Promotion of Export from MSME Sector
The role of micro, small and medium enterprises (MSMEs) in the economic and social development of the country is well established. The MSME sector is a nursery of entrepreneurship, often driven by individual creativity and innovation. As per data available, the sector accounts for 45 % of total industrial production, 40% of total exports and contributes 30% of the country’s GDP.
Despite a reasonable growth story and substantial share in overall exports, MSMEs are often faced with a number of challenges that restrict their entry into the foreign market. Not only these challenges need to be studied in detail but, an eco-system needs to be created in such a way that these enterprises shall be able to participate in the global value chain on its own and generate enough economies of scale. The Ministry of MSME, Government of India, has undertaken a strategic plan for unlocking the potential of MSME Exports through its schemes and programs to enable access to foreign markets for Indian MSMEs.
The Export Facilitation Center (EFCs)
For providing access to on ground facilitation, as per the action plan, the Ministry has decided to develop dedicated support system for export promotion in MSME-Development institutes in all states to facilitate to support existing and potential exporters from MSME Sector.
The Export Facilitation Center (EFCs) at MSME-DI, Thrissur, will be the one stop service point for MSMEs that are interested in exporting their products and services. These centers will provide end-to end on-ground facilitation and handholding support to MSME exporters who are already trading overseas or are trying to access foreign markets. The objective is to help MSMEs to target international customers and to provide better understand international markets. The EFCs shall also work for developing mini clusters in SEZs across country, under MSECDP scheme of DC (MSME) New Delhi to establish common facility centers.
Functions of Export Facilitation Centre (EFCs):
1. Information dissemination: Information dissemination on various schemes and benefits available for export promotion and required support in availing the same
2. Facilitates and provide handholding support to MSMEs.
3. International trade advisor for MSMEs based on data analysis
4. Create linkage with advisory bodies such as Export Promotion Councils (EPCs)/ Commodity Boards/ Export development authorities etc.
5. Training and workshops: Dedicated sector based training programmes on subjects such as export compliances &standards, packaging & labeling issues, how to develop products of international standards, etc. will be organized by the EFC for export potential sectors Additionally, skill based capacity development programmes shall also be taken up for skilling new and existing entrepreneurs with an intent to exports.
6. Other necessary support: Support to exporters shall also be provided in areas of facilitating legal assistance required, reducing logistics cost, achieving highest product standards etc.
National Resource Center (NRC) for MSME Exporters
The Ministry has set up one National Resource Center (NRC) for MSME Exporters, at MSME-Development Institute, Nagpur. The National Resource Center (NRC) will act as a hub and dedicatedly work towards conducting new research and enhancing existing knowledge base on exports. It would also act as a networking hub, connecting industry, academia, export-linked institutions, large export houses and Government. The centre is intended to not only help MSME exporters, but also to act as a foundation for the entire MSME business eco-system.
Sub- Committees for Export Promotion and Indigenization in MSME Sector
The Office of Development Commissioner (MSME), New Delhi has constituted various sub-committees for Export Promotion and Indigenization in MSME Sector. The Sub- Committee will identify the Export potential clusters and also to identify import substitution products for each industrial sector. The major objectives of the sub-committees are to provide the inputs/comments on the issues related to the sector, and to prepare both short and long term plans for increasing exports in the light of emerging national and international economic scenarios:
• Agro& Food related sector
• Engineering/Automobiles/Metal/Foundry related sector
• Leather/Footwear/saddlery related sector
• Electronics/Electrical/ IT related sector
• Handicrafts/Textiles/Wood/Toys/ Sport Goods/Coir related sector
• Chemical/Pharma/Plastic/Rubber/Printing & Packaging related sector
• Gem & Jewellery/Glass & Ceramics related sector
• Services related sector
• Defence related sector
For more details please contact:
Export Facilitation Centre
MSME - Development Institute, Thrissur
For more details of Strategic Action Plan of Ministry of MSME : click here