MSMEs can reverse current downward trend in exports: FISME on interest subvention
Updated: Nov 19, 2015 12:34:02pm
New Delhi, Nov 19 (KNN) With the stubborn declining trend of the exports since last 11 months, the government had to take pro-exporter decisions like duty drawback and interest subvention. MSME, which has a major share in the export basket, through its apex body FISME has been raising the sector’s concerns with the government.
The Federation of India Micro & Small and Medium Enterprises (FISME) welcomed the Cabinet’s decision to provide the Interest Equalisation scheme for items manufactured by MSMEs which have been announced simultaneously with the revised Duty Draw Back rates.
“With 40% share in the exports, MSMEs can reverse the current downward trend in exports if the Government provides an enabling environment,” FISME said.
“During our recent meetings with the Commerce Minister Nirmala Sitharaman and MoS Finance Jayant Sinha we had taken up the issues along with required flexibility in Advance Licencing and EPCG schemes for the MSME exporters. We sincerely hope Government will now address the remaining issues also to provide MSME exporters essential support to compete in the global market,” FISME added.
Concerned over the falling trends in Indian exports for the last few months, a FISME delegation in August Sitharaman to apprise her about the constraints faced by the MSMEs responsible for the decline in exports.
FISME, which has a network of around 750 MSME associations, also suggested measures to the Minister for enhancing MSME exports.
Some of the important issues discussed by the FISME’s Senior Vice President Anil Agarwal and Past President V K Aggarwal included Advance Licence period which has been reduced to 18 months; rigid provisions of the EPCH scheme; duty drawback scheme, interest subvention scheme and more.
FISME further noted that since the inception of ‘Drawback for deemed exports’, the policy has always treated the drawback entitlement at par with physical exports.
The apex industry body for the MSME sector suggested measures such as formation of Niryat Bandhu; Rejuvenating Board of Trade; reviewing Export Promotion set; Mega MSME Export support programme; India outbound scheme and many more steps up to alleviate the causes for plunging exports.
FISME said there is a crying need to set up an institutional mechanism to address the issues of exporters related to DGFT and Central Ministries such as Finance, Agriculture, Commerce and Industry, External Affairs, Railways, Road Transport & Highways, MSME, Shipping, Textiles, Labour and also related to the State Governments.
India’s merchandise export plunged yet again for the 11th straight month in a row in October indicating the government to announce export-incentive measures especially for the MSME sector which contributes nearly 40 per cent to the total exports from the country.
The exports contracted 17.53 per cent to USD 21.35 billion in October, against USD 25.89 billion in October 2014, according to the official data. (KNN Bureau)
The Federation of India Micro & Small and Medium Enterprises (FISME) welcomed the Cabinet’s decision to provide the Interest Equalisation scheme for items manufactured by MSMEs which have been announced simultaneously with the revised Duty Draw Back rates.
“With 40% share in the exports, MSMEs can reverse the current downward trend in exports if the Government provides an enabling environment,” FISME said.
“During our recent meetings with the Commerce Minister Nirmala Sitharaman and MoS Finance Jayant Sinha we had taken up the issues along with required flexibility in Advance Licencing and EPCG schemes for the MSME exporters. We sincerely hope Government will now address the remaining issues also to provide MSME exporters essential support to compete in the global market,” FISME added.
Concerned over the falling trends in Indian exports for the last few months, a FISME delegation in August Sitharaman to apprise her about the constraints faced by the MSMEs responsible for the decline in exports.
FISME, which has a network of around 750 MSME associations, also suggested measures to the Minister for enhancing MSME exports.
Some of the important issues discussed by the FISME’s Senior Vice President Anil Agarwal and Past President V K Aggarwal included Advance Licence period which has been reduced to 18 months; rigid provisions of the EPCH scheme; duty drawback scheme, interest subvention scheme and more.
FISME further noted that since the inception of ‘Drawback for deemed exports’, the policy has always treated the drawback entitlement at par with physical exports.
The apex industry body for the MSME sector suggested measures such as formation of Niryat Bandhu; Rejuvenating Board of Trade; reviewing Export Promotion set; Mega MSME Export support programme; India outbound scheme and many more steps up to alleviate the causes for plunging exports.
FISME said there is a crying need to set up an institutional mechanism to address the issues of exporters related to DGFT and Central Ministries such as Finance, Agriculture, Commerce and Industry, External Affairs, Railways, Road Transport & Highways, MSME, Shipping, Textiles, Labour and also related to the State Governments.
India’s merchandise export plunged yet again for the 11th straight month in a row in October indicating the government to announce export-incentive measures especially for the MSME sector which contributes nearly 40 per cent to the total exports from the country.
The exports contracted 17.53 per cent to USD 21.35 billion in October, against USD 25.89 billion in October 2014, according to the official data. (KNN Bureau)
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