AIM NEWSLETTER
BULLETIN NO.224 NOVEMBER 2017
MESSAGE FROM CHAIRMAN

The MSME sector is the backbone of the Indian Economy and one of the prime drivers of employment. Despite its apparent success in the last couple of years, Indian MSME sector is facing many challenges.

Apart from the traditional problems, they are also increasingly exposed to international competition. Therefore, MSMEs in India - as everywhere else - need to improve their competitiveness by taking a variety of measures.The just announced Rs. 2.1 lakh crore capital infusion plan for state-owned banks is expected to directly boost the MSME Sector through pushing credit growth for the Sector, one of the two crippling factors being experienced by it.

This is proposed to be achieved inter-alia through the Public Sectors Banks coming out with sector-specific Mudra Financing products like Mudra Textile and Mudra

Manufacturing and launching special campaign in 50 high employment clusters of MSME.

This is besides the envisaged measures aimed at improving the cash flow of the MSMEs to alarge extent. As per a Labour Bureau Survey, while the Indian economy grew just over 7%,jobs increased by mere lower case 1.1% between 2016 and 2016-2017.

The Survey covered eight key sectors of the non-farm economy: Manufacturing, Construction, Trade, Transport, Accommodation and Hospitality, IT/BPO, Education and Health. This along with anecdotal evidence has prompted the policy planners to concentrate upon entrepreneurship for creating large scale employment opportunities capitalising the demographic dividend being enjoyed by the nation in the process and meeting aspirations of the burgeoning workforce which gets bigger by more than one million every year.

With best regards,

Dinesh Rai, IAS (Retd)
Former Secretary, MSME, GOI and Founder Chairman, AIM

                                   

Institutional partnerships - India

Memorandum of Understanding Signed with National Productivity Council (NPC)

AIM Chairman Mr Dinesh Rai, IAS (Retd.), along with Ms Kalpana Awasthi, IAS -Director General NPC signed a Memorandum of Understanding (MoU) to join hands in developing MSME’s in our country.

NPC is national level organization to promote productivity culture in India. Established by the Ministry of Industry, Government of India in 1958, it is an autonomous, multipartite, non-profit organization with equal representation from employers’ & workers’ organizations and Government, apart from technical & professional institutions and other interests.

Areas of collaboration:

  1. Joint efforts for promotion of productivity knowledge in MSMEs
  2. Propagating Lean Manufacturing Competitiveness Schemes (LMCS) of Ministry of MSME
  3. Encouraging the member units of AIM to form cluster and benefit by LMCS
  4. Conducting training programs / workshops for productivity promotion for MSMEs on agreed terms and conditions
  5. Facilitating formation of clusters for LMCS
  6. Make available to NPC the lists of various associations along with their members
  7. NPC and AIM can mutually get associated for projects related to productivity

Memorandum of Understanding Signed with NSIC

 

The National Small Industries Corporation Ltd.-NSIC signed an MoU with Alliance of Indian MSMEs (AIM) on 31st August 2017 to further facilitate MSMEs in terms of Technology Upgradation, Marketing and Credit through NSIC package of Services.

The MoU was signed by Shri Ravindra Nath, CMD, NSIC & Shri Dinesh Rai,(IAS Retired), Founding Chairman, Alliance of Indian MSMEs (AIM) in the presence of Shri A K Mittal, Director(Finance), NSIC & senior 0officials of NSIC and representing members of AIM.

This MoU would facilitate the two organisations in reaching out to the doorsteps of MSMEs pan India with an enriched bouquet of each other’s services enabling MSMEs to focus on their core business Services.

  1. Raw Material Distribution
  2. Short Term Credit Support for Raw Material Procurement against Bank Gurantee
  3. Facilitation of Credit to MSME through Bank Tie-up
  4. Single point Registration Scheme
  5. Facilitting SC/ST Entrepreneurs through SC/ST Hub
  6. Training and Testing at NSIC’s Technical Centres

                                   

Institutional Partnerships – International

RENAC Provides trainings on green energy internationally and a variety of business services to develop capacities for a sustainable energy supply.

Visit to Renewables Academy (RENAC), Berlin as a part of Partner Identification Mission to explore partnerships for establishing a Centre of Excellence on Solar Energy Technologies in New Delhi for New Delhi Municipal Council (NDMC)

AIM Chairman Mr Dinesh Rai, IAS (Retd.) along with Mr Arunachalam Karthikeyan, Founder Member of the Board of AIM with the support of Mr Juergen Maennecke, Educon, Berlin visited The Renewables

Academy (RENAC) - Germany on 16th September 2017

A Visit to RENAC was organised to explore possible collaboration for establishing a Centre of Excellence on Solar Energy – Vocational Education and Training

AIM was approached by NDMC to identify and collaborate with a German VET Service Provider to establish a state of the art “Centre of Competence” on “Solar Energy - Advanced Skill Development Centre” under the aegis of NDMC, New Delhi. RENAC was identified along with two other TVET Providers in Germany who are legally responsible for Vocational Education and Training in Solar Energy, to collaborate with Alliance of Indian MSMEs (AIM) – the Industry Partner from India and with iMOVE – the Knowledge Partner from Germany.

