{"id":40096,"date":"2024-03-14T07:21:41","date_gmt":"2024-03-14T01:51:41","guid":{"rendered":"https:\/\/vajiramandravi.com\/current-affairs\/?p=40096"},"modified":"2025-04-24T22:48:52","modified_gmt":"2025-04-24T17:18:52","slug":"exports-from-msme-in-india","status":"publish","type":"post","link":"https:\/\/vajiramandravi.com\/current-affairs\/exports-from-msme-in-india\/","title":{"rendered":"Boosting Exports from MSMEs in India"},"content":{"rendered":"<h2>What\u2019s in Today\u2019s Article?<\/h2>\n<ul>\n<li>Why in News?<\/li>\n<li>MSMEs in India<\/li>\n<li>Exports from MSMEs in India<\/li>\n<li>NITI Aayog Recommendations to Boost MSME Exports from India<\/li>\n<\/ul>\n<h2>Why in News?<\/h2>\n<p>Recently, the Niti Aayog has released a report on boosting exports from Micro, Small and Medium Enterprises (MSMEs).<\/p>\n<p>According to the report, the government must make it easier for smaller firms to export their goods through e-commerce platforms, establish a single national trade portal for all approvals and compliances, etc.<\/p>\n<h2>MSMEs in India<\/h2>\n<p><img decoding=\"async\" src=\"https:\/\/vajiramandravi.s3.us-east-1.amazonaws.com\/media\/editor_images\/2024\/3\/14\/14\/7\/42\/65f2b756ffdc3108acd9e4ef_OI.PNG\" alt=\"\" \/><\/p>\n<ul>\n<li>MSMEs are often called the powerhouse of the Indian economy as they contribute significantly to employment generation, exports, and overall economic growth.<\/li>\n<li>They reportedly account for more than 11 crore jobs and contribute around 27.0% of India&#8217;s GDP.<\/li>\n<li>The sector consists of around 6.4 crore MSMEs, with 1.5 crore of them registered on the Udyam portal and employs around 23.0% of the Indian labour force, making it the 2nd-largest employer in India after agriculture.<\/li>\n<li>They account for 38.4% of the total manufacturing output and contribute 45.03% of the country&#8217;s total exports.<\/li>\n<\/ul>\n<h2>Exports from MSMEs in India<\/h2>\n<ul>\n<li>Exports represent an enormous and under-utilised opportunity for the MSME sector. Sectors where Indian MSMEs can participate and compete in export markets include &#8211;\n<ul>\n<li>Handicrafts, handloom textiles, ayurveda and herbal supplements, leather goods, imitation jewellery and wooden products.<\/li>\n<\/ul>\n<\/li>\n<li>Globally, these sectors constitute substantial markets exceeding USD 340 billion, whereas their domestic market is considerably smaller.<\/li>\n<li>Over time, small firms have encountered difficulties in tapping into export markets due to the inherent obstacles posed by economies of scale.<\/li>\n<li>It proves more challenging for small enterprises to &#8211;\n<ul>\n<li>Enter foreign markets,<\/li>\n<li>Adhere to compliance requirements,<\/li>\n<li>Achieve cost-effective production, and<\/li>\n<li>Efficiently manage logistics for clients.<\/li>\n<\/ul>\n<\/li>\n<\/ul>\n<h2>NITI Aayog Recommendations to Boost MSME Exports from India<\/h2>\n<ul>\n<li>Create One Stop Information Channel for Exporters:\n<ul>\n<li>India has several portals that help exporters access information, most of which offer incomplete or outdated information.<\/li>\n<li>Therefore, creating a one stop information data intelligence portal using Al based interface will be essential to impart information to MSMEs.<\/li>\n<\/ul>\n<\/li>\n<li>Create National Trade Network (NTN) as Comprehensive Trade Portal:\n<ul>\n<li>Currently an exporter needs to navigate multiple portals to get necessary approvals. This includes the documentation for licences, etc.<\/li>\n<li>This difficulty can be eliminated by creating an end-to-end NTN which will provide seamless experience to exporters including answering queries and resolution of any gaps in paperwork.<\/li>\n<\/ul>\n<\/li>\n<li>Promote E-commerce Exports:\n<ul>\n<li>While China exported $200 billion worth of goods through e-commerce in 2022, India exported only $2 billion.