What Are Export Prospects?

Export Prospects:

       The small scale sector in India now produces a wide range of products, from simple consumer goods to such sophisticated products as scientific & precision instruments, hearing aids, electronic components, tape recorders, television sets, etc. with a lower level of labour costs than in Western countries, India enjoys an advantage in exporting both traditional & non-traditional labor-intensive products. This apart, there is a favourable climate for SSI exports in foreign markets because frequent wage hikes & pollution hazards in industrialized countries tend to favour imports from developing countries, particularly the import of SSI products.

        In order to promote exports, the government has drawn up a number of schemes for promotion of exports from the SSI sector, which include organization of specialized training programmes on packaging for exports in collaboration with the Indian Institute of Packaging, Mumbai, assistance to SSI units for participation in the international & internal exhibitions, dissemination of export information at the doorstep of SSI units through Technological Information Promotion Systems (TIPS) & incentives for quality production in SSI sectors.

         In order to strengthen the export production base, manufacturers of items reserved for SSI sectors are permitted to increase their capacity by way of investment in plant & equipment beyond Rs 75 lakh provided they undertake a minimum export of 75% of their annual production.

         The new revised export & import policy extends equal opportunity to small & medium exporters. Bulk of the country’s exports; in terms of value, are taking place through export/trading/star trading/super star trading houses, such status is granted on the basis opf prescribed export performance level & all exporters, including small & medium exporters, are extended equal treatment.

          If the status is claimed in terms of FOB value of exports, double weightage is given to export of products manufactured by Small Scale Industry (SSI), handloom & handicrafts including sports goods, hand-knitted carpets & silk products.

          If the status is claimed in terms of Net Foreign Exchange (NFE) earned, double weightage is given to the export products manufactured by SSI & triple weightage is given to the NFE earned on the exports of hand-knitted carpets & silk products manufactured by the handloom & handicrafts sectors.

          Such status holders are extended equal treatment for getting transferable special import licence valid for the import of specified items of negative list of import. Under the duty exemption scheme, SSI units have been extended the facility to give the bank guarantee wherever applicable, at 50% of the normal requirement.