Navigating the export maze for MSMEs

Micro, small, and medium enterprises (MSMEs) constitute nearly half the country's total exports, contributing approximately 33 per cent to its GDP.

However, the facilitation of these exports is primarily orchestrated by significant export houses, mainly due to two key factors: Scarcity of market information and deficiency in business contacts. The absence of a formal institutional structure in numerous MSMEs places them at a disadvantage in addressing information asymmetries. In contrast to larger corporations endowed with dedicated resources for advertising, market research, and distribution networks, MSMEs often need more financial capabilities due to their smaller scale.

Another prominent hurdle for MSMES venturing into international trade is lack of awareness regarding export procedures, documentation prerequisites, and non-tariff barriers (NTBs) applicable to their products. This knowledge deficit frequently leads to delays, escalated costs, and missed opportunities.

This information void can be bridged; a critical need exists for comprehensive and easily accessible initiatives tailored to the specific requirements of MSMEs. These initiatives may encompass workshops, webinars, online resources, and dedicated support centres. Such endeavours should offer lucid explanations of export processes, meticulous guidance on documentation requirements, and exhaustive information on NTBs and their ramifications.