Add this sender to your address book Click to view this email in a browser

Vol II, Issue 10: May 15, 2012 Activities   News   Members   Contact     Print Version  

President's Message

"MSMEs' inability to afford

approved space for manufacturing

(and often its outright

unavailability), is the single

biggest reason why 96% of

MSMEs are condemned to operate

informally remaining deprived of

institutional credit and other

entitlements while being under

constant threat from multiple

departments all the time.

Providing them approved

affordable space and formal

status/registration will be like

freeing a bonded labour. The

impact of lakhs of such micro

units suddenly breathing freely

can be huge as it can lead to

explosive industrial growth and

socio-economic development."

- V.K. Agarwal, President FISME

(during stakeholder consultation

on the 12th five year plan at

Lucknow)

Read More

Read More

Activities

l FISME organises stakeholder consultation on Mfg. Plan in Lucknow

l FISME lending big hand to Karnataka for promoting GIM 2012

Domestic Digest

l CorpBank opens MSME loan centre in Delhi

l RBI's forex order is unfair on MSMEs

l World Bank aid for NCR MSMEs to continue

l India unlikely to maintain 21% export growth in FY13

World Watch

l Indian SMEs to benefit from Germany's technology: Sharma

Knowledge Store

l Watch out for opportunities to step up exports to China

l How to structure a Group Health Insurance policy for Employees?

l Creating our positive emotions bank

...And A Lot More

FISME holds stakeholder meet on Mfg. Plan in Lucknow

A new approach adopted

in the Manufacturing Plan

component of the Twelfth

Five Year Plan may see

reforms that would allow

unregistered MSMEs to

get f o r m a l s t a t u s a n d

a c c e s s i n s t i t u t i o n a l

f i n a n c e a n d o t h e r

e n t i t l e m e n t s . T h i s

emerged at a Consultative

Meeting on Manufacturing Plan - part of 12th Five Year Plan (2012-17) organised

by FISME on behalf of the Planning Commission of India in Lucknow on May 16,

2012. FISME was part of the Steering Committee set up by the Planning

Commission to provide overall guidance and strategic leadership to 26 working

groups that were asked to analyse the problems facing the manufacturing sector

in India and make recommendations. The 246-page Manufacturing Plan

document prepared by the Commission as part of the Twelfth Five Year Plan

document is based on the work of these working groups led by the Steering

Committee. Primarily on the advocacy of FISME, the Planning Commission

adopted a new approach in drawing up the Manufacturing Plan for the 12th Plan

period (2012-2017) and beyond. In the Steering Committee meetings, FISME

consistently argued strongly that if Indian manufacturing had to break out of the

shackles of contributing a mere 16% to the national GDP and increase this

share to 25% by 2025 so as to create adequate jobs to reap the dividends of

India’s demographic advantage, a more widely consultative and inclusive

approach must be adopted and the consultative process must be taken to the

states so as to unleash the potential of MSMEs. The Planning Commission and

the Steering Committee concurred with this view and FISME is proud to

announce that the Manufacturing Plan reflects this new paradigm in India’s plan

formulation and implementation exercise. To achieve the objective of “Take the

http://www.fisme.org.in/newsletters/May17_2012/mail1.html Page 1 / 7

Read More

Read More

Separate IIP for MSMEs needed: FISME Survey

The FISME Factor survey asking

MSMEs as to whether there

should be a separate I IP to

capture production of only the

M S M E s e c t o r g o t a n

overwhelming positive response

- 87% said yes.

Dear Readers,

The falling rupee is sending

shivers down the spine of

companies with dollar

denominated debt on their

books. The oil import bill too is

rising. For many MSMEs,

however, the falling rupee is a

boon not a bane. Those who are

into exports or those who have to

compete against imported goods

that have to be paid for in dollars

or other currencies that are

appreciating against the rupee,

are enjoying competitive

advantages. But the adverse

macroeconomic impact of a

continually sliding rupee may eat

into these benefits. The RBI has

to strike a balance and intervene

more extensively than it is doing

now, but at the right time. Will that

happen? A lot seems to depend

on whether the government and

the RBI can intervene at the right

time, at the right place and with

the right intensity. All this once

again goes to show what FISME

has always argued for: that

unbridled laissez faire without

proper government intervention is

FISME lending big hand to Karnataka for promoting GIM 2012

Plan to the States” as recommended as the immediate next steps in the

Manufacturing Plan, FISME, on behalf of the Planning Commission, organised

the first State level stakeholder consultation in the capital of India’s most

populated State.

