Lok Sabha Question No. 1747 (UNSTARRED), answered on 2024-08-01
Subject: MSMEs Exporters
Ministry: MICRO, SMALL AND MEDIUM ENTERPRISES
Asked by: Shri K C Venugopal

## GOVERNMENT OF INDIA MINISTRY OF MICRO, SMALL AND MEDIUM ENTERPRISES

## LOK SABHA UNSTARRED QUESTION NO. 1747

TO BE ANSWERED ON 01.08.2024

## MSMEs EXPORTERS

## 1747.   SHRI K C VENUGOPAL:

Will the Minister of MICRO, SMALL AND MEDIUM ENTERPRISES be pleased to state:

- (a) the details of the steps taken and the schemes implemented to ensure easy access to credit for the MSME sector;
- (b) whether the Government has any proposal for export capacity development programs to support MSMEs and if so, the details thereof;
- (c) whether  the  Government  proposes  to  establish  export  facilitation  and  development centers at the district level and if so, the details thereof; and
- (d) whether  the  Government  proposes  to  implement  massive  open  export  familiarization programme to support first-time MSME exporters and if so, the details thereof?

## ANSWER

## MINISTER OF STATE FOR MICRO, SMALL AND MEDIUM ENTERPRISES (SUSHRI SHOBHA KARANDLAJE)

- (a): The Government has taken a number of steps to facilitate easy access to credit for the MSME sector in the country, through various schemes, programmes and policy initiatives. Some of the schemes implemented are as follows:
- i. To  facilitate  the  flow  of  credit  to  the  Micro  and  Small  Enterprises,  without  the hassles of collateral and third party guarantee up to a maximum of Rs. 5 crore, Credit Guarantee Scheme for Micro and Small Enterprises has been implemented.
- ii. Prime  Minister  Employment  Generation  Programme  (PMEGP)  is  a  major  creditlinked subsidy program, aimed at generating self-employment for Micro Enterprises.
- iii. Pradhan  Mantri  Mudra  Yojana  (PMMY)  extends collateral  free  credit  up  to  Rs.10 lakh.
- iv. Stand-Up India (SUI) Scheme facilitates loans from Scheduled Commercial Banks (SCBs) of value between Rs. 10 lakh and Rs. 1 crore to at least one Scheduled Caste (SC) or Scheduled Tribe (ST) borrower and one women borrower per bank branch.
- v. PM  Vishwakarma  Scheme  envisages to provide end-to-end holistic support, including credit support to artisans and craftspeople in the 18 trades covered.
- vi. Launch of Udyam  Assist Platform on 11.01.2023 to bring Informal Micro Enterprises (IMEs) under the formal ambit of MSME.
- vii. Inclusion  of  Retail  and  Wholesale  traders  as  MSMEs  for  the  purpose  of  availing Priority Sector Lending benefits, w.e.f. 02.07. 2021.

(b) to (d): Ministry of MSME implements the International Cooperation (IC) Scheme. Under this  Scheme,  financial  assistance  is  provided  on  reimbursement  basis  to  the  eligible  Central  / State  Government  organizations  and  Industry  Associations  to  facilitate  the  participation  of MSMEs  in  international exhibitions, fairs and buyer-seller meets held abroad. Further, organizing  international  conference,  seminar  and  workshops  in  India  are  also  included  in  the scheme.  Additionally  under  the  new  component  of  IC  Scheme,  namely  Capacity  Building  of First Time Exporters (CBFTE) launched in June 2022, reimbursement is provided to new Micro &  Small  Enterprises  (MSEs)  Exporters  for  costs  incurred  on  Registration-cum-Membership Certification  (RCMC),  Export  Insurance  Premium  and  Testing  &  Quality  certification  for exports.  These  interventions  under  IC  Scheme  assist  the  exporters  in  the  MSME  sector  to increase  their  access  to  international  markets.  Ministry  of  MSME  has  established  60  Export Facilitation Centers (EFCs) across the country with an aim to provide requisite mentoring and handholding to MSEs.

The  Government  has  taken  measures  to  promote  exports  from  the  districts  under  the District as Export Hub Initiative. Products/Services with export potential have been identified in the districts. An institutional mechanism has been set up in all States/UTs by forming the State Export Promotion Committee (SEPC) and District Export Promotion Committee (DEPC) at the District level. Under the initiative, District Export Action Plans detailing the existing bottlenecks in the supply chain and identifying possible interventions to mitigate the existing gaps are being prepared for all the districts. To encourage exports from the districts under "Districts as Export Hubs",  DGFT  through  Regional  Authorities  has  been  engaging  with  States  &  Districts  to conduct  export  promotion  outreach  events.  This  includes  handholding  sessions  with  exporters and export related awareness sessions.

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