i

SIDBI accredited by UN's Green Climate Fund

Green Climate Fund (GCF) has been created to contribute to the achievement of the ultimate objective of the United Nations Framework Convention on Climate Change (UNFCCC).

SIDBI has been accredited as a National Implementing Entity (NIE) in the 17th Green Climate Fund (GCF) Board Meeting held at Songdo, Republic of Korea fromn 4th- 6th July 2017, for direct access of Funds from GCF to undertake climate change projects and programs in India.

SIDBI, after NABARD, is the only NIE in the country (for more details visit GCF official website: www.greenclimate.fund/). The fund assistance from GCF will be in the form of concessional loan & grant. SIDBI is developing some projects for up-scaling and promoting Energy Efficiency, Renewable energy etc. in MSMEs.

OPTIMiSM 2017 August 2017 . II (8) Vol. II (8)

Chairman & Managing Director of SIDBI

Shri. Mohammad Mustafa, IAS, has been appointed as Chairman & Managing Director of Small Industries Development Bank of India w.e.f. August 28, 2017, in terms of the Government of India notification dated August 4, 2017. An IAS officer of Uttar Pradesh cadre, Shri Mustafa, prior to the present assignment, was working as Joint Secretary, Department of Financial Services, Ministry of Finance, Government of India. Shri Mustafa brings vast experience of working in the areas related to finance and administration.

ii

Industrial Investment and Employment Promotion Policy of

Uttar Pradesh, 2017

The economy of Uttar Pradesh (UP) is primarily dominated by the tertiary sector, followed by primary and secondary sector. The state is known as the food basket of India as it is the leading producer of sugarcane, peas, potato, muskmelon, watermelon, pumpkin, milk and milk products in the country. Also the State has a large no of Micro, Small and Medium Enterprises (MSMEs). UP also houses a number of locally specialised business clusters such as sports items in Meerut, brassware in Moradabad, perfumes in Kannauj, leather in Kanpur, footwear in Agra, embroidered sarees in Varanasi, carpet in Bhadohi, chikan work in Lucknow etc.

The Government has announced the "Industrial Investment and Employment Promotion Policy of Uttar Pradesh, 2017" on July 13, 2017 and it is effective for a period of five years. The highlights of the various incentives announced in the Policy, are detailed below in brief:

Incentives to Industrial Parks/Estates/Agro Parks developed by private sector in Bundelkhand, Poorvanchal and Madhyanchal

o interest subsidies of 50%-60% on loans raised on land / construction of infrastructure/hostels/dormitory for workers.

o 100% exemption/reimbursement on stamp duty for developer / 50% to individual buyers

Incentives for attracting investments

o 100% stamp duty exemption in Bundelkhand and Poorvanchal

o 75% stamp duty exemption in Madhyanchal, except Gautambuddhnagar & Ghaziabad districts with 50% exemption

o Reimbursement of 50% of employers contribution under EPF in new units providing direct employment to 100 or more unskilled workers / additional 10% reimbursement for employment generation of more than 200 direct skilled & unskilled workers

o Reimbursement of net VAT and CST or States share in GST 90% for small industries / 60% for medium & large industries for 5 years and 70% for mega, mega plus & super mega* categories for 10 years, within certain ceilings

o Capital interest subsidy to the extent of 5% p.a. for 5 years, on loans taken for procurement of plant & machinery, subject to annual ceilings of Rs.50 lakh.

o Interest subsidy to the extent of 5% p.a. for 5 years for loans taken for infrastructural amenities for self use subject to overall ceiling of Rs.1 crore.

o Electricity duty exemption for all new units for 10 years

o Mandi fee exemption for new food processing units on raw material purchase for 5 years

o Customised incentive packages on mega projects

o Creation of dedicated Single Window Clearance Dept, under CMOs office for all clearances/approvals through online mode.

STATE NEWS

iii

Focus on MSMEs: Ensuring all round industrial growth :

The Policy proposed various facilities and incentives for the holistic development of MSMEs in the state with focus on capacity building, quality & standards, marketing, good governance and credit flow. For improving flow of capital and credit for MSMEs, some of incentives announced were:

1. Creation of corpus fund to implement Vishwakarma Shram Samman Yojana - to provide margin money subsidy and interest subsidy to artisans and entrepreneurs of local traditional industries of the state through bankable projects.

