3. Significant role played by small enterprises in the economy
accounts for 35% of gross value of output in manufacturing sector
80% of total industrial employment about 40% of total exports.
Total exports increased only by 43% in that exports from small
enterprises increased by 155 times.
But India's share in world export is 0.5% only which is
disappointing
Items like sports goods, ready made garments, leather products,
processed foods, plastic goods, engineering goods, chemicals play
dominant role in export.
4. 83% is for ready made goods,leather,chemicals and engineering
goods.
Small Enterprise Make Direct And Indirect Export Through
Merchant exporters
Trading house
Export houses
Large enterprises
Indirect exports estimated at 10% of total exports.
5. PROBLEMS FACED BY SMALL EXPORTERS
Identifying the export market
Finding Buyers and diversifying the client base
Creating brand awareness
Supply chain issues
Ever changing Foreign Policies
Communication Gap
6. EXPORT PROMOTION MEASURES
Aims at export assistance such as export credit, cash assistance,
import replenishment,licensing,free trade zone, quality control&
Reshipment injection.
Guidance to Indian entrepreneur to set up ventures abroad
Direct of exhibition make arrangement for participation in
international exhibition, hold exhibition abroad, run showrooms, set
up trade centers
Direct of commercial intelligence concerned with commercial
publicity through media, publication etc.
7. There are 22 export promotion councils for different products. They
conduct market survey, promotion scheme, quality control, joint
participation in trade fairs
Commodity board set up to help export of traditional items. There
are 7 commodity board. They advise Govt on policy, signing trade
contract, fixing quota.
Trade representative abroad conduct surveys, furnish information on
export-import and settle trade disputes.
Indian Institute Of Foreign Trade (IIFT) set up to train people in
international trade, conduct research & organize training program.
8. Trade Fair Authority Of India set up in 1977 focus to
promote,oranize and participate in international fair
Trade Development Authority focus to collect information, conduct
research and render export finance and help in securing and
implementing export order.
Export Credit Guarantee Corporation (ECGC) covers both
commercial and political risks on export credit transaction. Its head
office in Mumbai.
Export Trade Corporation set up in states to undertake trade
promotions.
Small Industries Development Organization (SIDO) with 26 small
9. Service institution provide techno managerial assistance like motivating
entrepreneurs to export, provide information on export-import and offer
consultancy services.
STEPS TAKEN BY GOVT TO BOOST EXPORT
Export minister Mr.Piyush Goyal set up some policies to
Import Replenishment Licenses
Import export pass book scheme
100% export oriented units
Profit earned deducted by 50% of tax
Exemption from Sales Tax, Excise Duty and Import Tax.
10. Cash Assistance
Under Liberalized Exchange Rate Management System
Export Credit Guarantee Corporation(ECGC).
ECGC's new insurance scheme in 2022 to cover up to 90% export
credit risk for small exporters to cover export credit risk under the
Export Credit Insurance for Banks Whole Turnover Packaging Credit
and Post Shipment (ECIB- WTPC & PS).Purpose is to expect more
small companies to get export credit from banks, benefiting these
industries greatly, to provide more concessions. The net effect will be
benefit to exporters, involving reduction in interest rate.
11. In 2022 Micro, small and medium enterprises have sought an
“empowered" grievance redressal mechanism, blaming a fall in their
share of exports on lack of coordination among central ministries
among other factors.
SMALL EXPORTER'S POLICY – ECGC
Designed Keeping In View The Requirements Of Small Exporters
Whose Annual Turn Over Does Not Exceed Rs.50 Lakhs.
This Policy Pays In The Event Of Loss To The Policyholder On
Account Of:
Commercial Risks
Interruption Or Diversion Of Voyage Outside India
12. Insolvency of the buyer.
Failure of the buyer to make the payment due within a specified
period, normally 2 months from the due date.
Buyer's failure to accept the goods, subject to certain conditions.
Political Risks
Imposition of restriction by the Government of the buyer's country
or any Governrnent action which may block or delay the transfer of
payment made by the buyer.
War, Civil War, revolution or civil disturbances in the buyer's
country.
New Import restrictions or cancellation of a valid import license.
13. FIVE SMALL EXPORT BUSINESS IDEAs
Imitation jewellery
can either outsource the latest collection from domestic manufacturers or
get it manufactured on contract.
can opt to sell either directly to customers through a Direct-to-Consumer
(D2C) website or by listing on marketplaces that accept international
orders.
Pickles
According to various media reports, India has emerged as the ‘pickle king
of the world’. The country exports pickles to around 54 countries —
revealing that the market for pickles is popular beyond Indian boundaries.
14. Papad
From Amritsari to Bikaneri, India boasts of a plethora of papad
varieties that appeal to diverse consumers abroad. You can begin a
papad business with a minimum investment of Rs 20,000.
Incense sticks
At present, India’s agarbatti (incense sticks) market is growing leaps
and bounds because of higher domestic and global demand. India
exports incense sticks to over 150 countries on the back of the rising
popularity of aromatherapy and meditation in other countries
15. Handicrafts
Indian handicrafts are cherished globally. Each Indian state boasts of a
variety of handlooms and handicrafts. From sarees, handbags,
footwear, paintings to home decor, small businesses involved in these
handicrafts products can export them to different countries and run a
profitable business. Handicrafts products can either be directly sourced
from the artisans, helping in creating employment opportunities for
them.
