Govt Unveils Support for MSMEs in Raw Material Procurement & Exports

ENA MSME 2024-07-30 15:27:55 New Delhi, Jul 30 (KNN) In a significant move to strengthen the Micro, Small, and Medium Enterprises (MSMEs) sector, the Indian government has implemented a series of measures to ensure a steady supply of raw materials and enhance export competitiveness. Union Minister of MSME, Jitan Ram Manjhi, detailed these initiatives in a written reply to the Rajya Sabha on Monday. The National Small Industries Corporation Ltd. (NSIC), operating under the Ministry of MSME, plays a crucial role in facilitating raw material procurement for MSMEs. By establishing arrangements with bulk manufacturers, NSIC ensures a consistent supply chain. Additionally, the corporation offers financial assistance through its Raw Material Assistance (RMA) Scheme, providing bank guarantees for supplier payments. For the coir sector, the Ministry of MSME has launched the 'Coir Vikas Yojana', an umbrella scheme aimed at comprehensive development. Under this initiative, the Export Market Promotion Programmes seek to expand the global market for coir and coir products. The Coir Board facilitates MSME participation in international fairs through the International Co-operation (IC) Scheme, enhancing their global competitiveness and market reach. The Foreign Trade Policy 2023, as reported by the Directorate General of Foreign Trade (DGFT), allows duty-free import of raw materials for export product manufacturing under the Advance Authorisation Scheme. This policy has been a game-changer for MSME exporters, enabling them to procure raw materials at 'nil' duty rates and compete effectively in international markets. The scheme's impact is substantial, with approximately 24,000 Advance Authorisations issued annually, facilitating raw material imports worth USD 35 billion and resulting in exports of USD 60 billion. Further support comes from the Duty Free Import Authorisation Scheme (DFIA), which permits MSME exporters to import raw materials with complete duty exemption, even after export completion for replenishment. Similarly, MSME units operating as Export Oriented Units (EOUs) can import raw materials duty-free, bolstering their international competitiveness. For MSMEs sourcing raw materials domestically, the government ensures competitiveness by refunding or re-crediting the Integrated Goods and Services Tax (IGST) paid on inputs at the time of export. This flexibility in sourcing, coupled with duty exemptions under the Foreign Trade Policy and GST Act, provides MSMEs with a significant advantage in the global marketplace. (KNN Bureau) 38794 https://knnindia.co.in/news/newsdetails/msme/govt-unveils-support-for-msmes-in-raw-material-procurement-exports 2024-07-30 15:27:55 knnindia.co.in Govt Unveils Support for MSMEs in Raw Material Procurement & Exports