Relevance
- GS 3: Indian Economy and issues relating to planning, mobilization, of resources, growth, development and employment.
Context
- Recently, Ministry of Micro, Small & Medium Enterprises has inaugurated the India Export Initiative and IndiaXports 2021 Portal of India SME Forum in New Delhi.
Key points
India Export Initiative
- This initiative features an information portal, which serves as a knowledge base for exports by Indian MSMEs, along with the potential markets as well as trends in exports.
- The initiative targets more than 1 lakh MSMEs desirous of knowing more about exports and hand holding 30,000+ MSMEs to start exporting, doubling the base of active exporters.
PLI Scheme for Drones and Drone Components
IndiaXports
- IndiaXports aims to orient MSMEs free of cost, to focus on the untapped export potential in existing tariff lines and support MSMEs in order to increase MSME exports by 50% in 2022.
Expected benefits
- The above initiatives are aimed at achieving the export target of 400 Billion USD by this fiscal and achieving the challenging target of 1 trillion in exports by 2027.
- The initiatives would augment the competitiveness of MSMEs and make India a preferred destination for manufacturing for the world.
- The initiatives adopt a holistic approach and will help reduce the trade balance.
Production Linked Incentive Scheme: A Complete Analysis
MSME contribution to Indian economy
- MSMEs have been contributing nearly 40% of overall India’s exports.
- They are also contributing to approx. 6.11% of the country’s manufacturing GDP & 24.63% of the GDP from services sector.
- Share of MSME Gross Value Added (GVA) in All India Gross Domestic Product at current prices (2011-12) for the year 2018-19 and 2019-20 were 30.5% and 30.0% respectively.
Know more about MSME from here.