Lok Sabha Question No. 4436 (UNSTARRED), answered on 2025-03-27
Subject: MSME Exports
Ministry: MICRO, SMALL AND MEDIUM ENTERPRISES
Asked by: Shri Sribharat Mathukumilli, Shri Lavu Sri Krishna Devarayalu

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

## LOK SABHA UNSTARRED QUESTION NO. 4436 TO BE ANSWERED ON 27.03.2025

## MSME EXPORTS

## 4436.  SHRI  SRIBHARAT MATHUKUMILLI: SHRI  LAVU SRI KRISHNA DEVARAYALU:

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

- (a) the  share  and  value  of  Micro,  Small  and  Medium  Enterprises  (MSMEs)  exports  to  the European Union (EU) region;
- (b) whether the upcoming implementation of the Carbon Border Adjustment  Mechanism (CBAM) is expected to significantly impact MSMEs exporting to the EU and if so, the details thereof;
- (c) the measures taken or proposed by the Government to help MSMEs maintain competitiveness in the European market amid CBAM regulations;
- (d) whether  any  initiatives  for  technology  upgradation  and  carbon  reporting  mechanisms  have been undertaken or proposed to assist MSMEs in meeting EU sustainability standards and if so, the details thereof; and
- (e) if not, the reasons therefor ?

## ANSWER

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

(a): Ministry of Micro, Small and Medium Enterprises (MSME) does not maintain exports data. However,  as  per  information  provided  by  Directorate  General  of  Commercial  Intelligence  and Statistics (DGCIS), in FY 2023-24, percentage share of exports of MSMEs to EU with respect to total exports of MSME was 15.25 and percentage share of exports of MSME to EU with respect to total exports was 4.45.

- (b) to (e): Within the framework of World Trade Organization (WTO), all countries impose trade measures  on  imports  primarily  in  the  form  of  sanitary  and  phytosanitary  measures,  technical  trade regulations,  quota  restrictions,  safeguard  duties,  and  various  sustainability-related  regulations  to protect  human, animal,  and  plant  life  or  health,  as  well  as  to  promote  sustainable  development  and environmental  conservation.  However,  when  such  trade  measures  are  perceived  as  trade  barriers having  an  adverse  impact  on  trade,  the  Government  proactively  takes  up  such  measures  with concerned countries at bilateral and multilateral level, as may be necessary, for remedial action. The Government has strongly taken up all trade restrictive measures, either within the WTO framework or otherwise, with the European Union (EU) and its member states at relevant multilateral and bilateral forums  including  at  the  India-EU  Trade  and  Technology  Council  and  the  India-EU  High  Level Dialogue. Government has also engaged with the European Union for exchange of best practices and harmonisation of standards with objective of building India as a high-quality product market.

To  help  MSMEs  to  maintain  competitiveness,  Ministry  of  MSME  has  developed  a  support system  towards  export  promotion  by  setting  up  65  Export  Facilitation  Centres  (EFCs)  in  its  field offices  namely,  MSME  Development  and  Facilitation  Offices,  MSME  Technology  Centres  and MSME Testing Centres.  These  EFCs  handhold  the  MSMEs  by  providing  MSMEs  with  support  in documentation, market access, financing, technology adoption and training.

Other  initiatives  for  helping  MSMEs  to  grow  their  business  globally  include  Ministry  of Commerce  and  Industry's  Trade  Infrastructure  for  Export  Scheme  (TIES)  and  Market  Access Initiative (MAI) which facilitates participation of Indian Exporters in exhibitions, buyer seller meets, fairs  etc.  Initiatives  like  Districts  as  Export  hubs  identify  export  potential,  address  bottlenecks  and supports  local  exporters  /  manufacturers.  The  Trade  Connect  e-Platform  is  an  information  and intermediation platform on international trade, which provides comprehensive services for both new and existing exporters.

Further, a number of other measures have also been taken by Ministry of MSME for creating an  enabling  environment  for  MSMEs.  The  Government  has  a  policy  priority  to  ensure  timely  and adequate finances, relevant technologies and appropriate training for MSMEs. Some of the initiatives taken  by  the  Government,  in  this  context,  include  Udyam  Registration  Portal  for  registration  of MSME, Udyam Assist Platform for bringing Informal Micro Enterprises in the formal ambit, collateral free loan up to a limit of Rs. 500 lakh to Micro and Small Enterprises, MSME Champions Scheme for modernizing  MSMEs'  manufacturing  processes,  reducing  wastages,  encouraging  innovativeness, sharpening business competitiveness and facilitating their national and global reach and excellence.

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