The Centre of Competence will be a newly established Centre at New Delhi to cater to the Vocational Education and Training needs of the Youth in the NDMC area.

The Centre of Competence will be developed in collaboration with a suitable German VET Service provider with the support of the network of iMOVE in Germany in a democratic tender process.

                                   

Policy Advocacy Initiatives

Meeting with Secretary, Ministry of Micro Small and Medium Enterprises, GOI

Meeting with Ms Vandana Kumar, IAS, Joint Secretary, Department of Industry Policy and Planning (DIPP)

                                   

AIM INITIATIVES


AIM –IPR DIVISION

AIM -Alliance has set up an Intellectual Property Division at its Noida office to spread awareness about IP and to take measures for protecting the ideas and business strategies among the micro small and medium enterprises (MSMEs).


The centre comprises of technical and legal experts. This apart, it is well equipped to offer services in all areas of intellectual property rights (IPR) such as patents, trademarks, designs, copy rights .
AIM Initiatives along with in Partners(Business Memembership Organisations)

                                   

World Food India Conference (WFI), 2017

AIM was consulted by Ministry of Food Processing Industry in Organising a MSME session at World Food India Conference during 3-5th of November 2017.

The role of MSME in Food Processing Industry through public-private partnership and its role in GDP Growth, Infrastructure challenges, Regulations, Policies, stronger implementation in areas of integrated planning, implementation and standardization, Innovation, Skill Gap issue and Skill development to propel growth over next generation was discussed in the session

FSSAI launches Food Regulatory portal for businesses

“NiveshBandhu” An Investor Facilitation Portal Launched during World Food India 2017

It was jointly launched by Ministry of Food Processing and Industries (MoFPI) and Food Safety and Standards Authority of India (FSSAI). It is a single interface for food businesses to cater to both domestic operations and food imports.

It is Investor Facilitation Portal to assist investors to make informed investment decisions. It will provide information on Central and State Governments investor friendly policies, agro-producing clusters,

infrastructure, and potential areas of investment in the food processing sector.

Mr Rahul Rai,Partner & Director, Rabo Equity Advisors Gave the Presentation on “Credit Needs and Investment Opportunities in MSME Food Processing Sector” on Behalf of Alliance of Indian MSMEs.
                                   

MSME NEWS BULLETIN

The Centre unveiled a mega recapitalisation package for public sector banks last Month Under the scheme, a whopping amount of Rs 2.11 lakh crore—representing nearly 1.2 percent of India's GDP—is to be allocated to these banks over a period of two years.

Beyond doubt, this is a step in the right direction and a much-needed one in the background of the lingering problems of bank bad loan, poor loan growth and sluggish private sector investment.

The recapitalisation amount is significantly large, and experts see enough potential in this package to kick-start the economy.

So, alongside this aggressive capital infusion, better banking governance must be pushed to prevent indiscriminate lending in the future.At the same time, a balanced decision must be taken to ensure that enough capital is injected for allocation of fresh loans.

Empowerment provides a greater access to knowledge and resources, more independence in decision making, considerable ability to plan lives, more control over the circumstances which influence lives, and freedom from customs, beliefs and practices.

Thus, women empowerment is a process in which women challenge the existing norms and culture, to effectively promote their wellbeing. The

Indian Constitution guarantees that there shall be no discrimination on the grounds of gender. There are various legal provisions for women safety and empowerment in Indian Constitution, but the irony is, half of the population is unaware of their legal rights

Ministry of MSME

Guidelines of Special Credit Linked Capital Subsidy Scheme (SCLCSS) for MSEs under National Scheduled Castes and Scheduled Tribes Hub Scheme-reg.

http://msme.gov.in/whatsnew/guidelines-special-credit-linked-capital-subsidy-scheme-sclcss-mses-under-national

MICRO & SMALL ENTERPRISES CLUSTER DEVELOPMENT (MSE-CDP)

The Ministry of MSME has adopted cluster development approach for enhancing productivity and competitiveness as well as capacity building of MSEs. The scheme provides financial assistance to special purpose vehicles companies set up by cluster units for common facility canter, infrastructures, skill training, quality upgradation etc.

MSMES CAN NOW REGISTER DELAYED PAYMENT GRIEVANCES ONLINE

An online portal called 'MSME Delayed Payment Portal MSME Samadhaan is launched to enable micro, small and medium enterprises directly register their cases relating to delayed payments by government and its departments.

