Trade, import and export for MSMEs: In contrast to the public data around 45 per cent share of MSMEs in India’s total exports, the actual share of goods produced by MSMEs in overall exports is significantly lower. According to Prafulla Chandra Mishra, Statistical Advisor, Directorate General of Foreign Trade (DGFT), Department of Commerce, the 45 per cent share also comprises the contribution of goods produced by large enterprises and hence, the share is not exclusive to the MSME sector.
According to the data shared by the minister of state in the MSME ministry Bhanu Pratap Singh Verma in the Rajya Sabha in February, exports from MSMEs 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. 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.
The export of goods manufactured by MSMEs is different from the export of goods related to MSMEs based on the tariff codes or ITC-HS (Indian Trade Clarification based on Harmonized System) codes. At an event organised by FE Aspire recently, Mishra said 454 items for MSME-related exports at the ITC-HS four-digit level out of total 1,218 ITC-HS items were identified by the MSME ministry in coordination with the Directorate General of Commercial Intelligence and Statistics (DGCI&S) and DGFT.
Also read: Explained: What makes for a great export market for first-time exporters
The export share of these items was worth $189,768 million during FY22 as compared to $143,823 million during FY21, registering a positive growth of 31.9 per cent, Mishra said sharing the data. However, the share of MSME-manufactured goods exported in total exports had dropped from 9.1 per cent amounting to $26.4 million in FY21 to 7.7 per cent in FY22 amounting to $32.6 million.
Listen in for more insights on MSME exports.
Subscribe to Financial Express SME (FE Aspire) newsletter now: Your weekly dose of news, views, and updates from the world of micro, small, and medium enterprises