Share of MSMEs in India's exports near 50% in 2015-16: Nirmala Sitharaman

Posted by Daily Shipping Times on 31-07-2017        Tweet

NEW DELHI: The contribution of Micro, Small and Medium Enterprises (MSMEs) in the exports of the Country reached to 49.86 percent in 2015-16, the Commerce and Industry Minister Nirmala Sitharaman informed Rajya Sabha recently.

According to Ministry of MSME based on DGCI&S data, the share of MSMEs in India's exports constantly showing sign of growth.

In the year 2013-14 it was 42.42 percent; 44.76 percent in 2014-15 and reached 49.86 percent in 2015-16, said a recent release.

The Minister gave the credit to the various Government's schemes.

She said, the Merchandise Exports from India Scheme (MEIS) was introduced in the Foreign Trade Policy (FTP) 2015-20 w.e.f. 1st April, 2015 with the objective to offset infrastructural inefficiencies and associated costs involved in exporting goods/products which are produced /manufactured in India including products produced/manufactured by MSME Sector. Of the 11544 total tariff lines at 8 digit HS Codes, 7914 tariff lines are covered under MEIS scheme at present.

The Scheme incentivizes exporters in terms of freely transferable Duty Credit Scrips which are transferable and can be used to pay certain Central duties/taxes.

The Government also provides double weightage to exports of MSMEs for grant of one star export house status under the Status Holder Recognition Scheme of the Foreign Trade Policy 2015-20.

The Government has launched Interest Equalization Scheme on Pre and Post Shipment Rupee Export Credit w.e.f. 01.04.2015 for five years. The scheme is available to all exports of MSME and 416 tariff lines. The rate of interest equalisation is 3 percent per annum. This scheme is aimed at providing affordable credit to exporters to enable them to be more competitive in the global market.

The Government introduced Special Advance Authorisation Scheme for export of articles of Apparel and Clothing Accessories w.e.f 1st September 2016, implemented the Niryat Bandhu Scheme with an objective to reach out to the new and potential exporters including exporters from Micro, Small & Medium Enterprises (MSMEs) and mentor them through orientation programmes, counselling sessions, individual facilitation, etc., on various aspects of foreign trade to enable them to get into international trade and boost exports from India.

Under Export Promotion Capital Goods (EPCG) Scheme and Duty Exemption/Remission Schemes, Advance Authorisation (AA), Duty Free Import Authorisation (DFIA), Duty Drawback (DBK), Advance Procurement/ Replenishment of Precious Metals from Nominated Agencies, Replenishment Authorisation for Gems, Replenishment Authorisation for Consumables and Advance Authorisation for precious metals are also available for MSME products.