MSME exports fall more than 7% year-on-year in FY21 compared to 1.8% decline in FY20, government data shows
Trade, import and export for MSMEs: The value of MSME products exported in FY21 was down 7.6% year-on-year amid the Covid pandemic compared to 1.8% decline in FY20 Data from the Directorate General of Business Intelligence and Statistics (DGCI & S), Kolkata, showed that the export of MSME-related products in FY19 was $ 158.76 billion and then is fell to $ 155.91 billion in FY20, then to $ 143.99 billion in FY21. It is important to note that the share of MSME exports in the total value of exports India continued to hover around 49 percent from 48.10 percent in FY19 to 49.75 percent in FY20 and to 49.35 percent in FY20 exercise 21.
The data was shared by Minister of State for Trade and Industry Anupriya Patel in Rajya Sabha on Friday. Provisional data for the current fiscal year showed that $ 90.80 billion in MSME-related products were exported through September, with a 45.80 percent share of the $ 198.26 billion in total exports. of the country during the period April-September.
It would be important to note the growth in the export share of MSMEs in FY22, as the government aims to increase the current share to 60 percent. Former MSME Minister Nitin Gadkari said in public forums last year that the government aims to increase the share of exports by 12% in five years as well as an increase in the contribution to domestic product. roughly 30% to 50% gross and 5 crore additional jobs in MSME sector.
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“To improve exports and ensure localization, it is essential to make the country a global manufacturing power by improving India’s manufacturing base. This can be achieved by increasing India’s competitive advantage or increasing the competitiveness of MSMEs and making India a preferred manufacturing destination for the world, ”MSME Minister Narayan Rane said in September during of a public event.
India is targeting $ 400 billion in exports in the current fiscal year and $ 1 trillion by fiscal year 27. The Minister said MSMEs will help meet the country’s export targets. In September of this year, the government announced that it would release Rs 56,027 crore in the current fiscal year against pending export incentives owed by more than 45,000 exporters, of which around 98% were from small exporters of the MSME category. Incentives due to exporters belonged to different export promotion programs such as MEIS, SEIS, RoSL, RoSCTL, other regimes based on certificates from previous policies and remission assistance for RoDTEP and RoSCTL export regimes carried out in the fourth quarter of fiscal year 21.