Read More

As one o f t he pa r tne r

o r g a n i s a t i o n s o f t h e

Karnataka government for

promoting and organising

the Global Investors Meet

2012 (GIM 2012) to be

held on June 6 to 8, 2012,

in the outskirts of the state

capi ta l , the Bangalore

office of FISME has turned

into a beehive of activity.

FISME representatives led by senior Central Executive Committee member and

past President Mr Mohan Suresh and members of the Bangalore secretariat are

actively participating in organising road shows and meetings to promote the

event. So far, road shows have been conducted in Singapore, South Africa,

Japan and Taiwan. All these countries along with Germany and the USA have

consented to participate in various fields of the global investors meet. FISME

representatives have also participated in a series of meetings held at Udyog

Mitra involving the Karnataka Industries Minister, Chief Secretary, Government of

Karnataka, Advisor to the Chief Minister, the Commissioner of MSMEs,

associate, knowledge and event partners as well as industry Federations and

Associations who are supportive organizations for the GIM Expo 2012.

Read More

Should there be an interest subsidy in the new foreign

trade policy to be announced on June 5, 2012?

Yes No

You can also view online

nmlkj nmlkj

Submit

http://www.fisme.org.in/newsletters/May17_2012/mail1.html Page 2 / 7

not such a good idea!

Editor

Trade Trends

Watch out for opportunities

to step up exports to China

Finance Fundamentals

How to structure a Group Health Insurance policy for

Employees?

The adverse impact of the Euro

zone crisis on exports is forcing

export-oriented East Asian

countries to introduce policies

aimed at boosting domestic

demand to maintaining

economic growth. Recent easing

of monetary policy indicates that

China too may follow suit. This

may mean an export expanding

opportunity for Indian Small and

Medium Enterprises (SMEs) in

such areas as food and

processed food items and

finished consumer products,

argues Absar Alam.

Read the full article

Very often when we meet with HR

Macro Metre

Falling rupee to affect company quarter results in June 2012

New policy targets 10% growth for industry

Domestic Digest

CorpBank opens MSME loan centre in Delhi

Exports from SME-dominated sectors fall in April

Pimpri-Chinchwad industries facing extortionist threats

Fast declining rupee can have its serious impact

on industr ial output. Indian companies are

already burdened with overseas loan and in such

a scenario; weak rupee is definitely going to

increase the problems of Indian manufacturers.

Rupee decline continued and touched the new

bottom level of 54.60. However, rupee closed at

54.47 recently. Domestic loans have already become costly. Its effect has been

seen on the last year’s industry output growth rates. Rising inflation and

declining rupee are going to increase company’s overall cost. Jagannadham

Thunuguntla from SMC Global Securities says that the companies may have

bad quarter results of June 2012.

Read More

After three years of functioning without an industrial policy in the state, the Uttar

Pradesh government is ready with its new draft Industrial and Service Sector

Investment Policy (ISSIP) for 2012. Currently open to consultations with industry

stakeholders, the policy, in its new avatar, aims to clock an industrial growth of

10%, create 25 lakh new jobs annually, ensure equal development of all

regions of the state and make UP the most sought-after investment destination

in the country.

Read More

Corporation Bank opened its micro small and medium enterprises (MSME)

loan centre in Delhi, said a bank release. Ashwani Kumar, Executive Director of

the bank, inaugurated the centre recently. Ajai Kumar, Chairman & Managing

Director, recently declared open new MSME loan centres in eight cities across

the country. The centres are located in Delhi, Hyderabad, Bangalore, Chennai,

Coimbatore, Pune, Mumbai and Vadodara.

