In a concerted effort to boost micro, small, and medium enterprises (MSMEs) and achieve a target of USD 2 trillion in exports by 2030, Finance Minister Nirmala Sitharaman announced a series of incentives for the sector, including the establishment of e-commerce export hubs.
During the Union Budget 2024 announcement, Sitharaman emphasised the budget’s special attention to MSMEs and labor-intensive manufacturing. She detailed a comprehensive package for MSMEs, covering financing, regulatory changes, and technology support to help them grow and compete globally, as outlined in the interim budget.
The Directorate General of Commercial Intelligence and Statistics (DGCIS) recently reported a recovery in the share of MSME-specified product exports in India’s total exports for the fiscal year 2023-24, after three years of decline. According to the data, MSME-related products accounted for 45.73 percent of all Indian exports in FY2024, recovering from a drop to 43.59 percent in FY2023.
“To enable MSMEs and traditional artisans to sell their products in international markets, e-commerce export hubs will be set up in public-private partnership (PPP) mode. These hubs, under a seamless regulatory and logistic framework, will facilitate trade and export-related services under one roof,” said Sitharaman.
Additionally, the Small Industries Development Bank of India (SIDBI) will expand its reach to major MSME clusters by opening new branches. With 24 new branches this year, SIDBI’s service coverage will increase to 168 out of 242 major clusters within three years, providing direct credit to MSMEs.
The Finance Ministry also announced plans to develop investment-ready “plug and play” industrial parks with complete infrastructure in or near 100 cities, in partnership with states and the private sector. Moreover, twelve industrial parks under the National Industrial Corridor Development Programme will be sanctioned.
These initiatives aim to propel MSMEs towards greater global competitiveness and significantly enhance India’s export capabilities.
