Govt to support MSMEs to tap market potential in Europe, Latin America, Africa to boost Exports
New Delhi: Government is looking at widening the market for this key industrial sector after broadening the definition of Micro, Small and Medium Enterprises (MSMEs),
Identification of international markets with high potential is under process and government may soon come with new strategy for export
Investment limit in MSME was increased to boost productivity. A review of future export markets, opportunities and other legal issues linked to the particular countries was carried out just weeks before the mega announcement by the Finance Minister Nirmala Sitharaman.
Looking at the increase in investment for MSMEs government is now planning a strategy to double exports in next couple of years. Currently because of Corona virus pandemic new markets and opportunities have been identified in American, African, European, and Latin American countries. Now government will help MSMEs to develop exports in these new markets.
Now government is also looking at MSMEs to tap huge potential in European countries as during last five years, there is a surge in export to these regions owing to massive demands in jeweler, iron and steel.
Similarly a huge export potential for high-end engineering products is available in African region. Currently India exports around 20 percent of engineering products like machinery, pumps, medical devices, electrical equipment and textile machinery sharing second-highest share of technology products at 13 percent followed by European countries.
Sources reveal that high end and strategic support will be provided to MSMEs for capturing export markets in countries of Latin America also.
Detailed inputs about duty structures in these countries and pricing will be provided by government to enable the Indian companies to target potential export markets. There are also concerns of preferential tariffs with certain countries that need to be analysed and addressed by the government.
During 2019 the export share of MSMEs products reached 48 per cent Once the reform process starts, few new MSMEs cluster are expected in states like Andhra Pradesh, Bihar, Haryana, Uttar Pradesh, Maharashtra, Mizoram, Madhya Pradesh, Jharkhand, Uttarakhand, Karnataka, Telangana, Kerala, Chhattisgarh and Tamil Nadu