To make India a globally competitive economy, there must be a larger focus on exporting to the most demanding markets. A stronger participation of Indian MSMEs in the global markets can accelerate such a growth. This will lead to more opportunities in scaling up, will speed up innovation and, in turn, enhance productivity.
The micro, small and medium enterprises (MSME) sector in India is the backbone of our country’s economic structure and without this segment, the country cannot progress. With over 63 million MSMEs, the sector covers 80% of the industries in the country, and accounts for 31% of GDP and 45% of exports. It is also the second-largest employer, providing jobs to over 120 million people. The MSMEs should explore and work towards becoming a part of global value chains (GVCs) and find new opportunities to integrate themselves with the GVC as exporters and as suppliers to large exporting firms.
The Indian government introduced the Merchandise Exports from India Scheme (MEIS), as an incentive programme for the export of goods manufactured or produced in India, in the Foreign Trade Policy (FTP) for 2015-2020. MSMEs participating in exports are rewarded in duty credit scrips. MEIS replaced other export incentive schemes by the government like the Focus Market Scheme (FMS), Focus Product Scheme (FPS), Vishesh Krishi Gramin Udyog Yojana (VKGUY), Market Linked Focus Product Scheme (MLFPS) and an agri Infrastructure incentive scheme.
While such government policies encourage MSMEs to focus more on exports, it is imperative that the government addresses the difficulties small enterprises face when it comes to internationalising. The government’s stress on Atmanirbhar Bharat, with the pandemic considerably hampering economic growth, is reflective of a focus on boosting India’s participation in international trade.
Companies that export are likely to be more profitable than those that just focus on the domestic market only. A focus on exports will also lead to use of the production capacity to the maximum level, help the business defend the domestic market better, increase the product’s competitiveness in all markets, and increase the overall value of the business.
When it is clear that more number of MSMEs getting into exports will tremendously help the economy, it is only logical to find and reward the enterprises that are doing well on that front. This will also encourage others. ETRise Top MSMEs Ranking, which recognises India’s top businesses that have excelled and set a benchmark for others to follow, has a specific award category dedicated to this.
Under ‘India’s Top Exporter MSMEs’ category, ETRise Top MSMEs Ranking invites every Indian small business that focuses, executes and excels in exporting their products to the world to nominate itself and undergo a rigorous evaluation process to win the ‘India’s Top Exporter MSMEs’ award.
Apply for ETRise Top MSMEs Ranking. Register now
ETRise Top MSMEs ’21 Ranking has eBay as the Sell Global Partner, Deutsche Bank as the Banking Partner, MIDC as the State Partner and CARE Advisory as the Assessment Partner.
https://m.economictimes.com/small-biz/trade/exports/insights/etrise-top-msmes-21-making-india-competitive-globally-through-exports/amp_articleshow/86253693.cms
