For MSMEs, it’s simple to conduct business: The MSMEs of both nations would benefit the most from the India-UAE trade pact, according to Piyush Goyal, who highlighted it.
Ease of doing business for MSMEs: Piyush Goyal, the minister of commerce, has urged major corporations in the nation to take charge of helping MSMEs, aiding them in adopting best practices in enterprises, and integrating them into the supply chain ecosystem. MSMEs typically develop around a larger unit or an anchor firm, the minister said on Monday at the fourth plenary session of the B20 India Inception Meeting on Building Resilient Global Value Chains.
Goyal used Apple as an example, stating that when the company’s production facility is built, thousands of other MSME businesses thrive in the ecosystem as small value-chain suppliers to the business. “MSMEs are more equipped to react to conditions than large firms since they have more practical answers, daily experiences, and have learned the hard way.”
In addition, Goyal asked major corporations to support MSMEs that are connected to them by being more sensitive to them. We must also make it easy for small businesses to run, do away with pointless paperwork, streamline specialized procedures, and use technology to streamline and ease operations.
In order to promote MSMEs, the minister also discussed how the nation must develop into a major commercial hub. He recommended research on Singapore in order to comprehend its significant function as a trade hub and to develop a fundamental framework to assist MSMEs based on the study. The creation of infrastructure and resolving logistical issues may be included. Trust, which is the most crucial component of any value chain, local or international, is what MSMEs bring to the table, according to Goyal.
The minister’s remarks are made against the backdrop of trade agreements with the UAE and Australia that were inked last year in an effort to lower or eliminate trade obstacles, notably import tariffs for MSMEs and other firms.
Goyal stated that the MSMEs of both nations will benefit the most from the Comprehensive Economic Partnership Agreement (CEPA) between India and the United Arab Emirates. In order to make the most of CEPA, India is in talks with some of the bigger corporations in the UAE.
According to the FY22 Economic Survey, China ranked third and the UAE came in second place among India’s main export destinations in 2021–2022 after the US. About $26 billion worth of Indian goods is sent to the UAE each year. Similar agreements are being discussed, in addition to the two nations, with the United Kingdom, the European Union, Canada, Israel, and the Gulf Cooperation Council (GCC), a grouping of six Middle Eastern nations, including Saudi Arabia, Kuwait, Bahrain, Oman, Qatar, and the United Arab Emirates.