After three years of decline, MSME exports rebound in current fiscal

Exports from Micro, Small, and Medium Enterprises (MSMEs) is on the upward trajectory after three years of decline. Its contribution to India’s total exports recovered in 2023-24, according to the government data shared in the Lok Sabha by Shobha Karandlaje, Minister of State (MoS) for Micro, Small and Medium Enterprises.

According to the data, the share had dropped from 49.73 per cent in FY20 to 49.35 per cent in FY21, 45.03 per cent in FY22 and 43.59 per cent in FY23. However, in FY24, MSMEs share in total exports increased to 45.79 per cent.

As of November 24, 3.11 crore MSMEs are registered on the Udyam Registration Portal (URP). Udyam registration helps MSMEs avail themselves of the benefits of the ministry’s schemes. The registered MSMEs are also eligible for priority sector lending from banks. The minister said that to increase the exports, the government had undertaken several steps such as providing financial assistance to MSMEs for participation in international trade fairs and exhibitions through the ministry’s International Cooperation Scheme.

Secondly, Export Credit Guarantee Scheme (ECGS) of the ministry, ensures easy availability of credit to exporters and reduces risks associated with exports. Further, the Interest Equalisation Scheme on pre- and post-shipments of rupee export credit has also been extended to the MSMEs up to December 31, with a total allocation of Rs 12.88 crore. Assistance is also being provided through several schemes to promote exports, namely, Trade Infrastructure for Export Scheme (TIES) and Market Access Initiatives (MAI) scheme. The Rebate of State and Central Levies and Taxes scheme to promote items of textiles sector has also been implemented.