subject: Sops to select export sectors brings cheer to SMEs [print this page] The SME export sector, which has been persistently seeking exports sops for emerging out of the global economic slowdown, can now heave a sigh of relief. The Ministry of Commerce and Industry has recently announced stimulus packages worth Rs 500-crore to select exports as well as offered several incentives. This is expected to give small exporting units a much-needed boost.
The Ministrys decision to add several new products in the Focused Product Scheme and include countries such as China and Japan in the scheme is likely to promote greater exports from SMEs in several sectors.
Export sops welcomed by India Inc
New initiatives as undertaken by the Commerce Ministry to strengthen the export sector have been well-received by not only small export-oriented units but also apex industry associations such as the Federation of Indian Export Organisations (FIEO) and the Federation of Indian Chambers of Commerce and Industry (FICCI).
Welcoming the measures announced by the Commerce Ministry, A Sakthivel, president of FIEO, stated, Inclusion of new products and markets in the Market Linked Focus Product Scheme (MLFPS) will strengthen market diversification, thereby eventually enhancing export competitiveness.
The Commerce Ministrys decision to take up the issue of continuation of the Interest Subvention Scheme has also been appreciated by the FIEO and FICCI chiefs.They also appreciated the Ministrys announcement to include new products and extend 5% special incentives for products largely manufactured by small units such as handtools, nuts and bolts, bicycles, sewing machines, washers and horticulture, among others.
Initiatives such as extension of financial incentives and expansion of product list under MLFPS will give a much-needed boost to the export sector, thereby helping small units to expand and diversify their trading activities, said Harsh Pati Singhania, president of the FICCI.
Although sops have been extended to select exports sectors, industry representatives feel that the government should also consider extending MLFPS and Interest Subvention Scheme to the garment export sector, which is yet to show sign of a revival.
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Sops to select export sectors brings cheer to SMEs
