Ease of doing business for MSMEs: MSME Secretary BB Swain said that MSMEs manufacturing engineering products account for around 29% of the 67 lakh MSMEs registered on the Udyam portal since July 1, 2020,
Ease of doing business for MSMEs: MSME units together are capable of building a complete supply chain and being globally competitive due to their diverse products ranging from intermediates to final products, according to MSME Secretary BB Swain. Addressing the online MSME conclave organized by India’s engineering sector trade and investment promotion organization Engineering Export Promotion Council (EEPC) of India on Wednesday, Swain said there is a huge potential for the integration of Indian engineering MSMEs into the global value chain due to their manufacturing cost advantage, according to a statement from the Ministry of MSMEs on Thursday. The secretary also noted that MSMEs manufacturing engineering products account for about 29% of the 67 lakh MSMEs registered on the Udyam portal as of July 1, 2020.
Almost 60% of EEPC India’s members, which represent around 13,000 engineering companies, are MSMEs. The organization has set up two technology hubs in Bengaluru and Kolkata to address the challenge of technology lag of engineering MSMEs.
“The Make-in-India initiative has enabled Indian MSMEs to work with leading global manufacturing companies and gain access to their improved technology and effective marketing techniques. After the onset of the pandemic, major companies in the developed world looked to India as an alternative destination for manufacturing,” said Mahesh Desai, President of EEPC India at the conclave.
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EEPC also published a knowledge paper titled “Integrating Indian MSMEs into the Global Value Chain” suggesting that India’s trade regime should promote value addition in the country. “The general tariff structure is expected to be low on raw and primary products, slightly higher on intermediates and highest on finished products,” the newspaper said, according to the ministry statement. The document also calls for neutrality in the structure of direct and indirect taxes without any discrimination between the nature of the companies.
“Banks and financial institutions should be more willing to discern genuine exporters and require less collateral. Finally, the stability of political measures with less intervention and an emphasis on neutrality on the part of the government will be necessary,” the document adds.
Exports of engineering goods in December 2021 amounted to $9.78 billion, up 38.41% from $7.07 billion in December 2020, according to Commerce Department data. This is the seventh highest growth rate among product groups after petroleum products (151%), coffee (123%), minerals (59%), plastics and linoleum (57%), cotton yarn (46%). , and other cereals (45%) in December 2021 compared to the period of the previous year.
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