Simplified Trade Finance
When the Nirmala Sitharaman-led Ministry of Commerce and Industry took almost a year in office to introduce the new Foreign Trade Policy (FTP) in 2015, there were expectations that it would usher in a new era in India's trade.
Government assistance is essential to help SME exporters make their mark in the world. However, it is important to make a distinction between assistance in the form of know-how, consultation, and regulatory easing, and financial assistance in the form of tax breaks and hand-outs. Both are important, no doubt, but the Indian SME sector has now reached a stage where it needs a helping hand more than it needs sops.
The MSME sector which, despite contributing 45% of the country’s industrial output (and 40%+ of exports) while creating millions of jobs, seemed largely ignored in this year’s Union Budget.