MSMEs will be able to register their grievances related to delayed payments by individual CPSEs, Central Ministries, State Governments, etc. on this portal. They will also be able to monitor the status of their cases. The information about the defaulters will be available in public domain, thus exerting moral pressure on the defaulting organisations.

                                   

The CEO of PSEs and the Secretary of the Ministries concerned will also be able to monitor the cases of delayed payment under their jurisdiction and issue necessary instructions to resolve the issues.

"As per the provisions, the buyer is liable to pay compound interest with monthly rests to the supplier on the amount at three times of the bank rate notified by Reserve Bank in case he does not make payment to the supplier for the supplies of goods or services within 45 days of the day of acceptance of the goods/service or the deemed day of acceptance,

EASE OF DOING BUSINESS

The recently released Ease of Doing Business ranking 2018 has brought a pleasant surprise for India. The country jumped 30 spots, securing a place among the top-100 countries. This is the highest-ever jump by a country in the World Bank's ranking.

The index evaluates 190 countries on 10 specific parameters, and India has improved its rank in 6 out of these indicators. No doubt this is a spectacular improvement and the Modi government deserves a praise for this.

The World Bank report also reveals some more positive aspects about Ease of Doing Business in India. It comes with a list of 10 countries which have taken structural reforms, and India is the only major economy to feature in this list. Also, India is the only South Asian country to join the list of the 10 top improvers.

It is also significant to note that the latest report has not taken the Goods and Services Tax into account, the biggest tax reform in the country's history. It means our ranking may improve much further next year.

GST COUNCIL TO CUT RATES ON 178 ITEMS;

The GST Council last week slashed tax rate on 178 items from 28 percent to 18 percent. Consumers will heave a sigh of relief as well. Now, only 50 items, classified as sin or luxury goods, are left in the highest tax slab.

Earlier this month, Prime Minister Modi had given an indication of this move, saying that further steps would be taken to address the problems facing businesses and traders under the new tax regime, and finally some sweeping changes were approved by the Council last week. These decisions will take effect prospectively from November 15.

Rigours of compliance being faced by small and medium enterprises (SMEs) is one of the major issues that gave GST a bad name, and to address it the Council has now decided to bring more such business units under the composition scheme, by cutting the tax rate allowed under it to 1 percent of turnover.

Additionally, eligibility threshold for the scheme has been raised to Rs 1.5 crore from Rs 1 crore now. These steps will give a much-needed relief to our small businesses, which have been suffering the brunt of the new tax regime.

                                   

INVESTMENT COMMITMENT OF $11.25 BILLION FROM PRIVATE SECTOR AT WORLD FOOD INDIA

The three-day mega food fair from 3-5 Nov ended with an investment commitment of worth $19 billion including $11.25 billion from private sector in 50 MoUs signed while many participants said it would help bringing focus on India's food processing sector.

Y.S. Prasad, CEO of the state Industry Departments' Food Processing Society, said the government had planned 12 food parks in addition to the Central government's plan of 42 such parks across the country.

DIGITAL MSME" SCHEME FOR PROMOTION OF INFORMATION & COMMUNICATION TECHNOLOGY IN MSME SECTOR.

The Government has decided to implement "Digital MSME" Scheme for promotion of Information & Communication Technology in MSME Sector with a total budget of Rs. 85.705 Crore (including Government ofIndia contribution ofRs. 58.105 Crore) during 2017- 18 to 2019-20.

To sensitize and encourage MSMEs towards new approach i.e., Cloud Computing for Digital MSME adoption in their production & businessprocess with a view to improve their competitiveness in national and international market.

Adoption of best practices to improve quality of products and services

MINISTRY OF FOOD PROCESSING

Further extension of date for submission of proposals / EOI for setting up of Agro-processing Clusters under the Scheme for Creation of Infrastructure for Agro-Processing Cluster of PRADHAN MANTRI KISAN SAMPADA YOJANA

http://www.mofpi.nic.in/announcements/further-extension-date-submission-proposals-eoi-setting-agro-processing-clusters-under

AFTER 14 YRS, MOODY’S UPS INDIA’S RATING TO HIGHEST SINCE ’91 REFORMS

The ratings upgrade by Moody's could position India as an attractive investment destination, apart from making it easier for companies to raise resources abroad.

The ratings agency highlighted reforms such as the Goods and Services Tax (GST) and demonetisation, which it said would lead to greater formalisation of the economy.

Besides upgrading India's ratings, Moody's also revised the outlook from positive to stable, indicating that the next upgrade might take a while coming.

UPCOMING AIM EVENTS

AIM along with SIDBI is planning to organise a one-day event on “Implications of Goods & Services tax (GST) on MSME’s” at Hotel Fortune, Sector 27, Noida on

16 December2017 between 1000 hrs and 1700 hrs.