Trade, import and export for MSMEs: The MSME ministry has invited online tender for carrying out a six-month study on the MSME sector’s exports and how to enhance and diversify its role in the global value chain. According to the bid document, all MSME Development Institutes, organisations under the MSME ministry such as NSIC, Mahatma Gandhi Institute for Rural Industrialisation, Ni-MSME etc., and agencies empanelled under the MSME ministry are eligible to bid.
Also, various institutions including those receiving annual recurring grants from the central or state government agencies, institutions registered as professional societies and trusts and others incorporated under the Companies Act will also be eligible to apply for undertaking the study. Lastly, proprietary and partnership concerns of repute will also be allowed.
According to the tender document issued on February 22, the MSME sector is faced with several challenges from the aspect of exporting goods and services in the international market such as the lack of awareness around products in demand, export promotion and assistance schemes, legal framework, IPR issues; lack of access to affordable trade finance; low technology adoption leading to poor packaging, quality issues, cumbersome documentation process, etc.
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“Not only do these challenges need to be studied in detail but an ecosystem needs to be created in such a way that these enterprises shall be able to participate in the global value chain on its own and generate enough economies of scale,” the document read.
Comments from the MSME ministry weren’t immediately available for this story.
The study would focus on reviewing the list of 454 products on the basis of which export from the MSME sector is estimated, identifying products for exports potential and also service export opportunities beyond developed nations, analysing challenges being faced by MSMEs in exports and possible remedies within present schemes of the ministry, the tender’s terms of reference said.
The government would also aim to evaluate the readiness of MSMEs to meet their export target of $200 billion by 2025 and $300 billion by 2030 and how to improve delivery from the existing setup of Export Facilitation Cells under the ministry. The study would further analyse the need for a new scheme to support MSMEs in areas which otherwise are not served through the International Cooperation scheme or other schemes of the ministry or schemes of the Department of Commerce.
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The last date for submission of the bid is March 20, 2023. The sample size for the study would include all Export Promotion Councils, 10 national level associations, 50 state level associations, 25 state Export Promotion Councils, 25 star export houses, 10 SEZ/logistics centres/ports, etc., and 2,500 exporting and non-exporting MSMEs from various sectors covering 25 states.
The development comes amid declining share of MSMEs in India’s total exports. MSME exports in FY22 had a share of 45.03 per cent, down from 49.35 per cent in FY21 and 49.77 per cent in FY20, according to the data shared by the minister of state in the MSME ministry Bhanu Pratap Singh Verma in the Rajya Sabha in February. However, the value of MSME exports had increased to $190 billion in FY22 from $143.9 billion in FY21 and $154.8 billion in FY20.
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