Easy access to financing, incentives to help MSMEs boost exports: Connect2India
New Delhi, July 6 () The government must take measures to improve access to credit and extend incentives to encourage micro, small and medium enterprises (MSMEs) to boost exports, the global information provider said on Saturday. commercial Connect2India.
The founder and CEO of Connect2India, Pawan Gupta, said that MSMEs have great potential to increase the country's exports.
He said these companies can help India achieve a global trade of 2 trillion dollars by 2025.
One of the key prerequisites for a first-time exporter of MSMEs that wishes to export globally is easy access to commercial financing and, more specifically, pre-shipment financing, he said.
Easy access to commercial financing would allow MSMEs, including agricultural producers, to export directly without relying on commercial exporters, it said in a statement.
Gupta also suggested that an export subsidy be granted after and after the shipment to all MSMEs.
The seminars should be held to raise the level of awareness of ECGC schemes, awareness of the risk of payment can be revealed by ECGC and premium rates should be further reduced to cover more MSME clients, Gupta said.
Currently, the sector accounts for approximately 40 percent of the country's total exports, which grew 9 percent to USD 331 billion in 2018-19.
He said that India is home to more than 65 million MSMEs, but the lack of a credible platform to identify and take advantage of global opportunities hampers the sector.
Only a fraction of them (less than 1 percent) enter foreign markets for export/import, also with a greater degree of risk, he added. Connect2India offers global business intelligence, resources and tools in its integrated business platform. RR MR MR