Govt Considers Global Trade Promotion Body To Boost MSME Exports

ENA MSME 2024-06-24 14:36:24 New Delhi, Jun 24 (KNN) The central government is reportedly considering the establishment of a global trade promotion organisation (GTPO) to enhance exports from micro, small, and medium enterprises (MSMEs), according to sources familiar with the matter. This initiative may be proposed in the upcoming Union budget, as the country seeks to address its rising trade deficit and stimulate export growth, as reported by Mint. The proposed GTPO is envisioned to be modelled after similar organisations in other countries, such as the Japan External Trade Organisation (JETRO) and the Australian Trade and Investment Commission (AUSTRADE). In a paper A new approach for inducing rapid economic growth in India: Leveraging Public Procurement for building productive capacities for Exports to impulse Economic Growth authored by Anil Bhardwaj, Secretary General, FISME, it was suggested that India should establish export promotion agencies set-up by Australia, Japan and South Korea. The investment and export promotion efforts in India are fragmented. There is duplicity of efforts in many areas and some critical markets are completely neglected. Exporters get little or no support from Embassies. There is a need to review and think of a unified agency like Austrade, KOTRA, JETRO etc. The export promotion network may be conceived as a hub and spoke: with the Investment promotion agency as a hub with sectoral and geographical association in India its spokes. It should have its own staff in Embassies hired from the private sector, the paper had suggested. It aims to establish a presence in major economies worldwide to facilitate export opportunities for Indian MSMEs. A source, speaking on condition of anonymity, stated, There has been consideration for a trade promotion body with offices abroad to actively promote exports for MSMEs lacking the resources to establish markets independently overseas. While India currently has sector-specific trade promotion bodies and the India Trade Promotion Organisation (ITPO), these entities primarily operate domestically and lack a substantial global presence. The GTPO is expected to provide comprehensive support to small businesses, assisting with registration, licensing, and certification processes required for exporting goods and services to various markets. It would also collaborate with Indian consulates abroad to create business opportunities. The initiative is anticipated to serve as a centralised resource for MSME firms, potentially playing a crucial role in reducing the trade deficit by fostering MSME exports. Additionally, the body would support smaller businesses in participating in international exhibitions, trade shows, and buyer-seller meetings. Recent data from the commerce ministry indicates that India's merchandise exports in the financial year 2024 decreased by 3.11 per cent to USD 437.06 billion, compared to USD 451.07 billion in the previous fiscal year. The country's merchandise trade deficit widened to a seven-month high in May, primarily due to a surge in imports. While exports increased to USD 38.13 billion in May, up from USD 34.95 billion in the same month last year, imports saw a sharper rise to USD 61.91 billion. As discussions around the proposed GTPO continue, stakeholders await further details on its structure and implementation, which may be revealed in the forthcoming Union budget. (KNN Bureau) 38322 https://knnindia.co.in/news/newsdetails/msme/govt-considers-global-trade-promotion-body-to-boost-msme-exports 2024-06-24 14:36:24 knnindia.co.in Govt Considers Global Trade Promotion Body To Boost MSME Exports