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| President's Message |
 " With over 75% of world trade moving within ‘Global Value Chains’, they have become dominant reality of our times. Riding these GVCs, Asian tiger economies have become industrialized and stormed into the group of medium & high income countries from the low income group. So far India has remained at the periphery of these GVCs except perhaps in ICT and software. In this context, joining hands with Commonwealth Secretariat (London) along with FICCI and CII, to identify the potential products which could evolve into India led GVCs has been both exhilarating and satisfying. This week, FISME hosted the India’s Trade Symposium in which the study was released by the Commerce Secretary and India’s Commonwealth SME Association (ICSA) was launched by Secretary MSME. The ICSA is to be a vehicle to coordinate and execute the formation of the GVCs and ensure participation of SMEs from both India and LDCs/ South Asia into these GVCs. FISME will incubate the association initially till it takes roots and grows out on its own. This is something which we all at FISME are proud of! "
Dr. Sangam Kurade, President, FISME
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| Vol IV, Issue 110: July 1, 2016 |
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| Activities |
 FISME in association with Commonwealth Secretariat, London, organised India’s Trade Symposium, held on 29th July 2016 at hotel Taj Palace, New Delhi which was inaugurated by Commerce Secretary, Ms. Rita Teaotia. She expressed the importance of linking Indian MSMEs with the global value chains to reverse the downward trend in India’s export. The symposium being held on 29th and 30th June, 2016, is focused towards linking Indian MSMEs with the global value chains leveraging on the availability of inputs at competitive terms from the least developed countries (LDCs) of Asia and Africa. The Symposium is being attended by over 35 international delegates from Kenya, Ethiopia, Tanzania, Uganda, Malawi, Zambia, Rwanda, Bangladesh and Sri Lanka, besides leading Indian businesses.
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 In a first, India’s Commonwealth SME Association has been launched by Secretary, Ministry of MSME, Mr K K Jalan, to focus on linking Indian exporters to the suppliers from LDCs. The Commonwealth SME Association, a joint initiative of industry body FISME and Commonwealth Secretariat, London, would provide a sustainable platform to the SMEs in the Lesser Developed Countries (LDCs) and the region in order to source inputs for their lead products. FISME would act as an implementing agency and coordinator for this platform. A two-day Trade Symposium on ‘Linking LDCs into India’s Global Value Chain’ was organized on June 29-30 which was attended by delegated from Africa and India. The delegates were from countries including – Kenya, Ethiopia, Tanzania, Uganda, Malawi, Zambia, Rwanda, Bangladesh and Sri Lanka.
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 In a first, India’s A business delegation comprising of around 30 businessmen from Africa (Kenya, Ethiopia, Tanzania, Uganda, Malawi, Zambia, Rwanda) have visited India for India’s Trade Symposium held on 29th& 30th June 2016. Coinciding with the visit, these businessmen have expressed their interest to have business meetings with Indian businessmen. The meetings were held in the various sectors viz.,Leather & Leather Products; Footwear; Jewellery; Textiles; Transmission Belts; Carpets Yarns (including cotton yarn); Dyes; Sisal Fibre, Twine & Ropes; Hand tools; Hand-craft & Paper Bead products.
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| Business Banter: Lessons from Entrepreneurs |
 Take care of yourself: Maintain your stamina and let go of guilt. Evidence shows that effective entrepreneurs have high levels of energy, and handle stress well. But no one is superhuman. I once worked for a CEO of a startup company who insisted on working 20 hours a day, until a health crisis almost killed her, and did kill her company.
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| Writing on the Wall |
India’s contemporary economy began to take shape a quarter of a century ago, on July 1, 1991, with the first of a two-step devaluation of the rupee to the tune of a fifth. It was not apparent then. Indeed the mood around new Prime Minister PV Narasimha Rao was politically adversarial, fearful about the present and apprehensive about what the future would bring.
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| Media Monitor |
Macro Metre
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 Exports from special economic zones (SEZs) logged a marginal growth of 0.77% to Rs 4.67 lakh crore in 2015-16. The exports from such 204 zones were Rs 4.63 lakh crore in 2014-15, according to the data of the Commerce Ministry. "Overseas shipments from these zones have recorded a positive growth in the last fiscal, this means that there is a potential to boost the country's total exports from these zones. We need to focus here," an official said.
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 The UK finally voted to leave the European Union in the historic referendum leaving the world dumbstruck. Now all eyes turn on the resultant consequences on the nations like India closely related to European Union via trade and business relations through UK and its financial hub London. Though Indian Government and RBI claim to be well prepared for the possible eventuality citing India's strong economic fundamentals and adequate foreign exchange reserves, the short and medium term impacts are bound to hit India’s trade with EU as per the economic experts.
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 Chief Economic Adviser Arvind Subramanian has said on Sunday that Goods and Services Tax (GST) will help improve tax-to-GDP ratio in the country, while giving buoyancy to the government's tax collection efforts. He also termed the proposed tax system — along with strategic disinvestment and twin balance sheets — as the government's major pending agenda. Speaking at an international conference on Social Statistics in India, organised by Asian Development Research Institute (ADRI) as part of their Silver Jubilee celebrations in Patna, Subramanian said: "We need to catch up on tax to GDP front. I sincerely hope that GST would give some buoyancy to it."