<\/li>\n<li>A key reason for this gap is the cumbersome compliance process associated with exports, especially when it comes to payment reconciliation, which is particularly challenging for new or small exporters.<\/li>\n<li>To boost e-commerce exports, it is essential to create distinction between Exporter on Record (EOR) and Seller on Record (SOR), exempt import duties on rejects\/ returns, etc.<\/li>\n<\/ul>\n<\/li>\n<li>Promote Ease of Merchandise Exports:\n<ul>\n<li>While the government has placed high emphasis on improving Ease of Doing Business, it should be extended to export processes, particularly targeted at MSME exporters.<\/li>\n<li>For example, MSMEs can be offered relaxation from certain compliance requirements for a period and forgiven on errors as they begin to learn requirements of export markets.<\/li>\n<\/ul>\n<\/li>\n<li>Improve Access to Export Finance: Access to finance is regularly seen as a key bottleneck for MSMEs. Towards this end, promotion of Export Credit Guarantee can help improve working capital availability for MSMEs.<\/li>\n<li>Ensure Accurate Measurement:\n<ul>\n<li>Currently, a dependable single data source for MSME exports is lacking.<\/li>\n<li>Establishing a reliable depiction of MSME exports involves integrating DGFT trade data with GST and income tax data.<\/li>\n<li>This fusion of datasets, utilising PAN numbers as the common identifier, will provide an accurate portrayal of MSME exports.<\/li>\n<\/ul>\n<\/li>\n<\/ul>\n<hr \/>\n<h3>Q1) What is the Scheme of Fund for Regeneration of Traditional Industries (SFURTI)?<\/h3>\n<p>SFURTI is an initiative by the Ministry of MSME to promote Cluster development. Khadi and Village Industries Commission (KVIC) is the nodal Agency for promotion of Cluster development for Khadi.<\/p>\n<h3>Q2) What is the Emergency Credit Line Guarantee Scheme (ECLGS)?<\/h3>\n<p>The primary objective of the ECLGS is to provide much-needed relief to the MSME sector by incentivising Member Lending Institutions to provide additional funding, thereby enabling MSMEs to meet the operational liabilities and restart the businesses.<\/p>\n","protected":false},"excerpt":{"rendered":"<p>According to a Niti Aayog report on boosting exports from MSMEs, the government must make it easier for smaller firms to export their goods through e-commerce platforms.<\/p>\n","protected":false},"author":5,"featured_media":40097,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"footnotes":""},"categories":[18],"tags":[],"class_list":{"0":"post-40096","1":"post","2":"type-post","3":"status-publish","4":"format-standard","5":"has-post-thumbnail","7":"category-upsc-mains-current-affairs","8":"no-featured-image-padding"},"acf":[],"_links":{"self":[{"href":"https:\/\/vajiramandravi.com\/current-affairs\/wp-json\/wp\/v2\/posts\/40096","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/vajiramandravi.com\/current-affairs\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/vajiramandravi.com\/current-affairs\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/vajiramandravi.com\/current-affairs\/wp-json\/wp\/v2\/users\/5"}],"replies":[{"embeddable":true,"href":"https:\/\/vajiramandravi.com\/current-affairs\/wp-json\/wp\/v2\/comments?post=40096"}],"version-history":[{"count":0,"href":"https:\/\/vajiramandravi.com\/current-affairs\/wp-json\/wp\/v2\/posts\/40096\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/vajiramandravi.com\/current-affairs\/wp-json\/wp\/v2\/media\/40097"}],"wp:attachment":[{"href":"https:\/\/vajiramandravi.com\/current-affairs\/wp-json\/wp\/v2\/media?parent=40096"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/vajiramandravi.com\/current-affairs\/wp-json\/wp\/v2\/categories?post=40096"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/vajiramandravi.com\/current-affairs\/wp-json\/wp\/v2\/tags?post=40096"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}