Comm, MSME, finance ministries to work on contours of Export Promotion Mission: Goyal
The mission will facilitate easy access to export credit, cross-border factoring support, and support to MSMEs to tackle non-tariff measures in overseas markets.
The commerce, MSME and finance ministries will work together to identify various sectors—which will require maximum capital support for technology upgradation, marketing, brand building, and accessing newer markets—to boost exports, Union Minister Piyush Goyal said.
He said that issues which could be part of the mission include ways to extend credit to the exporting community at affordable rates.
The government on Saturday announced setting up an Export Promotion Mission with an outlay of Rs 2,250 crore to promote the country's outbound shipments.
The mission will driven jointly by the Ministries of Commerce, MSME, and Finance.
It will facilitate easy access to export credit, cross-border factoring support, and support to MSMEs to tackle non-tariff measures (NTMs) in overseas markets.
"The Finance Minister has given flexibility for export promotion. All three ministries will work together and design that which all sectors really need support," Goyal told PTI.
He said that announcements of the Budget will help boost domestic manufacturing and exports from sectors like textiles, marine, toys and leather.
"The three ministries will be working as a team to see which are the areas, which require maximum support in terms of availability of capital, funding, in terms of tech upgradation in terms of marketing, brand building, access to newer markets, and promotion of newer products. It is an omnibus scheme. It gives a lot of flexibility for promoting exports," the commerce and industry minister said.
On the ways to resolve NTMs, citing an example, he said if a country has a very difficult terms of reporting or quality approvals, India should be in a position to support MSMEs in meeting those costs.
"For example, meeting EU (European Union) CBAM (Carbon Border Adjustment Mechanism) regulations, we would like to support our micro and small units to be able to meet those requirements and certification requirements," Goyal said.
According to think tank Global Trade Research Initiative (GTRI), key Indian exports that routinely face high barriers include—chillies, tea, basmati rice, milk, poultry, bovine meat, fish, chemicals products to EU; sesame seeds, black tiger shrimp, medicines, apparels to Japan; food, meat, fish, dairy, industrial products to China; shrimp to the US; and bovine meat to South Korea.
Most non-tariff measures (NTMs) are domestic rules created by countries with an aim to protect human, animal or plant health and environments. NTMs may be technical measures like regulations, standards, testing, certification, pre-shipment inspection or non-technical measures like quotas, import licensing, subsidies, government procurement restrictions.
The three ministries, Goyal said will work out appropriate measures to help domestic industry, particularly the smaller ones in addressing these barriers.
The minister added that he has already provided guidance to his officials about the mission.
"I have given some ideas about how to utilise this budget in a smart fashion so that we get a big bang for every buck that we spend," he said.
Soon, the ministries will meet on the issue.
When asked about absence of any provisions for interest equalisation scheme (IES) in the Budget, he said it ended on December 31 last year and now the three ministries would see "if any sector needs to be supported through any scheme and draw the contours of the scheme.
"I personally think that we have better and smarter ways to have a targeted benefit to those sectors, which deserve and need the most and we can combine the availability of credit and make that available to a lower cost by designing a smart scheme," he said.
Exporters were demanding an extension of the IES scheme for five years.
On the issue of no allocation for MAI (market access initiative) scheme, Goyal said: "We have clubbed all of it and brought into this bucket because we would like to see targeted and focused interventions rather than just a regular intervention where big and small or all sectors get same treatment".
He added that there are many sectors such as toys, leather, footwear, and furniture, which holds huge potential and there is a need to give support to them.
Commenting on the question that the US has called India a high tariff country, he said the government has always addressed the issues of inverted duties and reduce duties for domestic industry.
The Budget announcements to cut duties will send a positive message to businesses and industry and will help promote manufacturing.
On the National Manufacturing Mission, he said that it would focus on sectors, which need to be supported.
"The mission will closely identify sectors where there is a cost disadvantage and help them," he added.
Edited by Jyoti Narayan