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 India will soon roll out a liberalised visa policy to boost services trade that would fetch $80 billion annually by attracting foreigners and foreign exchange. The commerce and industry ministry has been rooting for comprehensive relaxation of visa norms to boost services trade, a proposal that is also being pushed by the Prime Minister's Office (PMO). In principle, the Home Ministry has agreed to the proposal and would like to implement it after addressing security concerns.
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 E-commerce platform is fast emerging as a new trend in global trade and SMEs should use this medium to get direct access to the world markets, a top government official said today. Commerce Secretary Rita Teaotia said the e-commerce platform significantly reduces the interference of middleman and can provide best value for the products manufactured by small and medium enterprises (SMEs). "We should make use of new trends in global trade. Use of e-commerce platform could provide market access across borders. In the long run, e-commerce will increasingly become a significant route to create opportunities for SMEs to have direct access to the world markets and to get the best value for their products," she said here.
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 The Union Cabinet, chaired by the Prime Minister Narendra Modi, has approved the establishment of "Fund of Funds for Startups" (FFS) at Small Industries Development Bank of India (SIDBI) for contribution to various Alternative Investment Funds (AIF), registered with Securities and Exchange Board of India (SEBI) which would extend funding support to Startups. The corpus of FFS is Rs.10,000 crore which shall be built up over the 14th and 15th Finance Commission cycles subject to progress of the scheme and availability of funds. An amount of Rs.500 crore has already been provided to the corpus of FFS in 2015-16 and Rs.600 crore earmarked in the 2016-17.
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 To make better lending decisions, grow customer base and drive credit penetration for the small and micro lenders, the Credit Information Bureau (India) Limited (CIBIL) has announced the expansion of its reach in the small and micro loans segment. Satish Pillai, Managing Director and CEO, CIBIL said: “CIBIL is committed to partner in the national momentum of helping drive financial inclusion. Access to credit is one of the fundamental requirements to enable the fulfilment of aspirations of our citizens.
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 The recent announcement of 100 percent FDI in defence via government approval route, post a high level meeting chaired by Prime Minister Narendra Modi, is expected to have a positive bearing on MSMEs. India ranks among the top ten countries in the world in terms of military expenditure, thus, explaining the huge market India provides to the strategic partners globally. The country’s cumulative defence budget, capital plus revenue expenditure have grown over the years. However, around 70 per cent of defence procurements continue to be through imports.
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| State Scan |
Assam
 Micro, Small and Medium Enterprises (MSMEs) in Assam have called Petroleum Ministry's decision to invest Rs.80, 000 crore in the stat3 by 2030 a late but good move. Union Minister of State (independent) Petroleum & Natural Gas, Dharmendra Pradhan on Friday said that Rs 1, 30,000 crore investments would take place in the petroleum sector out of which Rs 80,000 crore will be invested in Assam alone by 2030.
Haryana
 The Haryana Government on Monday reportedly approved a reduction of 15% in Gurgaon circle land rates (collector rates) in view of the sluggish real estate market in the city. The new rates will be applicable on all five sub-registrar areas of the district, including Gurgaon, Manesar, Sohna, Pataudi and Farukh Nagar and have been implemented with immediate effect. The collector rate is the minimum value at which sale or transfer of a plot, a built-up house, an apartment or a commercial property take place. The buyers also pay stamp duty according to the collector rate.
Uttarakhand
 With an objective to promote industries in the state and boost entrepreneurship amongst women, the State Infrastructure and Industries Development Corporation of Uttarakhand Limited (SIDCUL) has allocated 25 acres land in Sitarganj phase-II in Udham Singh Nagar district. This is being done to develop a business chain run solely by women. Talking to KNN, Pankaj Gupta, President, Industries Associations of Uttarakhand, said that, “The dedicated reservations for the women entrepreneurs are definitely going to benefit the sector.
West Bengal
 West Bengal Government has presented its Budget in the Assembly where they have set a target to generate 22 lakh jobs and most of them would be created by the Micro, Small and Medium Enterprises (MSMEs). Finance Minister Amit Mitra while presenting the budget said that maintaining that the MSME sector was labour intensive and had maximum output elasticity. “Bank funding to the sector in the last five years has increased a lot… it is the highest among states. More bank funding entails more investments.”
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| World Watch |
IRAN 
 India has lifted a ban on trade of specified items with Iran after some western sanctions against the Persian Gulf nation were lifted earlier this year, the government said in a notification on Wednesday. "Direct or indirect export to Iran or import from Iran is now permitted subject to UN Security Council Resolution and IAEA specified documents," the notification added.
MAURITIUS 
 Mauritius today wooed Indian investors to set up ventures in various potential sectors like tourism, manufacturing, food processing and promised them hassle-free environment to have an access to African countries. "Mauritius offers great opportunity to Indian business houses to make investment in different sectors like tourism, food processing, manufacturing like textile, light engineering goods, trading, pharmaceuticals ICT BPO and financial services.
