Excessive collateral requirements by financial institutions pose a significant barrier for MSMEs seeking institutional finance, Santosh Kumar Sarangi, Director General of Foreign Trade, Ministry of Commerce and Industry has said.
This discourages them (Micro, Small and Medium Enterprises) from getting into the export market, Sarangi said at the 4th National Exports Competitiveness Summit 2024 organised by the Confederation of Indian Industry (CII) in the capital.
“Through focus on trade finance, trade infrastructure, and export promotion schemes, we are trying to ensure export competitiveness,” Sarangi said.
He highlighted that e-commerce exports represent a massive untapped opportunity for India. With the right infrastructure, including rapid customs clearance within minutes, India’s e-commerce exports could grow to $ 200–250 billion by 2030, transforming the trade landscape.
Paradigm shift
Sarangi called for a paradigm shift in India’s e-commerce export ecosystem by replicating best practices and creating export hubs with seamless pre-clearance.
Furthermore, talking about the importance of branding, Sarangi said, “India must invest in branding and quality certification for its products. Large-scale efforts for branding India’s millets, basmati rice, fruits, vegetables, and emerging sectors like medical tourism must be taken to strengthen its export identity”.
Ajay Bhadoo, Additional Secretary, Department of Commerce, Ministry of Commerce and Industry, underscored the need to prepare for the rising tide of global protectionism by focusing on quality, certifications, and compliance with non-tariff barriers.
“India has immense potential in services exports, which are already growing faster than merchandise exports. Sectors like medical tourism, IT, and professional services hold transformative potential. By focusing on such sectors, India can emerge as a global leader in service exports,” said Bhadoo.
Meanwhile, addressing a different session at the Summit, Sanjay Kumar Agarwal, Chairman, Central Board of Indirect Taxes & Customs, said that India is no longer just aspiring to be a global export powerhouse but has outlined a clear roadmap to enhance its share in global trade. Transformative initiatives like the Gati Shakti Master Plan and multimodal logistics parks are reducing logistics costs, improving supply chain efficiency, and boosting connectivity, he said.
At the same time, the digitization of customs processes, including e-sealing, electronic export orders, and digitized duty refunds, is revolutionising trade facilitation, ensuring transparency, and enabling faster, more efficient clearances for exporters, Agarwal added.
At the inaugural session, Sanjay Budhia, Chairman, CII National Committee on EXIM and Managing Director, Patton International Limited said, “Schemes like RoDTEP and the PLI programs have directly enhanced competitiveness. The Towns of Export Excellence Initiative and the Trade Infrastructure for Export Scheme (TIES) also underscore the Government’s commitment to strengthening infrastructure and fostering an enabling ecosystem for boosting exports from India.”