Verma calls for competitive FTAs to promote MSMEs globally
The Exim Bank and SIDBI will invest from a joint fund, which has a size of Rs.250 crore with a green shoe option of Rs.250 crore, by way of equity and equity-like products, in export-oriented units, both in the manufacturing and services sectors, according to a senior banking official.
Rupesh Sharma, AGM, India Exim Bank, further added that the Finance Minister Nirmala Sitharaman has given a breakup of Rs.1,000 crore of which Rs.900 crore will be given as debts.
Moreover, SIDBI and Exim Bank have also brought in Rs.40 crore each and have developed an Ubharte Sitaare fund while Rs.10 crore each from the two organisations has been assigned for grants, he said.
The programme will extend handholding support to the export-oriented companies, eventually boosting the country’s export and economic growth.
Sharma elaborated on the two banks’ funding programme at a Session on ‘Identifying Future Champions having export potential through Ubharte Sitaare scheme to boost India’s Competitiveness’.
Javed Ahmad Siddiqui, DGM, SIDBI, highlighted how the Finance Ministry has distributed the scheme to the two implementing agencies.
The main objective of the Ubharte Sitaare Fund is that the Term-Loan should be given to the export oriented MSMEs which could be the future champions for mordernisation, diversification and technological upgradation.
He also gave insights on various other schemes of SIDBI such as ARISE & STHAPAN, AROG and STAR scheme.
Rahul Mazumdar, AGM, India Exim Bank, discussed the Production Linked Initiative Scheme (PLI), an initiative started by the Indian Government to not only encourage foreign companies to find workforce in the country and thereby generate employment, but also encourage domestic and local production to create micro jobs.
He also listed some of the upcoming industries which can prove to be beneficial for the MSMEs, such as Drones, Hi-tech industries, Toy industries, Audio-Visual Gaming industries, EV auto-components and EV cluster and Fintech companies having large potential in the domestic market.
Abhishek Mudafale, Principal Consultant-Investments, SVCL, informed that his consultancy was looking for export-oriented companies in the areas of agriculture, chemicals, apparel, pharmaceuticals and electronics.
Anil Verma, President, Delhi Exporter Association, called on SIDBI and EXIM Bank to provide loans to the tiny exporters whose turnover is less than Rs.5 crores so that the scheme benefits the actual targeted audience.
He also called for Foreign Trade Agreements to be competitive enough to promote the MSMEs in international markets.
Raj Kumar Malhotra, Chairman, Export Promotion Council for Handicrafts, highlighted that a large population of artisans are involved in handicrafts sector of which more than 75% of them are small exporters and remaining are medium or large exporters.
The handicrafts sector is providing employment opportunity and also providing a platform to showcase their products in trade fairs and exhibitions both nationally and internationally, he said.
It was organized by the PHD Chamber of Commerce and Industry along with the support of the INDIA EXIM Bank on 22 Mar 2022.
The objective of the Session was to inform and educate the exporters on how to take benefit from the Ubharte Sitaare Scheme and to boost India’s competitiveness in selected sectors via finance and providing handholding support who are unable to scale up their export operations due to lack of finance, having export potentials. fiinews.com