 World Bank has partnered with Indian Council of Arbitration (ICA) to introduce some improvements in Dispute Board (DB) to make them more popular and acceptable in India. This is a very important initiative as institutional DRB option (to be offered by ICA) would be available not only for Bank funded projects but also for projects funded by other sources.” said Shanker Lal, Senior Procurement Specialist, World Bank.
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“INFOCOM 2016”
with theme
Transform | Disrupt | Transform
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FISME’s official Twitter handle @fisme
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KNN India’s official Twitter handle @knnindia
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| Tender |
Tender on Supply of Advanced Electricity Metering System
It may be of interest to you to know that Uzbekistan’s Joint Stock Company “Uzbekenergo” has released a tender for “supply, installation and implementation of AEM System “. The Notice states that the financing for the project “ Advanced Electricity Metering Project” has been received from the Islamic Development Bank and that a part of it will be utilized for procurement of meters.
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| Other Events |
Business Opportunities Show Karnal
Date: 08th July 2016
Venue: Hotel Leela Grande, Karnal
See Details
The Global Mobile App Summit & Awards
Date: 06th – 07th July 2016
Venue: Sheraton Grand, Bangalore Hotel, Bangalore
See Details
Business Opportunities Show Rohtak
Date: 09th July 2016
Venue: Hotel Rivoli, Rohtak, Haryana
See Details
Electro Vision
Date: 08th – 10th July 2016
Venue: Welkom Palace, Ludhiana
See Details
AMTEX
Date: 08th – 11th July 2016
Venue: Pragati Maidan, New Delhi
See Details
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| Your Views |
Do you think GDP is the only way to judge a country's progress?
 According to the FISME Factor, about 70 percent of Micro, Small and Medium Enterprises (MSMEs) think that GDP is the only way to judge a country’s progress whereas 20 percent think that a country’s progress cannot be judged by GDP alone.
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| Knowledge Store |
HR Heuristics
HR will mean getting the 'crowd' involved to bring in new ideas: R Anand, HCL Technologies
 In the snazzy world of startups that offers better challenges, bigger growth opportunities and now, even a payment package to match the fat pockets of the big companies, traditional organisations are finding it hard to hold on to their talent.
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Finance Fundamentals
Deposit norms relaxed to help startups raise funds
 In order to make it easier for startups to secure funding, the government has exempted any advance of more than Rs 25 lakh to a startup from being treated as deposit provided that the person giving the money does it in the form of convertible note. According to the Companies Act of 2013, any company including startups that received money from any person for over 365 days, it was considered as a deposit and the company had to follow the stringent acceptance of deposit rules to keep that deposit.
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Marketing Mantras
100x social media reach by turning your employees into brand ambassadors
 So, you have a great social media team, active accounts on all possible social networks, and a big budget for content creation. But the number of retweets or shares your posts get has never exceeded 10. Does that sound familiar? And yet, you have thousands of employees in your offices, many of whom will be more than happy to share your content. This is where Employee Advocacy comes in - a fairly new concept that's taking the world of social media marketing by storm.
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Policy Polemic
TN MSMEs hit by floods last year are yet to receive their insurance claims
 Even after months of being badly affected by the devastating floods, the MSME units are yet to receive their due claims from the insurance companies. More than 14000 MSME units were badly affected by the floods last year and thereafter showed slow signs of recovery. Talking on this issue to KNN, C. Muthusami, President of Tamil Nadu Small and Tiny Industries Association (TANSTIA) said, “MSMEs have been recovering so far but still a lot has to be done on this respect to bring them back on track immediately.
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SME Special
Re-using waste, earning dividends
 Varun Sridharan has had a connection with IIT-Madras campus since 1993. He studied at the Kendriya Vidyalaya school in the IIT campus. After completing his civil engineering degree from a private college in Chennai – a four-year break from IIT – he was back on the campus in 2009, this time as a project associate. This was for a project the Union Urban Development Ministry had tasked IIT-M to help frame a policy on wastewater management.
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Success Story
How startup firm Eckovation is using AI to make open school platform smarter
 A startup company by two IIT grads which is engaged in imparting education using the open school platform is infusing Artificial Intelligence technology now to make its platform smarter. Last year, Ritesh Singh and Akshat Goel launched Eckovation -- a unique open-school communication and social learning platform that allows teachers, parents and students to interact freely and effectively on mobile phones.
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Stockpile
The Central Statistics Office (CSO), Ministry of Statistics and Programme Implementation, has released the Quick Estimates of Index of Industrial Production (IIP) with base 2004-05 for the month of September 2015
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Quotable Quotes
 “ Don't be an entrepreneur if you can't handle rejection. Every no gets you closer to a yes ”
– – Mark Cuban, billionaire American Businessman
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| 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:
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| New Members |
During the period from 01st June 2016 to 15th June 2016 a total of 6new MSMEs became member of FISME.
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| Reader Reactions |
Write and Win prize!
Write your comments on the FISME Factor. Share your views and suggestions on MSME issues. Win prize! The best mail will get a special book every fortnight. send mail to: newsletter@fisme.orgin
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