Commerce Ministry highlights incentives provided for boosting MSME exports
NEW DELHI: The Micro small and medium enterprises MSME sector contributed over forty per cent of the Country’s exports and nine per cent of the Country’s GDP. It also contributes nearly 45 per cent of Country’s manufacturing output and the foreign trade policy recognizes its contribution to the overall growth and has announced liberal incentives to promote their growth.
The Foreign Trade Policy supports the MSMEs by offering specific incentives such as Interest Equalization scheme, under which all exporters who are MSMEs across all ITC (HS) codes are granted 3% rate subvention for pre and post shipment Rupee Export Credit with effect from 1st April, 2015 for five years.
Further, the Merchandise Exports from India Scheme (MEIS) under the FTP incentivizes exports of all notified products manufactured/ produced in India including those manufactured / produced by MSMEs by granting duty credit scrips at the rate of 2, 3, 4, 5, and 7% of the FOB value of exported goods.
Under the FTP the exporters achieving exports beyond a threshold limit are granted Status Recognition which entitles them for certain privileges like faster clearance of goods by customs and provision for free of cost exports, exemption from furnishing Bank Guarantee under the Export Promotion Schemes, etc. The MSMEs units are entitled for double weight-age in counting export performance while recognizing their eligibility for Status Certificate.
Under the NiryatBandhu Scheme, 90 MSME clusters, which have been identified by DGFT, are being targeted for imparting training/seminars regarding issues of international trade.
A new Logistics Division has been created in the Department of Commerce to develop and coordinate integrated development of the logistics sector, by way of policy changes, improvement in existing procedures and introduction of technology based interventions in this sector.