'SMEs to play key role in export growth of chemical industry'

Small and medium enterprises are expected to play a vital role in the export growth of chemical industry, Union Commerce Minister Nirmala Sitharaman said here today.
Addressing a function, she stressed the need to have a strategy to enhance export competitiveness of SMEs through capacity building, cheaper credit and better marketing.
On the occasion, Sitharaman presented CHEMEXCIL awards to the winners of export performance in various categories during the last four years.
Lauding the export performance of the domestic chemicals and dyes industries, she also stressed on the need to enhance the SME space across entirety of its value chain.

"It is essential to have a strategy to enhance export competitiveness of SMEs through capacity building, cheaper credit, better marketing, robust infrastructure, technology and nurturing innovation and skill development and putting in place conducive environment for their growth," she said.
The minister said the central government has initiated an all out efforts to nurture budding entrepreneurs across sectors.

"Steps such as 3 per cent interest equalisation scheme and enhanced duty drawback rates have been implemented to push the exports. Under Merchandise Exports from India Scheme (MEIS), the government has announced additional incentives of Rs 3,000 crore to several products," the minister said.

The exports of products under CHEMEXCIL, which include basic chemicals, dyes and cosmetics, grew by 13 per cent in volume during April-November 2015 and have shown positive growth in fiscal 2014-15 despite sluggish conditions globally, she said.
CHEMEXCIL, as an export promotion council under the Ministry of Commerce and Industry, is the catalyst in bringing Indian exporters and overseas importers together, thereby helping strengthen business relations between Indian and foreign buyers, Sitharaman said.
(REOPENS DCM63)
Sitharaman said that around 90 per cent of world
merchandise trade and services involve credit, guarantee or insurance.
"Over 90 per cent of India's merchandise exports are made on short term credit i.E. Less than 360 days. Engineering goods, chemicals, pharmaceuticals, textiles, garments, diamonds and leather account for a substantial share of exports," she said.

ECGC's role is very vital in handholding exporters in the trying times because exports have seen a continuous decline over several months, she added.
"We have to look for newer markets which maybe in Africa or in Latin America and it is for ECGC to stand by the exporters to assure them that they are not going to face any risk," Sitharaman said.
During the event, President Pranab Mukherjee unveiled a logo marking 60 years of ECGC and the commerce minister launched a stamp.