Government announces seven measures to help boost e-commerce exports

The government on Friday announced seven measures including credit assistance for ecommerce exporters and support for alternative trade instruments with an aim to promote the countrys outbound shipmentsThese measures are part of the Rs 25060crore export promotion mission Out of 10 components of the mission three have already been rolled out in January To support exporters using digital channels the commerce ministry announced credit facilities with interest subvention and partial credit guaranteesThe Direct ECommerce Credit Facility will provide support up to Rs 50 lakh with 90 per cent guarantee coverage The Overseas Inventory Credit Facility will extend support up to Rs 5 crore with 75 per cent guarantee coverage and an interest subvention of 275 per cent will be available subject to an annual ceiling of Rs 15 lakh per applicant the commerce ministry saidTo promote export factoring as an affordable working capital solution for MSMEs an interest subvention of 275 per cent will be provided on the factoring cost for eligible transactions undertaken through RBIIFSCArecognised entitiesAssistance is capped at Rs 50 lakh per MSME annually and will be processed through a digital claim mechanism to ensure transparency and timely disbursal To support emerging export opportunities the ministry said this intervention enables exporters to access new or highrisk markets through sharedrisk and credit enhancement instruments such as Letters of Credit confirmation and negotiationFor Trade Regulations Accreditation and Compliance Enablement TRACE support will be extended to exporters in meeting international testing inspections certifications and other conformity requirements Under this partial reimbursement of 60 per cent under the Positive List and 75 per cent under the Priority PositiveList will be provided for eligible testing inspection and certification expenses subject to an annual ceiling of Rs 25 lakh per IEC import export code Facilitating Logistics Overseas Warehousing and Fulfilment FLOW will enable exporters to access overseas warehousing and fulfilment infrastructure including ECommerce Export Hubs integrated with global distribution networks it saidUnder this an assistance of up to 30 per cent of the approved project cost will be provided for a maximum of three years subject to prescribed ceilings and MSME participation norms For exporters from northeastern and hilly regions Logistics Interventions for Freight and Transport LIFT was announcedLIFT mitigates geographical disadvantages faced by exporters in remote hilly northeastern and landlocked districts Under this there will be partial reimbursement of up to 30 per cent of the eligible freight expenditure subject to a ceiling of Rs 20 lakh per IEC per financial year Financial assistance will also be extended for an integrated Support for Trade Intelligence and Facilitation INSIGHTIt is generally limited to 50 per cent of project cost with up to 100 per cent support for proposals from central and state Government institutions and Indian Missions abroad subject to notified ceilings Through these coordinated financial and ecosystem interventions the government aims to reduce the cost of capital diversify trade finance instruments enhance compliance readiness address logistics constraints and strengthen overseas market integration for MSMEsThis story has been sourced from a third party syndicated feed agencies Midday accepts no responsibility or liability for its dependability trustworthiness reliability and data of the text Midday managementmiddaycom reserves the sole right to alter delete or remove without notice the content in its absolute discretion for any reason whatsoever