| Activities |
 Dr Shashi Tharoor, Hon’ble Minister of State for Human Resource Development released the ‘SME Whitebook 2013-14’ in a glittering function in Gurgaon on 10th Dec 2013. The annual publication is produced by Businessworld magazine and builds upon data sets and information provided by premier industry bodies such as FISME. The SME Whitebook 2013-14, focusing on rise of the service sector. Speaking on the occasion Mr. Anil Bhardwaj, Secretary General FISME and author of lead article for the volume said that rise of services could be seen as the only option for the entrepreneurial spirit to flourish as the manufacturing sector faces huge constraints in the country in comparison to services.
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 FISME was invited to make a presentation on insolvency of SMEs and natural persons during the 9th Forum for Asian Insolvency Reforms (FAIR) which was jointly organized by World Bank, UNCITRAL and INSOL International from 3~5 Dec 2013 in Manila. More than 100 delegates- government officials, professionals from law, judiciary and industry, from 17 Asian countries participated in the event which was hosted by Bangko Sentral ng Pilipinas (BSP)- the central bank of the Republic of the Philippines. The invite was the result of a body of research work carried out by FISME on MSME insolvency issues in India during last 10 years. FISME Secretary General Anil Bhardwaj presented the key findings of the research and solution proposed by FISME to the Inter-ministerial Committee for MSMEs set up by the Cabinet Secretary in India.
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 A 20 member business delegation of FISME visited one of the fastest growing economies of Africa- Rwanda from 27th Nov to 2nd Dec 2013. The official delegation was led by Hon’ble Minister of MSME Shri K.H. Muniyappa and the business delegation by FISME President Shri D. Gandhikumar. With an aim to discuss on ways of strengthening bilateral cooperation for MSMEs development, the delegation met the Hon’ble Minister of Trade and Industry Mr. François Kanimba and focused on the implementation status of a Memorandum of Understanding signed between Rwanda and India in 2006, related to their cooperation in the field of MSMEs Development. The business delegation also exhibited in the Trade Fair TVET Expo 2013 and held B2B meetings.
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| Business Banter: Lessons from Entrepreneurs |
- Dan Martell, Founder of Clarity - Angel Investor (23 tech startups). Co-Founder of Flowtown (Acquired 11')
 It doesn’t matter if you don’t know how to do something; what matters is that you’re motivated to learn. For many entrepreneurs, it isn’t knowledge that stops them from succeeding—it’s not having the ability to find the information required to make it work. Being committed and having something to fight for allows you to find the solutions when you need them the most. Find that motivation.
[Adapted from Four lessons that changed Dan Martell’s entrepreneurial beliefs]
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| Writing on the Wall |
India is set to become the world's third largest energy consumer by 2020, after China and the United States. With our burgeoning population and rapid industrialisation, domestic energy production cannot keep pace with growing energy demand. Crude imports have grown annually at close to 10% in the last decade and coal imports have grown at over 20% every year during the same time. The last couple of days have produced data that potentially cause a dent in the otherwise growing confidence about the Indian economy stabilising.
[Adapted from Business Standard, Editorial Section]
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| Media Monitor |
Macro Metre
The World Bank is keen to financially support India’s efforts to emerge as a global leader in solar power, its Country Director for India Onno Ruhl has said. For India to achieve its target of adding 20,000 MW of solar capacity by 2022, there is a need to address key issues such as structural constraints to commercial financing, Ruhl told reporters here The World Bank on Thursday launched a report titled ‘Paving the Way for a Transformational Future: Lessons from Jawaharlal Nehru National Solar Mission Phase 1”. India should take a serious look at subordinated debt financing to provide long-term finance for solar power projects, said Ashish Khanna, Lead Energy Specialist, World Bank.
