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
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.
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.
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.
NiryatBandhu Scheme, 90 MSME clusters, which have been identified by DGFT, are
being targeted for imparting training/seminars regarding issues of
The highlights of the Mid Term review of
the FTP announced in December, 2017 include Under Merchandise Exports from
India (MEIS), rate of incentives has been increased by 2 per cent for labour
intensive MSME sectors. This is in addition to already announced increase in
MEIS incentives from 2% to 4% for Ready-made Garments and Made Ups in the
labour intensive Textiles Sector.
under Services Exports from India Scheme (SEIS) for notified Service providers
have been increased by 2 per cent. A new scheme of Self-Assessment based duty
free procurement of inputs required for exports has been introduced.
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.
Minister of State for Commerce and Industry C.R.Chaudhary gave this information
in a written reply to a question in Rajya Sabha last week.