In its budget wishlist, FIEO said the corpus of the fund should be 0.5 per cent to 1 per cent of export value so that sizable money is available to promote MSME exports.
The biggest challenge affecting MSME exports is on the marketing front. This is because most of MSMEs lack financial resources to meet the cost. Government needs to chip in with liberal funding.
The total marketing support extended by DoC under MAI and MDA is insufficient to meet the demand of MSME for export marketing.
MSMEs play a pivotal role in India’s exports as well as in ‘Make in India’ Programme.
In view of current downfall in exports, encouragement to MSME Sector by way of fiscal incentives on their year-on-year export growth would motivate them for aggressive export marketing, which in turn could help in restoring export momentum.
Hence, MSME exporters may be provided additional exports benefits. Currently, no additional fiscal benefit is available to MSME sector under FTP.
In view of current global trend which portrays a gloomy scenario for our exports in 2016, Government may consider to encourage the Status Holder category of exporters by restoring the benefit available to them under the earlier Policies in the form of SHIS