An export promotion cell has been created to create a sustainable ecosystem for micro, small and medium enterprises. The cell will evaluate the readiness of these enterprises to export their products and services, identify areas where improvements are required in order to be able to export effectively and efficiently and attempt at integrating the enterprises into the global value chain.
In addition all companies with a turnover of more than Rs 500 crores (US$ 71 million) have to join the Trade Receivables e-Discounting System so that MSMEs don’t face troubles in cash flow.
GST-registered enterprises will get a two per cent rebate on an incremental loan of up to a crore. The interest subvention on pre and post shipment credit for exports by micro, small and medium enterprises has been increased from three per cent to five per cent.
A Rs 6000 crore(US$ 852 million) package has been announced for technological upgradation of these enterprises. About 20,000 hubs and 100 tool rooms will be developed around the country for this.
Mandatory sourcing by PSUs from small enterprises has been increased to 25 per cent from the previous limit of 20 per cent.
The share of micro, small and medium enterprises’ exports in India’s total exports was 48.56 per cent in 2018.