Khadi exports can boost India’s MSME sector

The Dollar Business Bureau India’s export of Khadi products was Rs 28.44 lakh during 2013-14, down by more than 50% as compared to the figure registered a year ago. During the financial year 2012-13, the export of various Khadi products crossed Rs 59 lakh, almost five times higher than the total export worth Rs 11.92 lakh a year ago, revealed a government data. However, the country has recorded significant growth in the production, sales and employment during the preceding years, the Minister of State, Micro, Small and Medium Enterprises (MSME), Giriraj Singh said in a written reply to a question in the Lok Sabha on Monday, according to a PIB release. Major Khadi items exported by India include silk and muslin, readymade garments, textile-based handicraft and charkha. Of the total international trade last year, the export of readymade garments was the biggest contributor, registering Rs 20.15 lakh. The export of the same item was to the tune of Rs 32. 50 lakh in the financial year 2012-13, the data said. Besides, India also exported silk and muslin worth more than Rs 26 lakh in 2012-13, which declined by ten times during last year and touched mere Rs 2.61 lakh. Apart from the UK and Canada, countries of the Arab world were major importers of Indian readymade Khadi garments, while Italy, Australia and Poland imported mainly silk and muslin products last year. The US and Japan— two major importers of Indian charkha— have increased the export of the item to Rs 2.12 lakh last year from Rs 0.73 lakh a year ago, the government data said. The Ministry of MSME has been implementing various schemes for the development of the industry by setting up the Khadi and Village Industries Commission (KVIC). Having more than 900 listed exporters, the agency has been given the status of Export Promotion Council. “There is a provision of providing incentive in the form of 5% FOB value of direct export of khadi products. Besides, KVIC has also been focusing on quality participation in international exhibitions and buyer-seller meets abroad to tap emerging markets for khadi products,” Singh said. The Ministry of MSME conducts nation-wide census to monitor the growth in MSME sector in the country. As per the latest census carried out with the base reference year 2006-07, the sector registered 28% growth by adding more than 250 lakh enterprises since 2001-02. The country recorded 12.44% growth rate in terms of new units established during 2007-08 to 2013-14. Various government schemes related to credit, infrastructure development, technology upgradation, marketing, entrepreneurship and skill development have helped the sector in the past five-six years.    

This article was published on April 20, 2015 – 7:05 pm IST.