Read More

Expor ts f rom some key indus t r ia l

s e c t o r s d o m i n a t e d b y s m a l l a n d

medium enterprises (SMEs) fell sharply

in April, official data released recently

showed. According to foreign trade data

released by the Ministry of Commerce &

Industry, there is a sharp decline in

exports of some SME dominated sectors, like gems & jewellery and ready-

made garments in April. The gems & jewellery sector witnessed the sharpest

fall, with 25.7% contraction in overseas shipment during the month, followed by

readymade garments that suffered 9% fall in exports during the same period.

Read More

http://www.fisme.org.in/newsletters/May17_2012/mail1.html Page 3 / 7

There is a risk SMEs will be under pressure: Murali M

Natrajan

Creating our positive emotions bank

Marketing Mantras

Survival of the fittest applies in tough economic climate

heads and CEOs, they are

puzzled about Insurance and its

details. Group Health Insurance

for employees is one such area.

It is a much valued benefit for

employees, however very less

understood by employers.

Hence, this article which tries to

provide a brief overview on the

topic.

Read the full article

Development Credit Bank (DCB)

returned to profitability in 2010-11

after losses in the previous two

financial years. The private sector

lender has stopped offering

personal loans, after the

deterioration of asset quality and

eroded profitability in 2008-09

and 2009-10. Managing Director

and Chief Executive Officer Murali

M Natrajan says it has no plan to

re-enter this segment. Instead,

he tells Somasroy Chakraborty &

Parnika Sokhi, the focus will be

on the retail and small & medium

enterprises (SME) segments in

the coming years.

Read the full article

HR Heuristics

" Many of us know that positive

thinking is a necessary

ingredient for success. But there

is very little clarity as to what

exactly is positive thinking, (apart

from the simplistic explanation

that the positive thinker sees the

glass half-full and the negative

thinker sees it half empty) ; and

what exactly should one do to

change negative thinking to

positive thinking? "

Read the full article

RBI's forex order is unfair on MSMEs

Textile, apparel exporters benefit from Rupee's fall

SBI Insurance to focus on retail, SME sectors

UNIDO to survey Punjab to set up food processing clusters

ISPG Tech named Premier SME partner of Google

World Bank aid for NCR MSMEs to continue

Industrial units in MIDC's Pimpri-Chinchwad, Chakan, Ranjangoan belts are

facing hardships due to threats from allegedly "extortionist" elements active in

the region. Threats of extortion are affecting business environment and some

industrialists are mulling to move out of the region if the problem persists.

Maharashtra home minister RR Patil appointed a senior CID cop to probe into

the matter and submit an investigation report within three months.

Read More

The Reserve Bank's directive, that all

foreign exchange earners can maintain

only 50 per cent of their inward forex

remi t tances in Exchange Earner 's

Foreign Currency (EEFC) account (with

the balance to be surrendered for

conversion to rupee balances), is a very

regressive step. MSMEs are major

contributors to India's exports; this is in spite of market slowdown, higher cost

due to poor infrastructure, excessive transaction cost, among other things.

Read More

The continuous rupee depreciation has

been profitable for many textile and

appare l expor te rs in the count ry ,

according to the Confederation of Indian

T e x t i l e I n d u s t r y ( C I T I ) . " R u p e e

depreciat ion is help ing text i le and

c lo th ing as o f now. The cur rency

fluctuation that they are talking about is only depreciating. Normally, people

does not take forward cover for 100 percent of their receipts, they take it for only

for three or four months. Exporters will get benefit on what they have not covered

i.e. the portion which they have not taken cover," CITI Secretary General, D.K.

Nair told SME Times.

Read More

SBI General Insurance is planning to focus extensively on the retail and SME

segments in Kerala, considering its growth potential. Mr Rob Logie, Deputy

CEO, SBI General Insurance, said the company has acquired over 10,000

customers in Kerala across corporate, SME and retail segments. The premium

income from the region during financial year 2012 was Rs 7.54 crore, he said.

Mr Logie, who was here in connection with the opening of its second branch in

Kochi, said that the company also sees great potential in providing customised

insurance solutions to the tourism and agro-based industries of the State.

