New Delhi, February 23 The government will fund a significant portion of the costs incurred by micro and small exporters to obtain international approvals for complying with regulations such as REACH and CBAM in Europe, in order to help them boost shipments, Commerce and Industry Minister Piyush Goyal said on Monday.
This support is being provided to these exporters under the Rs 25,060 crore Export Promotion Mission (EPM).
Under the mission's Trade Regulations, Accreditation and Compliance Enablement (TRACE) measure, support will be provided to exporters in meeting international testing, inspection, certification, and other conformity requirements.
Partial reimbursement of up to 75 per cent will be provided for eligible testing, inspection, and certification expenses, subject to an annual ceiling of Rs 25 lakh per Importer-Exporter Code (IEC).
"In the export promotion mission, we have provided funds so that wherever you require to get approvals internationally, particularly for micro and small units, the government will fund your approval process, no matter how expensive it is.
"A significant portion of this will be funded by the government to support micro and small industries, particularly whether it is the REACH regulation of Europe...whether it's the CBAM verification to reduce the cost of the carbon border adjustment mechanism tax or duty in Europe," he said here at the national quality conclave.
He said this move will help exporters deal with non-tariff barriers and tap into new export markets.
REACH is an EU regulation that deals with the manufacture and import of chemical substances.
On the other hand, CBAM (Carbon Border Adjustment Mechanism) is an import duty on products whose manufacturing processes involve carbon emissions, such as iron and steel.
The minister also said that India's global outreach will receive a significant boost through the nine free trade agreements (FTAs) that India has finalized in the last four years.
Goyal appealed to labor-intensive sectors, clusters, and MSMEs to focus on process and product improvement, skilling and reskilling the workforce to take significant advantage of these agreements.
India has finalized trade deals with the European Union, New Zealand, Oman, and the UK.
Further, he suggested companies to focus on five pillars to improve quality. This includes following standard operating processes for production, skilling, testing, and certification, and shared infrastructure.
"There should be continuous inspection and control over production processes so that quality is ensured from the raw material stage until the finished product is sold in the market domestically or internationally," he said, adding that skilling the workforce is important to reduce wastage.
Regarding India's exports, he said that India will be able to achieve a USD 2 trillion target for exports of goods and services in the next 6-7 years. Earlier, the target was set for 2030.
"This year also, our exports are on a growth trajectory. In the first two weeks (February 1-14), we have seen double-digit growth in our exports," he said.