Monday , October 18 2021

Govt working on two policies to increase MSME exports, reduce imports: Gadkari

In order to increase Micro, Small and Medium Enterprise (MSME) exports and bring down imports by encouraging local production, Union MSME and Road Transport Minister Nitin Gadkari has said the government is working on two policies. Firstly on the industries which are into export business – how to support and increase their export. The leather industry has a total turnover of Rs 1,40,000 crore of which Rs 80,000 crore to Rs 90,000 crore is domestic and around Rs 45,000-50,000 crore is from export.

He said ‘I have suggested them on working on modernisation, upgradation, product designing and how to reduce the cost of production and improve quality, so that our share increases in the international market. We are working on a policy on how to strenghten export business.’ Secondly, the government is working on policy to increase indigenous production of products that are being imported. He said ‘the products that being particularly imported should get manufactured in the country itself. We are in talks with the commerce ministry on these two policies and it is in the final stages.’

To become competitive in international market, Gadkari emphasized on three important factors – reducing capital cost, power cost and logistic cost and these factors have also been discussed while making the new policy. Besides, he mentioned that the MSME sector has 29 per cent contribution in country’s growth and 48 per cent of export is done through MSMEs. Similarly, about 10-11 crore jobs have been created in MSMEs.

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