2. Launch of Mukhya Mantri Yuva Swarojgar Yojana - to encourage the educated unemployed youth of the state to set up enterprises. Provision of Margin money subsidy / interest subsidy under the Scheme to be dovetailed with Pradhan Mantri Mudra Yojana or Stand-up Yojna.

3. Create SME Venture Capital Fund for promoting Start-ups and emerging Small & Medium Enterprises with assistance from financial institutions.

4. Interest subsidies to existing micro & small industries going for expansion/diversification.

5. Reimbursement of the annual service fees payable to Banks/financial institutions for availing collateral free loans under Credit Guarantee Fund Trust for Micro & Small Enterprises.

6. Private sector investment in Greenfield mini industrial parks of 20-100 acres for MSMEs will be encouraged. Incentives include interest subsidy / reimbursement of stamp duty on land purchase to developer and sharing of construction cost of electric sub-stations by the State.

STATE NEWS

New SEBI Disclosure Norms for listed companies

SEBI has directed that, starting 1 October, listed companies will need to disclose defaults on loan repayments within one working day. Listed companies would need to inform exchanges in case they have defaulted in payment of interest, instalment obligations on debt securities, loans from banks and financial institutions and external commercial borrowings.

Companies would need to disclose date of default, name of the bank/financial institution that lent the money, default amount and gross principal amount on which the default occurred.

iv

Economic Survey 2016-17 Volume 2 was released on August 11, 2017. The Report notes a rekindled optimism on structural reforms in Indian economy. Various factors such as launch of the GST, decision in principle to privatize Air India, further rationalization of energy subsidies and actions to address the Twin Balance Sheet (TBS) challenge contribute to this optimism. It also adds that a growing confidence that macro-economic stability has become entrenched is evident in a series of Government and RBI actions and because of structural changes in the oil market which has reduced the risk of sustained price increases.

Economic Survey validated the crucial role played by the sector in the Indian economy, with the sector's contribution being put at 33% of Industrial Gross Value Added and 31% of Industrial Gross Domestic Product. The Government of India has been addressing the issue of flow of credit to this vital sector through various initiatives like the Stand-Up India & Startup India initiatives, enhancement of credit guarantee cover for MSMEs from Rs.1 crore to Rs.2 crore, to name a few.

(A) Industry and Infrastructure

Industrial performance has shown moderation from 8.8 percent during 2015-16 to 5.6 percent in 2016-17.

Industrial growth as per Index of Industrial Production (IIP) new series of 2011-12 shows overall IIP growth at 5 percent in 2016-17 as compared to 3.4 percent last year.

Credit to industry in 2016-17 contracted by 1.6 %. The Index of the eight Core Industries growth during 2016-17 was 4.8% compared to 3% in 2015-16.

Steel sector- To counter dumping of Steel into Indian markets, the Government took a series of measures including imposing Minimum Import Price, raising Basic Customs Duty and Anti-dumping duties in 2016. Therefore in 2016-17 the imports declined, exports doubled and domestic production increased by 11%.

Apparel sector- - In June 2016 the Government approved Rs.6,000 crore special package for textile & apparel sector. There has been a marked rise in the clothing exports.

The measures taken by the Government has resulted in FDI equity inflow of 43.4 Billion USD in Financial Year 2016-17, which is the highest ever FDI Equity inflows.

During 2016-17, Indian Railways registered a negative growth of 4.5 per cent over 2015-16. However, passenger earnings registered an increase of 4.5 per cent during 2016-17.

Indian domestic airlines have a very lower share in international traffic to and from India due to factors like foreign airlines utilising the 6th freedom of the air, expansion of capacity entitlements under bilateral air service agreements with foreign countries, lower utilisation of Indias own capacity entitlements, the 0/20 rule and fleet constraints are responsible for the same.

The Government formulated and launched the UDAY scheme for financial turnaround of power distribution companies on November 20, 2015.

The 26 states and 1 Union Territory which have joined the UDAY scheme account for total outstanding debt of Rs. 3.82 lakh Cr.

News Update

v

UDAY has resulted in National average (all UDAY states) of AT&C loss getting reduced to 20.2 per cent in FY 2017 from 21.1 per cent in FY 2016; billing efficiency has increased by 2 per cent from 81 per cent in 2015-16 to 83 per cent in 2016-17 at all India level and 15 states have issued tariff-revisions for FY 2017-18.

