Budget 2020 India: Out of close to 98 per cent Indian exporters, which are MSMEs, 83 per cent are micro-enterprises, according to research by the trade finance company for Indian exporters
Union Budget 2020 India | Logistics for MSMEs: Finance minister Nirmala Sitharaman in her second budget speech on Saturday said a new logistics policy will be unveiled soon that would make India’s vast micro, small and medium enterprises sector more competitive. “National Logistics Policy will be revealed soon, creating a single-window e-logistics market. It will focus on making MSMEs more competitive,” Sitharaman said. The minister also said that a new scheme will be launched to achieve higher export credit. The scheme will offer higher insurance cover, reduced premium for small exporters and simplified procedure for claim settlements.
The minister lauding Indian entrepreneurs said the spirit of entrepreneurship, which weathered several storms over centuries inspires us. We need to support and energise this spirit of entrepreneurship. MSMEs share of exports has been nearly 50 per cent even as MSME Minister Nitin Gadkari has been envisioning to increase it to 75 per cent. In terms of the GDP, the MSME sector’s share is 29 per cent, which the government is aiming to increase it to 50 per cent in the coming five years.
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MSME body Federation of Indian Micro and Small & Medium Enterprises (FISME) had sought to appoint a regulator for logistics including land, rail, air, shipping and ports to establish clear rules for the same, bring transparency to the process along with setting up a grievance redressal mechanism for exporters and importers. Out of close to 98 per cent Indian exporters, which are MSMEs, 83 per cent are micro-enterprises, according to research by the trade finance company for Indian exporters — Drip Capital. Nirmala Sitharaman, among sops offered to MSMEs in the last budget, had allocated Rs 350 crore for the sector for FY 2019-20. The government had also announced 2 per cent interest subvention for all GST registered MSMEs under the Interest Subvention Scheme on fresh or incremental loans.