ENA MSME 2025-02-05 14:40:50 <p><span style="font-size:14px"><strong>New Delhi, Feb 5 (KNN) </strong>The Export Promotion Mission (EPM) has outlined its strategic allocation of its Rs 2,250 crore budget, with a primary focus on enhancing export credit accessibility for MSMEs and promoting alternative financing mechanisms. </span></p> <p><span style="font-size:14px">Director General of Foreign Trade Santosh Kumar Sarangi revealed that while Rs 200 crore has been earmarked for the Market Access Initiative and Rs 50 crore for lab-grown diamonds, the majority of funds will be directed toward developing comprehensive export credit schemes and addressing non-tariff barriers.</span></p> <p><span style="font-size:14px">The initiative, to be jointly designed by the Ministry of Finance and Ministry of Commerce, marks a departure from the previous interest subsidy scheme for export credit that concluded on December 31, 2024. </span></p> <p><span style="font-size:14px">The new approach aims to tackle one of the most pressing challenges faced by exporters: the high collateral requirements that currently impede four out of five MSMEs from accessing credit facilities.</span></p> <p><span style="font-size:14px">The scope of the mission is particularly relevant given the current state of export financing in India. </span></p> <p><span style="font-size:14px">With total export credit requirements standing at USD 284 billion for exports worth USD 437 billion in 2023-24, only USD 124.7 billion is currently being provided. </span></p> <p><span style="font-size:14px">Looking ahead, the requirements are projected to reach USD 650 billion by 2030 to support the ambitious USD 1 trillion export target.</span></p> <p><span style="font-size:14px">A key innovation in the mission's approach is the promotion of factoring services, an area where India significantly lags behind global standards. </span></p> <p><span style="font-size:14px">While India currently has only 11 factoring companies compared to China's 2,000, the government plans to bridge the gap between export receivables and factoring service providers' acquisition prices. </span></p> <p><span style="font-size:14px">The global cross-border factoring market, valued at USD 758 billion, presents a stark contrast to India's modest USD 1 billion, highlighting the substantial growth potential in this sector.</span></p> <p><span style="font-size:14px">The mission also addresses non-tariff barriers facing MSMEs by providing support for conformity assessment compliance. </span></p> <p><span style="font-size:14px">This includes reimbursement for various certification processes such as organic, halal, and electric goods certifications, as well as compliance with the European Union's carbon tax and deforestation regulations. </span></p> <p><span style="font-size:14px">Additional support will be extended for the procurement of plant and machinery necessary for meeting global standards, including alternatives for permitted antibiotics and pesticides in agricultural and fishery sectors.</span></p> <p><strong><span style="font-size:14px">(KNN Bureau)</span></strong></p> 40949 https://knnindia.co.in/news/newsdetails/msme/rs-2250-crore-export-promotion-mission-to-improve-msme-credit-address-ntbs 2025-02-05 14:40:50 knnindia.co.in