Smart Cities Mission- 57 projects worth Rs.941 crore have already been completed as of April 2017. An estimated additional 462 projects worth Rs.15307 crore are likely to be completed through 2018.

(B) Services Sector

Key driver of Indias economic growth; contributed almost 62 per cent of its gross value added growth in 2016-17.

However, growth of this sector moderated to 7.7 per cent in 2016-17 compared to 9.7 per cent achieved in the previous year.

The moderation is mainly due to deceleration in growth in two services categories- trade, hotels, transport, communication and services related to), and financial, real estate & professional services.

The performance of Indias Services Sector has been subdued in 2016-17 in line with the global trend. However, some services performed well- telecom, aviation, tourism related services particularly in terms of foreign exchange earnings, and information technology-business process management (IT-BPM).

Real estate -growth of this sector decelerated in the last three years from 7.5 per cent in 2013-14 to 6.7 per cent in 2014-15 and further to 4.5 per cent in 2015-16.

Satellite mapping and launching services are two areas in which India is making a mark and has huge potential for the future. The foreign exchange earned by India from satellite mapping in the last five years was more than Rs 100 crores. Foreign exchange earnings of India from export of satellite launch services has increased noticeably in 2015-16 and 2016-17 .

News Update

vi

Trade Receivables Discounting Systems (TReDS)

Trade Receivable Discounting Systems (TReDS) is automated system driven platform set up to the benefits MSMEs. It will enable them to auction their trade receivables at competitive market interest rates through a transparent bidding process in which multiple financiers will participate. The main objective of the TReDS platform is to address the critical needs of MSMEs i.e. the twin issues of promptly en-cashing receivables and eliminating credit risk. TReDS platform of Receivables Exchange of India (RXIL) is expected to be a catalyst in the growth of MSMEs by bringing in transparency in the business eco-system. RBI has approved three entities:

1. NSE Strategic Investment Corporation and SIDBI

2. Axis Bank

3. Mynd Solutions which runs M1 exchange.

Eligible Participants: Function of TReDS includes three parties:

1. Seller: MSME entities as per the definition of the Micro, Small and Medium Enterprises Development Act, 2006 (MSMED Act)

2. Buyer: Corporate and other buyers including Government Departments and Public Sector Undertakings, and such other entities as may be permitted by RBI.

3. Financiers: Banks, NBFC Factors, Financial Institutions and such other institutions as may be permitted by RBI from time to time.

Who can initiate TReDS transactions?

Both the Seller and the Buyer can initiate TReDS transactions for financing of trade receivables of MSME Sellers.

When the MSME Seller uploads the invoices and bears the interest cost it is termed as Factoring i.e. (Single Seller Multiple Buyers). In case of Reverse Factoring (Single Buyer Multiple Sellers), the Buyer initiates the transaction and the interest cost is also borne by the Buyer.

On the TReDS platform, banks discount suppliers invoices based on their corporate buyers credit rating, they need to define credit limit only for the buyers. In the traditional bill discounting mechanism, banks define credit limit for the seller. An invoice is discounted by a financier on TReDS without recourse to the seller. So, the financier takes an unsecured exposure on the buyer. Based on the buyers credit rating, the vendor is now able realize its sale proceeds timely, efficiently and allow in a cost effective manner. In sharp contrast, traditional bank financing is available to MSMEs at 11-13 per cent on pledge of collateral (house, shares or gold).

SIDBI PLUS

vii

On the TReDS platform, the (discount) rate is dynamic each invoice can be (discounted) at a new rate and each invoice can be financed by a new bank. The MSME need not have any sort of documentation or personal relationship with a bank. No personal guarantee of the promoter, no corporate guarantee, are required.

Working of TReDS:

A. On boarding

1. Buyer, Seller and Financiers require Registration with RXIL & execute Master Agreement. 2. RXIL undertakes verification and due diligence 3. Entities pays registration fees

B. Factoring Unit:

4. Establish Buyer Seller relationship and Financier defines limit to buyer 5. Seller/Buyer uploads the invoice on the TReDS palteform 6. Counterparty accepts invoice and invoice converted to Factoring Unit (FU).

