As of September in the current fiscal year, Micro, Small, and Medium Enterprises (MSMEs) accounted for 45.56% of India’s exports, according to government data. Despite the overall growth in India’s exports, the share of MSME-related products in the country’s total exports has been decreasing year-on-year. The Minister of State in the MSME Ministry, Bhanu Pratap Singh Verma, reported this decline in a written reply to the Rajya Sabha. Notably, India’s combined merchandise and services exports experienced a negative growth of 2.97% from April to September 2023 compared to the same period in the previous year.
B. Declining Trend in MSME-Related Exports
The share of MSME-specified products in India’s total exports has been consistently diminishing over the years. Starting at 49.77% in FY20, it declined to 45.56% in September FY23. This trend saw successive reductions from 49.35% in FY21 and 45.03% in FY22. Although the value of MSME exports increased to $190 billion in FY22 from $143.9 billion in FY21 and $154.8 billion in FY20, the declining share is noteworthy.
C. Challenge in Distinguishing MSME Exports
The data also revealed challenges in accurately distinguishing MSME-related exports. Prafulla Chandra Mishra, Former Statistical Advisor at the Directorate General of Foreign Trade, noted the difficulty in exclusively identifying MSME exports based on tariff codes. The share of items reserved for MSME manufacturing in India’s total exports declined from 9.1% ($26.4 million) in FY21 to 7.7% ($32.6 million) in FY22, highlighting complexities in tracking and differentiating these exports.
Gujarat’s Role in GST Expansion
Gujarat Finance Minister Kanu Desai and State GST department officials attended the event marking the opening of GST Suvidha Kendras in 12 cities across Gujarat. The move aligns with the broader goal of expanding GST coverage and ensuring a transparent tax system that benefits both businesses and the nation. October 2023 witnessed the second-highest GST revenue collection, underscoring the continued success of the GST framework.
