UPSC IES / ISS Exam 2023
Question -
Account for the provisions made for the MSME and e-commerce exports in the trade policy of India 2021-26
Answer
The trade policy of India 2021-26 is aimed at boosting the country's exports and enhancing the competitiveness of its domestic industries, especially the micro, small and medium enterprises (MSMEs). Some of the provisions made for the MSME and e-commerce exports in the policy are:
1 The policy introduces a sub-component of "Adoption of e-Commerce by Micro Enterprises" under the Procurement and Marketing Support (PMS) Scheme. This component provides financial assistance for selling products or services by micro enterprises through e-commerce portals.
1 The policy introduces a sub-component of "Adoption of e-Commerce by Micro Enterprises" under the Procurement and Marketing Support (PMS) Scheme. This component provides financial assistance for selling products or services by micro enterprises through e-commerce portals.
2 The policy also recognises the potential of online trade with countries with which India has trade agreements, such as ASEAN, Japan, Korea, etc. The policy aims to facilitate the integration of Indian MSMEs with the global value chains through e-commerce platforms.
3 The policy proposes to raise the 'De Minimis' threshold for returned products, which is the value up to which no import duties or taxes are collected. This will help reduce the cost and hassle for e-commerce exporters who have to deal with returns and refunds.
4 The policy also suggests developing postal services and infrastructure to support e-commerce exports, especially for MSMEs. This will enable faster and cheaper delivery of goods to international markets.
5 The policy also focuses on enhancing the marketability of products and services in the MSME sector by facilitating visit/participation of MSMEs in international exhibitions/trade fairs/buyer-seller meet etc. abroad and also holding international conferences/seminars/workshops in India, for technology infusion, exploring business opportunities, joint ventures etc.
How will these provisions help MSMEs in India?
These provisions will help MSMEs in India in various ways, such as:
1 Increasing their access to global markets and customers through e-commerce platforms, which can boost their sales and revenues.
1 Increasing their access to global markets and customers through e-commerce platforms, which can boost their sales and revenues.
2 Reducing their operational costs and risks by availing financial assistance, tax exemptions, and postal services for e-commerce exports .
3 Enhancing their product quality and innovation by participating in international events and learning from best practices and technologies.
4 Improving their competitiveness and resilience by integrating with the global value chains and diversifying their export basket.