According to industry insiders, the upcoming goods and services tax (GST) can spell major benefits for micro, small and medium (MSME) units in Gujarat&rsquo;s pharmaceutical industry, with as much as a 25 per cent increase in business likely.

GST may benefit pharma MSMEs

Business Standard

We intend to set up a unit in a Special Economic Zone (SEZ). We want to know whether we need to furnish any bank guarantees like we do for Export Oriented Units (EOU).

'SEZ units sending goods for job work to DTA must furnish bank guarantee'

The slowdown has eased and the general economy is looking up, but the small SME sector is still not in the pink of health and is hiring only tentatively. At the same time, there&rsquo;s also a shortage of skilled labour.

Hiring by SMEs picks up, but still tentative

Union Bank, Punjab National Bank and State Bank of India to set up skill development institutes in Uttarakhand.

Banking on the young

Avi Basu is the President and Chief Executive Officer, Connectiva Systems, a New York- headquartered IT company that specialises in software dealing with revenue and fraud management. A member of President Obama&rsquo;s team of 100 CEOs that visited India last month, Basu spoke to Swati Garg on the future of outsourcing and the manner in which niche IT companies fit into the current scheme of things.

Q&A: Avi Basu, President and CEO, Connectiva Systems

The Rs 4,000-crore pump industry in Coimbatore is all set to touch the Rs 6,000 crore in sales revenues over the next two years. Nevertheless, it says that a number of small and medium enterprises (SMEs) in the industry are either closing shop or increasingly becoming suppliers to large companies, due to erosion in their profit margins due to increases in raw material prices.

Small pump makers turn vendors to big units

In order to enhance the competitiveness of small and medium enterprises (SMEs) in Haryana, the Faridabad Small Industries Association (FSIA) has drawn up a proposal. It was chalked out under the Industrial Infrastructure Upgradation Scheme (IIUS) launched by the Department of Industrial Policy and Promotion (DIPP) of the Union commerce and industry ministry. The proposal, submitted to the Haryana government, has been approved by the state government and forwarded to the Centre.

Haryana approves new SME rejuvenation scheme

We have availed of the &lsquo;storage and warehousing&rsquo; service outside India for storing our export goods in warehouses abroad. We have remitted the charges to the warehouse keeper for that. Now, the audit team has asked us to pay service tax as this is a service provided from outside India and received by us in India and therefore, amounts to import of services.

'No service tax payable if service performed outside India'

Bank term loans to India&rsquo;s micro, small and medium enterprises (MSMEs) during the 11th Plan are expected to be Rs 148,720 crore if GDP growth during the plan period averages 9 per cent a year, according to an estimate by the Small Industries Development Bank of India (Sidbi).

Term loans to MSMEs to exceed Rs 148k cr in 11th Plan

Manufacturers in the century-old shawl industry, estimated at Rs 1,000 crore, expect 15 to 20 per cent growth in business this year.

Foreign markets warm up to Amritsari shawls

The mood in Maharajpur, in West Bengal&rsquo;s Malda district, about 60 km from the Bangladesh border, is one of quiet anxiety. The majority of the populace consists of weavers, who earn their keep by manufacturing and selling taant (cotton) sarees.

Malda's weavers flock to China for jobs

Manufacturing industries in Harayana are facing a severe shortage of skilled manpower. Revival of economy after the global financial meltdown has generated plethora of opporunities for the SMEs (small and medium enterprises) in the region but the entreprenuers are struggling for the right manpower.

Manpower scarcity mars Haryana SME sector

Many of the problems faced by micro, small and medium enterprises (MSMEs) &mdash; lack of structured markets, delayed payments from large customers, low availability and high cost of capital, obsolete technology and lack of skilled manpower &mdash; can be addressed through preferential procurement of goods and services produced by MSMEs, according to a paper by the Confederation of Indian Industry (CII).

Favourable procurement policy will help SMEs: CII

We have a private bonded warehouse licensed under Section 58 of the Customs Act, 1962. We keep facing audits every now and then. We also face all types of questions that we think are unnecessary.

'Bonded warehouses must be audited once in six months'

The micro, small and medium enterprises (MSMEs) in India should pay special attention to technology up-gradation and brand building to expand growth avenues in the global markets, informed industry experts at the second global convention on MSMEs held here on Saturday.

Technology, branding must for MSME growth: Experts

Small and medium-sized pharmaceutical companies, which account for 40 per cent of India&rsquo;s total drug exports, are opposed to mandatory implementation of bar coding on all medicine consignments meant for export. They claim that this decision by the Centre, to take effect from 1 July this year and aimed at combating the problem of spurious drugs, will not serve this purpose.

Pharma exporters oppose mandatory bar coding

The rural industries programme (RIP) in the Pauri district of Uttarakhand is attempting to create new entrepreneurial skills in areas ranging from beauty parlours to printing presses among unemployed youth in the state&rsquo;s mountainous areas.

Uttarakhand boosts skills to check migration

Corrugated box manufacturers are facing rising costs of raw material, particularly of kraft paper, which accounts for around 70 per cent of their inputs. These boxes are used for packaging a range of products, including engineering goods, pharmaceuticals, processed foods, textiles, fast moving consumer goods, fruit and vegetables.

Input costs hurt corrugated box makers

About 60 per cent of the respondents reported that the market had picked up pace in 2010, 36 per cent reported no change and four per cent felt the situation had worsened. For 16 per cent of the respondents, consumer sentiment surpassed expectations in 2010 while a majority (72 per cent) witnessed an average improvement in consumer sentiment. Twelve per cent experienced a negative change.

Retail SMEs expect 20%-plus growth in 2011: Survey

For exports to Nepal/Bhutan, benefits like advance authorisation, DEPB etc., will not be available if payment is realised in non-convertible rupees. For status recognition, the Foreign Trade Policy stipulates only export performance. However, the application form ANF-3A calls for a declaration and Chartered Accountant Certificate that payment has been realised. However, it is not stipulated that the payment has to be in freely convertible currency. So, in my opinion, you can include exports to Nepal/Bhutan in rupees in your export turnover for the purpose of status recognition.

'Sales to Nepal, Bhutan can be included in export turnover' 

But the rising cost of labour and raw materials, shortages of power and non-availability of capital and technology are becoming speed breakers to further growth.

Auto parts industry to invest Rs 1.57 lakh cr by 2020

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