Comm Min's export promotion mission may have 12-point plan to push exports, help MSME exporters
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The commerce ministry's Export Promotion Mission (EPM) is expected to feature up to 12 components, including easy credit schemes for MSME e-commerce exporters , facilitation of overseas warehousing, and global branding initiatives , to tap emerging export opportunities and strengthen trade tools for small businesses, an industry official said. The Directorate General of Foreign Trade (DGFT) showed a presentation on this mission to the representatives of export promotion councils and other key stakeholders on April 30.The DGFT has also sought the views of the councils on this before finalising the schemes under this mission.The EPM is divided into two broad categories - Providing Trade Finance Support ( NIRYAT PROTSAHAN ); and Driving International Holistic Market Access (NIRYAT DISHA) Initiative.Under NIRYAT PROTSAHAN, six sub-schemes are under consideration; the Niryat Rin Vikas (NIRVIK) Sub-Scheme for MSMEs and new exporters; Support for Emerging Export Opportunities; Support for Trade Instruments for MSMEs; Collateral Support for Export Credit for MSME exporters; E-commerce Export Credit Card Sub-Scheme; and BharatTradeNET, the official said.Similarly in the NIRYAT DISHA initiative, there are also six elements. These are Technical Regulations and Compliance Enablement (TRACE); Focussed Market Access Initiative (FMAI); Facilitating Export Logistics and Overseas Warehousing (FLOW); Global Outreach for Branding Exports (GLOBE); Export Planning and Development for Districts and Clusters (EXPAND); R&D Support Sub-Scheme for India Centre for Lab Grown Diamond (InCent-LGD) at IIT Madras, Chennai.The official added that these sub-schemes will be implemented through a digitally enabled application and monitoring system, anchored around an online 'intent to claim' process.The objective of the NIRVIK sub-schemes is to establish a dynamic and responsive interest equalisation support framework that enables MSMEs to access export credit in rupee (INR) at globally competitive rates."This will be achieved through the periodic notification of NIRVIK rates, which will be benchmarked against prevailing interest rates offered to exporters in countries that compete with India in international trade," the official added.It would be applicable to MSME exporters availing export credit, subject to a specified cap limit for interest subvention. However, this cap shall be reviewed periodically based on the actual uptake.Further, a negative list of export items would be maintained under the scheme and no interest subvention shall be provided for items included in this negative list.The negative list is prepared based on criteria such as low-value addition and high outgo, raw materials and primary products, high-value and potential items for misuse, and other sensitive Items."There will be an annual notification of NIRVIK rates, which will be benchmarked against prevailing interest rates offered to exporters in countries that compete with India in international trade," another official said.The collateral support for export credit for MSME exporters sub-scheme's objective is to provide back-up collateral upwards of 80 per cent or as decided by the collateral support agency to MSMEs and e-commerce exporters, based on the composite track record of the exporter.The government on February 1 announced the setting up of an Export Promotion Mission with an outlay of Rs 2,250 crore to promote the country's outbound shipments.Finance Minister Nirmala Sitharaman has said that through the mission, the government will facilitate exporters to get easy access to credit, cross-border factoring support, and support MSMEs to tackle non-tariff measures in overseas markets.
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