C. Auction:

1. Financiers (with defined limits on buyers) bid on invoices 2. Cost bearer accepts the best bid in the auction 3. RXIL generates T+1 obligation - Financier to Seller

C. Settlement:

1. Debit Financier & Credit Seller 2. Register FU with CERSAI 3. Debit to Buyer and Credit to Financier 4. Satisfaction FU with CERSAI 5. Unfinanced or Fail 6. Settled between Buyer and seller

TReDS is the first attempt in India to introduce factoring without recourse to the seller and will help MSME Sellers, not only in quick realization of receivables but also efficient price discovery.

Receivables Exchange of India Limited (RXIL) It is promoted by NSE and SIDBI for promotion and financing of MSMEs in India. RXIL will operate the TReDS platform as per TReDS guidelines issued by RBI. RXIL is the first entity to receive the approval from Reserve Bank of India (RBI) to launch India's First TReDS Exchange.

For more information log on to

https://www.sidbi.in/RXIL.php or http://www.rxil.in/

SIDBI PLUS

viii

Data Analytics

Analytics is helping the banking industry to face many challenges. Analytics backed solutions identified

for potential areas of application are predictive/ diagnostic analysis for NPA/Risk management

through identifying pre-defined early warning signals, Fraud detection, gauging consumer preferences,

regional/ local prospects in business/ marketing, contribution to knowledge hub etc.

It helps study of customer insight which is critical to a) business opportunity identification, b) customer

Acquisition & Retention, c) growth: Cross-sell & Up-sell, d) bank account behavior in relatively large

existing accounts, e) understand churn rate/attrition rate.

Data analytics (DA) is the process of examining datasets in order to draw conclusions about the information they contain, increasingly with the aid of specialized systems and software.

The various concepts in Analytics are as below:

Analytics is the discovery, interpretation, and communication of meaningful patterns in data. A related concept is Business intelligence (BI); an umbrella term that includes the applications, infrastructure and tools, and best practices that enable access to and analysis of information to

improve and optimize decisions and performance.

Use of Analytics in Banking, Financial Services & Insurance (BFSI) industry- While basic reporting and descriptive analytics continue to be essential tools, advanced predictive and

prescriptive analytics are now helping to generate powerful insights, resulting in significant

business impact. Analytics-backed solutions are enabling the sector to not only manage the

increasing cost of compliance, but also the risks (both monetary and reputational) of non-

compliance. Product and portfolio optimisation modelling is helping banks achieve growth in an

environment with significant volatility across asset classes and rising losses in traditional banking

products.

Type of Data / collection

Customer Data- Operational data, Financial Data, Demographic Data

External Sources-Economic Data, Financial Market Data, Industry Research data,

Documents/Video/Image, Survey data/ index, credit scores, Blogs/Forums, Social Networks

etc.

While basic reporting and descriptive analytics continue to be essential tools, advanced

predictive and prescriptive analytics are now helping to generate powerful insights, resulting in

a significant business impact.

NEW BANKING FRONTIERS

ix

The primary steps involved in organizing and extracting right data involve preparation of data

dictionary, categorising of data type, data distribution, summarising etc.

Data cleansing or data cleaning is the process of detecting and correcting (or removing) corrupt

or inaccurate records from a record set, table, or database and refers to identifying incomplete,

incorrect, inaccurate or irrelevant parts of the data and then replacing, modifying, or deleting the

dirty or coarse data.

Artificial Intelligence / concept of Neural Networks

Latest Trends in Analytics is Streaming Analytics based on Complex Event

Processing, Robotic Process Automation etc. Some indicative applications are Real

time fraud detection/ market portfolio analysis.

Deep Learning- the application to learning tasks of artificial neural networks (ANNs) that contain more than one hidden layer where ANN is an interconnected group of

nodes, akin to the vast network of neurons in a brain. Here, each circular node represents an artificial neuron and an arrow represents a connection from the output of one neuron to the input of another.

Artificial intelligence [AI] - A branch of Computer Science which pursues creating the computers or machines as intelligent as human beings., accomplished by studying how human brain thinks, and how humans learn, decide, and work while trying to solve a problem,

and then using the outcomes of this study as a basis of developing intelligent software and

systems. A simple machine is a set of algorithm, which converts input(s) to output(s) and

hence the same input will always lead to the same output.

