also released a Logo and a Slogan “Sashakt Yuva, Samarth Bharat” for the National Web Portal. She stated that Ministry of Human Resource Development implements the apprenticeship training scheme for one year through Board of Apprenticeship Training (BOATs)/Board of Practical Training (BOPT) located at Mumbai, Chennai, Kanpur and Kolkata.

Import of pulses to be expedited; States asked to arrange distribution through their retail outlets

The Government has asked the MMTC to expedite import of pulses to ease its availability and requested the State Governments to gear up distribution of pulses through retail outlets. MMTC has assured that 10,000 tons of Pulses will arrive soon. Secretary, Consumer Affairs in a video conference recently held with State Governments discussed further arrangements to increase availability of pulses and onions in the domestic market. Government of India has taken a series of policy initiatives and measures to enhance the availability and thereby moderate prices of pulses and onions, Ministry of Consumer Affairs, Food & Public Distribution today said in a release.

Domestic Digest

100 MSMEs to participate in CeBIT India Expo-2015

Around 100 micro, small and medium enterprises (MSMEs) will be showcasing their products and services in the CeBIT India expo to be held from October 29 to 31. Karnataka state run Software Technology Parks of India (STPI) will partner with Hannover Milano Fairs India Ltd to provide a platform the 100 MSMEs to promote the software and electronics hardware industry in the sub-continent. Of the participating MSMEs, 10 of them will be chosen to attend the premier CeBIT Hannover 2016 in Germany and widen their access to global markets.

Summit on Emerging Business Opportunities in India

The Associated Chambers of Commerce and Industry of India (ASSOCHAM) together with the support of Delhi Government is organizing a summit “Emerging Business Opportunities: Ease of Doing Business” here on September 15. The thrust of the discussion at the summit is to highlight proactive measures initiated by the state government during last one year including adequate checks and balances put in place to arrest corruption in the system. It will also discuss several other path breaking policy initiatives and structured reforms brought in by the government and also those likely to be announced in the near future with a view to provide environment of ‘Ease of Doing Business’ among business class of Delhi and adjoining areas.

Twitter launches self-service ads platform for SMBs in India

Twitter launched the self-service advertising platform to small and medium-sized businesses (SMBs) in India on Thursday. According to a statement, Twitter has expanded the platform reach of Twitter Ads globally from 33 countries to over 200 countries. The release said SMBs from India to Iceland can more effectively reach their target audiences on Twitter in 15 languages. In addition, Twitter also announced the total active advertisers, including SMBs to be approximately 100,000. "Small and medium-sized businesses face the most challenges and are least resourced to promote the good work they do," said Emily Huo, SMB lead for Asia Pacific at Twitter. "With the expansion of the Twitter self-service ads platform, we are excited to help SMBs level the playing field with digital advertising to increase their sales," said the statement.

Harnessing two worlds: From India to the United States

According to the India Startup Report 2014, there were 3,100 startups in India in 2014. By 2020, the number is expected to rise to 11,500. In a study by Inventus Capital Partners, the average deal size for a consumer technology company in India last year was three times more than the year before ($5.6 million in 2013 vs. $17 million in 2014). Why is India the next big startup hotbed? A variety of reasons: evolving technology, availability of funds and a growing economy. In addition to the reasons above that make Indian startups ripe for success, they are also taking advantage of the positive effects of globalization.

DGFT eases norms for sugar exports

Relaxing norms for sugar exports, the Directorate General of Foreign Trade (DGFT) has done away with the registration requirement with the Commerce Ministry. "The requirement of registration of quantity with DGFT for export of sugar has been dispensed with," Director General of Foreign Trade (DGFT) said in a notification. Earlier, prior registration of quantity with DGFT was mandatory. At present, the exporters have to take RCs from DGFT, which are issued for a maximum 50,000 tonnes.

