EPM focuses on trade finance to exporters
Recent trends reveal that contribution of the MSME sector in overall merchandise exports has increased from 45.74% in 2023-24 to 48.55 % in 2024-25 in USD value terms, said a Minister in an update to the Rajya Sabha on 8 Dec http://commerce.gov.in.
In order to promote exports including from MSME sector, the Government has approved the Export Promotion Mission (EPM) as a comprehensive framework to strengthen the overall export ecosystem, elaborated Minister of State for Micro, Small and Medium Enterprises (MSME) Shobha Karandlaje in a written reply to the Rajya Sabha.
Under EPM, support shall be provided through NIRYAT PROTSAHAN, which focuses on trade finance facilitation for MSME exporters, and NIRYAT DISHA, which shall provide non-financial support including export-quality and compliance assistance, market-access interventions, logistics facilitation, and export ecosystem-building measures https://www.nseindia.com/.
Furthermore, the comprehensive GST rationalisation recently done by the government will strengthen MSMEs fortifying local supply chains in critical sectors like automobiles, textiles, food processing, logistics, and handicrafts.
Lower GST rates have made raw materials and services more affordable, motivating small and medium enterprises and start-ups to scale up operations, invest in innovation, and compete both domestically and globally https://sbi.com.in/.
In addition, the Government, inter-alia, has undertaken the following initiatives to boost the competitiveness in global value chain:
PM Gati Shakti National Master Plan enabling comprehensive and integrated planning for multimodal logistics https://www.bseindia.com/.
National Logistics Policy (NLP), which aims to drive economic growth and business competitiveness of the country through cost-effective logistics network.
Credit Guarantee Scheme for Exporters (CGSE) for providing 100% credit guarantee coverage by National Credit Guarantee Trustee Company Limited (NCGTC) to Member Lending Institutions (MLIs) for extending additional credit facilities up to Rs.20,000 crore to eligible exporters, including MSMEs.
International Cooperation Scheme: The scheme aims to capacity build MSMEs for entering export market by facilitating their participation in international exhibitions, fairs, conferences, seminar and buyer-seller meets abroad as well as reimbursement of various costs involved in exports.
Micro and Small Enterprises- Cluster Development Programme (MSE-CDP) scheme implemented with the objective to enhance the productivity and competitiveness of Micro and Small Enterprises (MSEs) for their holistic development adopting cluster development approach by extending financial assistance to establish Common Facility Centres (CFCs) in the existing clusters and establish and up-grade infrastructural facilities in new and existing industrial estates, areas as well as flatted factory complexes https://www.makeinindia.com/home/.
MSME Competitive (Lean) scheme is to enhance the Domestic and Global Competitiveness of MSMEs through the application of various Lean Techniques and thereby achieving reduction in rejection rates, product and raw material movements and product cost.
The Minister highlighted that the Government has taken a number of steps to address the issues and challenges pertaining to the MSMEs.
Some of these steps are as under:
New revised criteria for defining MSMEs adopted in 2020. This has been further revised w.e.f. from 1 April 2025.
Udyam Registration for MSMEs, for Ease of Doing Business w.e.f. 1 July 2020.
Inclusion of Retail and Wholesale traders as MSMEs w.e.f. 2 July 2021.
Non-tax benefits extended for 3 years in case of an upward change in status of MSMEs.
Launch of Udyam Assist platform on 11 Jan 2023 to bring Informal Micro Enterprises under the formal ambit for availing the benefit under Priority Sector Landing.
Operationalisation of ‘Self Reliant India Fund’ for equity infusion into MSMEs.
Launch of Rs.5 lakh crore Emergency Credit Line Guarantee Scheme (ECLGS), for businesses, including MSMEs. The Scheme was operational till 31 Mar 2023. As per a research report dated 23 Jan 2023 of the State Bank of India on ECLGS, almost 14.6 lakh MSME accounts, of which about 98.3% of the accounts were in the Micro and Small Enterprises categories, were saved from slipping into non-performing asset classification.
To provide adequate financial support and technology and trade support to various MSMEs, including leather and textile sector, a series of measures have been undertaken, which inter-alia include schemes such as Prime Minister’s Employment Generation Programme for setting up of new micro enterprises in the non-farm sector by providing Margin Money subsidy on the Bank loan, Special Credit Linked Capital Subsidy Scheme with a provision of 25% subsidy to SC/ST MSEs on institutional finance for procurement of Plant & Machinery/Equipment, Credit Guarantee Scheme for collateral free loans for Micro and Small Enterprises with a guarantee coverage of up to Rs.10 crore, collateral free loans up to Rs.20 Lakh for Informal Micro Enterprises, PM Vishwakarma Yojana, Mudra Loan, etc.
MSME Champions Scheme has been formulated with an end objective to modernize the processes, reduce wastages, sharpen business competitiveness of enterprises, and facilitate their National and Global reach and excellence. Further, the Ministry of MSME, in order to help the MSMEs to grow technologically and to enhance their competitiveness, has established Technology Centres (TCs) and Extension Centres (ECs) across the country. These TCs/ECs provide various services like technology support, skilling, incubation and consultancy to MSMEs and skill seeker, said the Minister. Fiinews.com
