India's NITI Aayog suggests single portal to offer info to exporters

Such a portal will answer all queries from exporters on market tariffs, required paperwork, sources of finance, service providers, available incentives and potential customers.

"Therefore, creating a one-stop information data intelligence portal, using an Al [artificial intelligence]-based interface will be essential to impart information to MSMEs," the government think tank said in a report, titled 'Boosting Exports from MSMEs'.

The think tank also suggested introducing an annual financial reconciliation process for e-commerce exporters, exemption of import duties on rejects or returns, granting exemption on reconciliation requirements for shipments up to $1,000 and creating a green channel clearance for e-commerce exports.

"To boost e-commerce exports, it is essential to create a distinction between exporter on record (EOR) and seller on record (SOR) and allow a reduction in invoice value without any percentage ceiling for all e-commerce exports," it said.

Access to finance is regularly seen as a key bottleneck for MSMEs and towards this end, the promotion of Export Credit Guarantee can help improve working capital availability for MSMEs, the report noted.

"The current uptake of ECGC [Export Credit Guarantee Corporation of India Limited] schemes is only 10 per cent and the government must create an incentive package to increase it to 50 per cent or more," it added.

The NITI Aayog has also suggested relaxations for MSMEs from certain compliance requirements for a period, while putting in place a process for time-bound disbursement of incentives so that working capital is not blocked for them.

Fibre2Fashion News Desk (DS)