Value chain

MSMEs have a manufacturing cost advantage in the global value chain: Official

There is huge potential for Indian engineering MSMEs to be integrated into the global value chain due to their manufacturing cost advantage, and to achieve high growth, the two most important interventions required are related to engineering. help with credit and technology upgrading, said MSME Secretary BB Swain. Thusday.

The Ministry of MSMEs is working closely with other Ministries and Departments to facilitate doing business for MSMEs, he said in his address at the inaugural session of the MSME Conclave organized by EEPC India.

MSMEs contribute about 30% to India’s GDP and account for 50% of the country’s exports. MSMEs engaged in the manufacture of engineering products account for about 29% of the 67 lakh MSMEs that have registered since July 1, 2020 on the Udyam registration portal. In the National Manufacturing Policy, manufacturing production has been targeted to increase the contribution of MSMEs to GDP.

A knowledge paper titled “Integrating Indian MSMEs into the Global Value Chain”, released at the inaugural session, suggested that India’s trade regime should promote value addition in the country. Therefore, the general tariff structure should be low on raw and primary products, slightly higher on intermediates, and highest on finished products.

He further recommended that the structure of direct and indirect taxes should be neutral and not distinguish between the nature of businesses. Banks and financial institutions should be more willing to discern genuine exporters and require fewer guarantees. Stability of political measures with less intervention and an emphasis on neutrality on the part of the government will be necessary, he added.

–IANS

nimish/vd

(Only the title and image of this report may have been edited by Business Standard staff; the rest of the content is auto-generated from a syndicated feed.)

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