Modi 3.0 100 Days: Commerce Ministry Takes Steps to Support SME Exporters

Sunil Barthwal, Commerce Secretary

3 minutes of reading Last update: 17 Sep 2024 | 23:35 IST

The Commerce Ministry has taken several measures during the 100 days of the Modi 3.0 government for the benefit of SME exporters who are facing global challenges arising from geopolitical tensions.

The activities include the launch of the “Trade Connect electronic platform”, which aims to empower small and medium-sized enterprises by providing them with access to trade information and guidance, the commerce ministry said on Tuesday.

The platform will connect these companies with over six lakh IEC (Import and Export Code) holders, 185 Indian Mission officials and over 600 members of the Export Promotion Council of the Department of Commerce.

Commerce Secretary Sunil Barthwal, briefing the media, said that in the first 100 days, the ministry has held meetings with exporters to understand their problems and find ways to resolve them.

“This e-connect portal will provide exporters with all kinds of information,” he said, adding that for SMEs and other exporters, the portal will become a single point to discover new supply destinations.

The Secretary informed that an e-commerce export hub (ECEH) is being developed to connect small and medium-sized exporting enterprises with the world.

“These hubs will require a regulatory framework. We are starting a pilot project based on EOIs (expressions of interest). Then it will be rolled out to major cities that are close to airports,” Barthwal said.

Currently, India’s exports through e-commerce are worth around $5 billion, while the overall international market is worth around $800 billion and is expected to touch $2 trillion.

“We want India to have at least 10 percent of this two trillion dollar market and expect to reach $200 billion in the next five years,” he added.

Other measures announced include enhanced insurance for SME exporters and a reduction in compliance burdens through a system of self-certified electronic certificates for the execution of banking services.

The ministry said the insurance is expected to provide credit worth Rs 20,000 crore at a lower cost, which will make exports more competitive and benefit 10,000 exporters.

He added that small exporters, especially those operating in the e-commerce sector, will benefit from the system’s efficiency in handling large, low-cost transactions, enabling them to apply for benefits and refunds more effectively.

This scheme, it is said, reduces the cost of production of eBRC (2.5 million per annum), which was earlier ranging from Rs 500 to Rs 1,500 per eBRC, thereby benefiting all exporters.

“This scheme enables exporters to save over Rs 125 crore,” it added.

In addition, the ministry has facilitated Indian SMEs and other exporters to access Gulf, African and CIS (Commonwealth of Independent States) markets at favourable prices and has strengthened the regulatory ecosystem for organic food through the modernisation of the National Organic Programme.

Organic exports are expected to increase by more than $1 billion between 2025 and 2026.

(Only the headline and image of the report may have been edited by the Business Standard team; the rest of the content is automatically generated from a syndicated feed.)

First edition: 17 Sep 2024 | 23:35 IST