Niti Aayog proposes relaxation of e-commerce routes for MSME exports

The government needs to make it easier for small and medium enterprises to export goods through e-commerce platforms, simplify the goods trade process and establish a single national trade portal for all approvals and compliance, says Niti Aayog This is recommended in a report on export promotion from China. Small and Medium Enterprises (MSMEs).

In 2022, China exported goods worth $200 billion through e-commerce, while India exported only $2 billion. The main reason for this difference is that the cumbersome compliance processes associated with exports, especially when it comes to payment coordination, are particularly difficult for India. The government's public policy think tank mentioned new or small exporters in its report.

The Economic Development Foundation, which was involved in the preparation of the report, emphasized that market access issues, which are a significant barrier to MSME exports, will be resolved through e-commerce, and said that the 'exporter of record' and 'exporter of record' He said it is essential to distinguish between “sellers”. Record” introduces an annual financial reconciliation process for e-commerce exporters and waives import duties on rejected goods returned as returns.

MSMEs are said to account for 38.4% of India's manufacturing output and 45% of exports, but the report's authors say the value of MSME exports is “almost certainly inflated”. I think it is necessary to measure more accurately. The current estimates are “likely to be unreliable” as they rely on an outdated list of reserved sectors for MSMEs, they wrote.

Despite having a fairly small domestic market, Indian MSMEs export sectors such as handicrafts, handloom textiles, Ayurvedic and herbal supplements, leather goods, imitation jewellery, wooden products, etc., where global demand exceeds $340 billion. be able to compete in the market. Foundation and Niti Aayog are highlighted.