The Commerce Ministry of India has taken several strategic initiatives within the first 100 days of the Modi 3.0 government to assist MSME exporters in navigating the complex global landscape, increasingly strained by geopolitical tensions. Among the standout measures is the launch of the Trade Connect e-Platform, a significant tool designed to empower small and medium-sized enterprises (SMEs) by offering them comprehensive access to vital trade information, guidance, and connectivity.

This innovative platform links SMEs with over six lakh IEC (Import-Export Code) holders, 185 Indian Mission officials, and over 600 Export Promotion Council members. This connectivity provides MSMEs with direct access to resources through the Department of Commerce, helping them thrive in challenging global environments.

Addressing Exporters’ Concerns Through Strategic Initiatives

Commerce Secretary Sunil Barthwal highlighted during a media briefing that the ministry has actively engaged with exporters during the government’s initial 100 days to better understand the specific challenges they face. As a result, measures are being implemented to overcome these hurdles and strengthen their global export capabilities.

According to Barthwal, the Trade Connect e-platform is set to become a crucial resource for MSMEs and other exporters. By utilizing this platform, businesses can gain insights into new geographies and potential markets for their products, making it a single point of contact for exporters looking to expand their global footprint.

Empowering SME Exporters with an E-Commerce Export Hub (ECEH)

Another significant step taken by the Commerce Ministry is the development of an e-commerce export hub (ECEH). This hub is designed to connect SME exporters with international markets more efficiently, helping them tap into the growing e-commerce space.

As part of the ECEH initiative, a regulatory framework is being developed. This will ensure smooth operations and regulatory compliance for exporters. A pilot project based on expressions of interest (EOIs) is currently underway, and upon its success, the initiative will be rolled out in major cities, particularly those near key airports.

Expanding India’s Share in Global E-Commerce Markets

India’s export landscape through e-commerce currently stands at around $5 billion, whereas the international market is valued at approximately $800 billion, with projections to reach $2 trillion soon. The ministry aims for India to capture at least 10% of the $2 trillion market, which would translate into a significant $200 billion worth of exports within the next five years.

Enhanced Insurance Cover and Compliance Easing for MSME Exporters

The government has also announced other key measures to boost the competitiveness of MSME exporters. These include enhanced insurance coverage for MSMEs, which is expected to generate Rs 20,000 crore in lower-cost credit, benefiting around 10,000 exporters. Additionally, the Commerce Ministry has introduced a self-certified Electronic Bank Realization Certificate (eBRC) system, simplifying compliance for exporters.

This streamlined system significantly reduces the cost of generating eBRCs, which previously ranged between Rs 500 and Rs 1,500 per certificate. With 2.5 million eBRCs generated annually, the new system is expected to save exporters over Rs 125 crore in total costs. This is particularly beneficial for small exporters engaged in e-commerce, as it facilitates high-volume, low-cost transactions, making it easier to claim benefits and refunds.

Expanding Global Reach: Target Markets for MSME Exporters

To further bolster India’s MSME export sector, the ministry has focused on facilitating cost-effective access to key global markets, such as the Gulf Cooperation Council (GCC), Africa, and the CIS (Commonwealth of Independent States). These regions represent significant growth opportunities for Indian exporters, and the government is actively working to strengthen ties and enhance export potential in these areas.

In addition, the ministry has taken steps to revamp the National Programme of Organic Production, aimed at strengthening India’s organic regulatory ecosystem. The overall goal is to increase India’s organic exports to over $1 billion by 2025-26, offering new growth opportunities for MSMEs involved in organic production.

Key Government Measures for MSME Exporters:

  • Launch of Trade Connect e-Platform: A one-stop platform providing vital information, guidance, and market access for MSME exporters.
  • Development of an e-Commerce Export Hub: Connecting SMEs to global e-commerce markets, targeting $200 billion in exports over five years.
  • Enhanced Insurance Coverage: Providing Rs 20,000 crore of lower-cost credit, benefitting 10,000 MSME exporters.
  • Simplified Compliance with Self-Certified eBRC: Reducing the cost of eBRC generation, saving exporters over Rs 125 crore annually.
  • Facilitated Access to Key Markets: Expanding trade opportunities in GCC, Africa, and CIS regions for MSMEs.
  • Organic Export Boost: Strengthening the organic regulatory framework to increase organic exports to $1 billion by 2025-26.

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