A unified information portal for exporters has been advocated by Niti Aayog in an effort to boost e-commerce exports and enhance financing availability, particularly for micro, small, and medium-sized businesses (MSMEs).
The Aayog stated in a paper titled "Boosting Exports from MSMEs" that India has a number of portals that assist exporters in obtaining information, the majority of which provide inaccurate or out-of-date information.
The report stated that in order to effectively disseminate information to MSMEs, "a one-stop information data intelligence portal using an Al-based interface will be essential." This portal would address any questions a prospective exporter may have regarding market tariffs, necessary documentation, sources of funding, service providers, available incentives, and potential clients.
In addition, the report recommended that e-commerce exporters be required to undergo an annual financial reconciliation procedure, that import tariffs on rejects or returns be waived, that shipments up to $1,000 be excused from reconciliation requirements, and that e-commerce exporters be granted green channel approval.
"To boost e-commerce exports, it is essential to create a distinction between exporter on record (EOR) and seller on record (SOR) and allow a reduction in invoice value without any percentage ceiling for all e-commerce exports," it said.
The study states that one major obstacle that MSMEs frequently face is obtaining financing. In order to address this issue, MSMEs may find it easier to obtain working capital if the Export Credit Guarantee is promoted.
"The current uptake of ECGC schemes is only 10 per cent and the government must create an incentive package to increase it to 50 per cent or more," it stated.
To facilitate goods exports, the Aayog has proposed a temporary relaxation of some compliance standards for MSMEs. Additionally, a time-bound incentive payout method has been established to ensure that MSMEs do not face working capital blockages.
According to the survey, Indian MSMEs are able to engage in and contend in export markets for products such as handicrafts, handloom textiles, herbal supplements and ayurvedic remedies, leather goods, imitation jewelry, and wooden goods.
"Globally, these sectors constitute substantial markets exceeding USD 340 billion, whereas their domestic market is considerably smaller," said the report.
The study made clear that there isn't currently a trustworthy single data source available for MSME exports.
"To resolve this, a committee could be formed with representatives from the Directorate General of Foreign Trade (DGFT) as well as the finance ministry, along with the MSME ministry to create a mechanism for sharing requisite information without compromising confidential data of individual firms," it said.
According to the Aayog, MSMEs generate over 11 crore jobs and contribute around 27% of India's GDP.
