New Delhi, Mar 14 (KNN) In a recent report release, NITI Aayog has emphasised the urgent need to facilitate access to export finance and propel e-commerce exports for India's Micro, Small, and Medium Enterprises (MSMEs).

The report underscores the persistent challenges faced by small businesses in tapping into global markets, primarily due to the hurdles posed by economies of scale.

The reported stated, "It proves to be more challenging for small enterprises to enter foreign markets, adhere to compliance requirements, achieve cost-effective production, and efficiently manage logistics for clients."

Addressing these impediments and fostering a conducive business environment could pave the way for a remarkable transformation of India's MSME sector into a robust growth engine, the report suggested.

As part of its recommendations, NITI Aayog has proposed the implementation of "green channel" clearances specifically tailored for MSME e-commerce exporters.

The report highlights a substantial gap between India and China in leveraging e-commerce to navigate market access barriers.

Notably, China's MSME e-commerce exports reached a staggering USD 200 billion in 2022, dwarfing Indian exports by a hundredfold.

Collaborating with the non-profit Foundation for Economic Development, NITI Aayog underscores the necessity of establishing a National Trade Network (NTN) to alleviate compliance burdens for MSMEs.

This envisioned network would operate as an end-to-end single-window system, streamlining various trade-related processes.

The report urges the Ministry of Commerce to spearhead a task force aimed at evaluating past initiatives and orchestrating a time-bound program to roll out a national trade network aligned with global standards.

Niti Aayog's advocacy for easier access to export finance and the expansion of e-commerce for MSMEs underscores a strategic imperative to unlock the full potential of India's small business sector, fostering inclusive economic growth and global competitiveness.

(KNN Bureau)