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Posted 14 Mar 2024

Updated 15 May 2024

2 min read

  • Opportunities for MSMEs export highlighted by report
    • Wood products and handloom textiles have huge potential because of its unique aesthetics and cultural appeal.
    • Growing demand for natural and sustainable products in other countries.

 

  • Challenges in boosting export from MSMEs
    • Limited access to finance: Current supply of credit via commercial banks fulfills only 16% of credit demand of MSMEs, Lack of access to working capital finance etc.
    • Limited Market Access: Limited exposure to global exports market, constraints related to international quality standards, etc. 
    • Business environment-related challenges: Numerous regulatory compliances, delays in customs clearance, Shortage of credible and internationally accredited testing labs etc.
    • Taxing merchandise export procedure: High volume of paperwork, requirement of approval from multiple authorities, etc. 

 

  • Recommendations from report
    • Creating one-stop information channel for exporters to serve as knowledge base for export procedures, and product-specific regulations.
    • Creation of National Trade Network Portal to improve efficiency of export process and reduce costs. 
    • Promoting e-commerce exports and ease of merchandise exports by supporting first-time exporters.
    • Better measurement of exports originating from MSMEs for identifying areas of improvement and evaluations of policy interventions.

 

  • Tags :
  • MSMEs
  • NITI Aayog
  • Export Potential of MSMEs
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