Five Pronged Strategy for Indian MSME Exports Suggested

India’s merchandise exports in 2018-19 is estimated to be around USD 325 billion. In order to take this growth trajectory further to USD 700 billion by 2025, a fivepronged strategy has been suggested for the MSMEs

Billion Exports are a vital component of a dynamically growing economy like India. Supported by market resilience and dynamism, India’s exports have undergone significant changes in the recent years in terms of volume, structure and direction. The Government of India has been undertaking several measures to boost the exports growth trajectory. However, the growth of exports has been at around 9% to 10% during the last few years. Going ahead, improved global demand along with recent reforms in policies and procedures at domestic front have created a great opportunity to strengthen the exports growth trajectory.

The volume of India’s merchandise exports in 2018-19 is estimated to be around USD 325 billion. In order to take this growth trajectory further to USD 700 billion by 2025, a fivepronged strategy has been suggested:-

I. Identification of prospective products to scale up the export volumes

II. Strengthening the export growth momentum towards emerging and developing economies through greater access in the Asian and African economies

III. Structural improvements in export and logistics infrastructure

IV. Developing the supply chains of Micro, Small & Medium Enterprises

V. Enhancing the overall ease of doing exports

The Micro, Small and Medium Enterprises (MSMEs) Sector contributes significantly to the Indian Economy in terms of Gross Domestic Product (GDP), Exports and Employment generation. Additionally, efforts should be made to improve the country’s competitiveness in the other areas as well where exists its inherent strength, including the agro and food processing products, textiles and garments, and the sports goods. Exploring these areas to revitalize exports growth with the improvement in logistics infrastructure and trade facilitation measures would enhance the exports growth trajectory and create approximately 30 million new jobs by 2025, of which enhanced agro and food processing exports would create around 20 million new job opportunities alone. As per the information received from Directorate General of Commercial Intelligence and Statistics (DGCIS) the Share of MSME related Products in total Export from India during 2018-19 is 48.10%.

To harness the export potential of the country, the overall ease of doing exports is needed to be enhanced in terms of accessibility to the latest and the most efficient technology and techniques, increased availability to credit for long term loans, easier access to raw materials, building linkages for strong marketing of products, and by improving labour productivity, labour flexibility and capital efficiency.

It is very much necessary, where India continues to move in the direction of the past several years, a new virtuous circle of increased exports and improved economic performance should ensue. A broad strategic policy to pursue comparative advantage in a more thorough going way will have very major advantages for India by promoting exports in the most efficient possible way.