24th June 2024 (12 Topics)
1
Jun
3
Jun
4
Jun
5
Jun
6
Jun
7
Jun
8
Jun
10
Jun
11
Jun
12
Jun
13
Jun
14
Jun
15
Jun
17
Jun
18
Jun
19
Jun
20
Jun
21
Jun
22
Jun
24
Jun
25
Jun
26
Jun
27
Jun
28
Jun
29
Jun
India Planning Global Trade Promotion Body for MSMEs
Context
The Indian government is considering the establishment of a global trade promotion body aimed at boosting exports from Micro, Small, and Medium Enterprises (MSMEs).
Key-Highlights of the Proposal
- Proposal Title: Global Trade Promotion Organization (GTPO)
- Objective: To enhance MSME exports and address India’s rising trade deficit.
- Inspiration: Modeled after the Japan External Trade Organization and the Australian Trade and Investment Commission.
- Structure: The GTPO will have branch offices in major global economies.
- Functionality: It will assist MSMEs with registration, licensing, and certification for exports, and facilitate business opportunities in collaboration with Indian consulates abroad.
Reasons Behind the Initiative
- Trade Deficit: India's increasing trade deficit necessitates a strategic approach to boost exports, particularly from the MSME sector.
- Lack of Global Presence: Existing trade promotion bodies lack a robust international presence, which limits their effectiveness in promoting MSME exports.
- Economic Muscle: MSMEs often lack the resources to market their products internationally, and a dedicated trade promotion body can bridge this gap.
Expected Benefits for MSMEs
- One-Stop Solution: The GTPO will provide comprehensive support to MSMEs, from export documentation to market access.
- Increased Exports: By facilitating participation in global exhibitions, trade shows, and buyer-seller meets, the GTPO aims to increase MSME exports significantly.
- Economic Impact: Enhanced exports will contribute to reducing the trade deficit and boosting India's GDP, given that MSMEs contribute about 45% to the country’s total exports.
Challenges and Considerations
- Coordination: Effective coordination between the GTPO and various government ministries is crucial for the success of the initiative.
- Global Competition: Indian MSMEs will need to compete with well-established global players, necessitating high-quality products and competitive pricing.
- Sustainability: The GTPO must ensure sustainable growth for MSMEs without compromising on quality and ethical standards.
Broader Implications
- Employment: Enhanced MSME exports can lead to increased employment opportunities, supporting over 110 million people currently employed by the sector.
- Sectoral Growth: Specific sectors like handicrafts, textiles, ayurveda, leather goods, and imitation jewelry, which have significant global markets, can see substantial growth.
- Economic Diversification: Diversifying export markets will reduce reliance on a few countries and spread economic risk.
Required Measures for Effective Implementation
- Policy Support: The government must provide continuous policy support, including financial incentives and simplified regulatory processes.
- Capacity Building: Training and capacity-building programs for MSMEs will be essential to enhance their competitiveness in global markets.
- Monitoring and Evaluation: Regular monitoring and evaluation of the GTPO’s performance will ensure that it meets its objectives and adapts to changing market conditions.
Fact Box: Schemes for MSMEs
|
Courses
Study
Notes
Home
Resources
More
