In a bid to enable the MSMEs (Micro, Small and Medium Enterprises) to import technology and equipment from USA, the Export Import (Exim) Bank of India has signed a Master Guarantee Agreement with the Exim Bank of USA.
T V Rao, director (Eximius centre) of Exim Bank of India, said, “Exim Bank of India caters to the requirement of the MSMEs in multiple ways by facilitating them to move up the value chain and to make them internationally competitive. We have signed a Master Guarantee Agreement with the US-Exim Bank which would enable the Indian MSMEs to import technology and equipment from USA.”
Besides, Exim Bank has also launched the Grassroots Business Initiative to create export capabilities for entrepreneurs at the grassroots level in the rural areas, thereby enhancing the purchasing power of the people at the bottom of the pyramid.
“Apart from being an export finance institution, Exim Bank seeks to create export capabilities and international competitiveness with particular focus on the MSMEs. In addition, the bank seeks to help the MSMEs to establish their products overseas and enter new markets by assisting them in locating overseas buyers and partners for their products and services.”
He was speaking at a workshop on 'Institutional Initiatives for MSMEs', organized recently by Exim Bank of India and the Utkal Chamber of Commerce and Industry (UCCI), here recently.
Talking on the initiatives of the Government of India for the MSMEs, Rao said, “The Union Budget for 2010-11 has increased the budgetary allocation for the MSMEs from Rs 700 crore to Rs 2400 crore. The Centre is also planning to make it mandatory for the PSUs to procure at least 20 per cent of their total requirement from the MSMEs and this step is estimated to benefit MSMEs to the extent of Rs 3400 crore.”
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Speaking on the occasion, Niranjan Mohanty, past president of UCCI said, “There needs to be greater awareness on laws and procedures for the MSMEs not just among the entrepreneurs but also among the bureaucrats. The exporters in the MSME sector are also hit by the constraints of the Paradeep port which does not handle containers.”
C H Narasimha Rao, chief general manager, State Bank of India (SBI)-Bhubaneswar circle and S Srinivas, general manager, Exim Bank of India also spoke on the occasion.