In order to promote exports, the govt. has drawn up a number of schemes for promotion of exports from SSI sector which are as follows :
1. Reservation of Products. In order to strengthen the export promotion base, manufacturers of items reserved for SSI sectors are permitted to increase their capacity by way of investment in plant and equipment beyond Rs. 75 lakhs provided they undertake a minimum export of 75 percent of their annual production.
Image Source: startupdonut.co.uk/sites/default/files/Export_shutterstock_138967187.jpg
2. Free Import of Capital Goods. Free import of capital goods/raw materials and other essential inputs is allowed and in certain cases duty free or concessional rate of custom duty is allowed so that higher production for exports is ensured.
ADVERTISEMENTS:
3. Liberal Export Policy. The new revised export and import policy extends equal opportunity to small and medium exports. There are hardly any restrictions on exports of item from small scale sectors. All exporters, big or small, are granted equal status and country’s exports are taking place through export or star trading houses if they are huge in terms of value.
4. Simplification of export procedure. Export procedures have been simplified from time to time so as to support and promote exports from small scale sector. Exporters are encouraged to increase their competitive strength and to take a long-term view about international marketing.
5. Quality Control. To remove the stigma of producing low quality product, SSIs are assisted by the govt. so that their quality improves in the national and international market. Due to financial constraints, entrepreneurs are not able to set up their own laboratories to check quality control, the SIDO (Small Industries Development Organisation) has set up four Regional Testing centres at New Delhi, Kolkata, Mumbai and Chennai to provide general and product-oriented testing facilities for various products. These facilities are mainly related to mechanical, chemicals, electrical products.
6. Training Programmes: The govt. has also been supporting and providing assistance to exporters for exhibiting their products in various international exhibitions. It has also organized many training programmes on latest packaging standards, techniques etc. Not only this, govt. provides technical and managerial consultancy services to the entrepreneurs through its institutions like NSIC, SIDO, TCOs, DICs etc. Besides, govt. has also given preference to SSIS in allocation of credit through inclusion in priority sector for lending purposes, provision of row-materials, marketing support, facilities for technology upgradation etc.