Read More

With "Aman ki Asha" brightening up between India and Pakistan, the United

Nation's Industrial Development Organisation (UNIDO) is getting a survey done

in all districts of the border state of Punjab to find out two suitable districts for

setting up clusters of food processing industry. The survey is being conducted

by Assocham on behalf of the UN body which has already initiated a process for

similar clusters of other industries in Madhya Pradesh, Bihar, West Bengal and

Kerala.

Read More

ISPG Technologies, the Kochi-based IT company, has been selected as

Premier SME Partner by Google. Only five organisations have been awarded

Premier SME partner status in India and ISPG Technologies is the only one in

Kerala. Mr K.G. Sajith, Managing Director and CEO, ISPG Technologies, said

the partnership with Google would help the company provide clients with high-

end executive, technical, sales, marketing and account management services.

Read More

The World Bank and SIDBI are preparing to pump in more money for micro,

http://www.fisme.org.in/newsletters/May17_2012/mail1.html Page 4 / 7

The difficult global economic

environment continues to pose

ever more challenges for small

and medium enterprises. With

budgets being squeezed and

competition for customers

increasing, the need to manage

costs and attract and retain

customers has never been more

important. Holding on existing

customers is far cheaper than

seeking new ones and it is

essential that today’s SMEs have

the IT and communications

systems in place to ensure

they’re able to deliver the highest

levels of quality customer service.

Read the full article

Directory of Testing Laboratories in India

Handbook for Managing Export Payment Risks  

Buy our one-of-a-kind guide to all

industrial testing laboratories in

India. Find the one most

convenient for getting your

products tested and certified. An

invaluable compendium for all

industrial units and exporters.

PP: 894, Hard Cover.

Price: Rs 900.

50% discount for members.

Buy your copy now

Karnataka showcases Mysore as MSME, tourism destination

India unlikely to maintain 21% export growth in FY13

MSME Ministry seeks report on industry team’s China tour

small and medium enterprises (MSMEs) under their joint MSMEFD programme

- Micro Small and Medium Enterprise Financial Development. This comes

under the third phase of the programme that would be focus on the financial

intermediaries to strengthen their credit line facility for the ultimate beneficiary -

MSMEs and SMEs - to avail this facility.

Read More

The Department of Industries and Commerce in Karnataka is planning to

showcase Mysore region as MSME and tourism destination. “During the Global

Investors Meet (GIM) road show both in India and Far East (Singapore and

Japan) we got good responses to set up MSME units and tourism related

investments,” said a senior department official. “The department has got

investments proposals to the tune of Rs 5,000 crore and MoUs will be signed

during the global investors meet (GIM) to be held in June,” he added.

Read More

India is unl ikely to maintain export

growth of 21% this fiscal and may find it

diff icult to meet overseas shipment

t a r g e t s a g a i n s t t h e b a c k d r o p o f

cont inuing euro-z o n e d e b t c r i s i s ,

exporters industry body FIEO said

recently. The country's shipments this

year may not even touch $350 billion

and the government's target for $500

bil l ion by 2014-15 too looks impossible because of the present global

challenges.

Read More

Following the arrest of two traders in China during an anti-prostitution raid, the

Ministry of Micro, Small and Medium Enterprises (MSME) has sought a detailed

report on the entire incident from the local MSME office. The version of the

delegation of United Cycles Parts and Manufacturers Association (UCPMA) has

been sought during the preparation of the report. Association President

Gurmeet Kular is still in China and will return after April 7, once the two arrested

team members are released. The report will be given by the delegation after

that.

Read More

Focus on Germany

Indian SMEs to benefit from Germany's technology: Sharma

Focus on Thailand

SMEs still face financing hardships ahead of AEC

T h e I n d i a n s m a l l a n d m e d i u m

enterprise (SME) sector will benefit from

technology collaboration with Germany,

sa id Un ion Min is ter o f Commerce

Industry and Texti le Anand Sharma

recently. S p e a k i n g a t m e e t i n g o f

German and Indian CEOs in Berlin,

Sharma said, "Small and medium enterprises which form the backbone of

Indian industry, employing 26 million people, contributing to 45% of our

manufacturing output and 40% of total exports would benefit immensely through

a technology collaboration with Germany." Earlier, after a meeting with German

Federal Minister of Economics & Technology Philipp Roessler, Sharma had

asked for better collaboration between India and Germany in the field of

generics.

