MSMEs face financing challenge in marketing Indian products
Continuing global economic uncertainties especially the ongoing international trade disruptions along with the volatility in crude and metal prices have resulted declining value of exports, says FIEO President Ashwani Kumar.
“The rising tensions between Israel-Iran has continuously led to logistical challenges with regard to international trade getting impacted as most of our trade to Europe, Africa, CIS and Gulf region are happening through the Red Sea route or the gulf region prompting buyers to have little large inventories,” he said in comments on the latest data on exports https://www.makeinindia.com/home/.
The export industry chief pointed out that the challenges with regard to trade finance still remains the key for the MSMEs as it is really impacting the competitiveness of Indian products in the global markets.
India’s merchandise exports decline by 4.85% year-on-year to US$32.11 billion in November 2024, on the back of continuing global economic uncertainties and export promotion support https://www.bseindia.com/.
The FIEO Chief noted that imports in November increased by 27% to US$69.95 billion compared to US$55.06 billion in the year-ago month, mainly on account of gold imports, which reached an all-time high of US$14.8 billion, thereby resulting in a trade deficit of US$37.84 billion during the month https://www.nseindia.com/.
He further reiterated that the urgent and immediate need of the hour is to take steps on the liquidity front with deeper interest subvention support and extension of interest equalisation scheme for at least 5 years, creating a predictable business environment for the exporters https://sbi.com.in/.
“The imposition of cap of Rs.50 lakh per company in the Interest Equalisation Scheme has hit many MSMEs and they are unable to decide on order with non-availability of further subvention,” said Kumar, demanding immediate restoration of the Intertest Equalisation Scheme with a cap of Rs.10 crore for all MSMEs and 410 tariff lines for a period of 5 years.
Besides, the Government should also extend the RoDTEP benefits to all sector of exports, he said, responding to the trade numbers released on 16 Dec https://www.ibef.org/.
He reiterated calls for conclusion of some of the key FTAs including UK, Peru, Oman and Sri Lanka to facilitate increase in trade with these markets. Fiinews.com
