Export promotion council for MSME sector

Indian MSMEs, with increasing presence in sectors spanning defence equipment manufacturing to food processing, has emerged as a high-margin and high-quality innovation space

December 31, 2018

The export promotion council will evaluate Indian MSMEs to help export their products and services

Along with promotion cell, an action plan has also been proposed to achieve US$100 billion of exports by 2020

In India, the MSME sector has recorded an annual growth of over 10 per cent over the past few years

The MSME sector is engaged in the manufacturing of over 6,000 products, contributing 38 per cent to GDP

India’s Ministry of Micro, Small and Medium Enterprises (MSME) has established an Export Promotion Cell with an aim to create a sustainable ecosystem for the nation’s vast and growing MSME sector, as per an official statement on January 31. Indian MSMEs, with increasing presence in sectors spanning defence equipment manufacturing to food processing, has emerged as a high-margin and high-quality innovation space. Under the aegis of the export promotion cell, the benefits likely to accrue to the MSMEs are:

  • Evaluation of Indian MSMEs to help export their products and services
  • Identification of areas for improvements to export effectively, efficiently
  • Improved integration of Indian MSMEs into global value chains

The valuation of exported products from Indian MSMEs during the financial year 2017-18 was recorded at US$147.4 billion, while the share of MSME related products in the country’s total exports was 48.6%, as per the Directorate General of Commercial Intelligence and Statistics (DGCIS). To ensure efficient and effective delivery of all MSME export related interventions, the government has proposed to formulate a governing council comprising of officials from M/o MSME, Commerce, MSME Export Promotion Councils, Export Development Authorities, Commodity Boards, and other bodies.

Along with the export promotion cell, an action plan has also been proposed to achieve the target of US$100 billion of exports from India by 2020. In India, the MSME sector has recorded an annual growth of over 10 per cent over the past few years. With 38 per cent contribution to the nation’s GDP and 40 per cent and 45 per cent share of the overall exports and manufacturing output, respectively, it is easy to comprehend the salience of the role MSMEs play in India’s social and economic development. The Indian MSME sector is engaged in the manufacturing of over 6,000 products.

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