‘Interest of MSMEs should be taken care of in free trade agreements’

New Delhi, October 3 (Mayank Nigam) Stressing that the interest of MSMEs should be taken care of in free trade agreements (FTAs), Engineering Export Promotion Council (EEPC) of India has asked the government to increase export benefits under RoDTEP to ensure the sector does not suffer in the long run. “MSME sector had suffered the maximum in previous FTAs. Interest of MSMEs should be taken care in FTAs,” said EEPC India Chairman Mahesh Desai. India is in talks with various countries such as UK, UAE, Australia and Canada to have FTAs to provide market access to businesses from both sides. The government has asked all the stakeholders to share their inputs and suggestions. Desai said that now the only export benefit scheme is Remission of Duties and Taxes on Exported Products (RoDTEP) and in that too the duty refund rate is not substantial. “We have taken up the issue with the Commerce and Industry Ministry so that the issue could be addressed in the new trade policy and industry does not suffer in the long run,” he said.

The export promotion council has also urged senior Commerce Ministry officials to take inputs from exporters in small towns and cities to accommodate their demands in the forthcoming Foreign Trade Policy (FTP) which is expected to kick in from April 1, 2022. Speaking to UNI, EEPC India Chairman said that Commerce Secretary is likely to visit tier-II centres such as Jalandhar and Ahmedabad to take inputs from small players. “Commerce secretary is likely to visit tier-II centres also. Usually they go to Mumbai, Kolkata, Delhi and Chennai. Now, this time we have requested him to come to Jalandhar, Ahmedabad, other cities to get inputs from MSME sector,” he said. Noting the role of MSMEs in exports and job creation, Desai said that government should come up with schemes to help small players in getting access to new technology and raise their efficiency and production. “For MSMEs, there should be scheme for upgradation of technology, innovation, quality and standards. If you have to make internationally acceptable products your quality and standard should be of international level,” he said. “We need a lot of helping hand from the government. They can come in the form of various schemes,” Desai added.