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Evolution of Policy Support
Central Government Policies
Period | Key Interventions | Outcomes |
|---|---|---|
Pre-2000s
| Reserved products, limited market exposure | Export insulation; low global competitiveness |
2000–2010 | Withdrawal of product reservations, Credit Linked Capital Subsidy, EPCG Scheme, Export Credit Guarantee | Tech upgrades, capital investment in MSMEs |
2010–2020 | Atmanirbhar Bharat Package - RoDTEP Scheme - Udyam Registration Portal - CHAMPIONS Portal - ODOP Initiative - PLI schemes | Export enablement, digitisation, product branding at district level |
Post-2020 | MSMED Act, NSIC, MSE-CDP, SFURTI, Market Development Assistance | Cluster development and product diversification |
Policy Support for Indian MSME Exports: Evolution, Impact, and Growth Metrics
India's Micro, Small, and Medium Enterprises (MSMEs) are a vital engine of economic growth, contributing 30% to GDP and nearly 48% to the country’s exports as of FY2023. Over the past two decades, both the Central and State governments have significantly enhanced policy frameworks to foster export growth, facilitate formalisation, and ease access to credit for MSMEs. This note outlines the evolution of these policies and measures their impact using key metrics.
Policy Support for MSME exports
State Government Support
States like Gujarat, Tamil Nadu, Karnataka, Telangana, and Maharashtra have launched dedicated MSME export promotion policies, including:
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Export facilitation centres
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Land and electricity subsidies
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Dedicated export parks and logistics hubs
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Special incentives for tech exports, women entrepreneurs, and rural clusters
Export Penetration of MSMEs
Metric | FY2015 | FY2023 | Growth |
|---|---|---|---|
MSME Share in Total Exports | ~43% | ~48% | +5 percentage points |
Value of MSME Exports | ~$147 billion | ~$235 billion | ~60% increase |
Registered Exporting MSMEs (DGFT) | ~3.5 lakh | ~7.8 lakh | ~2.2x increase |
Source:
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Ministry of MSME Annual Reports (2022–23)
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Press Information Bureau (PIB), Govt of India
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DGFT Data Reports, 2023
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Export Preparedness Index (NITI Aayog, 2023)
Growth in Credit Disbursement to MSMEs
Metric | FY2015 | FY2023 | Growth |
|---|---|---|---|
Total Credit to MSMEs | ₹11.5 lakh crore | ₹23.2 lakh crore | ~102% increase |
Credit via SIDBI, PSBs, MUDRA | ₹1.7 lakh crore | ₹6.2 lakh crore | ~3.6x increase |
ECLGS Disbursement (2020–23) | — | ₹3.6 lakh crore | N/A |
Source:
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RBI Financial Stability Reports
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SIDBI MSME Pulse Reports (2023)
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Ministry of Finance (ECLGS Dashboard)
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CRIF HighMark MSME Credit Insights (2023)
Formalisation of MSMEs
Metric | FY2020 | FY2024 | Growth |
|---|---|---|---|
Units with PAN/GST | ~25% | ~68% | Growing tax compliance |
Registered Exporting Units | ~3.2 lakh | ~7.8 lakh | Digitisation-driven growth |
Udyam-Registered MSMEs | 1.3 crore | 3.5 crore+ | ~2.7x increase |
Source:
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Udyam Registration Portal (Ministry of MSME, 2024)
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DPIIT Ease of Doing Business Dashboard
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MSME Sambandh & Sampark Platforms
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Parliamentary Questions (Lok Sabha, 2024)
Conclusion
India’s policy evolution for MSME exports has moved decisively from protectionist reservation toward global competitiveness and formalisation. With significant increases in export value, financial access, and unit registration, Indian MSMEs are better positioned to participate in global value chains. Further focus on digital trade enablement, green manufacturing, logistics and innovation ecosystems will be critical in achieving India’s target of $1 trillion in exports by 2030.
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