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 The possibility of a third interest rate increase in four months looms, with the country's battle with inflation and weak economic growth becoming more challenging. Two sets of data released on Thursday showed a sharp spike in retail inflation and a worse-than-expected contraction in industrial production. Market players expect the central bank to increase the repo rate by at least 25 basis points to eight per cent - exactly the level at the beginning of this year. Mainly driven by high vegetable prices (food prices soared by an annual 14.72 per cent), the retail inflation rate accelerated to an all-time high of 11.24 per cent in November (from 10.17 per cent the previous month), making the RBI's mission to cool prices without hobbling chances of a rebound more difficult.
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 While emphasizing job creation as a critical success parameter of policies, Governor of Reserve Bank of India, Raghuram G Rajan unveiled his agenda of reforms in the financial sector to be carried out in the medium term. Delivering a special address during the 4th Delhi Economic Summit, the flagship event of the Department of Economic Affairs, Ministry of Finance, Government India, which was inaugurated by Finance Minister P Chidambaram here today, Rajan presented his vision for financial sector reforms based on ‘five pillars’. According to Governor the first pillar is to ‘clarify and strengthen’ the Monetary Policy. He advocated a balance systemic approach based on several parameters rather than changing policies because of one factor, say inflation.
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 In a disappointing performance, industrial production was lower by 1.8 per cent in October this year as compared to the same month last year. For the April-October period of the current fiscal, the growth in industrial output is nil, reflecting the poor state of affairs in manufacturing and key areas of industry. The manufacturing showed a de-growth of 2 per cent, mining 3.5 per cent and electricity an expansion of mere 1.3 per cent in October.
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 Export growth has slowed down 5.86 per cent to $24.6 billion in November 2013 compared to the same month of the previous year as the shipments of gems & jewellery, petroleum products and pharmaceuticals declined. Exports in the preceding four months had witnessed a double-digit growth. November imports Imports during the month declined 16.37 per cent to $33.83 billion as gold imports continued to fall because of restrictions put in place by the Government and petroleum imports, too, went down. Gold and silver imports went down 80 per cent to $1.05 billion from $5.4 billion.
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 Reserve Bank of India (RBI) Governor Raghuram Rajan said that technology must be leveraged to improve access of the MSME sector to bank finance. “We need to expand access of finance to the MSME sector through new technologies,” he said emphasizing the need to improve financial inclusions. Speaking at the Delhi Economic Conclave 2013 on ‘The Agenda for the Next Five Years’ here, he also said the RBI would introduce measures to improve liquidity. Rajan’s observations are significant, as the MSME sector faces a huge shortfall in its credit demand.
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 In an effort to enhance capabilities and competitiveness of micro and small enterprises (MSEs), the Consultancy Development Centre (CDC) will provide financial assistance to meet their common requirements. Financial support will be provided under the scheme on Financial Assistance to Associations for Micro and Small Enterprises for availing consultancy support (FACS-MSE). The scheme envisages availing consultancy services to solve the current and upcoming issues faced by a group of MSEs for enhancing the efficiency and effectiveness of operations in the group.
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 The government has been taking steps towards making milk production profitable and promoting rearing of livestock as a means to supplement income of marginal farmers and landless labourers. “Rearing of livestock for milk production plays a significant role in supplementing family income in the rural sector, particularly among small and marginal farmers and landless labourers, beside generating gainful employment and providing low cost nutritional feed,” said Minister of State for Agriculture and Food Processing Industries, Charan Das Mahant in the Rajya Sabha yesterday.
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 In an effort to enhance the empowerment of women across all sectors, the government has taken up projects for skills training, technical support, etc to promote all-round development of women. The Ministry of Women and Child Development has been implementing “National Mission for Empowerment of Women” (NMEW) scheme to strengthen inter-sectoral convergence and facilitate the process of coordinating all the women’s welfare and socio-economic development programmes, said an official release. NMEW envisages economic empowerment like provision of skill training, technology transfer, technical support and promotion of market linkages, giving women access to social programmes and leverage funds for asset creation and strengthening delivery system through gender budgeting and preparation of gender sensitive programmes.
