Government Unveils Comprehensive Support Initiatives for Export Enhancement
In a significant stride towards bolstering the nation’s export capabilities, the government on Friday unveiled a suite of seven measures under its Rs 25,060-crore Export Promotion Mission.
These initiatives are meticulously designed to provide financial assistance, logistical support, and ensure compliance with regulatory requirements, with a focus on energising the MSME (Micro, Small, and Medium Enterprises) and e-commerce sectors.
Key Features of the Measures:
- Introduction of interest subvention and credit guarantees for e-commerce exporters.
- Direct E-Commerce Credit Facility offering support up to Rs 50 lakh with a 90% guarantee coverage.
- Overseas Inventory Credit Facility providing support up to Rs 5 crore, with 75% guarantee coverage, and an interest subvention capped at Rs 15 lakh annually per applicant.
- Promotion of export factoring with a 2.75% interest subvention applicable to eligible transactions via RBI/IFSCA-recognised entities.
The Direct E-Commerce Credit Facility stands out by facilitating financial support aimed at maximising digital outbound shipments.
Additionally, the Overseas Inventory Credit Facility caters to larger export ventures, enhancing the financial backing to 75% for inventory credit, augmented by an annual ceiling designed to mitigate risk.
Further, the government seeks to augment the accessibility of affordable working capital for MSMEs through export factoring. This will implement an interest subvention, providing them with effective financial solutions tied to their export transactions.
Facilitating Compliance and Logistics:
- Trade Regulations, Accreditation, and Compliance Enablement (TRACE) to assist exporters with adherence to international standards.
- Partial reimbursement of testing and certification costs, with 60% coverage under the Positive List and 75% under the Priority Positive List.
- Logistics Interventions for Freight and Transport (LIFT) aimed at aiding exporters in remote and hilly regions with reimbursement for freight costs.
Support under TRACE will enable exporters to confidently meet global compliance requirements through a structured refund mechanism, promoting the growth of exporters with incurred testing and inspection expenses.
Notably, LIFT will tackle geographical disparities by offering financial assistance for freight costs, thereby enabling smoother access to expansive markets.
Integrated Support for Trade Intelligence and Facilitation (INSIGHT) will also be introduced, providing up to 50% financial backing for project costs.
Notably, this initiative allows for complete coverage for proposals from governmental entities and Indian Missions abroad, thus enhancing the collective efficacy of the mission.
Through these strategic financial interventions, the government aims to lower capital costs, diversify trade financing options, and mitigate logistical constraints, ultimately fostering stronger integration of MSMEs into the global marketplace.
Source link: Mid-day.com.