In ANN (Artificial neural network) or rather all machine learning algorithms, transient states are

built, which allows the machine to learn in a more sophisticated manner.

AI falls under a class of unsupervised learning algorithms and uses multi-layered neural networks to achieve these remarkable outcomes. Some indicative applications are Image recognition (e.g. Tagging faces in photos), Voice recognition (e.g. Voice based search, Siri), Pattern detection (e.g. Handwriting recognition) , chat boats are artificial intelligence based automated chat systems which simulate human chats without any human interventions etc for answering customer query etc. Driverless Cars is also example of AI.

NEW BANKING FRONTIERS

x

"SEDEMAC Mechatronics Pvt Ltd"

under Growth and Equity Assistance Scheme for MSMEs

SEDEMAC Mechatronics Pvt Ltd is an MSME set up at Pune in 2007, by an IIT-Professor Shri. Shashikant Suryanarayanan and three mechanical engineering students viz. S/Shri. Pushkaraj Panse, Amit Arun Dixit and Manish Sushil Sharma, as a technology products company focussed on controls for engines and power trains. One of the products Smart Ignition goes into 2 wheeler engines and improves fuel efficiency & reduces exhaust pollution, provides better power performance. The product is now installed in around 10 million vehicles across India and the top 2-wheelr OEMs are the companys clients for the product. The controllers for diesel genesis also help improve fuel efficiency and are supplied to the top gem-set manufacturers in the country.

Having secured initial business from two OEMs and funding from Nexus Venture Partners, the company went on to receive funding from India Innovation Fund in 2011. India Innovation Fund, invests in the innovative ventures and has been partly supported by SIDBI.

SIDBI directly funded the company with Risk Capital funding, to aid the company movement on growth path, apart from term loan and working capital. Post the funding from SIDBI, the top line of the company catapulted from Rs.15 crore in FY 2015 to Rs.80 crore in FY 2017. The company currently has 270+ employees and has its manufacturing facilities spread across 1 lakh sq ft in two plants at Pune and is ISO9001:2008 certified. The latest round of funding received by the company is from Shri Nandan Nilekenis team.

Snapshot of Manufacturing and Shop floor Facilities

Success Story

xi

SIDBI organizes Stakeholder's meet on Insolvency & Bankruptcy Code (IBC)

SIDBI organised a stakeholders' meet on IBC on July

01, 2017 at Mumbai Office. The meeting was attended

by Board Members from Insolvency and Bankruptcy

Board of India (IBBI), New Delhi including Mr. M. S.

Sahoo, Chairman of IBBI and Mrs. Suman Saxena,

Whole Time Member of IBBI and Shri Sajeev Pandey.

Two sitting members from National Company Law

Tribunal, Mumbai, Mr. B. S. V. Prakash Kumar,

Member (Judicial) and Shri V. Nallasenapathy,

Member (Technical) were also present. There wes

representation from NeSL (the proposed Information

Utility) as also from KPMG and AZB & Partners (the

professionals). Legal Heads from most of the

Banks/FIs and ARC were present. The Meet was

inaugurated by Shri Ajay Kumar Kapur, DMD. Shri

Kapur said that is being witnessed a wonderful period

of legal reforms. IBC is an important legislation which

addresses the much needed concern for clean and

honorable exit for failing enterprise and it will help in

facilitating setting up new ventures. He also pointed

out that IBC is a new legislation and Bankers need to

recognize its strength and hope that meet would

facilitate resolution of some of the agitating issues.

SIDBI Agra organized a Stakeholders meet under Stand Up India

With a view to take Stand Up India Mission forward,

SIDBI Agra BO organized a Stakeholders meet on

18th July 2017 with active participation of different

government agencies like DICs, MSME-DIs, CFTI,

NABARD, RUDSETIs, and LDMs of nearby districts. Shri Arup Kumar, General Manager, SIDBI, Regional

Office, Lucknow inaugurated the programme and

emphasized on the importance of efforts made by the

Government and hand holding agencies in developing

the skills of entrepreneurs associated with Strat-up

units. This, in turn, a puns economic growth. Shri

Achal Singh, Assistant Manager, SIDBI explained the

Stand Up India Scheme by giving live demo of the

web portal www.standupmitra.in and showing how it

is a virtual loan market, managed by SIDBI. The

meeting provided a platform to the stakeholders to

share their experience, expectations, problems faced,

etc. regarding the scheme and portal.