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 In an effort to generate self-employment opportunities in dairy industry, the government will provide Rs 1400 crore for enhancement of milk production, procurement and other infrastructure required for the sector. The decision to give a boost to the employment oriented dairy sector was taken by the Cabinet Committee on Economic Affairs (CCEA). “The Cabinet Committee on Economic Affairs (CCEA) has approved modification and continuation of the Dairy Entrepreneurship Development Scheme (DEDS) during the 12th Plan with an outlay of Rs 1400 crore covering activities such as enhancement of milk production, procurement, preservation, transportation, processing and marketing of milk,” said an official release.
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 The Central Institute of Tool Design (CITD) here seeks large manufacturers for procurement of instruments, machines and software to equip the MSME Tool Room. The machines and software which CITD intends to procure are – Dual Pallet, UPS, Desk Top Systems, Electro-Pnuematic Kit, Hydraulic, etc. “The parties must have made supplies to the Government Organizations in India for the same items and they shall enclose along with offers the proof of being large manufacturer and the list of the clientele,” CITD said in a notification.
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| State Scan |
Andhra Pradesh
 In a bid to create new employment opportunities in the state and increase trade benefits, the Government of India has approved the implementation of a project to upgrade port facilities here. The project would comprise of upgradation of the existing facility at outer harbour and creation of new facility at inner harbour for handling iron ore. “The upgradation, operation and maintenance of the facilities are expected to create new employment opportunities” the Union Minister for Shipping, G K Vasan said.
Himachal Pradesh
 The Himachal Pradesh government has proposed to implement a capacity building and e-governance project in the state as a part of its e-governance initiative. The state government will soon be appointing a consultant for the e-District project. In this regard, the Society for promotion of IT and e-Government (SITEG), on behalf of state Department of Information Technology has invited proposals for selection of a system integrator (SI) for the project.
Kerala
 In perhaps the first of its kind initiative in the country, Kerala government has set apart over Rs 500 crore annually for providing world class ecosystem for the startups in the state. "The Kerala government has earmarked one per cent of the state budget for young entrepreneurs. This comes to over Rs 500 crore annually and will be invested to provide a world class ecosystem for our startups, including angel funding", Chief Minister Oommen Chandy said today.
Uttar Pradesh
 Uttar Pradesh Rajkiya Nirman Nigam wants to develop Tajganj as a mega destination around the World Heritage site Taj Mahal in Agra. Tajganj is the most toured area in Agra which encircles the area around one of the world's most wondrous monuments, the Taj Mahal. The mega destination development will come up near the East and West gates of the Taj Mahal. The estimated cost for the project is Rs 5000 lakh, and the project is expected to be completed in 18 months. In this context, the Uttar Pradesh Rajkiya Nirman Nigam Limited, of the Etawah zone seeks contractors of UP PWD, CPWD, MES or any other Government organization for construction of the mega destination.
West Bengal
 In an initiative to boost agricultural units, the West Bengal government has proposed to build and improve agricultural infrastructure to facilitate the setting up of farmers' markets. The state agriculture department has invited proposals from project developers to set Brihat Krishak Bazars under the scheme Brihat Krishak Bazar Yojana-2013. The objective of the scheme is to pave the way for investment in the postharvest infrastructure in West Bengal and to create examples of excellent management processes.
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| World Watch |
Africa 
 Members of the five working groups of the India-Africa Business Council (IABC) from both the sides have recommended a concrete action plan for the development of SMEs and to boost trade. In Financial Year 2012-13, India- Africa bilateral trade was USD 70.25 billion, and this could increase considerably through expansion of trade in new areas and sectors. “The target for India-Africa bilateral trade has been set as USD 90 billion by the year 2015,” Minister of State in the Ministry of Commerce and Industry, E M Sudarsana Natchiappan informed Parliament today.
Britain 
 All UK visa applicants in India who are making a new application will have to pay their visa fees online via Visa or MasterCard debit or credit cards or via e-wallet (PayPal or Skrill) from December-16, 2013.The British High Commission in India issued a notice to this effect here yesterday. Customers in India already apply for their visa on-line by visiting http://www.visa4uk.fco.gov.uk/ApplyNow.aspx, however, from 16 December 2013, customers will have to pay for their visa online, using Visa or MasterCard debit or credit cards or via e-wallet (Skrill), as part of the online application process.
