The Dollar Business April 2016 Issue Preview - Cove Story on Are India’s MSMEs on a Road to Nowhere? - https://www.thedollarbusiness.com/magazine/april-2016-issue/

1. FOREIGN TRADE . EXPORTS . IMPORTS
www.thedollarbusiness.com Vol.3 Issue 04 April 2016 100 $2
AN UPHILL TASK
FOR MSMEsTHE DOLLAR BUSINESS ANALYSES
WHAT AILS EXPORT-MANUFACTURING IN THIS HIGH-PRIORITY,
FLAG-BEARING AND INDISPENSABLE SECTOR OF INDIA
KALRAJ MISHRA
Union Minister for Micro, Small and
Medium Enterprises, GoI
DR. GILBERTO LLERENA GARCIA
Ambassador of the Republic of
Panama to India
CHRISTOPH REMUND
CEO, DHL Global Forwarding (India)
M. A. BHASKARACHAR
Chairman-in-Charge,
Chennai Port Trust
SANTOSH KUMAR SARANGI
Chairman, Tea Board
...AND MORE!
EXCLUSIVE INSIDE
Imitation Jewellery
It glitters & makes business sense
High incentives from the government
ensure double-digit margins for exporters
Union Budget 2016
Thorns and roses
Does it address issues of the exports
fraternity and help Make in India?
GI Tags
Casual identity or export catalyst?
Do GI Tags make a difference when it
comes to exports from India?

2. 8 THE DOLLAR BUSINESS II APRIL 2016
Volume: 3 Issue: 04 April 2016
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Despite being the high-priority, indispensable
sector of India, MSMEs face various issues that
are troubling the sector. The Dollar Business
takes a deeper look at various challenges that
are plaguing the flag-bearing sector.
COVER STORY28
MSMEs
SEEMINGLY
ENDLESS ROAD
TO NOWHERE?
WHAT AILS EXPORTS FROM
THIS ALL IMPORTANT SECTOR
President (VMPL) : Steven Philip Warner
& Editor-in-Chief
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APRIL 2016 II THE DOLLAR BUSINESS 9
INBOX
Letter to Editor
Your feedback, criticism, and
appreciation that hit our mailboxes
in March 2016
MONOLOGUE
PEOPLE SPEAK
From Narendra Modi’s reaction on
Budget to Christine Lagarde on the
growth of global trade & more...
GLOBAL TRADE
End of Canada’s golden era, UK’s
trade deficit with EU, Zimbabwe’s
not-so-a‘maize’ing imports & much
more...
INDIA TRADE
No more scanning of Japanese
food imports, India’s locomotives
chugging into Myanmar & a lot
more...
SPOTLIGHT
PANAMA
This Central-American nation has
moved beyond banana and coffee
when it comes to exports
SPECIAL FEATURE
UNION BUDGET 2016
Analysing whether or not the newly
announced duty structures will give
a boost to the manufacturing sector
IMPORTO’NOMICS
SAFFRON
Just because it is the world’s cost-
liest spice, doesn’t mean you can’t
make a fortune by importing it!
THE MIDAS TOUCH
IMITATION JEWELLERY
This form of jewellery adds glitters
not only to your fashion, but busi-
ness as well
SECRET INGREDIENT
CORN
This wonder crop of India is waiting
for a revival in its exports
STATUS QUO
GI TAG
An assessment of pros & cons of
the status given to unique products
POLICY MONITOR
TEA BOARD
Chairman Santosh Sarangi on ef-
forts to make the sector competitive
TDB FORUM
Questions about foreign trade that
hit our mail box in March 2016
DATEBOOK
Some trade shows you shouldn’t
miss out in India and abroad in
April and May
PRIME FOCUS
PHARMACEUTICAL
Life savers face a lethal dose
of Customs duties
DOCKYARD
CHENNAI PORT
Can this port live up to its com-
mercial legacy of bygone era?
DR. GILBERTO
LLERENA GARCÍA
Ambassador of Panama to
India tells why he sees India as
a natural ally, in terms of trade
CHRISTOPH
REMUND
CEO, DHL Global Forwarding
(India) reveals the company’s
investment plans for India
KALRAJ MISHRA
UNION MINISTER, MSME,GoI
TDB caught up with the Minister to
find out how he plans to change the
fortunes of MSMEs in the country.
84
24
74
90
10
12
14
18 60
64
68
80
92
94
56
50
22
47

3. 28 THE DOLLAR BUSINESS II APRIL 2016
COVER STORY MSMEs: WHERE ARE INDIA's ENGINEs OF GROWTH HEADED?
TDB INTELLIGENCE UNIT
APRIL 2016 II THE DOLLAR BUSINESS 29
The role of micro,
small and medium
enterprises (MSMEs) in
employment generation,
entrepreneurship, exports
and innovation is well
understood. Only problem
is, in most parts, it 'only'
remains understood.
Prime issues ailing the
MSMEs in India largely
remain unappreciated and
unattended.
And therein lies the
problem!
THE DOLLAR BUSINESS
ANALYSES WHAT AILS
EXPORT-MANUFACTURING
IN THIS HIGH-PRIORITY,
FLAG-BEARING AND
INDISPENSABLE SECTOR
OF INDIA
ARE
INDIA'S
MSMEs ON
A ROAD TO
NOWHERE?
M
ehfooz Mody, Owner
of R. F. International, a
small enterprise that is
into manufacturing and
exports of textile and apparel in Noida,
the industrial town next to the national
capital New Delhi, believes his business
is in dire straits. The company's export
consignments have shrunk by about
50% over the last two years, and Mody is
finding it hard to obtain loans and keep
his business afloat. “Today, the moment
factory shutters go up, costs start piling
up on your shoulder, and there is hardly
any cash supply around. With only fam-
ily funds and goodwill in the market,
we may not survive for long," laments
an apparently distraught Mody. He, like
many other manufacturers who belong
to the micro, small & medium enter-
prises (MSMEs) camp in India, had once
dreamt of taking the world's merchan-
dise supply chain by storm. But that is
now an almost forgotten dream, his ship
washed ashore by the high and uncertain
tides of "fortunately-unfortunately". R.
F. International has abandoned its ex-
ports dream a couple of years back, and
Mody is today busy focussing on just the
domestic market. Justifying his changed
strategy, he states, "Aren't we a country
of 1.25 billion people? That in itself is a
big market. So why get stuck with ev-
er-elusive orders, vicious bureaucratic
circles, complex paper work, cumber-
some inspections, rampant corruption,
ports delays, and most importantly pay-
ment issues from the importers' ends."
Not a rare thought that, Mody is only
one of many MSME operators for whom
self-justification has overcome logic and
thirst for business beyond boundaries.
It's not entirely his fault though.
Mohammed Tanveer, a Daryaganj
(Delhi)-based fashion jewellery export-
er and proprietor of M. T. Enterpris-
es, echoes Mody's concerns. Tanveer is
worried about the rising cost of compli-
ance for MSMEs, and the cumbersome
procedures that MSMEs are required to
go through in order to export. He rues
about the lack of financing options for
small enterprises and exporters.
Coincidentally, there are many such
exporters across the country in the
MSME category, who have been letting
TDB INTELLIGENCE UNIT

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