Small and medium Enterprise sector of India employs 26 million people and contributes to 45% of manufacturing output and 40% of total exports. Sharma also requested for better collaboration in the field of generics from Germany. In this regard, he had a meeting with Philipp Roessler, German Federal Minister of Economics & Technology.

The German pharmaceutical industry has seen tremendous growth and Generics constitutes one-fifth of that growth. Germany has developed affordable generic medicines and now collaboration with India will make them available to Indian SMEs.

This Indo-German collaboration is a mutual investment and encompasses 600 Indo-German joint ventures and 1600 Indo-German collaborations. Indian corporate entities so far invested US$ 6 billion in Germany. Industry leaders like Tata Motors, Suzlon , Bharat Forge, Mahindras group, Infosys and Wipro have established their base in Germany. The country has seen 215 Indian companies employing 24,000 people.

Trade between both countries reached US$ 23.64 billion. It has doubled during the span of last five years. A target of Euro 20 billion is aimed at by 2012. The ongoing ‘German Year in India’ itself is a success story. Launched in September 2011, the program will continue till November 2011.

This article was submitted by Raj Tulshan, Director of Business Development of Biz2Credit. Biz2Credit is a small business marketplace that connects entrepreneurs with financing options and advice to grow their business. Send all questions to info@biz2credit.in

The industry has not seen up-gradation of technology over years and so manufacturing activity has declined. State run institutes provide obsolete technology to entrepreneurs. So, the manufacturers are seeing more profitability in importing products from China and trading on them. In-fact, nearly 400 units have turned into traders from manufacturers.

Manufacturing of scientific instruments is very low now in Ambala. It is because businessmen cannot buy new technology and so they are resorting to inferior-technology devices. The industry has lost its competitive edge in global market. Now, the Ambala Manufacturing Units are left as a small-scale manufacturing player. Though the industry has potential to generate Rs10,000 crore revenue but currently it is able to do business of only Rs 1,000 crore. The export destinations of Ambala units are places like Africa, Far East and the Middle East. Larger players also cater to markets of United States and Europe.

This article was submitted by Raj Tulshan, Director of Business Development of Biz2Credit. Biz2Credit is a small business marketplace that connects entrepreneurs with financing options and advice to grow their business. Send all questions to info@biz2credit.in

It is part of India’s decision as trade normalization process to allow FDI from Pakistan. Currently, trade between the two countries is at some $2.5 billion per year. The Indo-Pak trade agreement is a big pie for companies on both sides. It is a win-win situation for small businesses too.

Companies on both sides are scouting opportunities. Pakistan based businesses have already started to contemplate on how they are going to make an entry in Indian market – whether as a franchise, a distribution model or something else. The mood is upbeat as there is the realization that there can be benefits on both sides.

Procedural requirements for FDI are underway. Talks are also being held for allowing banks to open branches in India and Pak. RBI and State Bank of Pakistan have expressed interest to start branches in India. Banking services will help in boosting small business loans to entrepreneurs.

Trade of goods has been liberalized so far. Now, Pakistani industries and banks are showing keen interest in setting up business in India. This is possible with a policy decision on cross-border FDI. India-Pakistan Business Council will also start soon and there will be a formal agreement on multiple entry business visas.

This article was submitted by Raj Tulshan, Director of Business Development of Biz2Credit. Biz2Credit is a small business marketplace that connects entrepreneurs with financing options and advice to grow their business. Send all questions to info@biz2credit.in

Provisional data available suggests that handicraft industry profits increased17.56 percent that amounted to USD 404.14 million. The hike is from USD 2301.52 million to USD 2705.66 million. The disclosures came from Export Promotion Council for Handicrafts (EPCH). Rakesh Kumar, Executive Director EPCH, said the set target of handicraft export surpassed USD 2700 million during FY 2011-12. Exports have reached USD 2705.66 million in this financial year.

The EPCH data reveal that export has been greatest for Wooden wares, Shawls, and Imitation Jewellery. The growth has been 45.86 percent, 33.38 percent and 52.75 percent respectively. This target has been achieved because of aggressive marketing and favorable government policies.

EPCH took advantage of special scheme under MAI Programme. It took initiative to publicize and promote Indian handicrafts to other new markets.

Jamnagar brass manufacturers have also reduced working hours from the previous eight-to-nine hours to six hours a day. But the labour force has not been reduced yet. Ramjibhai Patel, President JFOA, says that the brass industry is currently depending on domestic market as demand for brass is low in international market. The demand of brass in domestic market too is not robust but is expected to grow in next two-to-three months.

Brass part export from Jamnagar based industry reaches 300-400 crore every year as exports are made in Europe, Gulf and the US. Due to the economic crisis, this industry is expecting exports to reduce by 40 to 50 per cent. It is only after Navratri festival that export orders from Europe and Gulf countries plummeted. Now, the export is expected to range between Rs 200-250 crore.

The aim of Obasanjo’s visit is to promote ‘bilateral economic synergy’ makes it evident that the Indian SMEs will receive further boost. This was made known by Indian external affairs ministry in a statement. Obasanjo has played critical role during crisis situations to revive the economic condition of the continent. Obasanjo is also the chairman of board of trustees of Nigeria’s Ruling People’s Democratic Party.