Endless wait for MSMEs for increase in Investment Ceilings to be a part of 'Make in India'

It appears there is no end of the tunnel for MSMEs to move up the growth path. After nearly a decade of advocacy by the stakeholders, Government finally moved a Bill to the parliament to raise the investment ceiling for MSMEs and it is lying to be discussed and passed by the legislature since April, 2015. With the ongoing slugfest between the Government and the opposition in the Parliament, it is any body’s guess by when the amended act will come in force.
State Scan

Andhra Pradesh    

AP tourism policy aims at 10,000-cr investment, creation of 5 lakh jobs

The new Andhra Pradesh tourism policy announced on Monday seeks to attract investment of about 10,000 crore by 2020, create 5 lakh jobs by encouraging private sector participation, and transforming the sector into a revenue-generating one. The policy unveiled by Chief Minister N Chandrababu Naidu describes all projects with an investment outlay ₹Rs 200 crore and above as mega-tourism projects. These would be entitled to get additional concessions on a case-to-case basis, to be approved by the State Investment Promotion Board. The Tourism Policy 2015-2020 has been charted out with support from various State departments, the industry expert workshop at Indian School of Business, Hyderabad, and KPMG.


Cluster of Madhubani Mithila artists to be formed, Rs10 crore to be spent on them in 5 yrs: KVIC

In a move to renovate khadi industry in Bihar, the Khadi and Village Industries Commission (KVIC) under the Ministry of MSME is likely to provide benefits to the artists of Mithila painting in Madhubani district. A media report said hundreds of such artists of the district will get proper remuneration for their products. “As per the plan, a cluster of artists would be formed and a total of Rs10 crore would be spent on them during a span of five years. About 1,000 artists from the district will form the cluster,” KVIC PRO, SC Jha has said, according to the report.


Gujarat ranked first in ease of doing business

Gujarat took the top honours in a list that ranked states on the ease of doing business. The government on Monday released the results of the ranking through a report on ‘Assessment of State Implementation of Business Reforms’. Andhra Pradesh, Jharkhand, Chhattisgarh and Madhya Pradesh feature in the top five in the report compiled by the Department of Industrial Policy and Promotion with technical assistance from the World Bank, consultancy firm KPMG, and CII and FICCI. Interestingly, of the five top States, four are ruled by the BJP, and one (Andhra Pradesh) by the Telugu Desam Party, an ally.

35 Chinese firms to take part in Gujarat conference

A delegation of 35 top Guangdong based companies including five pharma firms are accompanying the Governor of Guangdong to Gujarat for the event “China (Guangdong) –India (Gujarat) Economic and Trade Cooperation Conference” on September 16, 2015 in Ahmedabad. On the occasion of the visit to Governor of the Peoples' Government of Guangdong Province HE Zhu Xiaodan, China to Gujarat, China India Trade & Investment Centre (CITIC) and India China Economic & Cultural Council (ICEC) are organising an informative and match making event on pharma sector.


Karnataka to have country's first startup council

Hoping to ride on Bengaluru's initial success with startups by creating a favourable environment, like it did for the IT sector, Karnataka will soon become the first state to have a dedicated startup council. The plan, which was on the drawing board in August, is now taking shape and the department of commerce and industry is preparing a concept note. The startup council will work on a policy to provide easy clearance to emerging businesses, besides having a dedicated set of officials to deal with the same.


Rajasthan signs 9 MoUs to develop natural gas infrastructure

Government of Rajasthan on Wednesday signed nine memorandum of understanding (MoUs) with public and private sector oil and gas companies for natural gas infrastructure development in the state. Rajasthan produces about 24% of national oil production and 3% of national gas production. Regarding their existing and future activities in the state, another MoUs are signed by four PSUs (IOC, ONGC, OIL and GAIL).