EVENTS

xii

SIDBI Indore inaugurated PSIG-SIDBI supported Launch programme for Promotion and Roll out of Atal Pension Yojna (APY)

Shri Anil Kulkarni, GM, SIDBI Indore inaugurated

PSIG-SIDBI supported Launch programme for

Promotion and Roll out of Atal Pension Yojna

(APY) in PSIG states on July 20, 2017 in Bhopal,

Madhya Pradesh. Participation from key

stakeholders including PFRDA, SIDBI, SLBC,

MFIN, Banks, BCNMs and state level officials

from various government departments were

there.

Shri Kulkarni, in his introductory remark

emphasized to focus on the learnings from the

event and make fruitful deliberations. He spoke

about various PSIG activities initiated to address

both financial and non-financial gaps including

policy advocacy, access to finance, women

empowerment and also shared details of SIDBI's

various intervation's in Madhya Pradesh.

Hyderabad RO Sponsored EDP on

Tailoring and Garment for Women

A 60 day Training cum Entrepreneurship Development Programme on Tailoring and

Garment for women from SC / ST/ minority

categories belonging to Krishna and Guntur semi

urban areas have organised by Navajeevan Bala

Bhavan at Vijayawada. 30 young unemployed

women participated in the programme. Shri G

Sampath Kumar, General Manager, Hyderabad

RO inaugurated the programme on May 10,

2017 and addressed the audience in Telugu. He

emphasized the need for skill development and

women empowerment in the present industrial

scenario for setting up of an enterprise. He

requested all the participants to hone their skill

sets and set up their own ventures by availing

loans under MUDRA Scheme and Standup India

Scheme. He also explained the benefits of Stand

up India portal. Later, he also interacted with the

participants.

EVENTS

xiii

SIDBI Erode participated in programme on Promotion of Energy Audit and Conversation of Energy

On July 21, 2017, District Industries Centre,

Erode organized an awareness programme on

Promotion of Energy Audit and Conservation of

Energy (PEACE) scheme under which suitable

incentive i.e. subsidy of 25% of the cost of the

eligible components subject to max. of Rs. 2 lakh

is being extended to MSMEs based on energy

audit. The Chief Guest for the meeting was Dr.

S. Prabhakar, IAS, District Collector, Erode.

During the meeting presentations were made on

SIDBI's 4E scheme and SMILE scheme.

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xvi

ET Start up Awards, 2017

The Economic Times Startup Awards was instituted to celebrate the finest and bravest who risked everything to launch a new enterprise. The awards are recognition of the sweat and tears that go into shaping driving force the nations economic engines. The awards salute the entrepreneurs and also seek to inspire the dreamers. The Startup Awards are intended to push the countrys agenda on entrepreneurship and young leadership. The jury members comprising entrepreneurs, investors, an academic and a policymaker chose winners from diversified field.

CATEGORY WINNER

STARTUP OF THE YEAR SWIGGY , a food ordering and delivery company to 12000 restaurants across eight cities employing 20,000 people in the delivery business.

ET FACEBOOK WOMAN AHEAD Falguni Nayar (CEO Nykaa, e-commerce store that is focused on beauty and wellness products)

MIDAS TOUCH (BEST INVESTOR) Ravi Adusumalli (Managing Partner, SAIF Partners). SAIF Partners is a veture fund invested in Start ups.

SOCIAL ENTERPRISE Aibono (combine agriculture and technology). The company offered testing and measurement services to farms , where a device would capture the soil and weather condition and also build in imagery of the region.

TOP INNOVATOR Bugworks ( a drug discovery company ) and Pandorum first to develop artificial liver tissue using 3D printing technology in India)

BOOTSTRAP CHAMP Wingify ( Website Conversion Rate Optimization, Conversion Optimization, Landing Page Optimization)

BEST ON CAMPUS DeTech Technologies (technologies for remote inspection and monitoring of pipelines and other large assets)

COMEBACK KID Jitendra jagadev, Amarendra Sahu, Smurti Ranjan Parida (Co-founders, Nest Away -online home-rental startup)

Start UP Bulletin

xvii

Deficit

A deficit is the amount by which a resource falls short of a mark, most often used to describe a difference between cash inflows and outflows. Deficit is the opposite of surplus and is synonymous with shortfall or loss.

