Reviving Export Promotion: A Call for Increased Funding and Strategic Reforms
GTRI highlights declining export promotion funding and urges the government to allocate Rs 2,500 crore annually for the Market Access Initiative. Critical opportunities for participating in global exhibitions were missed due to lack of funds. Reviving schemes and expanding budgets are needed to enhance export competitiveness.
- Country:
- India
Amid concerns of dwindling export promotion funds, the Global Trade Research Initiative (GTRI) has urged the Indian government to allocate Rs 2,500 crore annually for exporters under the Market Access Initiative (MAI). The current fiscal year saw no funding, resulting in missed global exhibition opportunities from April to August, according to GTRI's Founder Ajay Srivastava.
Srivastava emphasized that the longstanding Interest Equalisation Scheme (IES) should be reinstated to counter the high financing costs faced by MSME exporters, which previously benefited from lower rates under the scheme. Additionally, he advocated for the immediate implementation of the Export Promotion Mission (EPM) and E-commerce Export Hubs to stimulate exports amid high US tariffs on Indian goods.
Furthermore, Srivastava called for expedited customs clearance processes and predictable scheme benefits, like the Remission of Duties and Taxes on Exported Products. He highlighted the need for sufficient annual funding to support MSMEs, stressing that previous schemes like MEIS significantly benefitted many exporters before being replaced.
(With inputs from agencies.)
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