The contribution of Indian MSMEs to Exports from India has now declined from nearly 40% to 36% and if the trend continues MSMEs will struggle to find a buyer for their products. Indian Exports are declining drastically and the trade deficit has reached an all time low of 190.1 billion dollars in 2012-13.
The Government recently has formed a six member panel to boost MSME Exports, headed by Finance Secretary R S Gujral. The committee will help in formulating measures that would increase exports from the micro, small and medium enterprises (MSMEs).
The sector has the potential to contribute close to 50% to the Indian Export segment.
According to Directorate General of Commercial Intelligence and Statistics (DGCI&S) data, in the last three years, MSME exports increased by almost 60 per cent – from $82,494 million in 2009-10 to $131,483 million in 2011-12.
Further steps have been taken by the Government to make sure that the potential does not go to waste.
Extension of interest subvention till 31st March 2014 will give a boost to the Micro, Small and Medium Enterprise (MSME) exporters who are impacted by the recessionary conditions and The government’s decision to double the upper eligibility limit from Rs.15 crore to Rs.30 crore under the Market Development Assistance (MDA) scheme would benefit the micro, small and medium enterprise (MSME) exporters. In addition, to ensure better flow of credit to MSEs by minimizing risk perception of banks/financial institutions in lending without collateral security, the government is implementing the Credit Guarantee Scheme.
Exports will play a crucial Role in the development of Indian MSMEs in years to come, it is paramount that we keep this avenue as smooth as possible and come out with policies that only vitalize the trade between India and its partners.
Let us know what you think should happen to bolster MSME exports from India, any suggestions of yours are welcome.
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