Easier Export Processes for MSMEs

  • 14 Mar 2024

NITI Aayog advocates for simplifying export processes for MSMEs, including easier access to e-commerce platforms and streamlining trade procedures.

Key Points

  • China-India E-commerce Export Disparity: While China exported $200 billion worth of goods through e-commerce in 2022; India exported only $2 billion, largely due to cumbersome compliance processes hindering smaller exporters.
  • Market Access Challenges: E-commerce platforms address market access challenges for MSMEs, but cumbersome compliance processes, particularly in payment reconciliation, pose obstacles, especially for new or small exporters.
  • Key Measures Proposed: Distinction between 'Exporter on Record' and 'Seller on Record', annual financial reconciliation for e-commerce exporters, and import duty exemptions on return rejects.
  • Accuracy of MSME Export Data: The report suggests that current estimates of MSME exports, accounting for 45% of total exports, may be inflated and need more accurate measurement due to reliance on outdated sector lists.
  • Competitive Sectors for MSMEs: MSMEs can compete in global markets in sectors such as handicrafts, textiles, ayurveda, leather goods, jewellery, and wooden products, which have a combined demand exceeding $340 billion.
  • Promoting Export Growth: Emphasizing easier export processes and leveraging e-commerce platforms can help MSMEs tap into global markets and boost export growth, aligning with India's economic development goals.