Obasanjo has received the prestigious ‘Indira Gandhi Prize for Peace, Disarmament and Development’ in 1997. He also attended India’s Republic Day celebrations in 2000 as chief guest. This visit is meant to further reaffirm the close relation between India and Nigeria.

In 2010-11, bilateral trade between the two nations touched USD 13 billion and it is expected to cross USD 19 billion in this current fiscal. More than 100 Indian companies, a majority of them being SMEs, are operating in Nigeria now. Nigeria has become home for 35,000 SMEs and also nearly 33,000 Nigerians visited India in 2011.

China is struggling due to rise in cost of production of leather items. It certainly gives India a chance to make gains in the leather sector. Indian leather producers now have the chance to export leather products to China. Indian SMEs also have the opportunity to export leather goods and bag additional orders from prime zones of Europe and US. This has emerged from the International Leather Goods Fair (ILGF) held in Kolkata. ILGF proved to be a big boost for small leather exporters amidst weak demand from prime export hubs.

ILGF saw participation of 22 leather product manufacturers from India. It proved to be business oriented fair as exhibitors received several enquiries from potential clients, majority of which are expected to translate into orders. Overseas as well as domestic buyers attended the event.

The domestic leather product manufacturers need to eye new markets to reduce dependence on select territories and increase India’s share in global leather trade. China is a good opportunity apart from other potential countries such as Japan and Australia. In 2011-12, leather goods export is likely to touch US$4.5 billion. Seeing the demand, it can be said that leather export sector will retain growth of more than 10% in 2012-13.

Bucharest saw the 17th Joint Economic Committee (JEC) meeting between India and Romania. Here, both countries decided to facilitate institutional cooperation, joint ventures, greater investment and transfer of technology. Jyotiraditya M Scindia, Commerce & Industry minister, from India attended the Joint Committee meeting along with Ion Ariton, Economy, Trade & Business minister, from Romania.

Both the ministers have talked about doubling bilateral trade and economic co-operation between the two nations by 2015. In-fact, in the current fiscal 2011-12, trade between India and Romania has already seen a hike of 6 percent. This is a good sign keeping into consideration the European Union Economic crisis.

Romania-based firms have been invited to participate in ‘India Show’ set to be organized in Czech Republic in October 2012. About 150 companies are expected to take part. The meeting saw attendees from diverse fields like oil, natural gas, IT, power equipment, textiles, supply chain management, alternative energy, pharmaceuticals, tourism and electric buses.

The Federation of Indian Micro and Small and Medium Enterprises (FISME) report suggests that there is ready potential in markets like tea, coffee, leather, marine, chemicals and dyes. The opportunities are not spread in all sectors but lie in specific product categories. Indian SMEs need to focus on these categories. Some other broad areas are tourism, information and communication technology, agriculture, construction, infrastructure, financial services, general manufacturing, mining, health sectors and education.

Indian SMEs especially have wide scope in countries like Sri Lanka, in specific sectors like IT, rubber, gems and jewelry, textiles and tourism. India did extremely well with ASEAN countries. India-ASEAN trade increased from $41.20 billion in 2009 to $48.70 billion in 2010. Major part of trade promotion is contributed by SMEs.

Bilateral business between Singapore and India expanded to 30 billion dollars. This happened due to easing of taxes under the ‘Comprehensive Economic Cooperation Agreement’. The Indian commerce and trade observers guarantee that Singapore can be a good springboard for the SME companies. The number of Indian SMEs is expected to increase 6,000 in next two to three years. Indian companies can exploit opportunities through joint ventures, technical tie-ups and collaboration.

Pakistan Chambers of Commerce and Industry (FPCCI) invited Indian delegation. Around 60 to 70 people will be visiting Pakistan next year. This will take place along side Anand Sharma – the Commerce Minister’s visit to Pakistan. SMEs remain the main focus as this sector contributes to the majority of trade between the two countries.

The chambers are focusing to improve co-operation in sectors like surgical instruments, textiles, pharmaceuticals, component manufacturing, automobiles, leather, light engineering, and agricultural products and so on. Major export items to Pakistan from India are cotton ($401.82 million) and sugar confectionery ($654 million). The current transactions and trade between India-Pak amounts to $2.7 billion and experts opine that 70 percent of it is contributed by SMEs alone.

FICCI and FPCCI understand that there is need to build confidence among business communities of India and Pak. If this can be done then the present $2.7 billion business can be doubled to $6 billion within a span of just 2 years. FICCI also supports an investment promotion and protection treaty.

India-Pakistan Chamber of Commerce and Industry (IPCCI) had already been formed in 1999 for promotion of trade co-operation. Now, the November Secretary-level talks can lead to an even greater tie-up in SME sector.

This article was submitted by Raj Tulshan, Director of Business Development of Biz2Credit. Biz2Credit is a small business marketplace that connects entrepreneurs with financing options and advice to grow their business. Send all questions to info@biz2credit.com