Deficit Spending Unit A economic term used to describe how an economy or economic unit within an economy has spent more than it has earned over a period of time. To raise the necessary funds to finance a deficit, the economic unit may sell debt (or equity if the entity is a corporation)

Primary Deficit The primary deficit is defined as the difference between current government spending on goods and services and total current revenue from all types of taxes net of transfer payments. Primary Deficit = Fiscal Deficit Interest payments

Fiscal Deficit A fiscal deficit occurs when a government's total expenditures exceed the revenue that it generates, excluding money from borrowings. Fiscal deficit = Total expenditure Total revenue (excluding borrowings)

Trade Deficit Trade deficit is an economic measure of a negative balance of trade in which a country's imports exceeds its exports. A trade deficit represents an outflow of domestic currency to foreign markets.

Budget Deficit A budget deficit is an indicator of financial health in which expenditures exceed revenue. The term budget deficit is most commonly used to refer to government spending rather than business or individual spending, but can be applied to all of these entities. When referring to accrued federal government deficits, the deficits are referred to as the national debt.

Revenue Deficit

A revenue deficit occurs when the net income generated, revenues less expenditures, falls short of the projected net income. This happens when the actual amount of revenue received and/or the actual amount of expenditures do not correspond with budgeted revenue and expenditure figures.

MSME Glossary

xviii

The digital solution unleashed through mitra portals (www.udyamimitra.in for universal enterprise loans and www.standupmitra.in for Stand-up loans) are engaged in changing the lending landscape. Through its credit+ approach, connect to entire banking network in the country. It extends engagement access to 17000+ handholding agencies and also maximizes convergence with key stakeholders of the MSME Eco system. By inducing anywhere/anytime seamless access, it is serving the un-served, particularly those at the bottom of pyramid and Micro & Small enterprises. Performance The analytical data on portal indicates that under Stand-up India (which completed around a year and three months), MUDRA and MSMEs, more than 60,000 registrations and 40720+ sanctions (2109 online and rest offline) have been recorded. Similarly, 19978 handholding requests have been lodged in eight expertise areas (with top three type of requests being Entrepreneurship Development Program/Digital Literacy, Application filling/Project Report Preparation and Margin money or subsidy) and 12720 responded. Latest value add offerings Standard application form for loans upto ` 2 crore for MSME loans has been made available in online mode. Auto estimation of working capital was also eased the process of filling up. Some new features are added in the portal such as 1) rule engine for ascertaining the eligibility of guarantee coverage upfront, 2) linkage of website for GST (gst4msme.com), 3) latest offerings clubbed under 'What's new' which is available on home page of the portal, 4) mapping of business activity based on National Industrial Classification Code and 5) tagging of Special CLCSS subsidy format along with the loan application. Testimonials The twin mitra portals have received wide publicity in various national magazines. Besides, udyamimitra portal as a virtual market-place for credit as also credit-plus services by way of hand holding support has been highlighted by Shri. S. S. Mundra, Deputy Governor of RBI on several occasions. National Entrepreneurship Awards "National Entrepreneurship Awards" have been instituted by the Ministry of Skill Development and Entrepreneurship (MoSDE), GoI to encourage a culture of entrepreneurship across the country. These premium awards seek to recognise the efforts and achievements of exceptional entrepreneurs and those organisations who are working in the field of entrepreneurship development (For details, please visit: http://www.neas.in/award-track.php). All entrepreneurs, who have been sanctioned loan online under portals (around 2119 nos) and sensitized banks to disseminate on this award to their eligible entities, have been encouraged to apply for this award through email.