Tamil Nadu    

3-day platform for buyers and sellers in MSME sector to begin from September 25

Nearly 50 vendors will exhibit their machining facilities for the benefit of outsourcing companies in the three-day JOBCON 2015, beginning here from September 25. The JOBCON (Job Connectivity) will be a platform for companies, both in the public and private sectors, to discuss the technological requirement of the components, to get first hand information, M V Loganathan, President, Coimbatore SIDCO Industrial Estate Manufacturers Welfare Association (COSIEMA), told reporters here today.
World Watch


India likely to sign FTA with Australia, Chile soon

India is likely to sign the comprehensive Free Trade Agreement (FTA) with Australia and Chile soon following a renewed push to the pacts. "We are very close to signing FTA with Chile. We are also having next level discussion with Australia for FTA agreement and we hope to conclude soon," Department of Commerce Joint Secretary Dammu Ravi told reporters. He was speaking on the sidelines of industry consultation meeting on Regional Comprehensive Economic Partnership (RCEP) Negotiations organised by CII here. He interacted with industry members to better understand the Indian industry's concerns.
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India and Belarus set a Trade Target of US$1 Billion by 2018

India and Belarus, who have the bilateral trade of USD 400 presently, have set a trade target of USD 1 Billion by the year 2018. Both sides noted the potential to step up cooperation in pharmaceuticals and Mining machinery, energy, fertilizer, and tourism between the two countries. Minister of State (Independent Charge) for Commerce and Industry, Nirmala Sitharaman, co-chaired the Seventh Session of the India-Belarus Intergovernmental Commission on Trade, Economic, Scientific, Technological and Cultural Cooperation on September 7, 2015 in Minsk, Belarus.
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China seeks government help to build mega township by realty major Dalian Wanda Group in Haryana

The Chinese embassy sought the Union government's help in facilitating a mega industrial township by real estate major Dalian Wanda Group in Haryana, a senior government official said. In one of the biggest investment in India by a Chinese company, Wanda Group is looking to acquire 100 square km of land in two parcels in Haryana to develop an industrial zone and township. "The Chinese embassy has requested us to assist the Wanda group with regard to their investment plans in India. However, we are waiting to get a detailed plan from the company to understand their requirements," said a senior official at the Department of Industrial Policy and Promotion (DIPP).
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India to soon clear $700 million oil dues to Iran as first tranche

India will in next few days pay Iran $700 million to clear more than one-tenth of the outstanding oil dues, ahead of the expected lifting of sanctions against Tehran. The Reserve Bank of India will make payments of $6.5 billion in past oil dues to Iran "in a calibrated manner so that there is no pressure on exchange rate", a senior finance ministry official said today. The first tranche will go out "sometime this month," he said. Another official said the first tranche of $700 million will go out in "next few days".
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J&K MSMEs participate at international food processing expo in Istanbul

An MSME delegation from Jammu and Kashmir participated at the 30th International Packaging and Food Processing Systems Exhibition (IPAK) held from September 3 to 6, 2015 in Istanbul, Turkey. A delegation of twelve members of registered micro, small and medium enterprises (MSMEs) representing various industries such as food processing, packaging, cement, packaging tapes, building material and house hold products was led by Bari Brahmana Industries Association (BBIA) President, Lalit Kumar Mahajan.
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FISME’s official Twitter handle
Knowledge and News Network (KNN)
KNN India’s official Twitter handle
Anil Bhardwaj, Secretary General

Banks always charge higher interest rates from MSMEs

Charging of high interest rates by the Banks from the MSMEs is not sporadic but systematic. Analysis of the RBI data on the interest charged by the Banks on borrower groups of different credit limits, bring out very interesting facts. During the period April – December, 2014, 53% of the borrowers within the credit limit of Rs. 10 to 25 Cr. In which most of the small manufacturer may fall, paid interest at rates varying between 9&13%, considered to be a reasonable rate, while 39% of the borrowers in the same group paid higher interest rates upto 17%.
Other Events

India Gadget Expo

Date: 18th – 21st Sept 2015
Venue:Hyderabad International Trade Exposition Centre(HITEX), Hyderabad
See Details

RFID India Expo

Date: 22nd – 24th Sept 2015
Venue: Pragati Maidan, New Delhi
See Details

Business Opportunities Show Jamnagar

Date: 23rd September
Venue: Hotel Fortune Palace, Jamnagar
See Details

Renewable Energy India Expo

Date: 23rd – 25th Sept 2015
Venue: India Expo Centre and Mart, Greater Noida
See Details

Techtextil India

Date: 24th – 26th Sept 2015
Venue: Bombay Convention and Exhibition Centre, Mumbai
See Details

Mining Exploration Convention & Trade Show

Date: 24th – 26th Sept 2015
Venue: Bangalore International Exhibition Centre (BIEC), Bangalore
See Details


Date: 25th – 27th Sept 2015
Venue: Hyderabad
See Details
Your Views

Do you believe the economy will be able to take the economic burden of implementing OROP?