Read More

Small and medium-sized enterprises (SMEs) will find it hard to survive once the

Asean Economic Community (AEC) is established, especially those relying on

http://www.fisme.org.in/newsletters/May17_2012/mail1.html Page 5 / 7

Free Publications

Fertilizer quality control in

India: Need for change 

If you are an exporter you simply

cannot do without this unique

publication which tells you how to

manage payment and other risks

arising from exports.

PP: 78.

Price: Rs 300.

50% discount for members.

Buy your copy now

This monograph argues for a

systemic change in fertiliser

quality control. Essential reading

for those in policy-making

positions.

Ask for your copy now

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:

Greece

UK

Toronto

Focus on Philippines

SME Clustering To Boost Economy

Focus on Dubai

Dubai set for new boom

expensive informal financing. "They will be weakened since competition will be

fierce after 2015," said Patchara Samalapa, executive vice-president of the SME

Business Division at Kasikornbank Plc (KBank). He said many SMEs do not

meet the lending criteria set out by the banks and are forced to rely on the

informal financing sector.

Read More

The Department of Trade and Industry (DTI) is implementing a national industry

clustering approach to increase the contribution of the small and medium

enterprises to the national economy. This initiative is implemented through the

three-year National Industry Cluster Capacity Enhancement Project (NICCEP),

which seeks to enhance SMEs’ capability for job creation, investment

generation, export growth, SME development, and poverty alleviation.

Read More

F a r i d K a r m o s t a j i , d i r e c t o r o f

Entrepreneur Development Division of

S h e i k h M o h a m m e d B i n R a s h i d

Establishment for SME Development

(Dubai SME), said that an increasing

number of companies were looking at

Dubai as a base, and a good number of

franchisors were keen to set up outlets

in the emirate. Speaking at the inauguration of Franchise UAE 2012, the third

edition of the national franchise and trade Show, he said: “We can feel the new

frenzy in the number of new shops opening and malls expanding.”

Read More

Two Canadian companies looking for partners

Two Canadian companies looking for Indian trade and business partners.

Read Details

South African government to buy equipment

The South African government has notified that it intends to procure certain

equipment.

Read Details

2 new members join FISME

During the period May 1, to May 15, 2012 a total of 2 new MSMEs became

members of FISME.

Read Details

You are receiving this Newsletter because you are included in our mailing list of recipients who are involved or

interested in FISME or Indian MSMEs. You are welcome to partly or fully reproduce and disseminate the contents of

this publication provided that you acknowledge the source.

To subscribe/unsubscribe to this Newsletter

click subscribe or unsubscribe

This Newsletter is edited by the FISME Secretariat. We welcome contributions as well as comments and

suggestions. Please write to newsletter@fisme.org.in

Federation of Indian Micro and Small & Medium Enterprises (FISME)

http://www.fisme.org.in/newsletters/May17_2012/mail1.html Page 6 / 7

B – 4 / 161, Safdarjung Enclave, New Delhi – 110029

Telephone: +91 11 26187948, +91 11 26712064, +91 11 46023157   Fax: +91 – 11 – 26109470

Email: newsletter@fisme.org.in ,   Mobile: +91 9312274911,   Website: www.fisme.org.in

Bangalore Office 57/5, Family YMCA Building,

Millers Road, Benson Town,

Bangalore - 560046

Email: bangalore@fisme.org.in

Mobile: +91-80-23543589

Website: www.fisme.org.in

Hyderabad Office H. No. 6-3-569 / 1/2/4

2nd floor, Rockdale Compound, Somajiguda

Hyderabad – 500082

Tel: +91- 40- 23322117 Fax: +91 -40- 23312116

Email: hyderabad@fisme.org.in

Website: www.fisme.org.in

If you want to forward this email to a friend, Click here

http://www.fisme.org.in/newsletters/May17_2012/mail1.html Page 7 / 7