Trade, import, and export for MSMEs: The Commerce Ministry on Wednesday had approved a capital infusion of Rs 4,400 crore into the state-owned ECGC over a five-year period from FY22 to FY26 to boost exports.
Trade, import, and export for MSMEs: MSME Minister Narayan Rane on Wednesday launched MSME body India SME Forum’s portal IndiaXports to further enable exports by small businesses globally. The portal is essentially an information and knowledge platform for exports by Indian MSMEs with the required information related to exports for all the 456 tariff lines along with trends in exports, export procedures, etc. According to the government, ‘instructor-led orientation’ will also be provided to MSMEs through a series of sessions for specific sectors highlighting the opportunities in specific products in international markets. The India Export initiative launched in line with the portal has targetted to support over 1 lakh MSMEs looking to know more about exports and hand holding over 30,000 MSMEs to start exporting.
In his address, Narayan Rane said, “To enhance exports and ensure localization, it is essential to make the country a global manufacturing powerhouse by improving India’s manufacturing base. This can be achieved by scaling up India’s competitive advantage or augmenting the competitiveness of MSMEs and make India a preferred destination for manufacturing for the world.”
“MSME exports are going to play a role of a catalyst in restoring the strength of the Indian economy. With more than 63 million MSMEs spread across the geographical expanse of India, MSMEs have been contributing nearly 40 per cent of overall India’s exports, contributing to approximately 6.11 per cent of the country’s manufacturing GDP and 24.63 per cent of the GDP from the services sector,” said MSME MoS Bhanu Pratap Singh Verma.
Importantly, the Commerce Ministry on Wednesday had approved a capital infusion of Rs 4,400 crore into the state-owned ECGC (earlier known as Export Credit Guarantee Corporation of India) over the FY22 to FY26 period among measures to boost exports. ECGC is an export promotion organization for boosting export competitiveness through credit insurance covers against non-payment risks by the overseas buyers due to commercial and political reasons.
ECGC also provides insurance covers to banks against risks in export credit lending to the exporter borrowers. “The approved amount will be infused in installments thereby increasing the capacity to underwrite risks up to Rs 88,000 crore and this will enable ECGC to issue covers that can support additional exports of Rs 5.28 lakh crore over the five-year period in line with the existing pattern,” the ministry said in its statement.