According to the FISME Factor, 50 percent of Micro, Small and Medium Enterprises (MSMEs) agree that the economy will be able to take the economic burden of implementing OROP while 50 percent disagree.
Knowledge Store

HR Heuristics

‘Most employees feel recognition vital for productivity'

When it comes to productivity at work place, recognition is considered as a vital element compared to perks, benefits and raises as 37 per cent employees feel it is the most effective way to motivate workforce to produce great work, a recent survey said. "If your goal is to create environments where great work happens, and happens a lot, consider recognition. It's been found to be the most effective element in causing employees to produce great work. About 37 per cent of the respondents feel recognition is the most effective element in causing employees to produce great work," a Recognition Trends for 2015 report by OC Tanner said.

Finance Fundamentals

B2B e-commerce — serving from small retailers to big industries

Start-ups driving industrial procurement online, offering tech solutions to kirana stores A Technopak Advisors report says that 99 per cent of India’s retail market is offline. But much of retail in India comprises small retailers. Now, imagine kirana stores across the country being able to maximise their earnings thanks to better technology. B2B e-commerce transactions in developed geographies surpass that of B2C, whereas in India only B2C e-commerce has managed a success story. B2B e-commerce start-ups in India are now serving a diverse set of customers.

Marketing Mantras

10 tips for a successful pitch

Most of us hate it, but most of us have to go through it at least once in our start-up life time: PITCHING! Here are some tips that help you hit the homerun: The project and the team There are only 2 parts to a pitch: The Project and the Team! You need to get both right to convince an investor. Get your team right Be clear on your team’s skill set, experience and capacity. Fill in the blanks via your mentors, advisors or your board!

Policy Polemic

Digital Chaos' may create business disruptions

The advancement of the internet has brought about many tangible benefits for businesses and society, and in line with that, business models are evolving to take advantage of this new digital reality. However, there is now so much interdependence. Much akin to the global financial system, businesses, organizations, governments and people today are so interlinked to one another via the internet that a disruption can create a domino effect which jeopardizes the entire network. And this is what can happen with the increasing intensity and frequency of cyber-attacks around the globe.

SME Special

Best Time To Be An Entrepreneur in India!

India’s core strength lies in a robust base of entrepreneurs who have tremendous potential in galvanising the Indian economy and pushing it on the road to sustained high growth. If you have that entrepreneurial DNA, it’s time to grow your business idea into a startup - and it’s a favourable time to launch a startup in India. It is critical to delve deeper to understand why it’s a good time to become an entrepreneur in India, the challenges you face while launching a startup, government’s initiatives to boost startups and FICCI’s role in nurturing the growth of entrepreneurial ventures.

Success Story

Indian-origin entrepreneur in Fortune's businesswomen list

An Indian-origin entrepreneur has been named among the most promising businesswomen of 2015 by Fortune magazine in its annual recognition of 10 women innovators, groundbreakers and game changers. Payal Kadakia is the CEO and co-founder of ClassPass, a two-year-old start-up that gives customers access to thousands of boutique fitness classes in their area. "ClassPass is only two-year-old, but it has already booked more than 7 million fitness class reservations at gyms and studios across the US, plus Canada and the UK," Fortune said in a statement.


The Central Statistics Office (CSO), Ministry of Statistics and Programme Implementation, has released the CPI (Rural, Urban, Combined) on Base 2012=100 for the month of August 2015.

Quotable Quotes

“ Whatever the mind can conceive and believe, the mind can achieve. ”
– Dr. Napoleon Hill, author of Think and Grow Rich.
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

4 New Members Join FISME

During the period from 01st Sept to 15th Sept 2015 a total of 4 new MSME became members of FISME.
Reader Reactions

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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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