MSMEs Current Affairs - 2020
The Cabinet Committee on Economic Affairs (CCEA) has approved the capital infusion of Rs. 2000 crore for strengthening of Export Credit Guarantee Corporation (ECGC) to enhance insurance coverage to micro, small medium enterprises (MSMEs) exports. The amount will be infused in three financial years i.e. Rs.50 crore in 2017-18, Rs.1450 crore in 2018-19 and Rs.500 crore in 2019-20.
The infusion of capital will enhance insurance coverage to MSME exports and strengthen India’s exports to emerging and challenging markets like Africa, CIS (Commonwealth of Independent States) and Latin American countries. With enhanced capital, ECGC’s underwriting capacity and risk to capital ratio will improve considerably.
With stronger underwriting capacity, ECGC will be in better position to support Indian exporters to tap new and unexplored markets. Increased capital infusion will also help ECGC to diversify its product portfolio and provide cost effective credit insurance which will help exporters to gain stronger foothold in difficult markets. Covers from ECGC will help in improving competitive position of India exporters in International markets. More than 85% of customers benefitted by ECGC’s covers are MSMEs. ECGC covers exports to around 200 countries in the world.
ECGC is a premier export credit agency of Union Government to provide Export Credit Insurance Services to facilitate exports from the country. It offers credit insurance schemes to exporters to protect them against losses due to non-payment of export dues by overseas buyers due to political or commercial risks.
Tags: Cabinet Decisions • Capital Infusion • CCEA • Export Credit Guarantee Corporation • MSMEs
The first International SME (Small, Medium Enterprises) convention will be held in New Delhi from 22ndto 24th April, 2018. It has been organised by Ministry of Micro, Small & Medium Enterprises. It aims to provide platform to allow Entrepreneur to Entrepreneur (E2E) exchange of ideas, free and fair business discussions, mutual sizing of opportunities and ways to address them.
The four day International SME convention will see participation of 150 participants from 31 countries and 400 entrepreneurs from India. It has specific focus on inclusion of MSMEs in Make in India program and empowering women entrepreneurs.
The Ministry of MSME has engaged with over 35 International Trade Development organisations to attract and invite able and willing entrepreneurs and encourage people to people (P2P) contact with select Indian Entrepreneurs from key sectors of the International counterparts.
India is home to more than 60 million MSMEs, majority of which are in low-tech areas and serve local domestic markets. The MSMEs sector constitute single largest employer after Agriculture sector in India. Highly developed economies have banked on their SMEs for both GDP Growth as well as higher employment resulting in higher per capita incomes. In India, small percentage of SMEs have ability to derive access to International Markets, with vast majority of enterprises working as ancillaries.