Govt to Bear Entire Certification Cost for MSMEs to Boost Exports
Commerce Minister Piyush Goyal announces the government will bear the full cost of export certifications for micro and small enterprises.
In a major push to integrate smaller businesses into the global supply chain, Union Commerce and Industry Minister Piyush Goyal has announced that the Indian government is ready to cover the certification cost for MSMEs. Speaking at a press conference in Berlin, Germany, the Minister emphasized that the government wants to remove the financial barriers that often prevent micro and small enterprises from entering international markets.
Full Support Under Export Promotion Mission
The initiative falls under the Export Promotion Mission, aimed at supporting both new and existing exporters across various sectors. Minister Goyal stated that for micro and small businesses, the government is willing to "literally take care of the entire cost of certification."
Recognizing that some international certifications are prohibitively expensive, the Minister added that the government is happy to provide support for these costly processes to ensure that size does not limit a company's ability to compete globally. He urged all interested exporters to approach the Directorate General of Foreign Trade (DGFT) to avail themselves of this support.
Tackling Global Compliance and Green Regulations
Beyond basic certifications, the government is focusing on the evolving landscape of international trade regulations. Minister Goyal revealed that India is exploring the approval of domestic verification agencies to lower the costs associated with strict global mandates. Specifically, the government is looking at:
- Carbon Border Adjustment Mechanism (CBAM): Efforts are underway to cover almost the entire compliance cost for micro and small enterprises.
- Deforestation-related requirements: Similar financial support will be extended to help small businesses meet these environmental standards.
While MSMEs will receive full support, the Minister noted that other larger exporters would receive financial assistance on a graded basis.
India-Germany Economic Ties and Future Growth
Highlighting the deep-rooted economic relationship between India and Germany, Goyal mentioned that approximately 2,000 companies continue to operate in Germany. Some of these business ties predate India's independence, while others have spanned nearly a century.
The Minister believes there are "immense possibilities" for the future, particularly in connecting Indian MSMEs with German metal standards to expand trade relationships.
Expanding the Export Horizon: From Agri-products to Autos
The Minister painted a bullish picture of India's export trajectory, noting significant growth in high-tech exports. He highlighted that exports of fisheries and agricultural products have already climbed to approximately Rs 5 lakh crore.
The Automotive Leap
One of the most ambitious targets mentioned was in the automotive sector. Currently, India exports around 10 lakh vehicles, primarily targeting markets in Africa, Latin America, and Japan. However, Goyal suggested that this figure could potentially scale up to 50 lakh vehicles.
"You'll see Indian-made cars hitting the European market very soon, I believe," the Minister asserted.