Govt working on policy for MSME exports
The government is working on two policies to increase MSME exports and bring down imports by encouraging local production, Union MSME and Road Transport Minister Nitin Gadkari said on Saturday.
While addressing the gathering at Small Micro Enterprise (SME) conference at Nagpur, Gadkari 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 10110 million jobs have been created in MSMES. "The government is working on two policies.firstly on the industries which are into export business — how to support and increase their export," the minister said.
The leather industry has a total turnover of ~1,40,000 crore of which ~80,000 crore to ~90,000 crore is domestic and around ~45,000-50,000 crore is from export.
"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," Gadkari said.
He said that secondly, the government is working on policy to increase indigenous production of products that are being imported. "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," said Gadkari.
Gadkari emphasised on three important factors — reducing capital cost, power cost and logistic cost — to become competitive in international market and these these factors have also been discussed while making the new policy.