The host of policy initiatives taken by the Uttar Pradesh government through one-district-one-product (ODOP) has given tremendous boost to agri-rural based industries and youths to become job providers from job seekers.
Huge job losses/closure of large number of micro, small and medium units due to COVID-19, has now pushed the youths, craftsmen, and enterprising farmers of the state to start their own micro ventures under the various schemes of ODOP.
The quick survey carried out by the MSME Export Promotion Council along with the knowledge firm BillMart Fintech has revealed that these enterprises are not only playing a crucial role in providing large scale employment opportunities at lower capital cost, but are becoming effective for industrialization of rural and backward areas thereby reducing regional imbalance, assuring more equitable distribution of national income and wealth.
The survey presented to the Chief Minister, Shri Yogi Adityanath by MSME EPC Chairman, D S Rawat says these enterprises are proving supplementary and complementary to large and medium scale units as ancillaries.
The Chief Minister asked the MSME EPC to assist the MSMEs to go-global so that they could enlarge their share in the export market. Already, MSME industries constitute an important segment of the state’s economy in terms of employment generation and as a source of foreign exchange earnings and almost 65 per cent of the total industrial output.
In a statement issued here today, Rawat said, MSME EPC and BillMart have decided to adopt one district to work for the MSMEs and start-ups as a “pilot project” by equipping them to take competitive and timely credit for growth of their businesses. They will also be provided technological skill to connect with buyer/seller, technology and credit providers.
These two organizations will promote trade finance with a view to introduce a third-party to transactions to remove the payment risk and the supply risk. Underlining the need for trade finance, Rawat stated that trade finance provides the exporter with receivables or payment according to the agreement while the importer might be extended credit to fulfill the trade order.
India’s trade finance is estimated to be USD 2.75 billion in 2022 and expected to cross USD 3.90 billion by 2027 growing at a CAGR of over 7 per cent.
According to the Allied Market Research, global trade finance market size was valued at $44,098 million in 2020 and is projected to reach $90,212 million by 2030. Registering a CAGR of 7.4 per cent from 2021-2030.
It may be mentioned trade finance includes issuing letters of credit (LCs), receivables & invoice finance, credit agency, export finance, bank guarantees and insurance. It is used by traders, buyers, sellers, manufacturers, importers, and exporters to ease financing activities and deal with cash, credit, investments, and other assets for trade purposes.
Rawat said, the key advantage of trade finance is that it facilitates easy way to arrange short-term finance and integration of block chain technology in trade finance is expected to provide lucrative trade finance market opportunity during the forecast period.