Indian Economy
Export Promotion Council (EPC) Established for MSME Sector
- 01 Jan 2019
- 4 min read
The Ministry of Micro, Small and Medium Enterprises (MSME) has recently established an Export Promotion Cell (EPC) with an aim to create a sustainable ecosystem for entire MSME development.
- MSME sector has a huge impact on Foreign Exchange earnings and has large export potential.
- As per the Directorate General of Commercial Intelligence and Statistics (DGCIS), the value of MSME related products is USD 147,390.08 million and share of MSME related products in the country’s exports was 48.56% during 2017-18.
- In some cases like sports goods, they account for about 100% share to the total exports of the sector.
- In addition to the above, MSMEs account for about 85-90 % of leather exports; around 6.11% to India’s manufacturing GDP (about 33%to the manufacturing output) and about 25% to the GDP from service activities.
Objective of EPC
- Evaluate readiness of MSMEs to export their products and services.
- Recognize areas that can be improved to export effectively and efficiently.
- Integration of MSME into the global value chain.
- The target of USD 100 billion of exports from India by 2020.
- Identify potential clusters which can start exporting directly or through aggregators and export houses with the help of export promotion councils.
- Coordinate with other departments and export promotion councils for increasing shipments of products like khadi, leather, and coir.
Governing Council Composition
- Chaired by Secretary, Ministry of MSME and Co-chaired by Development Commissioner, Ministry of MSME.
- The council will comprise of senior officials and members from the Ministry of MSME, Commerce, MSME Export Promotion Councils, Export Development Authorities, Commodity Boards, and other bodies.
Key Benefits to MSME
- Simplification of procedures.
- Incentives for higher production of exports.
- Preferential treatments to MSMEs in the market development fund.
- Simplification of duty drawback rules.
- Products of MSME exporters are displayed in international exhibitions free of cost.
- Export Promotion Programmes/Measures
Marketing Assistance And Export Promotion Scheme
- Participation in the International Exhibitions/ Fairs.
- Training Programmes on Packaging for Exports.
- Marketing Development Assistance Scheme for MSME exporters (MSME-MDA).
- In addition, the above scheme also provides for financial assistance up to Rs. 2.00 lakhs for commissioning specific market studies and assistance for initiating/ contesting anti-dumping cases are available to MSME Association limited to 50% of the total cost or Rs. 1.00 lakh whichever is less.
- The Merchandise Exports from India Scheme (MEIS) was introduced in the Foreign Trade Policy (FTP) 2015-20 w.e.f. 1st April 2015 with the objective to offset infrastructural inefficiencies and associated costs involved in exporting goods/products which are produced /manufactured in India including products produced/manufactured by MSME Sector.
- The Government has implemented the Niryat Bandhu Scheme with an objective to reach out to the exporters from Micro, Small & Medium Enterprises (MSMEs) and mentor them through orientation programmes, counselling sessions, individual facilitation, etc., on various aspects of foreign trade to enable them to get into international trade and boost exports from India.
