MSME-related products' share in India's total exports for FY19 stood at 48.10 per cent while the value for MSMEs’ share of exports was $147.4 billion.
Addressing the Board of Trade meeting on Thursday commerce and industry minister Piyush Goyal said that his ministry will soon launch a credit scheme for exporters that will have improved insurance cover from 60 per cent currently to 90 per cent. The announcement was followed by his comments on ‘not satisfactory’ growth in exports this year as the country has huge export potential “due to the trade dispute between the US and China which has provided a window of opportunity to Indian manufacturers,” said Piyush Goyal as higher tariffs have been imposed in the US and China on imports from the other country.
Highlighting India’s trade surplus of $17 billion with the US and trade deficit of $53 billion with China, Piyush Goyal said that India needs to work on its strengths by exploring market access for agriculture and pharma products in different regions. Commerce minister comments on boosting exports gain significance as MSMEs contribute a significant share of India’s total exports. MSME-related products share in FY19 stood at 48.10 per cent as per the information from Directorate General of Commercial Intelligence and Statistics, MSME Minister Nitin Gadkari had said in a written reply in Rajya Sabha in July. The value for MSMEs’ share of exports was $147.4 billion while last year till September MSMEs exported goods worth $78.5 billion.
While India’s total exports crossed half-trillion-dollar mark at $537 billion in FY19, goods and services exports were at a record high of $331 billion $205 billion respectively, said Goyal. However, as India envisioned having $1 trillion export target in five years, the minister called for improving domestic production and more competitiveness.
The government in the past has taken steps with respect to digitising the interaction with exporters such as e-issue of importer-exporters’ code, paperless Merchandise Exports from India scheme, paperless advance and EPCG authorizations and online registration cum membership certificates for exporters.
Piyush Goyal highlighted export opportunity areas such as saris, utensils, perfumes, sweets that are unique to India’s various states. The minister urged the states to identify such areas of opportunities and incorporate it into their export strategy.