To give more push to the export sector, union finance minister Nirmala Sitharaman on Saturday proposed a new scheme called Niryat Rin Vikas Yojana (Nirvik) scheme.
“To achieve higher export credit disbursement, a new scheme NIRVIK is being launched which provides for high insurance cover, reduction in premium for small exporters and simplified procedures for claim settlements,”
-she said while presenting Budget 2020-21.
The scheme is being prepared by the commerce ministry.
Under the scheme, also called the Export Credit Insurance Scheme (ECIS), the insurance guaranteed could cover up to 90 per cent of the principal and interest.
The ministry has also proposed to subsidise the premium under the scheme that has to be paid by exporters of certain key sectors. The Export Credit Guarantee Corporation currently provides credit guarantee of up to 60 percent loss.
Also, the government is proposing to develop each district as an export hub.
“The government’s e-marketplace has a lot of opportunities for SMEs. A total allocation of Rs 27,300 crore for development of industry and commerce in FY21,”
– The finance minister said.
Among other announcements, the government highlighted the humongous scope of the electronics industry. Nirmala Sitharaman proposed to encourage the manufacture of mobile phones, electronic equipment, and semiconductor panels for higher exports.
Meanwhile, mobile handset exports from India have more than doubled in the first eight months of the current fiscal year. This is on top of a 132 per cent growth rate in the last fiscal as well. The overall exports of mobile handsets from India were USD 2.6 billion in FY19, which has reached nearly USD 3 billion till November in the current fiscal, according to the Department of Commerce.