/ Digital Solutions through Mitra Portals Update as on July 31, 2017

xix

GST for MSMEs through portal To facilitate MSMEs and prepare themselves for GST regime, SIDBI, supported by Federation of Indian Micro and Small & Medium Enterprises (FISME) to conduct a country wide programme to disseminate information on GST for benefit of MSMEs. Accordingly an exclusive helpline (1800-11-3585) for resolving the queries of MSMEs, a dedicated web portal viz. www.gst4msme.com and a handbook titled 'A brief guide to Goods and Services Tax (GST) for MSMEs' have been launched on July 07, 2017. All entrepreneurs who have been sanctioned loan through portals (around 20000+) have been sensitized about this information through email. Registered users on the Mitra portals can also access these services by clicking on the links provided on their dashboards. Ease of Access Kits for Handholding Agencies: We are glad to inform that in order to facilitate the response mechanism by handholding agencies, we have published a kit (can be accessed from https://www.standupmitra.in/Default/ViewFile/Ease_of_Access_Kit_SUHCs.pdf?Path=Document also from the link provided on the Dashboard of registered Handholding Agencies), compiling the detailed steps along with screen-shots featuring what all functionalities may be carried out on portal for rendering services to the aspiring entrepreneurs.

Empower Entrepreneurs through www.standupmitra.in & www.udyamimitra.in, SmallB.com

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xxi

Government of India

CABINET SECRETARIAT DIRECTORATE OF PUBLIC GRIEVANCES

Unresolved Grievances Bothering You?

You may seek help of Directorate of Public Grievances (DPG) in resolution of

grievances relating to Ministries/Departments and Organisations under its

purview. In last few years, nearly ninety percent of the grievances taken up by the

Directorate have been resolved favourably.

Please read carefully the conditions listed below before lodging your grievance: You should have exhausted the Departmental remedies for individual grievances.

Your grievance should not relate to service matter (other than payment of terminal benefits like

gratuity, GPF etc.), a case disposed of at the level of Minister of the concerned Department, commercial

contract, a sub-judice case, a case where quasi-judicial procedures and appellate mechanisms are

prescribed for decision making, RTI matter, Religious matter.

Suggestion of any sort will not be treated as grievance.

List of Ministries/Departments/Organizations under DPG's purview

(a) Ministry of Railways (i) Public Sector Banks (b) Department of Posts (j) Public Sector Insurance Companies (c) Department of Telecommunications

including BSNL and MTNL (k) National Saving Scheme of Ministry of Finance

(d) Ministry of Urban Development including Delhi Development Authority, Land & Development Office, CPWD and Directorate of Estates

(l) ESI hospitals and dispensaries directly controlled by Employees State Insurance Corporation under Ministry of Labour and Employment.

(e) Ministry of Petroleum and Natural Gas including its Public Sector Undertakings

(m) Employees' Provident Fund Organization

(f) Ministry of Civil Aviation including Airports Authority of India and Air India

(n) Regional Passport Authorities under Ministry of External Affairs

(g) Ministry of Shipping, Road Transport and Highways

(o) Central Government Health Scheme under Ministry of Health and Family Welfare

(h) Ministry of Tourism (p) Central Board of Secondary Education, Kendriya Vidyalaya Sangathan, National Institute of Open Schooling, Navodaya Vidyalaya Samiti, Central Universities, Deemed Universities (Central) and Scholarship Schemes of Ministry of Human Resource Development.

(q) Ministry of Youth Affairs

Note: You can lodge your grievance online on our website http://dpg.gov.in. You may also send your grievance to us by post or fax with complete information and relevant documents.

Contact us at : The Secretary, Directorate of Public Grievances, 2nd Floor, Sardar Patel Bhawan, Sansad Marg, New Delhi -110004 Tel: 011-23743139, 011-23741228, 011-23363733. Fax. 011-23345637, e-mail:secypg@nicin Website: http://dpg.gov.in

xxii

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Editorial Committee Chief Editor Shri Rabindra Kumar Das, Chief General Manager, SIDBI Editors Smt. Chitra Alai, General Manager, SIDBI

Shri Rahul Priyadarshi, General Manager, SIDBI Dr. Subhransu Sekhar Acharya, General Manager, SIDBI

, , , , , - , / ( ) , , , , /-

Disclaimer The views, news, comments, information, articles and opinions contained herein are mainly based on collation of different news / views available from sources, such as, online, in person and printed resources both globally and nationally, and thereof are not necessarily the views of the Small Industries Development Bank of India (SIDBI). While every effort has been made to avoid any mistake or omission, SIDBI would not be, in any way, liable for the authenticity of data, views, opinions, comments, etc. and for any mistake / omission or commission in this publication or any nature, whatsoever.

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