The Ministry of Micro, Small and Medium Enterprises (MSME) has recently established an Export Promotion Cell (EPC), aimed at bolstering the development of MSMEs in a sustainable manner. The MSME sector plays a vital role in augmenting Foreign Exchange earnings, and possesses substantial export potential.
MSME’s Contribution to Export
According to the Directorate General of Commercial Intelligence and Statistics (DGCIS), MSME-related products’ worth was USD 147,390.08 million, representing 48.56% of the country’s total exports for the 2017-18 financial year. In certain niche sectors like sports goods, MSMEs account for approximately 100% of total sector exports. Furthermore, they contribute about 85-90% of leather exports, around 6.11% to India’s manufacturing GDP (which is about 33% of the total manufacturing output), and approximately 25% to the service activities related GDP.
EPC’s Objectives
The EPC aims to evaluate the readiness of MSMEs to export their products and services, identify areas that require improvement for efficient exporting, integrate MSME into the global value chain, and reach a target of USD 100 billion for exports from India by 2020. Moreover, it also plans to identify potential clusters capable of starting direct exports or exporting via aggregators and export houses with the assistance of export promotion councils. The EPC also coordinates with other departments and export promotion councils to boost shipments of products like khadi, leather, and coir.
Governing Council Composition
The EPC is led by the Secretary of the Ministry of MSME, with the Development Commissioner of the Ministry of MSME acting as Co-chair. The council consists of senior officials and members from various bodies, including the Ministry of MSME, Commerce, MSME Export Promotion Councils, Export Development Authorities, Commodity Boards, among others.
Key Benefits to MSME
The EPC aims at simplifying procedures and offering incentives for increased production of exports. It provides preferential treatment to MSMEs in the market development fund, simplifies duty drawback rules, and facilitates free display of MSME exporters’ products at international exhibitions.
| Fact | Value |
|---|---|
| MSME-related products’ value (2017-18) | USD 147,390.08 million |
| MSME contribution to total exports (2017-18) | 48.56% |
| Contribution to leather exports | 85-90% |
| Contribution to India’s manufacturing GDP | 6.11% |
| Contribution to service activities related GDP | 25% |
Export Promotion Programmes/Measures
The EPC promotes various programmes/measures such as Marketing Assistance And Export Promotion Scheme, Participation in International Exhibitions/ Fairs, Training Programmes on Packaging for Exports, Marketing Development Assistance Scheme for MSME exporters (MSME-MDA). It also offers financial aid up to Rs. 2.00 lakhs for commissioning specific market studies, as well as assistance for starting and contesting anti-dumping cases available to MSME Association. The Niryat Bandhu Scheme, aimed at mentoring exporters from MSMEs through orientation programmes, counselling sessions, individual facilitation, etc., is another initiative by the government to augment exports from India.