Japan 
 Abe is looking to drive exports and bolster friendships in the ASEAN region Japanese Prime Minister Shinzo Abe on today pledged $20 billion of aid and loans to Southeast Asia, as he looks to drive exports and bolster friendships in the region. The announcement of the money, which will come over five years, came ahead of an expected joint statement in which Tokyo will be looking for support in its row with China over disputed islands. "Together with ASEAN I want to build the future of Asia where laws, rather than power, rule and people who worked hard will be rewarded -- which would lead to prosperous society with mutual respects," he told summiteers in Tokyo.
Pakistan 
 Pakistan on Friday raised fresh hopes of normalization of trade relations with India and indicated that it was willing to speed up the process of allowing more goods to be imported via the land border but refused to either provide a firm deadline or commit to grant most favoured nation (MFN), an issue that has been pending for 17 years. But, sources present during commerce and industry minister Anand Sharma's meeting with Shahbaz Sharif, chief minister of Punjab province of Pakistan and Khurram Dastgir Khan, the junior minister for commerce from Pakistan, said there were "strong signals" from across the border that they would look to "speed up" the decisions.
United Kingdom 
 UK’s Secretary of State (Minister) for business, innovation and skills, Vince Cable is currently on a four day visit to India to explore business opportunities and strengthen existing partnerships in engineering, education skills and innovation. The Minister has been accompanied by a 25 member UK business delegation who will visit four cities from December-9 to 12, according to a British High Commission release. “We have always had a special relationship between our countries and I am keen to push business collaboration much further as we work towards doubling trade with India by 2015,” said a British High Commission release quoting Cable.
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| Upcoming Events |
Sourcing Exhibition in India by Hannover Milano
Date: 17th – 20th December 2013 Venue: Pragati Maidan, New Delhi See Details
SMB Connect
Date: 21st December 2013 Venue: Hotel Crowne Plaza, Okhla – Phase 1, New Delhi See Details
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FISME’s China office opens in Shanghai
FISME’s China office has become operational in Shanghai.
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| Other Events |
Kolhapur Industrial Expo
Date: 15 - 18 December 2013 Venue : Shahupuri Gymkhana Ground, Kolhapur, Maharashtra See Details
Industrial Automation India
Date : 17 - 20 December 2013 Venue: Pragati Maidan, New Delhi See Details
Ceramics Asia
Date: 18 - 20 December 2013 Venue: Gujarat University Exhibition Hall, Ahmedabad See Details
LED Expo Delhi
Date: 19 - 21 December 2013 Venue: Pragati Maidan, New Delhi See Details
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| Your Views |
Growth in production of manufacturing companies (PMI above 50) is evidential of economic growth in the near future.
 According to the FISME Factor, 70 per cent of the Micro, Small and Medium Enterprises (MSMEs), think that HSBC PMI above 50, witnessing companies growth in production is an indication of economic growth in the near future.
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| Knowledge Store |
HR Heuristics
Integrating teams is crucial to any workplace
 The word 'team', in business parlance, refers to two or more people getting together and pooling their complementary skills and ability to undertake a business, a job or a project. But a team will often have people from diverse backgrounds, cultures and skill sets, which may come in the way of harmony amongst them and consequently affect the work at hand. Instances of team integration can be seen within and outside organizations. For example, payroll and finance can be combined into one department during tough times.
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" Government of India has done a great service by mandating to all Ministries and associated enterprises that at least 20% of goods and services should be procured from Micro and Small Enterprises (MSEs). While keeping Defence Armaments and Weapon system out of the purview of the Policy is understandable, the policy should cover procurement of food items, clothings and other consumer items. Further, there is a need to open up the defence procurement markets of such items to larger number of MSE suppliers by approving more vendors and then giving equal opportunities to new vendors. "
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