Cheaper export finance and a dedicated PLI scheme for MSMEs, asks Engineering Export Promotion Council to boost India’s exports | The Financial Express

Cheaper export finance and a dedicated PLI scheme for MSMEs, asks Engineering Export Promotion Council to boost India’s exports

Import, Export, Trade for MSMEs: EEPC also proposed guidelines for Rupee trade with Russia and alternative payment mechanisms for Myanmar during the meeting.

Cheaper export finance and a dedicated PLI scheme for MSMEs, asks Engineering Export Promotion Council to boost India’s exports
The EEPC India Chairman Mahesh Desai suggested including the steel sector under RoDTEP as steel is the most commonly used raw material in the engineering industry.

Import, Export, Trade for MSMEs: Engineering Export Promotion Council (EEPC) India on Tuesday suggested cheaper export finance and a dedicated PLI scheme for Micro, Small and Medium Enterprises (MSMEs) in the Board of Trade meeting chaired by Union Commerce Minister Piyush Goyal, according to the United News of India (UNI).

The council also proposed guidelines for Rupee trade with Russia and alternative payment mechanisms for Myanmar during the meeting, the report said. 

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According to an official statement, EEPC India Chairman Mahesh Desai recommended lifting export duty on selected steel items as it would be particularly helpful to the MSMEs which are contributing majorly to India’s engineering exports.

The export duty enforcement will dampen Indian interest and imperil the survival of Indian stainless-steel “SS” producers, said Desai quoting the feedback received from member exporters. 

He has requested the government to reassess the rates under Remission of Duties and Taxes on Export Product (RoDTEP) and give full rebate on the taxes that still remain in the export production chain. The EEPC India Chairman also proposed to include the steel sector under RoDTEP as steel is the most commonly used raw material in the engineering industry, as per the report. 

Desai further underlined the fact that export finance becomes extremely important when export incentives are being phased out, especially for the MSMEs.

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The EEPC India Chairman highlighted that MSMEs should be offered advances at a rate that would be lower than MCLR (Marginal Cost of Funds Based Lending Rate) and RLLR (Repo Linked Loan Rate) so that they can carry on their business without exhausting funds. 

Appreciating the steps taken by RBI for easing Rupee-trade with Russia, he called for sensitizing the banks regarding the process and advised that a clear set of guidelines would help in boosting exports.

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First published on: 14-09-2022 at 16:16 IST